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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Missouri

FOR IMMEDIATE RELEASE
Wednesday, February 7, 2018

St. Louis County Man Sentenced for Scamming Individuals

St. Louis, MO – David E. Schultz was sentenced to 96 months in prison for wire fraud.  Schultz was also ordered to pay restitution in the amount of $452,376.00.   

David E. Schultz defrauded multiple victims by falsely stating that he could provide various legal remedies to them.  He demanded victims provide him cash or assets, such as jewelry, gold, silver, and other items of value that could quickly be converted into cash in exchange for future services. Schultz demanded victims borrow money from their family members or open lines of credit in order to provide him with money in exchange for future services.

As part of his fraudulent scheme, Schultz developed a relationship with victim R.R.  Victim R.R. was a St. Louis pharmacist whose pharmacology license was suspended in 2014.  David E. Schultz falsely represented to Victim R.R. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney.  Schultz told R.R. that in exchange for payments, he would be able to obtain a “Letter of Exoneration” from the Missouri Board of Pharmacy and broker a lucrative lab-testing contract with the Missouri Department of Corrections. Victim R.R. paid David E. Schultz approximately $50,000 for services which were never provided and which David E. Schultz never intended to provide.

He also developed a relationship with victim E.B.  Victim E.B. owned and operated a health care products distribution firm and was convicted of health care fraud in 2015. David E. Schultz falsely represented to Victim E.B. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney.  David E. Schultz represented to Victim E.B. that in exchange for payments, he would be able to have E.B.’s conviction overturned.  In July 2016, David E. Schultz presented to Victim E.B. two fraudulent and forged documents falsely representing that E.B.’s conviction was overturned.  Victim E.B. paid David E. Schultz approximately $81,000 for services which were never provided.

Schultz also developed a relationship with Victim D.G.  Victim D.G. was convicted of health care fraud in 2014.  David E. Schultz falsely represented to Victim D.G. that in exchange for payments, he would have D.G.’s conviction “expunged” and falsely represented that he was in close contact with the Federal District Court Judge who sentenced Victim D.G.  Victim D.G. paid David E. Schultz approximately $17,000 for services which were never provided.

Schultz also developed a relationship with Victim O.G.  Victim O.G. was the sister of Victim D.G.  David E. Schultz falsely represented to Victim O.G. that he was working with attorneys to secure her brother’s release from prison.  David E. Schultz also falsely represented to Victim O.G. that upon Victim D.G’s release from prison, he intended to open several Dollar Stores with Victim D.G.  David E. Schultz represented to Victim O.G. that in exchange for payments, he would pay attorneys to have her brother released from prison and pay for hotel and meal expenses for Dollar Store executives that he hosted.  Victim O.G. paid David E. Schultz approximately $22,000 for services which were never provided.

Schultz developed a relationship with Victim R.J.  Victim R.J. was a former cardiologist convicted of health care fraud in 2002 and 2009. David E. Schultz falsely represented to Victim R.J. that he was working with attorneys to reinstate Victim R.J.’s medical license.  David E. Schultz falsely represented to Victim R.J. that in exchange for payments, he would pay his personal attorney, V.A., to secure “immunity” for Victim R.J. Additionally, David E. Schultz falsely represented that he would pay attorneys to testify for R.J. during the medical license reinstatement process; hire private investigators; and make court-ordered restitution payments on R.J.’s behalf. Victim R.J. paid David E. Schultz approximately $162,000 for services which were never provided.

Furthermore, Schultz developed a romantic relationship with Victim S.M.  David E. Schultz falsely represented to Victim S.M. that he was a “hard money lender” and was a wealthy real estate investor.  David E. Schultz promised to marry Victim S.M. and provide her with a lifetime of financial security.  David E. Schultz represented to Victim S.M. that he needed to borrow money from her only until he received several large cash payments from his overseas accounts.  Victim S.M. drained her own saving and retirement accounts, borrowed money from her parents, borrowed money from her siblings and opened credit accounts to generate money for David E. Schultz.  In total, Victim S.M. paid David E. Schultz approximately $120,000.

Schultz, 50, of St. Louis County, pled guilty in November to two felony counts of wire fraud.  He appeared today for sentencing in front of U.S. District Judge Ronnie White.

The case was investigated by the FBI. Assistant United States Attorney Dianna Collins is prosecuting the case for the U.S. Attorney’s Office.

Topic(s): 
Financial Fraud
Updated February 7, 2018