Smoking Gun: Reality Show Winner to Face Reality of Tax Law; Can Hatch Survive This?

Apparently, Richard Hatch faces criminal charges relating to tax fraud. My first reaction is to wonder why some tax accountant or tax attorney didn't seek him out as a client after his very public winnings, but then I read about an S-corp (which requires an affirmative "S-election" by the shareholder), which suggests he had tax advice after all, so I wonder what the rest of the story is.

Comments enabled for theories.

Thanks Mr. Drudge for the link.