Dover De. March 22 2008
Federal courthouse security workers in states across the country, including Delaware, have been in limbo since the company that employs them began bouncing checks.
USProtect, based in Silver Spring, Md., provided security for an array of federal agencies, including the 3rd District Court that includes all federal courts in Pennsylvania, New Jersey and Delaware.
The U.S. Marshal's Service awarded new contracts for court security to two companies, including one to Virginia-based MVM Inc., which will oversee Delaware's security officers. But until the contracts are ironed out, next week will mark six weeks without a paycheck for security workers at the J. Caleb Boggs Federal Building in Wilmington.
"We're working for nothing," said J.J. Rodriguez, founder and president of the union representing the 26 workers who guard the federal building.
Rodriguez, a 12-year federal security officer, said many officers are owed more than just paychecks, such as accrued personal time, vacation and deposits into retirement funds.
"We get no answers here. They're supposed to be bringing in companies but there's no set agreement when we are going to get any of these monies recovered. Some guys are owed over $10,000."
Steve Blando, a U.S. Marshal's Service spokesman in Washington, D.C., said federal authorities have convinced the new contracted companies to accelerate the start of their contracts by two weeks. The companies were originally supposed to take over the contract on April 1.
"Obviously we want to make sure these folks get their money," said Blando but added that there were "a lot of legal contract issues" that needed to be worked out between the new companies and the government.
"We work with them and understand what they are going through," Blando said of the security workers. "It's our best interest too to get them compensated. It's just at this point a matter of following what we need to do in terms of procedure."
Blando was unable to say why the government awarded the contact to USProtect in 2006, even though the Maryland company was embroiled in scandals the previous year.
USProtect's founder, Michael B. Holiday, was charged with bribing a federal employee to gain security contracts over a three-year period. He pleaded guilty to corruption and tax evasion and dealing in child pornography over the Internet.
The company's former chief financial officer, Richard S. Hudec, pleaded guilty in November to withholding information about felony convictions to help secure contracts worth more than $150 million. This included concealing four prior felony convictions.
Most recently, Wachovia Bank, and two former employees, filed involuntary Chapter 7 bankruptcy proceedings against USProtect in U.S. Bankruptcy Court in Maryland, claiming $16.18 million in unpaid debts and wages.
Rodriguez said many of his co-workers are living off retirement pensions, but that's only taking them so far. Rocketing fuel prices, as well as other high costs are eating up much of their budgets and has some postponing vacations.
"Everything is in limbo since the company bellied up," he said. "They say they've brought in all these companies that agree to help, but nothing has been concretely done or shown to us on paper."
WASHINGTON DC - NEWS FLASH
A bankruptcy judge has ordered a trustee to take over USProtect Corp., a security company that collapsed amid a multimillion federal contract-rigging scandal.
Judge Thomas J. Catliota of the U.S. Bankruptcy Court in Greenbelt, Md., on Wednesday ordered an interim trustee to take over the operations of USProtect, which provided security guards to federal office buildings and courthouses.
Wachovia Bank had asked for the judge to step in, claiming USProtect's management was "nonexistent" after the company's owner fired its accountant and financial advisers last week and several other key executives resigned.
In court papers, Wachovia said USProtect "began seriously unraveling" earlier this month when owner Lisa D. Hudec took over and various government agencies - including the Social Security Administration, the U.S. Marshals Service and the Walter Read Army Research Institute - sought to end their contracts with the troubled Silver Spring, Md., security firm.
According to Wachovia, which says USProtect owes it more than $15 million, Hudec may have misappropriated company funds for her own benefit. The bank claims Hudec paid herself more than $5 million in salary while acting solely in a "figurehead capacity" as chairman of USProtect's board.
Wachovia, along with two other creditors, pushed USProtect into bankruptcy on Sunday by filing an involuntary Chapter 7 petition against the company.
Under bankruptcy law, companies typically have 20 days to answer an involuntary bankruptcy petition but Wachovia argued a trustee was "crucial" to safeguard the company's remaining assets as customers moved to terminate their contracts with the firm.
USProtect didn't return calls seeking comment. The company shut its doors last week and has "ceased operations" according to a recorded message on its main telephone line. Hudec, Wachovia said, is at her home in Florida under her doctor's care.
Federal courthouse security workers in states across the country, including Delaware, have been in limbo since the company that employs them began bouncing checks.
USProtect, based in Silver Spring, Md., provided security for an array of federal agencies, including the 3rd District Court that includes all federal courts in Pennsylvania, New Jersey and Delaware.
