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Topic: Hatch Indicted on Tax Fraud (Read 6319 times)

yesteach
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Hatch Indicted on Tax Fraud
« on: Sep 8^th, 2005, 5:21pm »

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'Survivor' Winner Indicted on Tax Charges
Sep 8, 5:42 PM (ET)

By M.L. JOHNSON

PROVIDENCE, R.I. (AP) - Richard Hatch, who won $1 million on the first season of the reality show "Survivor," was indicted Thursday for failing to pay taxes on his winnings from the CBS show.

Hatch faces 10 charges, including tax evasion, filing a false tax return, wire fraud, bank fraud and mail fraud. U.S. Attorney Robert Clark Corrente said Hatch, 44, did not pay taxes on his "Survivor" prize, income from a radio show and rental income. The Newport resident also allegedly used donations to his charity, Horizon Bound, to cover personal expenses.

Prosecutors charged Hatch with two counts of tax evasion in January. He agreed to plead guilty, but backed out of the deal in March, saying he thought CBS was responsible for paying the taxes on his prize. CBS has said Hatch was well aware of his obligations to pay taxes on the money.

On Thursday, Hatch was on a plane headed for Houston to help hurricane victims at the Astrodome and could not be reached for comment, said Rod Mitchell, a spokesman for Hatch's lawyer, Michael Minns.

The grand jury, which received the case after the plea deal fell apart, indicted Hatch for filing false 2000 and 2001 tax returns, which omitted his income from the reality show, $327,000 he was paid to co-host "The Wilde Show" on a Boston radio station and $28,000 in rent on a property he owns in Newport.

The indictment said Hatch had two accountants prepare tax returns that included his "Survivor" winnings but did not file them when he learned he would owe hundreds of thousands of dollars in taxes. In 2002, he had one of the accountants prepare a second return that did not include his TV show winnings. He filed that one, which called for a $4,500 refund, the indictment said.

Hatch was also accused of misusing $36,500 from a nonprofit camp he set up, Horizon Bound. For example, he allegedly kept for himself a $10,000 donation made in return for his appearance on the NBC game show "Weakest Link." He spent the money from the game show on a construction project at his house, the indictment said.

Hatch faces a maximum of 75 years in prison if found guilty on all charges. He also could face millions of dollars in fines.

On "Survivor," Hatch stood out for being a cunning and ruthless competitor, and spent some of his time in the nude. He won the show's first season in August 2000. He has since appeared on other TV shows, most recently the "Battle of the Network Reality Stars" on Bravo.

Since the TV show, Hatch has weathered a series of legal battles. He was arrested in April 2000 on a charge of abusing his then 9-year-old son. That charge was later dropped. In 2002, Hatch was found innocent of assaulting his ex-boyfriend.

http://apnews.excite.com/article/20050908/D8CGB0FO0.html

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Re: Hatch Indicted on Tax Fraud
« Reply #1 on: Dec 22^nd, 2005, 3:52pm »

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Here's an update about Richard Hatch...

From YahooNews/Associated Press -

'Survivor' Winner Hatch Faces Jan. Trial

PROVIDENCE, R.I. - The man who won $1 million on the first "Survivor" show is facing a January trial date on tax evasion charges. U.S. District Judge Ernest Torres on Wednesday denied three motions filed by lawyers for Richard Hatch, the Newport man who sometimes competed naked on the CBS reality show.

According to a spokesman for the U.S. Attorney's office, Hatch's lawyers had asked the judge to delay the trial and force federal prosecutors to divulge how much money Hatch supposedly owes the government.

Torres scheduled jury selection for Jan. 10.

A federal grand jury indicted Hatch in September on tax evasion, wire fraud and mail fraud charges. Prosecutors say Hatch failed to pay federal income tax on his $1 million "Survivor" prize and other income.

In addition to the tax charges, federal authorities said Hatch created a charity for troubled teenagers, then used donations for his personal expenses.

