Naples man faces federal tax evasion charges

[The Operative]

Do you think this guy is a little greedy?

A 44-year-old Naples man faces charges of federal tax evasion and that he allegedly concealed information — including four felony convictions — to obtain more than $150 million in federal contracts for his former company.

Richard S. Hudec Jr., 2154 Canna Way in Grey Oaks, is charged in a federal criminal information out of Maryland with a scheme to conceal material information and tax evasion for failing to report more than $500,000 in income from USProtect Corp. on his 2002 individual tax return.

Neither Hudec nor his wife Lisa could be reached for comment at either of their Naples homes; they also own a home in The Vineyards. The case is related to another involving Holiday International Security Inc., HIS, which Hudec’s wife purchased in May 2003. The company’s name was then changed to USProtect, and by 2005, it provided armed and unarmed security guards for 18 federal agencies at 120 installations in 32 states and territories.

On Oct. 3, the company’s former owner, a former Maryland police officer, Michael B. Holiday, 50, of Silver Spring, Md., pleaded guilty to bribery and tax evasion involving more than $130 million in bribes to a federal General Services Administration (GSA) official to secure security contracts for federal buildings in Maryland and California.

Also charged that day were Hudec and the former GSA contracting official, Dessie Ruth Nelson, 65, of Oakland, Calif. She is accused of accepting more than $100,000 in bribes and a cruise from Holiday and of evading taxes on those bribes.

Nelson and Holiday up to 15 years in federal prison and a $250,000 fine, or three times the bribes’ value, while Hudec faces five years in prison. All three also face a maximum five-year prison term and a $250,000 fine for tax evasion.

Holiday’s sentencing is scheduled for Jan. 23 before U.S. District Judge Deborah K. Chasanow in Greenbelt, Md. Court dates for Hudec and Nelson haven’t been scheduled. Federal documents don’t yet list a lawyer for Hudec.

According to the criminal information:

From October 2001 through about February 2005, Hudec held various positions with USProtect that involved substantial supervisory responsibilities, including director of finance, chief financial officer, chief operating officer, and chairman. He assisted in preparing and submitting company proposals to provide security to federal agencies, including the GSA, the Social Security Administration, and the FBI.

Federal regulations mandate that any company proposing to offer services complete a certification to detail any criminal and civil fraud judgments against the company and its principals. The regulations required the submission of a certification that said within a three-year period preceding the offer, neither the company nor its principals had been convicted or had judgments involving false statements.

But as of October 2001, Hudec had been convicted of fraud in four separate federal criminal prosecutions and had numerous civil judgments for fraud and false statements against him.

Federal records show he had convictions for bank fraud, mail fraud and aiding and abetting and was sentenced to two concurrent 28-month prison terms and five years of probation. In addition to a restitution order totaling $354,000 for bank fraud, he also had civil judgments filed by the IRS, New Jersey and the victimized banks and insurance companies.

He was released from prison in February 2001. Records show he was on supervised release, which had been transferred from Philadelphia to New Jersey and then Maryland, when he was working for USProtect, and it was to expire in February 2006.

Even after the convictions, one civil judgment shows, Hudec obtained money, services or an extension or renewal of credit financing through false pretenses and fraud.

The criminal information says it was the purpose of the scheme to conceal that Hudec endeavored to induce federal agencies to award contracts to the company that resulted in lucrative compensation for himself and USProtect. Based on proposals that concealed his past, the Social Services Administration awarded his company security contracts worth more than $50 million.

Around November 2002, he assisted in preparing and submitting proposals to the GSA for contracts under the federal supply schedule, which allows federal agencies to expedite the purchase of products or services.

Beginning in September 2004, USProtect was awarded several federal security contracts, including more than $100 million in contracts to provide security to more than a dozen U.S. Air Force bases.

Around January 2004, Hudec assisted in preparing and submitting another proposal to the FBI, for security at the academy in Quantico, Va., and was awarded contracts worth $3.5 million.

As part of the proceeds of the contracts, Hudec caused the company to pay him and his wife millions of dollars in compensation and loans.

Collier County Property Appraiser records show Hudec’s home in Grey Oaks is valued at $1.24 million, while the one in The Vineyards is worth $1.11 million. Records also show he also is listed as a CEO of Origination Alternatives Inc. and Rennard Group Inc. and secretary of OAI BancServices Corp and RSRH Enterprises Inc., all in Pennsylvania. Records also show he owns a 20-foot pleasure cruiser here and is an award-winning fisherman.

http://www.naplesnews.com/news/2007/oct ... n_charges/

[grixit]

The case is related to another involving Holiday International Security Inc., HIS, which Hudec’s wife purchased in May 2003. The company’s name was then changed to USProtect, and by 2005, it provided armed and unarmed security guards for 18 federal agencies at 120 installations in 32 states and territories.

I know prosecuting Hudec is going to be a long and involved process, but i hope that the feds will immediately double check all the guards and procedures the comapny used.