A former Atlantic City councilman has pleaded guilty to conspiring to defraud the IRS of nearly $120,000 in taxes from a boardwalk rolling chair business he owned with two other people.
John Schultz pleaded guilty Thursday in federal court to conspiracy to defraud the United States.
The 74-year-old admitted that he and two partners hid cash receipts from the business and did not report this revenue to the IRS.
Schultz also admitted the business maintained a second set of books, which tracked the unreported cash revenue taken out of the business.
He faces up to five years in prison when he is sentenced in January.
His lawyer says Schultz and others were sloppy bookkeepers, and that Schultz plans to pay back taxes and penalties.