John Scholtz appeared in federal court on a three-count complaint of fraud and money laundering Watch video
TRENTON -- The former payroll CEO accused in a scheme that authorities say defrauded more than 50 clients of $5.6 million, including the capital city, was released on a $500,000 bond Wednesday.
John Scholtz, 67, of Winslow, appeared in federal court in Trenton after he was charged that morning on charges of wire fraud, fraud against a local government receiving federal funds and money laundering.
Scholtz, who was led into and out of the courtroom in handcuffs by U.S. marshals, made no statements during the 10-minute hearing before Magistrate Judge Douglas E. Arpert.
About an hour later, he left the courthouse holding hands with his wife, Carole. The couple got into a car with Florida license plates driven by an unidentified man.
Scholtz, the former president and CEO of Innovative Payroll Services, is accused of withdrawing funds from a company trust account and using them to pay for his own use, including a deposit on a $1.8 million house in Florida, credit card payments, investments and payments for cars, boats and airplanes.
He was released on a $500,000 unsecured appearance bond. He has to report to pretrial services, undergo mental health evaluations, surrender any firearms and have no contact with victims.
He surrendered his passports and cannot apply for new travel documents. He is also not allowed to travel outside New Jersey and the Eastern District of Pennsylvania, which covers Philadelphia and the surrounding suburbs.
He was represented in court by a federal public defender, Brian Reilly. He previously hired white-collar criminal defense attorney Lisa Mathewson, who is listed in the complaint as his defense counsel, but was allowed to have a public defender since his funds have been frozen by a court order.
Before the hearing, Mathewson said in a statement that Scholtz "is accepting responsibility for his actions and is dedicated to making restitution."
Cristina Rojas may be reached at crojas@njadvancemedia.com. Follow her on Twitter @CristinaRojasTT. Find The Times of Trenton on Facebook.