Pension manager pleads guilty to theft of US$289,660.12

Attorney says all of the money was spent to feed cocaine habit

Robert William Schultz pleaded guilty in Grand Court on Tuesday morning to one count of stealing US$289,660.12 from the Chamber of Commerce Pension Plan between April 2009 and June 2011.

Crown Counsel Michael Snape told Justice Charles Quin that the one count covered 43 illegitimate transactions. He described Schultz, 40, as the sole salaried employee of the pension plan, working as pension administrator and overseen by a board of seven trustees.

He cited the Court of Appeal’s comments on the seriousness of breaches of trust and suggested a starting point for sentencing at four years.

Defence attorney Ben Tonner said the thefts did not start until Schultz became dependent on alcohol and cocaine after his marriage started falling apart and he moved out of the family home. He reported that the cocaine habit was costing Schultz between $200 and $500 per day and all of the money stolen was spent on the illegal drug.

Mr. Tonner detailed Schultz’s efforts to get help. He suggested that theft in these circumstances differed from thefts committed out of greed for material things.

He pointed out that Schultz has been in custody since March this year and had early indicated a willingness to plead guilty. He asked for a sentence that would allow Schultz to work and pay the money back; he handed up a letter containing a job offer.

Justice Quin adjourned sentencing until Tuesday, 4 December.
 

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8 COMMENTS

  1. A sentence that would allow him to work and pay the money back???!!! Who in their right mind would hire a thief, let alone an ex-pat thief? Doesn’t the government usually export these guys back to the country where they came from…after their jail time?

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  2. What on earth were the trustees of the fund doing to earn their fees? They too should be prosecuted.
    To I love cayman – sadly it won’t help you in getting your pension fund back. Unless there is some way to sue the trustees. I do hope so, both for you and in principle.

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  3. Blame the Auditors.
    While the trustees should have ensured there were decent anti-fraud controls in place they also put their trust in the audtors to review the financial statements each year for accuracy.
    This theft went on for years and the auditors never picked it up. While the amounts were immaterial in the contaxt of the audit the transactions were unusual enough that they should have been caught.
    Perhaps the pension fund can collect some money from the audit firms professional liability insurance.

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  4. While this person will probably go to prison for sealing almost 300,000.00 of the pension money, his drug dealer still walk among us and the pension plan investers that lost millions of our money in 2008 still cruise this planet as they wish. Fraud and drug investigators are still fishing in small ponds while the rest of us fish in deep stormy sea.

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  5. Ok, so this article talks about yet another drug addict that has stolen to feed his addiction. That’s always very sad, but unfortunately is not new as it happens every day.

    What however was not covered in the article and perhaps should be given some attention from the incident is: Who, if anyone, is looking into whether (or not) any of the seven Trustees were in Breach of Trust or otherwise negligent in allowing this person to take pension monies (after all it apparently happened over 43 transactions); and furthermore, will the Trustees (or anyone else for that matter) be called on to put back the funds stolen from pension?

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  6. WELL,I ALWAYS WONDERED WHERE DOES THE MONEY GOES! ALWAYS THE SAME ANSWER; THE WALL STREET!!

    THE MILLION DOLLAR QUESTION IS? HOW MANY MORE ARE THERE???

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