Federal Contractor Abruptly Shuts Down

US Protect, a major federal contractor, has locked its doors after being unable to make its payroll last week. Full Story
Screwed in Baltimore

Towson, MD

#21 Mar 19, 2008
Where to start.... guess I'll start at the bottom of the list and work up. Kathie, there is money in the 401K accounts, but it's incomplete. So far from what I've been able to find, 401K deposits of Health & Welfare money were not made in November, January or February. The company was nice enough to make a deposit for most people on Christmas Eve.

Robert, Paragon may have been around for a long time but there are some scary names associated with it. Leslie Kaciban (Paragon President) was the USProtect Vice President of Operations back in 2003, working under Lisa and Rich Hudec ( http://web.archive.org/web/20031202175631/usp... )
At that same time Mark Machi was the USProtect General Counsel and Corporate Secretary. Machi is now the Executive Vice President & General Counsel for Paragon. Add to that the fact that Paragon's parent company Tri-S Security has lost money for each of the last several years (info available in SEC fillings on their website) and the picture doesn't really look so rosey just yet.

Now as far as getting paid, work through your unions, your contracting officers and the US Department of Labor's Wage & Hour Division. Make sure that your contract is holding onto any money payable to USProtect to ensure that it comes to the employees.

Since this is already long I'll stop here and add more later as needed, but for the rest of the financial story on what happened you all should check out this story:
http://www.mddailyrecord.com/article.cfm...

Oh yeah, for anyone needing it, the bankruptcy attorney representing USProtect is Karen Moore of Paley-Rothman in Bethesda, MD
http://www.paleyrothman.com/attorneys/Karen_H...
Corp Employee

Catonsville, MD

#22 Mar 19, 2008
I don't want to diminish the anguish suffered by those who are on the contracts but the fact is that they will get paid by the gov. or by the new companies that have picked up the contract.
What will happen to those who worked in the corporate office who are out a months worth of pay? What are they supposed to do?
There are people who have children with disabilities who worked for USProtect that are down and out. There are parents who have children who are left with nothing. Who is going to help them recover their lost wages?
Lisa Hudec should serve some hard time for this just as her husband will for his past indiscretions.
Employee Spouse

Houston, TX

#23 Mar 20, 2008
With everything that is going on with the economy, how do I explain this mess to my creditors, will they believe me or will they just think this is some excuse to get over. I am concerned since my husband's salary plays a major roll in us being able to pay our bills. Did Wachovia Bank not know that USProtect's account was frozen, instead of allowing me to deposit a bad check and pay my bills to find out that the check was no good and now I have to pay these additional return check fees. Someone needs to tell us when employees will be paid and when can we get our money out of 401K. Enough of this shady dealing, bills still have to be paid. I knew they were up to no good, when you work for a company that do not want their employees showing up at headquarters in Silver Spring without an appoint and being announced. They were too busy being underhanded to even have an open door policy. I believe this is a lesson for all of us that in this economy, we better learn how to save some and not live paycheck to paycheck. All the best to everyone.
Common Phacking Sense

Fort Huachuca, AZ

#24 Mar 20, 2008
Lets see what all of your union dues are doing for you now.

I've been associated (on the government side) with this company since its inception and it never felt like a legitimate organization. I couldn't put my finger on it, but all of its leadership were rather "odd" for the positions they held.
Screwed in Baltimore

Towson, MD

#25 Mar 20, 2008
Corp Employee, our unions attorney has told me that in a bankruptcy situation wages and fringes for employees should have first priority so I would suggest contacting the US Bankruptcy Court, the attorney representing USProtect, your own attorney or the Dept. Of Labor to see what you need to do to make sure you get your share of any money before Wachovia gets theirs. Unless of course you were one of the ones trying to convince everyone that the 401k situation wasn't a real problem. Anyone that was a party to that attempted deception should suffer for a while. I have no sympathy for anyone that helped try to pull the wool over the eyes of the officers working on the various contracts.

