John Scholtz, the former owner and president of Innovative Payroll Services (IPS), was charged in March with wire fraud.
TRENTON -- A federal judge has authorized the sale of another boat and a Florida condominium owned by John Scholtz, the former CEO of a payroll company charged with defrauding clients, including the city of Trenton.
On Aug. 9, U.S. District Judge Freda Wolfson, in Trenton, signed off on the sale of Scholtz's Clearwater Beach, Fla. condo for $210,000, federal court documents show.
And on July 23, the judge authorized the sale of his 2008 Ocean Waves Blackhawk, a 33-foot craft, for $36,500, documents show.
The sales come under a February order Wolfson signed to preserve assets that could be used to help satisfy any future judgments.
The orders say the assets can be used to pay administrative, civil, criminal or other monetary penalties or restitutions imposed against Scholtz.
In June, the judge authorized the sale of Scholtz's 1999 54-foot Sea Ray boat for $150,000.
Scholtz, the former owner and president of Innovative Payroll Services (IPS), was charged in March with wire fraud, fraud against a local government receiving federal funds and money laundering.
Federal prosecutors say they've identified more than 50 clients who collectively suffered losses of more than $5.6 million.
The City of Trenton took the brunt of it.
CEO accused of fraud can sell boat for $150K
Between Aug. 15, 2015 and Jan. 15 of this year, IPS failed to pay $4,697,528 in payroll taxes to the Internal Revenue Service and the state of New Jersey that had been withheld from employees' paychecks.
Authorities allege that Scholtz withdrew funds from a company trust account for his personal use, including a deposit on a $1.8 million house in Florida, credit card payments, investments and payments for cars, boats and airplanes.
For example, the initial federal complaint against Scholtz alleged that on Sept 23, 2015, Trenton payroll employees deposited $921,235 into an IPS account.
On the same day, at Scholtz's request, $175,275 was transferred to an operating account, then a wire account.
The following day, the money was wired to a yacht and ship services company in Florida, federal court papers say.
In May, Trenton's plan to float a bond to repay the state and federal government $4.7 million was approved by the City Council.
Meanwhile, the criminal case against Scholtz is ongoing in federal court, also in Trenton.
The last court filing was in June, when U.S. Magistrate Judge Douglas Arpert granted a continuance to allow prosecutors and Scholtz's attorney to discuss a possible plea bargain.
The continuance is scheduled to be revisited on Sept. 15.
Kevin Shea may be reached at kshea@njadvancemedia.com. Follow him on Twitter@kevintshea. Find NJ.com on Facebook.