Insurance Firm Operator Sentenced for Fraud and Tax Evasion
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Hazleton man was sentenced today in U.S. District Court in Wilkes-Barre to 63 months’ imprisonment by United States District Judge A. Richard Caputo for wire fraud and income tax evasion.
According to United States Attorney Peter Smith, Joseph S. Hyduk, age 55, pleaded guilty to the charges in November 2014. Hyduk was indicted in August 2014.
Hyduk did business as BNA Financial Services, an insurance company which he operated from his home. During 2010 through 2012, Hyduk fraudulently diverted approximately $1 million dollars from his clients’ accounts to himself for his own personal use.
In addition to the prison term, Hyduk will be supervised by a probation officer for three years following his release from prison and will be required to pay restitution. A court order for restitution will be finalized within the next 60 days. Hyduk was ordered to report on August 17, 2015 to a federal prison to be designated later. As part of the case, the government also sought forfeiture of cash, real property and vehicles owned by Hyduk.
The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Michelle Olshefski.