Hatch has repeatedly denied the charges.

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Re: Hatch Indicted on Tax Fraud
« Reply #2 on: Jan 5^th, 2006, 9:10am »

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The latest regarding Richard Hatch's Trial from Yahoo News...

Testimony Limited in 'Survivor' Tax Trial By ERIC TUCKER, Associated Press Writer

PROVIDENCE, R.I. - The accountant for "Survivor" winner, Richard Hatch, who is charged in federal court with failing to pay taxes on his $1 million winnings and other income, can't testify about Hatch's accounting abilities or other tax problems which can result from a sudden change in income, a judge said Wednesday.

Daniel Urso was expected to testify for the defense in Hatch's upcoming trial that the reality show winner had lousy bookkeeping abilities and was not good at keeping track of his expenses.

Hatch's attorney, John MacDonald, said the subject was important to the case since the government needs to prove that Hatch deliberately shirked his tax obligations.

"It goes ultimately for a jury to decide, the issue of willfulness," MacDonald said.

Hatch has pleaded innocent to charges of tax evasion, filing a false tax return, wire fraud, bank fraud and mail fraud.

But federal prosecutors said the question for the jury will be simply whether Hatch knowingly filed false tax returns, and argued in U.S. District Court in Providence that Urso shouldn't be called as an expert witness.

"What may or may not be his accounting or bookkeeping abilities is really irrelevant to that question," said assistant U.S. Attorney Lee Vilker.

U.S. District Judge Ernest Torres agreed with prosecutors, saying the case was not about bookkeeping. But Torres denied prosecutors' request to prevent Urso from testifying that the 2000 and 2001 tax returns filed by Hatch were incorrectly prepared by his accountant at the time, or that Hatch had been working to fix his tax problems by filing amended returns for those years.

Urso, a longtime accountant who has prepared thousands of personal tax returns, has reviewed Hatch's 2000 and 2001 returns, but was not his accountant at the time. He has worked with Hatch to prepare corrected returns for those two years, but has been stymied by a lack of cooperation from Hatch's prior accountant, lawyers said.

Jury selection in the trial was scheduled for Tuesday. Besides the "Survivor" winnings, Hatch is also accused of omitting $327,000 he was paid to co-host a radio show and $28,000 in rent on a property he owns in Newport from his 2000 and 2001 tax returns. He is also accused of misusing $36,500 in donations to his charity, Horizon Bound, to cover personal expenses.

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lakelady
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Re: Hatch Indicted on Tax Fraud
« Reply #3 on: Jan 13^th, 2006, 8:54am »

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Richard Hatch Trial Begins, Mark Burnett Testifies
by David Bloomberg -- 01/13/2006
RNO

The trial of Survivor 1 winner Richard Hatch has begun with opening statements from the prosecution and defense. What evidence does the prosecution have that it believes will show Hatch is guilty? What is the defense strategy? And what did Survivor producer Mark Burnett have to say on the stand?

Richard Hatchs jury is set, but this time hes not facing Kelly and the jurors wont be the ones asking the questions. That means no snakes and rats speech at least not from Susan. The prosecutor might find something similar to say, though, about a man accused not only of failing to pay his taxes, but also of diverting money that was supposed to go to his charitable foundation.

The prosecution and defense both made opening statements on Thursday in Hatchs trial for allegations of failure to pay taxes on his million-dollar Survivor prize and other income, plus the charge of altering checks made out to Horizon Bound, the charitable foundation, so he could have more money to use in renovations on his own property. Also, the first prosecution witnesses took the stand, including none other than Survivor producer Mark Burnett.

The prosecution alleges that that Hatch knowingly failed to report the prize and other income on his taxes, thus avoiding over $200,000 is payments to the IRS and even asking for a $4500 refund that year. The evidence will show that not only did he fail to report those earnings on his tax returns, but that he acted willfully, the prosecuting attorney said. Prosecutors say Hatch filed false tax returns for both 2000 and 2001, and that the 2000 return was filed after Hatch asked an accountant to run the numbers without the prize from Survivor. Prosecutors allege that the accountant made up the analysis for comparison purposes only, but Hatch filed it anyway. If they can prove this to be the case, it would seem to negate any possible claims that this was all a big mistake.

