Federal Contractor Abruptly Shuts Down

Federal Contractor Abruptly Shuts Down

There are 1175 comments on the WUSA Washington, DC story from Mar 17, 2008, titled Federal Contractor Abruptly Shuts Down. In it, WUSA Washington, DC reports that:

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

Join the discussion below, or Read more at WUSA Washington, DC.

Sazzy

Dearborn Heights, MI

#508 Aug 25, 2008
News Flash wrote:
I undrstand that everyone "may" get their 401K money, but the US Trustee office has already stated there will be short falls. USProtect owes taxes as well, so there in not enough money to pay everyone including creditors. Good news is the employees take priority on over debts then comes the IRS. The bank and creditors are fighting like hell. Rich and Lisa thought they could just steal all the money and just close the business down. WRONG...government contracting is different than commercial security. They are liable for reprocurment cost, and a whole host of fines. Lisa and Rich Norman face criminal ERISA charges for stealing employees 401K contributions.
So you are saying charges have been filed against Lisa Hudec and Mr. Norman? What about Richard Hudec? Or did you mean him. How did Mr. Norman get in on this? Did he receive money from the 401K? Are these real charges or more fluff from the peanut gallery? It is easy to make accusations, where are the charges and how do you know about them?
For Lisa

Washington, DC

#509 Aug 25, 2008
Sazzy wrote:
<quoted text> So you are saying charges have been filed against Lisa Hudec and Mr. Norman? What about Richard Hudec? Or did you mean him. How did Mr. Norman get in on this? Did he receive money from the 401K? Are these real charges or more fluff from the peanut gallery? It is easy to make accusations, where are the charges and how do you know about them?
Rich Norman was the so called President of USProtect, emails show Lisa and him took millions out of the company, this was stated by the US Atty and in Rich Hudec charges and bankruptcy. Check it out all facts. And taking a person "personal" 401k contributions IS A CRIME!!!
We Just Want our Funds

Washington, DC

#510 Aug 25, 2008
I do not care about anything, but getting my money, Rich Nornman, Rich Hudec, Lisa Hudec or Santa Claus, I want MY MONEY!!!!
Sloe

Dearborn Heights, MI

#511 Aug 25, 2008
We Just Want our Funds wrote:
I do not care about anything, but getting my money, Rich Nornman, Rich Hudec, Lisa Hudec or Santa Claus, I want MY MONEY!!!!
Get a job.
We Just Want our Funds

Nazareth, PA

#512 Aug 26, 2008
Sloe wrote:
<quoted text> Get a job.
I did but theives like you stole my money. Now have you heard about Tyco. And what happended to them when they stole peoples 401(k)funds.

The indictment said, "TEXCE was created and operated for the purpose of obtaining money by theft, fraud in the sale of securities, and other frauds in which Tyco ... and subsidiary companies were, variously, the victims and the vehicles of the thefts and frauds. To accomplish these purposes, the members of TEXCE falsified records, bribed others, and concealed and distorted material information.")

Except for the sale of securities sounds like USProtect !!! Can you say Lisa Hudec your are next!!!!
Hey

Nazareth, PA

#513 Aug 26, 2008
Can anyone tell me whats going to happen on September 8th, 2008?
Tweety

Dearborn Heights, MI

#514 Aug 26, 2008
Hey wrote:
Can anyone tell me whats going to happen on September 8th, 2008?
hopefully the sun will rise, the birds will sing, maybe you and I will be breathing. It will be 3 days before the anniversary of 911. We should be greatful we are still able to be alive on this earth, correct?
Per Rowdy

Dearborn Heights, MI

#515 Aug 26, 2008
Most of the people on this blog have no clues about the Hudecs, only the crimes they have done with USProtect. If Richard Hudec is researched back many years you will find that he is only a con man, has never been a real business person and has at least 3-4 fictious corporations to swindle everyone he can. He is a very small man who wants to be a corporate bully because no one other than old women are afraid of him and most men that have met him think he is much like a small dog that barks alot from a distance. In the 1990's he was convicted of 4 major felonies, still has numerous financial judgements against him and was considered a paper hanger. HIs and Lisa theft of the 401K money was intentional.
Tophat

Sanibel, FL

#516 Aug 26, 2008
Hey wrote:
Can anyone tell me whats going to happen on September 8th, 2008?
Rich Hudec reports to federal prison to serve a 33 month sentence for tax evasion and concealing information.
Per Rowdy

