Schultz started National Revenue Corp. in Columbus with $5,000

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Deceit & Co. Businessman Enlists a Bevy of Lawyers to Aid Him in a Series of Scams to Hide Millions of Dollars of His Own Money From a Court Judgment Peter Aronson Staff reporter The National Law Journal November 17, 2003 Richard D. Schultz may have dug his own small niche into the landscape of white-collar crime. Schultz, a highly successful businessman from Columbus, Ohio, was never accused of bilking investors of tens or hundreds of millions of dollars, like executives of Tyco, Enron, WorldCom and the like. Richard D. Schultz Instead, he distinguished himself by enlisting a bevy of lawyers to aid him in a series of scams to hide millions of dollars of his own money from a court judgment. He then turned state's evidence against members of his legal team, leading to their indictment and what even prosecutors acknowledge was a "very good deal" for himself. So far, one attorney has pleaded guilty and been sentenced to federal prison for helping Schultz hide $9 million from creditors and the federal government. Three others and an accountant have pleaded guilty and are awaiting sentencing. A fifth attorney is awaiting a trial in January. A sixth committed suicide the day after he was indicted. A government source said the federal grand jury in Columbus continues to investigate and more indictments are possible this year, though whether other lawyers are under investigation isn't known. The Schultz case is part of the federal government's increased efforts, in light of recent corporate scandals, to go after the "gatekeepers," the lawyers and accountants who advise executives. "I think the message is clear," said Gregory G. Lockhart, U.S. attorney for the Southern District of Ohio, where the case is being prosecuted. "There is a line between being an advocate for your client and giving advice for legitimate business purposes and you becoming aware of the fraudulent nature of the transaction, then crossing the line from being a counselor to being a conspirator."

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