I too hope that Lisa Hudec serves time for this mess. The sad thing is that Rich Hudec already served time once and didn't learn so they'll both probably be up to this again several years from now. Even worse, they've probably managed to hide most of their misappropriated money off shore where the US govt. can't get it so they'll be well funded once they get out of jail.
Tiffany Glanze

Barnesville, OH

#26 Mar 20, 2008
The guards employed by USProtect at Alabama Army National Guard were given no notice and have not been rolled over to a new contractor. All guards, approx.50,are currently unemployed. These guards also have payroll issues.
VictorBragg ALANG SiteMgr

Birmingham, AL

#27 Mar 20, 2008
The inforamtion that new contractors have came in and taken the place of all USProtect locations is false. In Alabama we have aproximately 50 employees that are out of jobs. We are owed for our last payroll and the next that is due 3-27-08, not to mention vacation pay, sick pay, and 4O1K. The 401K was involuntary taken from payroll checks without the permission of the employees. If anyone has any information on proceedures to protect our rights and our monies, we would love to hear from you. Sincerely, Victor Bragg victorbragg@yahoo.com
Please Help Yourselves

Bryans Road, MD

#28 Mar 21, 2008
After reading all the post, I'm amazed at the number of corporate employees who just don't get it. You were in the same meetings I was in and I walked away feeling like the time is now to find a new job. All the rumors and gossip and you still didn't save yourselves. The writing was on the wall. But I guess some of you EXECUTIVES thought you were immuned from the shaft. As much time as you all spend complaining you should be using your efforts for aide in your job search. I'm amazed at how you all are getting away from the issues. The issues are you are unemployed and being mad at Rich or Lisa isn't going to help you get hired or find you a job. Have any of you went to the department of Social Services in your area for the time being? Have you really done all that you can do to save yourselves? It doesn't matter if the Hudecs house or boat get seize, it just doesn't matter. At the end of the day you should make sure that your name is on the list to get the money that is owed to you and anything else is just BS that doesn't help you at all. Some of you concerned spouses on this blog are concerned about the mortage and rightfully so, but are you a home-maker or are you out working being a productive member of the household? I think most of the corporate employees are mad at themselves for not going with there first instincts and finding themselves a job. Some of them were waiting around like lambs being lead off to the slaughter.

How could this company have lasted with a Quality Assurance Manager as the President. I urge you all to focus on getting yourselves gainfully employed and then fight the good fight. The guards are going to get paid some of the CSOs got paid this week from there new company's who stepped in a made good on there bogus payroll checks from last week.

Please understand that I'm not trying to take away from what happened. But if you worked in the corporate office you saw the writing on the walls. You know every all hands meeting you went to made your stomach drop. So please take some of the responsibilty for the things that has happened.

At the end of the day the bill collectors still want their money so please focus more of you energy of interviewing and sending out you resume and not getting involved with the various rumors. Because the most inportant thing is that you GET YOUR MONEY!
Jailtime

Ashburn, VA

#29 Mar 21, 2008
Perhaps Rich and Lisa can share a jail cell and have all the conjugial visits they want after they screwed with their employees.
More to it

Crandall, TX

#30 Mar 21, 2008
US Protect hired several retired goverment employees from the US Marshals Office,Dept of Labor, and maybe others. It smells and looks bad. Maybe it is bad?
Screwed in Baltimore

Towson, MD

#31 Mar 21, 2008
They also hired from the Justice Dept. the FBI and a lot of USAF Security Police people. I'll give them credit, that was a pretty smart move, though I'd love to know why those people never picked up on Rich Hudec's past or the way Lisa Hudec was draining the companies assets. As far as the 401k money it is being investigated by the Dept. of Labor's Employee Benefits Security Administration. I was in contact with them before this recent disaster but since the recent events it has gotten a lot more attention. Because USProtect was based in Maryland all of this is being handled by the Maryland office. I just got off the phone with them and they're sending me info in the mail about the new "higher level" person that will be taking over from the person I started talking to. I have also been working with the Baltimore office of the DOL Wage & Hour Division on the pay. I'm not sure if they will be handling everything or if the various regional offices will be handling things in the different areas.

I initially started this process on behalf of the officers at SSA in Baltimore and our union, but I'm more than happy to help anyone else in anyway I can. If anyone needs contact information or any other help, please feel free to contact me at: jec3mail-usneglect@yahoo.com
FUSP

Towson, MD

#32 Mar 21, 2008
So, it appears that the corporate people had some idea of what was happening and made no attempt to contact the appropriate authorities. That's nice. I hope those that helped facilitate this all suffer for a while. I hope some of them get dragged into any legal issues with the Hudecs. Mostly I hope any people that knew what was going on with the 401k situation are held responsible. They should all spend some time behind bars... and not in some cushy place, but in a real high security federal prison.
Jennie

