Fraudulent Business Operator Pleads Guilty
Schultz was arrested in Costa Rica in December 2008 on charges that he and a co-conspirator, Jeffrey Pearson, purported to sell beverage and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses. Schultz worked for USA Beverages, Twin Peaks Gourmet Coffee and Cards-R-Us.
Both USA Beverages and Twin Peaks sold business opportunities to own and operate coffee beverage sale display racks. Cards-R-Us sold business opportunities to own and operate greeting card sale display racks. All three were made to look like they were U.S.-based companies, when in fact they operated out of Costa Rica. Schultz admitted that his role in the conspiracy resulted in between $2.5 million and $7 million in losses to investors, and harmed more than 250 victims.