But that might not stop Hatchs defense attorney, Michael Minns, from trying to make that claim anyway. Minns said Hatch himself would take the witness stand down the road, but we got a glimpse into what Hatchs defense strategy would be through Minns opening statements.

Minns argued that Hatch was simply struggling with a combination of his newfound fame and the false child abuse charges that had been leveled against him when he returned home from the Survivor taping. Furthermore, Minns said, Hatch was relying on an accountant who was in over her head.

He followed this up by claiming, Richard Hatch is not a stupid man. He is the worlds worst bookkeeper, bar none.

Most people who have seen Hatch in action would agree at least with the first part Hatch is not a stupid man. But is this trial really about bookkeeping? It seems the allegations related to the charity could be. Hatch, or those speaking for him, has previously indicated that the charity issues were a mistake due to bookkeeping problems. But what about the tax issues? If true, failing to report a huge chunk of money that millions of people say him win on TV seems to go far beyond bookkeeping and potentially into the realm of stupid. Or perhaps into the realm of thinking he could get away with it.

Among earlier claims Hatch made in this case, when he pulled out of an earlier plea agreement was that he believed CBS was supposed to pay the taxes on his million-dollar prize. Is that bookkeeping too? It seems to me that should not be something taken for granted. If there was a question, why not request clarification?

In any case, Mark Burnett took the stand to testify that Hatch signed an agreement before Survivor began that stated Hatch would be responsible for paying taxes on all his winnings. While we dont yet know exactly how the defense will rebut such claims, one logical course of action would be for Hatch to say he signed lots of multi-paged documents, contracts, and the like before Survivor, and couldnt be expected to remember everything.

The key upcoming testimony would seem likely to be that of the accountant who prosecutors say filled out different tax returns one with the winnings, one without. As the trial progresses, be sure to keep checking RealityNewsOnline for the latest updates.

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In Second Day, 'Survivor' Trial Focuses on Charity
« Reply #4 on: Jan 14^th, 2006, 11:12am »

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Things are just getting worse for Rich Hatch. From the Boston Globe/Associated Press...

In Second Day, 'Survivor' Trial Focuses on Charity
January 13, 2006

PROVIDENCE, R.I. --A charity bank account that should have held thousands of dollars had less than $200, the former live-in boyfriend of "Survivor" winner Richard Hatch testified Friday in the reality TV star's tax fraud trial.

Mark Ranslem of Boston, who lived with Hatch from October 2001 to May 2002 and helped run Hatch's charity, Horizon Bound, said he saw a bank statement for the charity in early 2002, more than a year after a television production company contributed $25,000 to it.

"It was nothing more than just a small amount in there, probably just to keep the account open," he said.

Hatch, 44, is accused of failing to pay taxes on the $1 million prize he received for winning the first season of the hit CBS reality show, as well as on other income. He is also accused of misusing money given to Horizon Bound.

Hatch has said he wanted Horizon Bound to give troubled teenagers a chance to experience the wilderness, but the charity never ran any trips under his supervision, despite raising tens of thousands of dollars.

Prosecutors showed jurors a copy of the $25,000 check, which Hatch altered to add his name after the name of the charity. The check was for work Hatch did on a pilot for a TV show, "For Goodness Sake!"

Donna Manning, a manager for Newport Federal Savings Bank, testified that Hatch initially deposited the check by ATM into his personal account, but the bank did not clear it because it was written out to Horizon Bound.

Later, Hatch added his name as a payee and deposited it into his personal account at People's Credit Union in Middletown.

Hatch's lawyer, John MacDonald, said Hatch deposited the check in his own account because he was waiting to receive a taxpayer identification number for the charity from the federal government.

