Richard D. Schultz, a former collection agency owner in Ohio, is going back to prison, and will have to pay a hefty fine to the Internal Revenue Service.
Schultz was sentenced yesterday to 33 months in prison, after the judge rejected an initial plea agreement between federal prosecutors and Schultz’s attorneys which would have called for a sentence of a year and a day behind bars.
Schultz pleaded guilty to not paying his employer contributions for Social Security and Medicare taxes he collected from employees of his collection agency and consulting businesses between April 2010 and January 2013.
The IRS is also expecting a check for $1.64 million in this case. It may not want to hold its breath, however, because it is still waiting for $1.26 million from Schultz in a previous case, where he lied about the amount he sold his collection agency — National Revenue — for back in 2002. That offense cost Schultz 30 months in prison.
The scam, involving a sham lawsuit between Schultz and his father and funneling money to offshore accounts, was uncovered during divorce proceedings between Schultz and his former wife when her attorneys suspected he was hiding assets.