Dearborn Heights, MI

#517 Aug 26, 2008
Michael Holiday was the owner of Holiday International Security, Inc. and the Company was sold to Lisa Hudec; she than changed the name to USProtect, in 2003. The breaddown accords, when USProtect, decided to change their payroll form direct deposits to hard checks, without talking to their officers. And finally the MOnday of the 13 March, 2008; they tald them that the checks will be hard checks. This alerted several members of the union (UGSOA, Local 52), and also the President (R. Nowosielski). Thursday (13 March, 2008) when the dreadful day happened, is when the USProtect closed her doors, and no one could be contacted, and they took the money and ran, leaving their bank to print worthless checks. But to happen to this fine, outstanidng officers is an out rage, a slap to the face of America..our own home front and they do this. Put yourself in their shoes; how can they feed their families, pay their bills, their mortgage, rent, electrical, phone, etc. Let your voice be heard; let your Congress man/woman know. If you see this Officers; give them a hand shake..and thank them..for they still went to work and are fighting for what is right in America!
Per Rowdy

Dearborn Heights, MI

#518 Aug 26, 2008
you all deserve what has happened to you and what is about to happen to you with the new company you are working for now. the current company you work for is headed by Marc Mackie. this is holidays right hand man you guys are fools to think that this is a whole new company and dont forget about your 401k being ripped off. you all should be barkin at Congressman B. Filner who has not helped get your monies from holiday/usprotect you all should have left then they would of sped up the process to get paid but no just a bunch of winers all talk no action. how about that union so much for those dues being paid for and gettn proper representation. unitl you guys do drastic action you should keep bendin over lube up it gonna be a long ride until the laws on fed contracts get changed to protect the employees.you are all fools to think the DOL, homeland security are lookin for your best interests that why your not fed employees they dont care. and you NBC7/39 how about doin some real investigative reporting and find out the real story on the abuses that has been occuring to employees on fed contracts in San Diego/California and the whole story how holiday has been so currupt. i just love the government agenices that just pat themselves on the back that the went after holiday usprotect what a real show!!! LOLOLOLOL the sqeeky wheel gets the grease dont forget that.......
Per Rowdy

Dearborn Heights, MI

#519 Aug 26, 2008
Tophat wrote:
<quoted text>
Rich Hudec reports to federal prison to serve a 33 month sentence for tax evasion and concealing information.
and you are free to make your move right bud?
Hey

Belding, MI

#520 Aug 26, 2008
Tweety wrote:
<quoted text> hopefully the sun will rise, the birds will sing, maybe you and I will be breathing. It will be 3 days before the anniversary of 911. We should be greatful we are still able to be alive on this earth, correct?
And Hudec goes to jail, Lisa Hiudec will be right behind him......I feel sorry for they kids.
Hey

Belding, MI

#521 Aug 26, 2008
Per Rowdy wrote:
you all deserve what has happened to you and what is about to happen to you with the new company you are working for now. the current company you work for is headed by Marc Mackie. this is holidays right hand man you guys are fools to think that this is a whole new company and dont forget about your 401k being ripped off. you all should be barkin at Congressman B. Filner who has not helped get your monies from holiday/usprotect you all should have left then they would of sped up the process to get paid but no just a bunch of winers all talk no action. how about that union so much for those dues being paid for and gettn proper representation. unitl you guys do drastic action you should keep bendin over lube up it gonna be a long ride until the laws on fed contracts get changed to protect the employees.you are all fools to think the DOL, homeland security are lookin for your best interests that why your not fed employees they dont care. and you NBC7/39 how about doin some real investigative reporting and find out the real story on the abuses that has been occuring to employees on fed contracts in San Diego/California and the whole story how holiday has been so currupt. i just love the government agenices that just pat themselves on the back that the went after holiday usprotect what a real show!!! LOLOLOLOL the sqeeky wheel gets the grease dont forget that.......
Why is Lisa getting a free ride, the paper says she received millions and now Rich goes to Jail and Lisa stays in a million dollar home....so they won.......We cannot let this happen......
Per Rowdy

Dearborn Heights, MI

#522 Aug 26, 2008
Hey wrote:
<quoted text>
Why is Lisa getting a free ride, the paper says she received millions and now Rich goes to Jail and Lisa stays in a million dollar home....so they won.......We cannot let this happen......
Because she was smarter than most. She has it all now, don't you see and look who took the fall? I am sure someone could write a book about her escapades. Maybe that would get some of your money back. Modern day Bonnie.
Per Rowdy

Dearborn Heights, MI

#523 Aug 26, 2008
Call it Rags to Riches. How to make millions with little or no effort.
Hey

Belding, MI

#524 Aug 26, 2008
Per Rowdy wrote:
Call it Rags to Riches. How to make millions with little or no effort.
I know but I call it Rags to Jail.......how does it feel> She still on the prozac because of you?
Per Rowdy

