TRENTON, N.J. (AP) - Federal prosecutors say the owner and president of a former payroll processing company has admitted running a multimillion-dollar fraud scheme through the firm.
John Scholtz pleaded guilty Monday to wire fraud and transacting in criminal proceeds. The 68-year-old Sea Isle City man faces up to 30 years in prison when he’s sentenced July 6.
Scholtz ran Innovative Payroll Services LLC. His clients included municipalities, educational institutions and small- to medium-sized, privately held companies.
Clients would routinely deposit funds to pay for payroll taxes into an IPS bank account. Scholtz admitted that from February 2012 to January 2016, he withdrew or had staffers withdrew funds from that account.
He used the funds to pay operating expenses and his personal expenses, including payments for homes, cars, boats, airplanes and credit cards.
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