Michael Hudson, Embezzlement, Ohio 2023
CINCINNATI – Michael Hudson, 53, of Cincinnati, Ohio pleaded guilty in U.S. District Court today to one count of wire fraud and one count of filing a false federal income tax return with the Internal Revenue Service (IRS) relative to a scheme to defraud Frisch's Restaurants, Inc. (“Frisch's”) by embezzling funds in excess of his authorized pay and compensation.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into today before U.S. District Judge Michael R. Barrett.
According to court documents, between 1992 and 2014 Hudson was employed at Frisch's and between 2004 and December 2014 Hudson was the assistant treasurer for Frisch's. While serving as assistant treasurer, Hudson made unauthorized wire or ACH transfers of funds from the Frisch's bank accounts for his own benefit. For example, on one occasion, Hudson transferred money from Frisch's bank account to a bank account in the name of WPMH Properties, LLC, which was a business owned and controlled by Hudson.
In total, between 2008 and 2014 Hudson embezzled $3,905,930.11 from Frisch's as a result of this fraud scheme.
In addition, Hudson filed a false 2009 income tax return with the IRS. Specifically, Hudson embezzled $323,936.19 from Frisch's in 2009, but failed to report it as income on his 2009 income tax return.
Michael Hudson faces a maximum of 20 years in prison and a $250,000 fine or two times the loss for the fraud count. For the tax count, Hudson faces a maximum of 3 years in prison and a $100,000 fine.
No sentence has been handed down yet. The total amount of income taxes due and owing for the 2009 through 2013 income tax years was $969,697.81.
No further information has been released at this time.
Key Facts
- State: Ohio
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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