COLUMBUS - Three of the men who took part in a scheme to hide millions of dollars from the Internal Revenue Service and creditors were sentenced in United States District Court here yesterday. Richard Kennedy, 51, a lawyer and businessman from Toronto, Canada, was sentenced to 15 months in prison. Domenic Massari, 50, of Tampa, Florida, a former lawyer, was sentenced to 12 months imprisonment, and Frank McPeak, 63, a businessman from St. Petersburg was sentenced to probation with six-months of home confinement. Each defendant was also ordered to pay restitution to the victims. Gregory G. Lockhart, United States Attorney for the Southern District of Ohio, and Cromwell A. Handy, Special Agent in Charge, Internal Revenue Service Criminal Investigation, announced the sentences handed down by United States District Judge Algenon L. Marbley. Each of the defendants pled guilty conspiracy charges and admitted assisting Richard D. Schultz, former Chief Executive Officer of National Revenue Corporation, in a fraud and money laundering scheme that concealed millions of dollars of Schultz’s funds through fraudulent transactions. Kennedy admitted to participating in the use of offshore bank accounts in foreign countries such as the Cayman Islands and Guernsey of the Channel Islands. Schultz then claimed false tax losses claiming millions of dollars in deductions based on the false transactions. Massari admitted assisting Schultz in the fabrication of letter, backdated to 1973, and which was used as the basis for collusive, sham litigation in Florida. McPeak admitted acting as a shill or nominee in Schultz’s conspiracy to defraud his civil judgment creditors. McPeak, Massari and Kennedy were the sixth, seventh and eighth Schultz co-conspirators sentenced to date. A number of persons, including Schultz, have been convicted of various federal charges in connection with Schultz’s schemes to conceal millions of dollars through false and fraudulent transactions, including the use of offshore bank accounts in the Cayman Islands, Bahamas, Canada, Jersey of the Channel Islands, the United Kingdom and Luxembourg. Six other defendants are expected to be sentenced in August or September. Richard Schultz, age 52, formerly of Westerville was sentenced in September, 2002 to 30 months imprisonment, and ordered to pay $1.26 million in restitution to the IRS, serve 416 hours of community service and pay a $28,500 fine. Richard Schultz was President and Chief Executive Order of National Revenue Corporation, a Columbus-based collections agency. Thomas Schultz, age 45, of Powell, Ohio, has been sentenced to 24 months in prison, fined $7,500 and ordered to serve 416 hours of community service for his crimes. Thomas Schultz was a Vice President at National Revenue Corporation from1994 to 1998. Thomas Schultz pled guilty to conspiracy, failure to disclose foreign financial accounts, and obstruction of justice. Others convicted in the scheme include Larry K. Carnahan, formerly of Westerville, Ohio, who pleaded guilty to conspiracy and tax charges and was sentenced by Judge Marbley in 2002 to 27 months in prison. Last June, Ronald J. Bogart, a Canadian accountant, was sentenced to 18 months in prison. Jeremy Franks, a London Solicitor, pleaded guilty to a conspiracy charge in September 2002, and Richard Kennedy, a Canadian businessman from Toronto, pleaded guilty in March 2003. On April 9, 2004, Cleveland lawyer Martin W. Elson pleaded guilty to conspiring with Schultz to obstruct the grand jury investigation ofthe scheme to defraud Schultz’s creditors by concealing Schultz’s purchase of multi-million dollar civil judgments against Schultz through the use of nominees and shills. Elson admitted that, in connection with the scheme, he purported to represent an adversary of Schultz while actually working for Schultz’s benefit. Schultz was the President and CEO of National Revenue Corporation, a collections agency headquartered in Columbus, Ohio. Lockhart commended the agents of the IRS Criminal Investigation Division and the Bureau of Immigration and Customs Enforcement agents who investigated the case, and Justice Department Tax Attorney Mark Yost, who is prosecuting the case. For additional comment contact Fred Alverson, Public Affairs Officer at 614.469.5715. The Internet address for the homepage for the United States Attorney’s Office for the Southern District of Ohio is www.usdoj.gov/usao/ohs.