S.D. Hells Angels President Is Charged in Drug Case

Douglas Chester Schultz, owner of Rich Man Poor Man Limousine Service and president of the local chapter of the Hells Angels, was arrested Thursday and indicted by a federal grand jury on 18 counts of possession of methamphetamine, intent to distribute and conspiracy, the U.S. attorney’s office announced.

The maximum penalty Schultz could receive is 184 years in prison and a fine of $5.25 million. The 18-count indictment is the result of an eight-month investigation.

Also arrested was Gerald Robert Ladley, an employee of Rich Man Poor Man. He could receive 60 years in prison and as much as $1 million in fines, if convicted.

On Thursday, six pounds of methamphetamine, commonly known as “speed,” were confiscated by authorities, which included the FBI, San Diego police, the district attorney’s office and the Internal Revenue Service. Four pounds were being delivered to an informant who worked throughout the investigation, and two pounds were recovered at Schultz’s residence in the 4600 block of 51st Street, said Assistant U.S. Atty. Michael Lasater.

Schultz had been free on bail in Arizona on charges of possession of methamphetamine and the intent to distribute, Lasater said. Both the San Diego and Arizona charges stemmed from investigations using the Organized Crime Drug Enforcement Task Force created by President Reagan in 1982.

The San Diego indictment lists five sales of methamphetamine, each at least 4 ounces, for a total of $4,800. The total cost of the drugs in the deals was $31,400, authorities said. The indictment did not include the six pounds that authorities said were recovered Thursday.

Because four of the sales occurred on the property of Rich Man Poor Man Limousine Service at 4252 40th St., that property, along with 15 vehicles, has been confiscated by federal officials, authorities said. