A former Bullitt County Master Commissioner and county public administrator convicted of stealing over $435,000 from the beneficiaries of estates he was managing was sentenced Monday to spend nearly three years in prison.
U.S. District Court Judge David Hale told John Schmidt “real people were harmed” when he took more than $430,000 over several years, including from a widow’s main source of income as well as a man who had to postpone his retirement because of the loss of funds.
Hale sentenced him to 35 months in prison on charges of wire and bank fraud, also ordering him to spend three years on supervised release, perform 100 hours of community service and pay full restitution.
Schmidt was facing a maximum of 80 years in prison and a $2.5 million fine, for stealing from two separate trusts between September 2014 and January 2019 to use for his own personal expenditures.
Schmidt, 67, addressed some of his victims in the courtroom, apologizing to them, his friends and family as well as the legal community.
Schmidt said the money he stole was used to cover up mistakes in his law practice. He has already paid some restitution but still owes about $255,000.
After the sentencing, Hale allowed Schmidt to remain out on bail until he is assigned a prison date.
A master commissioner assists circuit courts, in part, by conducting sales of foreclosed property to satisfy liens, mortgages or claims of ownership. Schmidt had served in that office since he was appointed in 1992. He was quietly removed from that position in 2019.
A grand jury indicted him May 2 on one count of wire fraud and two counts of bank fraud. The FBI and Kentucky State Police investigated the case.
Charges of abuse of public trust and theft filed in state court by Hillview police are still pending.
A court hearing is scheduled in Bullitt County for Jan. 26 on those charges.
Source: WDRB
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