Atlantic City, New Jersey, Man Sentenced To Six Months In Prison, Six Months Home Confinement, For Conspiring To Defraud IRS Of Nearly $120,000 In Taxes

CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to six months in prison and six months home confinement for his role in a conspiracy to defraud the IRS of $119,880 in income taxes over three years, Acting U.S. Attorney William E. Fitzpatrick announced today.

John Schultz, 74, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to defraud the United States. Judge Rodriguez imposed the sentence today in Camden federal court.
 
According to documents filed in the case and statements made in court:

Schultz, William Boland, and another conspirator were partners in Royal Rolling Chairs Inc., a business based in Atlantic City that provided rolling chair transportation services to patrons on the boardwalk. As owners, they were responsible for accurately reporting income received by the business to the IRS.   

Schultz admitted that he and his two partners hid gross cash receipts from the operation of the business and did not report this revenue to the IRS. He admitted that the business maintained a second set of books, which tracked the unreported cash revenue taken out of the business. The total tax loss from the conspiracy was $119,800.

In addition to the prison term, Judge Rodriguez sentenced Schultz to one year of supervised release – which includes the six months of home confinement – fined him $3,000, and ordered him to pay $31,110 in restitution.

Boland previously pleaded guilty to the same conspiracy charge and is scheduled to be sentenced by Judge Rodriguez on May 4, 2017. Abdus Mian, the bookkeeper for Royal Rolling Chairs, pleaded guilty to making false statements to federal investigators and was sentenced on April 4, 2016, to one year of probation. 

Acting U.S. Attorney Fitzpatrick credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark Field Office, with the investigation leading to today’s sentencing.

The government is represented by Deputy Attorney in Charge Matthew J. Skahill of the U.S. Attorney's Office in Camden.   

Defense counsel: Edwin J. Jacobs Jr. Esq., Atlantic City