The Survivor star has agreed to plead guilty and in return the U.S. Attorney's office will recommend a lighter sentence than the maximum.

10:30 AM EST on Wednesday, January 19, 2005

BY RICHARD SALIT
Journal Staff Writer

PROVIDENCE -- He won more than $1 million on Survivor. But Newport's Richard Hatch couldn't survive the scrutiny of the Internal Revenue Service, which says the infamously nude contestant concealed, of all things, his well-publicized winnings.

AP file photo / Damian Dovarganes

Richard Hatch shows off his $1-million check in 2000 for being the winner in CBS' first Survivor show. Tthe Newport resident has agreed to plead guilty to not paying taxes on the prize, according to court documents.

Hatch also evaded paying taxes on $321,000 he earned by parlaying his newfound celebrity into a radio talk-show gig in Boston, according to the U.S. Attorney's office.

Hatch, 43, of 21 Anandale Rd., has agreed to plead guilty to two counts of filing false income-tax returns, cheating the government out of $200,000 to $400,000, according to records in U.S. District Court. Each count carries a maximum penalty of five years in federal prison and a $250,000 fine.

But under a plea agreement that Hatch signed last week, which is part of the court record, the U.S. Attorney's office intends to recommend a lesser, unspecified sentence. He is scheduled to be arraigned Monday.

Hatch's Providence lawyer, Justin Holden, said neither he nor his client would comment prior to Monday's arraignment.

The U.S. Attorney's office announced the charges against Hatch yesterday, the same day they were filed in court.

In winning the first season of CBS' seminal reality show, Hatch, a corporate trainer, became notorious for his nudity, arrogance and cunning. While his foes were voted off the Borneo island of Pulau Tiga, Hatch was the last contestant standing.

According to court records, Hatch received $10,000 in August 2000 for appearing on the final episode of Survivor and $1 million for winning it. Survivor Entertainment Group reported the payment to the IRS through its form 1099-MISC. But in 2002, Hatch allegedly submitted a tax return for the year 2000 that did not report the income.

In January 2001, Hatch began cohosting The Wilde Show, on WQSX-FM in Boston. His contract called for a salary of $20,833 a week, or $500,000 per year. Through the first three months of the year, the radio station paid Hatch $70,232. After that, Hatch arranged for the payments to go to Tri-Whale Enterprises, a corporation he founded in March.

The U.S. Attorney's office alleges that Hatch, the corporation's sole shareholder, did not report the $321,139 in payments to Tri-Whale. The money was ultimately transferred into his personal bank account.

As a result, the personal income tax returns Hatch filed for 2000 and 2001 were fraudulent, as was the return for Tri-Whale, according to the court documents.

The agreement with the U.S. Attorney's office indicates that, in exchange for Hatch's guilty plea, prosecutors will recommend that the judge impose "a term of imprisonment at the lowest point of the range of sentences for the offense."

The agreement requires that Hatch pay his overdue taxes, as well as any related penalties and interest, "subject to [Hatch's] ability to pay" and any agreements he reaches with the IRS.

Hatch was invited to return to the reality show last season, along with other past participants, in Survivor: All Stars. He was voted off the island by fellow castaways fairly early in the competition.

Reporter Richard Salit can be reached at 277-7467 or by e-mail at rsalit [at] projo.com

Digital extra: Read the charges against Richard Hatch and the plea agreement, and visit Hatch and Survivor Web sites, at:

http://projo.com/extra/2005/hatch/

CORRECTION: An earlier version of this story incorrectly indicated in a caption and in a subhead the status of Richard Hatch's plea agreement and the source of information about the agreement.