Hatch is expected to testify in his own defense. The trial is scheduled to resume Tuesday with the prosecution calling more witnesses.

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Contractor Testifies in 'Survivor' Trial
« Reply #5 on: Jan 19^th, 2006, 4:43pm »

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Contractor Testifies in 'Survivor' Trial
from YahooNews

PROVIDENCE, R.I. - Federal prosecutors wrapped up their case Thursday in the tax evasion trial of "Survivor" winner Richard Hatch.

A contractor testifying for the government said he built a home office and installed hardwood floors and new cabinets in the kitchen of Hatch's Middletown home, among other improvements.

Contractor Tim Downes also told jurors that he repaired the roof and installed skylights in a Newport home Hatch rented to college students.

Prosecutors say Hatch failed to pay taxes on his $1 million prize from the show and used $26,000 in donations made to Horizon Bound, a now-defunct charity he founded, to pay for the contractor's work.

On Wednesday, Internal Revenue Service Special Agent Jason Rameaka testified that Hatch used the charity's bank account to write checks to friends as Christmas gifts and pay for cleaning bills. He drained all but $100 from the account, Rameaka said.

Hatch's lawyer, Michael Minns, has previously said Hatch spent more of his own money setting up Horizon Bound than he ever received in donations. He said Hatch was a bad book keeper, not a con man.

Michael Pleshaw, an IRS auditor, said Hatch owed almost $376,000 in taxes in 2002 when he won the $1 million prize. Instead, Hatch filed a return omitting the prize money and claiming a $4,483 refund.

The following year, Pleshaw said Hatch should have paid about $99,000 in income taxes, but the reality TV star filed for a $44,874 refund.

Defense lawyers were to begin calling their first witnesses later Thursday, and Hatch is expected to testify in his own defense by Friday.

(Yes, but will he be naked? - MS)

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Lawyer: 'Survivor' Producers OK'd Taxes
« Reply #6 on: Jan 20^th, 2006, 1:42pm »

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Oh my. This is getting interesting!

Lawyer: 'Survivor' Producers OK'd Taxes
from YahooNews/AP

PROVIDENCE, R.I. - Richard Hatch's lawyer said Friday that the "Survivor" winner caught his fellow reality-show contestants cheating, and when he told producers about it they struck a deal: They would pay the taxes on the million-dollar prize if Hatch won.

During a break in Hatch's testimony, his attorney, Michael Minns, told U.S. District Judge Ernest Torres of his plans to have "Survivor's" first-ever winner testify about the deal. Hatch had been on the stand earlier Friday defending himself against charges that he failed to pay taxes on his "Survivor" winnings. Hatch won the first season of the hit CBS show, which aired in 2000.

Torres did not immediately say whether Hatch could testify to a jury about his allegations.

According to Minns, Hatch caught some of his fellow contestants trying to have friends sneak food to them on the island.

That was against the rules, Minns said, and Hatch said Friday that he never ate any food on the show that he didn't catch or find himself, or win through a competition.

The show's executive producer, Mark Burnett, testified earlier in the trial, but neither the defense nor prosecutors asked him about any such deal.

A spokesman for Burnett had no immediate comment on the charges Friday. A CBS spokesman did not immediately return a call for comment.

Hatch is also accused of failing to pay taxes on hundreds of thousands of dollars of other income and using money donated to a charity on himself.

On Friday, Hatch spoke about how the behavioral problems of his son, Christopher, have weighed on him. Minns has said Hatch was distracted by problems with his son and was a terrible bookkeeper, but he never meant to commit tax fraud.

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Re: Hatch Indicted on Tax Fraud
« Reply #7 on: Jan 24^th, 2006, 5:07pm »

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PROVIDENCE, Rhode Island (AP) -- "Survivor" Richard Hatch decided not to pay taxes on the $1 million he won on the TV show's first season after discussions with producers, fellow contestants and his accountant, and, he testified Monday in his federal tax-evasion trial, after receiving two letters from the IRS.