Dearborn Heights, MI

#525 Aug 27, 2008
Jim McElhatton By Jim McElhatton - Months before one of the country's largest federal security contractors went broke, leaving hundreds of officers with worthless paychecks, company officials emptied bank accounts in a money trail that recently led to a Florida venture run by the firm's owner, court records say. Officers at USProtect, which held hundreds of millions of dollars in contracts to guard military installations and federal courthouses since 2004, say they face lawsuits from creditors because the company gave them worthless checks before it was forced into bankruptcy earlier this year. Newly disclosed bankruptcy filings show that e-mails sent between company officials in the year before the collapse arranged for hundreds of thousands of dollars to be sent as often as every few weeks to company owner Lisa Hudec. "I need a check grossed up so the end result is 250K for Lisa," said one e-mail, referring to Mrs. Hudec, who was in charge of the Silver Spring-based company until its March collapse. "I need a check for Lisa ASAP. Gross up 300K," another says. "I need a check for Lisa that is grossed up for taxes that will payout 150K." The bankruptcy litigation also has spawned lawsuits to recoup corporate funds spent for a Porsche and Cadillac Escalade
Per Rowdy

Dearborn Heights, MI

#526 Aug 27, 2008
for executives, according to court records. Telephone messages for Mrs. Hudec and her attorneys were not returned. When The Washington Times first questioned the company about its operations in December, the attorneys said, USProtect had not been charged with any wrongdoing. They said the company has "consistently provided superior security services to a broad array of federal agencies, and the company's outstanding performance has been repeatedly acknowledged by agency contracting officers both formally and informally." Meanwhile, the former officers mostly have found work with new government contractors taking over USProtect job sites, which include federal courthouses, Social Security Administration (SSA) buildings and other federal sites nationwide. But they say they're struggling to break even as they deal with weeks of missing paychecks, trouble accessing retirement accounts and unpaid child support that was supposed to have been disbursed by the company from withheld funds. "Most of the people work from paycheck to paycheck," said Jim Turner, a former USProtect guard at SSA buildings in Maryland. James Culbreth, a steward for the United Union of Security Guards, said more than 1,000 officers lost wages because of the company's collapse. He said employees weren't paid in March, were blocked from getting their retirement money and lost vacation and personal leave. What's more, dozens of employees who cashed their checks at check-cashing stores or credit unions are being threatened with civil and criminal proceedings after the paychecks bounced, Mr. Culbreth said. Florida funding The newly disclosed internal e-mails, which detail numerous six-figure payments to Mrs. Hudec, were in court documents in Maryland filed by a trustee overseeing the USProtect's estate. The trustee, Janet Nesse, also is seeking a court-appointed receiver to monitor the finances of Tu-Co-Peat Inc., a Florida company purportedly controlled by Mrs. Hudec. According to the documents, Mrs. Hudec received $5.8 million in "excess salary" and nearly $4.4 million in unpaid loans from USProtect. Ms. Nesse said in court filings that some of the money may have gone to Tu-Co-Peat, a Florida landscaping and soil supply company. In addition, a Porsche and Cadillac purchased with more than $100,000 in USProtect funds were transferred later to Tu-Co-Peat for less than $1,000 each, according to bankruptcy filings. USProtect was forced into bankruptcy in March by
Per Rowdy

Dearborn Heights, MI

#527 Aug 27, 2008
Wachovia Bank and other creditors who cited millions of dollars in unpaid debts owed by the security company. Ms. Nesse said a bankruptcy judge's recent ruling will soon give former employees access to their retirement accounts, but she also warned of likely shortfalls from missed contributions by USProtect. A person who answered the phone at Tu-Co-Peat in Florida this week said she would leave a message for Mrs. Hudec. Attorneys for Mrs. Hudec in the bankruptcy case did not return phone messages. Family affair Mrs. Hudec's husband, Richard, is set to return to Maryland next month to face sentencing in a criminal tax case. In the same matter, he also pleaded guilty to failing to disclose various fraud judgments when brokering millions of dollars in government contracts for USProtect. He began working at the company in 2001 while on probation after pleading guilty to felony fraud charges in New Jersey. Later, his wife bought the company, and he became chief operating officer. At first, he worked under company founder Michael Holiday, a former Montgomery County police officer who pleaded guilty to giving bribes to a former General Services Administration (GSA) contracting official for security contracts. A memo filed in federal court in Maryland by Hudec's defense team recently sought a split sentence involving incarceration and home confinement. In a memo, the defense said he "has fully accepted responsibility for his conduct and has cooperated extensively with the United States." It also said he was a person with a "good heart" who "often makes sacrifices for others." The U.S. Attorney's Office in Maryland referred to Hudec as a "career criminal," noting in a recent court filing that he has four felony fraud convictions dating back to 1990 and that his record went undetected for years while he helped run USProtect. Although Hudec was not charged in the bribery scheme, an FBI affidavit said Hudec may have been aware of the activities, according to prosecutors. The affidavit also included a 2002 e-mail in which Holiday updated Hudec on the status of a GSA contract brokered by former GSA official Dessie Ruth Nelson, who later admitted taking bribes from Holiday. According to the court documents, Hudec responded to Holiday in another e-mail, writing: "Sounds great! Before you know it, we will be in all 50 states with thousands of guards. Then again, knowing you, you will have 'A Friend' in each state. That will take some cash to accomplish." ----------

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