Hell's Angels President Arrested in Big Drug Case

Times Staff Writer

The president of the San Diego chapter of Hells Angels was arrested at his home and $20,000 in cash was confiscated Tuesday morning as the result of a federal warrant issued in Phoenix that charged drug possession, authorities said.

Douglas Chester Schultz, 31, of East San Diego, was arraigned in federal court three hours after he was arrested on suspicion of conspiracy to possess methamphetamine, or "speed," with intent to distribute. He was released after he posted $10,000 in cash and signed over the trust deed to his home to secure a $125,000 personal appearance bond.

Schultz was convicted on similar charges in 1977.

Schultz was the only San Diegan arrested in a sweep that included 56 arrests in Phoenix and Hartford, Conn.

The arrests resulted from five months of investigation by federal, state and local law enforcement officials.

Assistant U.S. Atty. Michael Lasater said information indicates that Schultz was the provider of the drugs.

"There is an extensive affidavit in the case," Lasater said, adding, however, that the affidavit has been sealed and that he could not reveal any other details of the case.

In court, Schultz identified himself as the general manager of the Rich Man Poor Man Limousine Service on 40th Street.

Bowie said Schultz will be taken to Phoenix, where he faces a maximum of 15 years in prison and up to $125,000 in fines if convicted.

San Diego is the headquarters of the Southwest Border Organized Crime Drug Enforcement Task Force, one of 12 established nationwide by President Reagan in 1982 to coordinate the law enforcement efforts to combat distribution of illegal drugs.

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