COLUMBUS -- A Canadian accountant from Toronto pled guilty to three conspiracy charges today in connection with a scheme by Richard D. Schultz, former CEO of National Revenue Corporation, to conceal millions of dollars in an attempt to defraud creditors and the Internal Revenue Service, and to obstruct a grand jury investigation in the Southern District of Ohio.

Ronald J. Bogart faces up to five years in prison and a $250,000 fine on each count in addition to paying restitution to victims of the wire fraud scheme charged in Count 1. A Grand Jury had previously indicted Bogart in a 32-count indictment charging conspiracy, wire and mail fraud, international money laundering, tax fraud and obstruction of justice. In exchange for his guilty plea, the government agreed to dismiss the remaining charges against Bogart when he is sentenced.

Before United States District Judge Algenon L. Marbley today, Bogart admitted to conspiring with Richard D. Schultz, formerly of Westerville, Ohio, and others to defraud Schultz's creditors and the U.S. Treasury by concealing millions of dollars of Schultz's money through false transactions and offshore bank accounts. Schultz was the President and CEO of National Revenue Corporation, a collections agency headquartered in Columbus, Ohio.

At the hearing, Bogart admitted to assisting Schultz conceal the location, control, true nature and ownership of approximately $4,500,000 of Schultz funds from the proceeds of the 1994 sale of NRC to Deluxe Corporation. Facts presented by Special Agent Dennis Hanzel, IRS Criminal Investigations, showed that Bogart helped Schultz structure false and fraudulent transactions that would make it appear as if Schultz spent or lost money in business deals that went sour. However, the transactions disguised the transfer of millions of dollars through Canada to offshore bank accounts in the Cayman Islands and Guernsey of the Channel Islands. Beginning in May 1997, Bogart admitted helping Schultz in an attempt to obstruct a grand jury investigation of Schultz and his transactions and to assisting Schultz in bringing millions of dollars from offshore banks in a scheme to conceal Schultz's ownership interest.

In connection with the plea agreement described at today's hearing, Bogart has agreed to cooperate with the government in disclosing his participation in, and knowledge of, all violations of United States law.

A number of persons, including Schultz, have been convicted of various federal charges in connection with Schultz's schemes to conceal millions of dollars through false and fraudulent transactions, including the use of offshore bank accounts in the Cayman Islands, Bahamas, Canada, Jersey of the Channel Islands, the United Kingdom and Luxembourg. On September 13, 2002, Judge Marbley sentenced Richard Schultz, 52, formerly of Westerville to 30 months imprisonment, and ordered him to pay $1.26 million in restitution to the IRS, serve 416 hours of community service and pay a $28,500 fine, in connection with Schultz's guilty plea on August 9, 2001, to filing a false income tax return in 1994 in connection with the scheme. Between 1994 and 1998, Richard Schultz was President and Chief Executive Order of National Revenue Corporation, a Columbus-based collections agency.

Also on September 13, 2002, Thomas Schultz, 45, of Powell, Ohio, was sentenced to 24 months in prison, fined $7,500 and ordered to serve 416 hours of community service for his crimes. Thomas Schultz was a Vice President at National Revenue Corporation from1994 to 1998. Thomas Schultz assisted Richard Schultz in concealing millions of dollars in offshore bank accounts, including accounts in the Bahamas and Cayman Islands. In August 2001, Thomas Schultz pled guilty to conspiracy, failure to disclose foreign financial accounts, and obstruction of justice.

Two weeks ago, Francis J. McPeak of Clearwater, Florida, and Cedarwood Acquisition Corporation of Toronto, Canada, entered pleas of guilty to conspiracy charges related to Schultz's schemes to defraud his creditors and the IRS. Last week, Domenic L. Massari III of Tampa, Florida, pled guilty to a dual objective conspiracy in connection with a scheme to defraud Schultz's creditors and the IRS. Sentencing dates have not been set.

Others convicted in the scheme include Larry K. Carnahan, formerly of Westerville, Ohio, who pleaded guilty to conspiracy and tax charges and was sentenced by Judge Marbley last year to 27 months in prison. A London Solicitor pleaded guilty to a conspiracy charge last fall, and a Canadian businessman pleaded guilty in March 2003. Both are awaiting sentencing. On July 14, 2003, a Cleveland lawyer, Martin W. Elson, is scheduled to be tried before Judge Marbley on charges stemming from the criminal conspiracy to defraud Schultz's creditors and others.

Gregory G. Lockhart, United States Attorney for the Southern District of Ohio, Christopher Wray, Acting Assistant Attorney General for the Criminal Division, and Eileen J. O'Connor, Assistant Attorney General for the Tax Division, along with Cromwell Handy, Special Agent in Charge, Internal Revenue Service; and Elissa Brown, Special Agent in Charge, Bureau of Immigration and Customs Enforcement, announced the guilty plea.

Evidence at previous hearings before Judge Marbley showed that Richard and Thomas Schultz, in concert with others, concealed millions of dollars in offshore accounts in order to defraud the United States Treasury and to avoid creditors who were seeking to collect on approximately $5 million in judgments awarded by a federal court in California in 1994.

In his guilty plea, Richard Schultz admitted using fraudulent business transactions to conceal the transfer of millions of dollars to bank accounts in the Cayman Islands and then signing a false tax return reflecting the fraudulent transactions and failing to disclose the foreign accounts. Thomas Schultz admitted to managing offshore bank accounts in the Cayman Islands and Bahamas and assisting his brother Richard in the transfer of approximately $4 million to the United Kingdom in connection with the repatriation of Richard Schultz's funds to the United States. In addition to pleading guilty to conspiracy, Thomas Schultz failed to disclose foreign financial accounts and obstructed justice by having a secretary at National Revenue Corporation destroy records after receiving a grand jury subpoena in 1997.

Lockhart commended the agents of the IRS Criminal Investigation Division and the Bureau of Immigration and Customs Enforcement agents who investigated the case.

News releases from the U.S. Attorney's Office are available at www.usdoj.gov/usao/ohs/.