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Hatch released on $50,000 bond at tax-fraud arraignment

03:00 PM EST on Tuesday, January 25, 2005

By JACK PERRY
projo.com staff

PROVIDENCE -- A subdued Richard Hatch, known for his brash ways on the TV series Survivor, was released on a $50,000 bond this morning after he was arraigned on charges he did not pay taxes on more than $1 million he won on the hit reality show.

Journal photo/Gretchen Ertl

Richard Hatch of Newport, who achieved star status as a barely-clad island castaway on the TV series Survivor, arrives in a snowy downtown Providence for his arraignment this morning on tax-fraud charges.

Hatch, 43, of 21 Anandale Road, Newport, was initially scheduled for arraignment yesterday on two counts of filing false income tax returns, but his federal court appearance was postponed because of the blizzard that hit Rhode Island over the weekend.

Today, he stood before U.S. Magistrate Judge Lincoln D. Almond, casually dressed in brownish-gray pants and a plaid, open-necked shirt, his hands folded in front of him.

He entered no plea to the charges and answered Almond's questions during the 10-minute proceeding in a Pastore Building courtroom where the primary audience was the local press.

Hatch was charged with the felonies through a criminal information filed by the U.S. Attorney's Office. He waived his right to have a grand jury hear the case and decide whether to return an indictment.

Hatch's lawyer, Justin Holden of Providence, said his client would have no comment today. Hatch apparently left the courthouse through an exit that let him avoid reporters waiting in front of the building.

Hatch next faces U.S. District Chief Judge Ernest C. Torres at a plea hearing, whose date has not yet been set.

Hatch's bond was secured by the equity in his Newport home, which he moved to from his Middletown residence after winning the TV competition. In deciding to release Hatch, Almond found that he was not a flight risk, given his strong ties to the state, which include his teenage son.

In recommending Hatch's release on bond with conditions, Lee Vilker, an assistant U.S. attorney, noted that Hatch faces "a significant period of incarceration," but he told Almond that Hatch had recently returned to the country "knowing charges were imminent."

Almond did order Hatch to surrender his passport, and he prohibited him from leaving Rhode Island without the court's permission.

The magistrate also restricted Hatch from excessive use of alcohol and said he would have to undergo periodic substance-abuse testing.

According to a criminal information filed a week ago in U.S. District Court, Providence, Hatch did not report the $1,010,000 he received for emerging as the winner during the first season of the hit reality show and appearing in that season's final episode in August 2000.

In 2002, Hatch allegedly submitted a tax return for the year 2000 that did not report the income.

The information also charges that Hatch did not report $321,000 he earned as a Boston talk-show host in 2001 after finding fame as the winner of the popular CBS reality show.

Entercom, Boston, LLC, owner of radio station WQSX-FM, paid the money to Tri-Whale Enterprises, a corporation formed by Hatch, but he did not report the income in a 2001 return, also filed in 2002, according to court documents.

Hatch would have had to pay $200,000 to $400,000 in taxes on the earnings, according to court papers.

Hatch has agreed to plead guilty in exchange for prosecutors recommending a lighter sentence, according to court documents. He faces up to five years in prison and a $250,000 fine on each count.

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