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Atlantic City Council sex blackmail case raises questions about PTI program and Councilman Schultz


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Atlantic County Prosecutor Ted Housel

Atlantic County Prosecutor Ted Housel is "dismayed" a letter addressed to him, from the New Jersey Attorney General, was released to the media. The case involves the alleged sex blackmail case of an Atlantic City Councilman.

Housel did not object in court to Councilman John Schultz being admitted to the Pre-Trial Intervention program. Schultz was charged along with three other defendants in a alleged scheme to blackmail a rival councilman by hiring a prostitute to lure him to a hotel and tape him receiving oral sex.

Schultz will avoid jail by being diverted into the program, a move the New Jersey Attorney General strongly opposed in a letter to the prosecutor. 
See related story here

The letter from the New Jersey Attorney General states the following (in part):

“As I have explained during our discussion, this office does not agree with your assessment of the merits of Mr. Schultz’s PTI application. To the contrary, as explained in the PTI Program Coordinator’s report denying the application, Mr. Schultz’s conduct (alleged) constituted a clear breach of the public trust and, for that reason alone, his application should be denied. In the interest of justice, therefore, your office has a responsibility to vigorously oppose Mr. Schultz’s admission into PTI.”

Housel stated in a press release Monday that there were extenuating circumstances in the PTI application of Schultz. He would not release his letter to First Assistant Solano but suggested the office of the Attorney General may do so.

"I am dismayed that the Office of Attorney General would release an inter-agency letter, which is not something I would do," Prosecutor Ted Housel stated. "I have drafted a response to Mr. Solano but will not release it consistent with my policy. However, I would believe that the Attorney General's Office would release it having released Mr. Solano’s letter.”

 Housel stated his reasons for not opposing pre-trial intervention for Schultz.

“With respect to the decision to consent to his admission into PTI, we filed a statement of reasons with the Court, which Court Rules make confidential unless the defendant waives that confidentiality. However, we did place on the record today the fact that Mr. Schultz both provided sworn proffers and has agreed to testify at trial if called.”

Schultz has maintained his innocense and indicated he had no idea what was on the tape. He claims he only referred Craig Callaway to a video editor. 

The remaining defendants, Ronald "Jihad" Callaway, David Callaway and Floyd Tally are scheduled to go to trial begining September 29, when jury selection is scheduled.

See related stories and slide show here

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Atlantic City City Hall Examiner

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