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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of Texas

Friday, October 10, 2014

Former Financial Administrator At Bureau Of Prisons Is Sentenced For Submitting False Document

FORT WORTH, Texas — A former financial administrator at the Bureau of Prisons (BOP), who admitted submitting a false document to the U.S., was sentenced this morning in federal court in Fort Worth, Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Cary J. Hudson, 49, of Mansfield, Texas, was sentenced by U.S. District Judge John McBryde to three years’ probation and fined $5,000.00, following his guilty plea in June 2014 to one count of submitting a false document to an agency of the U.S.

According to documents filed in the case, Hudson was employed as a financial administrator by the BOP since 1999, having worked at the Federal Correctional Institutions in Fort Worth and Seagoville, Texas, and at the Federal Medical Center Carswell in Fort Worth.

Hudson knew that BOP employees with fiduciary and management responsibilities were required to file annual reports disclosing any outside positions, employment and income. These disclosures are made through an Office of Government Ethics (OGE) Form 450. Government officials review these forms to identify conflicts of interests that may exist between BOP employees and private entities doing business with the BOP or seeking business with the BOP. For instance, a conflict of interest could, among other things, provide a BOP contractor an economic advantage over others and defeat the government’s attempt to secure a competitive contract.

In or around 2006, while employed by the BOP, Hudson entered into a business relationship as a consultant with Integrated Medical Solutions (IMS), a private, for-profit federal contractor that competes for BOP-administered contracts for inmate health care services at BOP institutions nationwide. IMS paid Hudson for these consulting services, but Hudson failed to disclose that relationship and the money paid to him to the BOP on the OGE Form 450 he submitted in February 2013.

The Department of Justice Office of the Inspector General investigated. Assistant U.S. Attorney Chris Wolfe prosecuted.

Updated June 22, 2015