The U.S. Marshal's Service awarded new contracts for court security to two companies, including one to Virginia-based MVM Inc., which will oversee Delaware's security officers. But until the contracts are ironed out, next week will mark six weeks without a paycheck for security workers at the J. Caleb Boggs Federal Building in Wilmington.
"We're working for nothing," said J.J. Rodriguez, founder and president of the union representing the 26 workers who guard the federal building.
Rodriguez, a 12-year federal security officer, said many officers are owed more than just paychecks, such as accrued personal time, vacation and deposits into retirement funds.
"We get no answers here. They're supposed to be bringing in companies but there's no set agreement when we are going to get any of these monies recovered. Some guys are owed over $10,000."
Steve Blando, a U.S. Marshal's Service spokesman in Washington, D.C., said federal authorities have convinced the new contracted companies to accelerate the start of their contracts by two weeks. The companies were originally supposed to take over the contract on April 1.
"Obviously we want to make sure these folks get their money," said Blando but added that there were "a lot of legal contract issues" that needed to be worked out between the new companies and the government.
"We work with them and understand what they are going through," Blando said of the security workers. "It's our best interest too to get them compensated. It's just at this point a matter of following what we need to do in terms of procedure."
Blando was unable to say why the government awarded the contact to USProtect in 2006, even though the Maryland company was embroiled in scandals the previous year.
USProtect's founder, Michael B. Holiday, was charged with bribing a federal employee to gain security contracts over a three-year period. He pleaded guilty to corruption and tax evasion and dealing in child pornography over the Internet.
The company's former chief financial officer, Richard S. Hudec, pleaded guilty in November to withholding information about felony convictions to help secure contracts worth more than $150 million. This included concealing four prior felony convictions.
Most recently, Wachovia Bank, and two former employees, filed involuntary Chapter 7 bankruptcy proceedings against USProtect in U.S. Bankruptcy Court in Maryland, claiming $16.18 million in unpaid debts and wages.
Rodriguez said many of his co-workers are living off retirement pensions, but that's only taking them so far. Rocketing fuel prices, as well as other high costs are eating up much of their budgets and has some postponing vacations.
"Everything is in limbo since the company bellied up," he said. "They say they've brought in all these companies that agree to help, but nothing has been concretely done or shown to us on paper."
WASHINGTON DC - NEWS FLASH
A bankruptcy judge has ordered a trustee to take over USProtect Corp., a security company that collapsed amid a multimillion federal contract-rigging scandal.
Judge Thomas J. Catliota of the U.S. Bankruptcy Court in Greenbelt, Md., on Wednesday ordered an interim trustee to take over the operations of USProtect, which provided security guards to federal office buildings and courthouses.
Wachovia Bank had asked for the judge to step in, claiming USProtect's management was "nonexistent" after the company's owner fired its accountant and financial advisers last week and several other key executives resigned.
In court papers, Wachovia said USProtect "began seriously unraveling" earlier this month when owner Lisa D. Hudec took over and various government agencies - including the Social Security Administration, the U.S. Marshals Service and the Walter Read Army Research Institute - sought to end their contracts with the troubled Silver Spring, Md., security firm.
According to Wachovia, which says USProtect owes it more than $15 million, Hudec may have misappropriated company funds for her own benefit. The bank claims Hudec paid herself more than $5 million in salary while acting solely in a "figurehead capacity" as chairman of USProtect's board.
Wachovia, along with two other creditors, pushed USProtect into bankruptcy on Sunday by filing an involuntary Chapter 7 petition against the company.
Under bankruptcy law, companies typically have 20 days to answer an involuntary bankruptcy petition but Wachovia argued a trustee was "crucial" to safeguard the company's remaining assets as customers moved to terminate their contracts with the firm.
USProtect didn't return calls seeking comment. The company shut its doors last week and has "ceased operations" according to a recorded message on its main telephone line. Hudec, Wachovia said, is at her home in Florida under her doctor's care.
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JOIN OUR NEW SOCIAL NETWORK…….www.privateofficer.com
On Sale NOW!
PROTECT YOURSELF!-Tasers, Pepper Spray, Stun Guns
www.privateofficer.com
SECURITY BADGES, ID CARDS, EQUIPMENT---www.privateofficer.com
GET PAID TO SHOP!~ MAKE MONEY FROM HOME!~~~REALLY! CHECK IT OUT!
FREE TO SIGN UP AND FREE TO USE!
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