Hatch is accused of failing to pay taxes on the money he won on the show in 2000, as well as other income, and is charged with using money on himself that had been earmarked for a charity. Testimony wrapped up Monday afternoon, and closing arguments were scheduled for Tuesday.

Hatch's lawyer on Friday alleged Hatch cut a deal with producers during the taping of the show: They would pay the taxes on Hatch's prize after he caught other contestants eating unauthorized food. (See story.) But the reality TV star never testified about the allegations in front of the jury. Spokesmen for CBS and executive producer Mark Burnett said Friday they had no comment.

Hatch told jurors Monday he missed the deadline for filing his 2000 tax return, and later received two letters from the Internal Revenue Service warning that the government had not received it. The letters listed several sources of income he received, but did not mention his grand prize from "Survivor."

Hatch said he thought that meant someone else had paid the taxes on the prize.

But under questioning from Assistant U.S. Attorney Lee Vilker, Hatch acknowledged that the IRS letters cautioned the list of income may not be comprehensive.

Hatch said he called producers several times to ask about tax issues but they did not return his calls.

Burnett testified earlier in the trial that the contract Hatch signed stated contestants were responsible for paying all taxes.

Also Monday, Hatch acknowledged using money donated to his charity, Horizon Bound, to write a stream of checks covering personal expenses, including tips for his limousine driver, payments for workmen doing construction on his house and a $1,600 piano repair.

Hatch defended the expenses, saying he had already spent "far, far more than that" on the charity.

Some of the personal expenses were paid with a $25,000 donation meant for Horizon Bound, Hatch said. Prosecutors accuse him of typing his name onto the check so it could be deposited into his personal bank account.

But the reality TV star testified that officials at People's Credit Union altered the check, not him. Hatch said he wanted the funds deposited into his personal account because Horizon Bound didn't have one at the time. A former bank teller testified to a different version of events.

Hatch said improvements he made to his property were for the benefit of Horizon Bound, which was set up to run wilderness trips for troubled youths.

For example, he said he lengthened and widened his driveway to accommodate a bus in anticipation of launching camping trips from his home. Also, he said he leveled a portion of land so tents could be set up there, and said he added two extra bedrooms and a bathroom to the house to be used by the charity.

Hatch acknowledged that Horizon Bound never ran any trips, and said he sold the house in 2002 for more than $862,000. He said he took a loss on the sale.

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Hatch Guilty of Failing to Pay Taxes!!
« Reply #8 on: Jan 25^th, 2006, 1:52pm »

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Hatch Guilty of Failing to Pay Taxes
By RAY HENRY, Associated Press Writer

PROVIDENCE, R.I. - Richard Hatch, who won $1 million in the first season of "Survivor," was found guilty Wednesday of failing to pay taxes on his winnings.

Hatch was handcuffed and taken into custody after U.S. District Judge Ernest Torres said he was a potential flight risk.

He also was convicted of evading taxes on $327,000 he earned as co-host of a Boston radio show and $28,000 in rent on property he owned. He was acquitted of seven bank, mail and wire fraud charges.

Hatch, 44, faces up to 13 years in prison and a fine of $600,000. Sentencing was scheduled for April 28.

Jurors deliberated for less than a day after more than a week of testimony.

Besides the tax charges, prosecutors accused Hatch of using money donated to his charitable foundation, Horizon Bound, an outdoors program he planned to open for troubled youth. He allegedly spent the money on expenses including tips to a limousine driver, dry cleaning and tens of thousands of dollars on improvements to a house he owned.

Near the end of the trial, an explanation for Hatch's failure to pay taxes was raised by his lawyer but never mentioned in the jury's presence. Hatch's lawyer, Michael Minns, said Hatch caught fellow contestants cheating and struck a deal with the show's producers to pay his taxes if he won. But Hatch was never asked about the allegation when he testified.

