A onetime Atlantic City Council member, and co-owner of a firm that supplies rolling chairs for the Boardwalk, faces the prospect of up to five years in jail for six-figure tax fraud.

Atlantic City - Photo by John Moore/Getty Images.

In a Camden federal courtroom, John Schulz, 74, pleaded guilty to a count of conspiracy to defraud the United States, according to the office of New Jersey U.S. Attorney Paul J. Fishman.

He admitted a role in cheating the Internal Revenue Service (IRS) out of$119,880 over a three-year span.

Schulz becomes the third defendant to accept a guilty plea in connection with the case. Partner William Boland is to be sentenced October 25. Bookeeper Abdus Mian was given a year of probation on April 4 for a charge of false statements to federal investigators.

Schulz and Boland operate Atlantic City-based Royal Rolling Chairs, Inc. Investigators indicated, but did not identify, a third partner.

Schulz admitted that he and his partners hid gross cash receipts, keeping track of the unreported revenue through a separate set of ledger books.

In addition to a possible five-year term at his scheduled January 9, 2017 sentencing, Schulz risks a fine of $250,000, or twice the gain or loss of the offense.

Deputy Attorney in Charge Matthew J. Skahill of Fishman's office conducted the prosecution. Schulz was represented by Atlantic City attorney Edwin J. Jacobs, Jr.

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