Fort Washington, MD

#33 Mar 21, 2008
I am so sorry your children have been robbed of their money by yet again another megacorporation. Glad you can prove they deducted the money and that you won't be out the double fundings.
Robert wrote:
<quoted text>
I pay child support, via payroll deductions, and guess what; they (USProtec) did not pay them. The only thing that is saving me, is my pay stubs, shows that the deductions were taken out, but they (USProtect) took the money and ran. Thieves..
Light Sleeper

Washington, DC

#34 Mar 21, 2008
Employee Spouse wrote:
With everything that is going on with the economy, how do I explain this mess to my creditors, will they believe me or will they just think this is some excuse to get over. I am concerned since my husband's salary plays a major roll in us being able to pay our bills. Did Wachovia Bank not know that USProtect's account was frozen, instead of allowing me to deposit a bad check and pay my bills to find out that the check was no good and now I have to pay these additional return check fees. Someone needs to tell us when employees will be paid and when can we get our money out of 401K. Enough of this shady dealing, bills still have to be paid. I knew they were up to no good, when you work for a company that do not want their employees showing up at headquarters in Silver Spring without an appoint and being announced. They were too busy being underhanded to even have an open door policy. I believe this is a lesson for all of us that in this economy, we better learn how to save some and not live paycheck to paycheck. All the best to everyone.
Amen to that......my husband works for the courts in dc, he is a retired federal worker (Federal Protective Service) and decided to go back to work because he wanted to keep working.

Unfortunately, this is the third company the courts have hired since he started in '04 and they have been the worst by far because of the paycheck issue. At least with the others, they made sure their employees were paid before they folded or as it were outbidded by these fools. They just got another contract in

And as you mentioned....bill are not going to stop coming, theyhave to be paid....who will pay them. We are a two people working household, and my salary alone will not pull all of the weight, fortunately, he gets a retirement check, but it still pushes the limit.

They better get it together because although we're okay for now...there are some who won't make it past this week, and the last thing we want to hear is someone coming to work disgruntled because they didn't get paid and shooting up the place....people don't have time for games...too much going on, forclosure, gas and food prices.....it's inevitable.
Knights Of Columbus

Rockville, MD

#38 Mar 21, 2008
This in some way reminds us of Enron going out of bounds in morals.
Concerned

United States

#39 Mar 22, 2008
art wrote:
friggin greedy thieves..plain and simple..send them straight to jail...and one was a cop?!!!! egads!!!
They also need to get those Contracting officers who are taking money. I know Nelson took cash from Holiday. And there in Chicago they did the EXACT same thing with a Company named Unlimited Securuty. Guards never got paid, and the contracting officers went free.....throw them UNDER the jail....seel outs...
usprotect scam

El Cajon, CA

#40 Mar 22, 2008
Hello
I will like to invite all to our new blog dedicated to inform the latest about the nasty US Protect scam
please direct your browser to http://blog.usprotectscam.com/index.php and port your opinion, your help will be highly appreciated.
Contact me at
admin@usprotectscam.com
a website is under construction at http://usprotectscam.com
BitterSweet

Fort Washington, MD

#41 Mar 22, 2008
I agree with "Please Help Yourselves". Instead of running with the information that you read, find out how you can get your MONEY from the DOL. For those that worked at the USProtect corporate office they all knew about the past and present of Rich Hudec. Why is everyone so shocked now? They continued to cash their checks and report to work everyday.
Concerned

United States

#42 Mar 24, 2008
SLOB oor should I say SOB....you will be the next one to get a Jail cell next to Lisa and Richard Hudec.
SLOB wrote:
<quoted text>
Jenniegirl,
Don't you want to live a better life holmes? You can come to Tick Tock near Langley Park apartments and ask for a job selling coke and reefer and make $16 an hour. That is better than that crappy american job and apartment that you have. You can move to Langley and live with us.
Mike K

Sarasota, FL

#43 Mar 25, 2008
Very Sad wrote:
I don't blame Mr. Norman for what happened to USProtect but I do blame the Hudecs for everything. Never were they at the company and yet they took everything. The people who worked there were good people and supported the field staff to the best they could although their corp. office structure was bare. I feel for them and their families. Although the Guards did not get paid they will but the corporate employees will never see a dime.
SHAME ON THE HUDECS
Wachovia isn't very smart because during all of this they gave these crooks Lisa & Rich a loan to purchase a soil company in Sebring Fl.TU-CO Peat.Where they continue to screw their employees.

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