Instead, Minns told jurors that Hatch, who lives in Newport, was the "world's worst bookkeeper" and said his client never meant to do anything wrong.

Hatch testified that he thought producers were supposed to pay his "Survivor" taxes, and said the donations he took from his charity were far less than the money he had already poured into it.

More than five years after winning, Hatch remains reality TV's most famous villain, the man viewers loved to hate. He first captured their attention for shedding his clothes on "Survivor," prompting David Letterman to call him "the fat naked guy."

But he made the biggest impression and won the show by scheming his way to the top. He reveled as squabbles among his fellow contestants thinned their ranks, connived with teammates to stick together then pitted his allies against each other.

Early on, he used his success on the show to get more work, including a "Got Milk?" ad and an appearance on "Survivor All-Stars" where he was voted off by fellow contestants.

He also appeared on TV game shows, including "The Weakest Link." That appearance, made on behalf of Horizon Bound, netted a $10,000 donation to his charity camp money prosecutors said was among the funds misused.

But Hatch's shrewdness did not serve him well in the legal world. A year ago, prosecutors offered him a deal: plead guilty to two counts of tax evasion and they would recommend less than the maximum 10-year sentence.

After initially agreeing, Hatch walked away, retaining Minns as his new lawyer and appearing on NBC's "Today" show to claim that CBS was supposed to pay the taxes.

Prosecutors responded with a grand jury, which indicted Hatch on 10 counts carrying a maximum of 73 years in prison and millions of dollars in fines.

During the trial, prosecutors called witnesses, including Mark Burnett, executive producer of "Survivor."

Burnett testified that Hatch's "Survivor" contract stated he would have to pay taxes on his prize. Minns never asked him about the cheating allegation, and Burnett and CBS declined to comment about it.

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lakelady
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Re: Hatch Indicted on Tax Fraud
« Reply #9 on: Jan 25^th, 2006, 4:37pm »

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I was gonna say, man, he's gonna be in jail till April 28. Then it occurred to me that he's gonna be doing alot more time than that. Wow.

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lakelady
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Re: Hatch Indicted on Tax Fraud
« Reply #10 on: Jan 25^th, 2006, 4:39pm »

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Just read this tidbit elsewhere...

Richard Hatch has been taken into police custody until his sentancing.

Apparently he now owns 30 residential properties in Nova Scotia that no one knew about until today, has "lost" his passport, still cannot account for some of his Survivor winnings and is married to a guy in Argentina.

They expect him to get 3-5 years jail time.

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Re: Hatch Indicted on Tax Fraud
« Reply #11 on: Jan 26^th, 2006, 4:21am »

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I would say they are not wrong when they suspect him of being a flight risk...

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Re: Hatch Indicted on Tax Fraud
« Reply #12 on: Jan 26^th, 2006, 11:37am »

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. . . Mr. Hatch,

. . . The TRIAL has spoken. :toilet:

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Re: Hatch Indicted on Tax Fraud
« Reply #13 on: Jan 26^th, 2006, 2:13pm »

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Hmmm, coning the Jury wasn't as easy as the Jury on Survivor 1.

I would also think he's a flight risk, as he 'appears' to think he can
get away with whatever he chooses to do! Lost Passport? Sure! Roll Eyes

Never, did I care for him, didn't want him to win the Million, and in my opinion,
he's getting what he deserves, for he's gotten away with too much to many times!

Win a Million? Most folks would be happy to pay the tax on this much money!
Sorry Hatch, you'll have to go to another
country to get sympathy, you pompous arse! :smash:

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Re: Hatch Indicted on Tax Fraud
« Reply #14 on: Jan 26^th, 2006, 2:54pm »

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I'll say that I believe him on the passport.... and besides if he tries to bail I would bet that the authorities have put a lock on his passport since its "lost"... If its used (via swiping it) it'll come up "flee"...

no big deal about the passport.

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