Stolen Restitution
The Kentucky Supreme Court has permanently disbarred an attorney for professional and personal criminal misconduct.
In June of 2021, Schultz represented Conrad Carr (“Carr”) in a criminal matter in which Carr was charged with three counts of Theft by Unlawful Taking over $10,000. Carr pled guilty and was sentenced to seven years of imprisonment, probated for five years. One of the conditions Carr was subject to required that he repay $242,279.96 in restitution to the victims of his crime. To furnish payment for the restitution, Carr sold his house and gave Schultz a check for the resulting proceeds in the amount of $78,609.21. Schultz deposited the check into his escrow account but did not take any steps to pay restitution on Carr’s behalf.
On August 18, 2021, Carr appeared in court for a restitution review and was surprised to find that Schultz had not used the money to satisfy any of the restitution. The court ordered two show cause hearings, and Schultz failed to appear for either hearing, claiming he was out of town. As a result, Schultz was arrested for contempt on October 1, 2021. While in custody, Schultz brought a razor blade and handcuff key into the secure portion of the detention center.
He was subsequently charged with Theft by Unlawful Taking over $10,000 and Promoting Contraband 1st Degree. On December 20, 2022, Schultz pled guilty to the amended charge of Theft by Unlawful Taking over $1,000 and Promoting Contraband 1st Degree. He was thereafter ordered to pay restitution and placed on felony pretrial diversion for five years.
Also
On January 23, 2024, Schultz’s ex-wife obtained an Emergency Protection Order (“EPO”) against him. Despite the no contact provision of the EPO, Schultz texted his ex-wife more than twenty-four times in an eight-hour span between February 4-5, 2024. These text messages contained a multitude of threatening statements in which Schultz claimed he would find his ex-wife and harm law enforcement. Schultz’s ex-wife contacted the Kentucky State Police, who then arrested Schultz for violation of the EPO. On May 6, 2024, Schultz pled guilty to Violation of a Kentucky EPO and was sentenced to twelve months in jail with 105 days to serve, and the balance to be probated for two years.
Sanction
To this Court, Schultz admits that his conduct violated the Rules of Professional Conduct. Based on his own admission to the above ethical violations, Schultz requests that this Court grant his Motion to Resign Under Terms of Permanent Disbarment. We agree that Schultz’s proposal for permanent disbarment is appropriate pursuant to SCR 3.480(3).
(Mike Frisch)