Owner of SE Massachusetts landscaping business sentenced to prison after not reporting $1.5 million in income

BOSTON – The owner of a residential and commercial landscaping business operating in southeastern Massachusetts was sentenced yesterday for failing to report approximately $1.5 million in income to the Internal Revenue Service.

According to the Department of Justice, Scott Herzog, 47, of Norwell, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to a year and one day in prison, one year of supervised release and a fine of $100,000. Herzog was also ordered to pay restitution of $499,958 to the Internal Revenue Service. On June 3, 2022, Herzog pleaded guilty to one count of filing a false tax return.

Herzog owned and operated Herzog Landscape Solutions. From 2016 through 2018, Herzog received gross income of at least approximately $4.1 million from landscaping customers but provided his bookkeeper with only partial information about that income from customer payments. Herzog directed customers to pay him personally for jobs and then cashed many of these payments or deposited them into bank accounts unaffiliated with the landscaping business. Herzog then failed to report approximately $1.5 million in these receipts in the tax returns his tax preparer filed on his behalf. As a result of this conduct, Herzog underreported his personal income tax obligations, causing a loss to the Internal Revenue Service of nearly $500,000.

United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.