AUGUSTA — The last owner of Ned’s Place, a downtown Winthrop restaurant until March 2007, must pay $30,568 restitution after pleading guilty Wednesday to failing to pay sales and withholding taxes to the state over several years.

Peter A. Hernberg, 49, formerly of Augusta and now of Waltham, Mass., pleaded guilty Wednesday in Kennebec County Superior Court to two counts of theft by misapplication of sales tax and two counts of failing to pay over taxes, all misdemeanors.

Along with the restitution — which Hernberg is to pay at a rate of $150 per month — he was sentenced to 120 days in jail, with all but 45 days suspended, then one year of administrative release.

Hernberg represented himself in court. He is to report to jail next month.

The prosecutor, Assistant Attorney General Gregg Bernstein, said the repayment schedule was based on Hernberg’s ability to pay.

“There was no disagreement that he owed this figure,” Bernstein said. “From our perspective, there is no point in setting restitution figure that’s not reasonable.

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“Even though this is not an income tax case, a central concern we have is that we don’t want people to pay such a high amount of money that they will run into tax problems later. We’d like a meaningful, good-faith amount, and we will keep tabs on him.”

Bernstein said the state brought criminal charges against Hernberg after the civil division of Maine Revenue exhausted its remedies.

“We don’t like to prosecute people because they’re having a bad year,” Bernstein said. “We work with people often for years and only prosecute when there’s nothing left to do cause they’re ignoring it.”

Bernstein said Hernberg told the court he is unemployed and assists with a partner’s day care. Hernberg also said a neck injury limited his ability to work.

Hernberg had been accused of keeping for himself the sales tax paid by customers between Dec. 9, 2004, and Feb. 14, 2007, and employee withholding taxes from 2005.

Peter and Joanne Hernberg bought the business from Ned Crockett in 2004.

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The business, which operated at 130 Main St., was under foreclosure when it failed to attract any bidders at auction in April 2007.

The building was later sold.

Betty Adams — 621-5631

badams@centralmaine.com


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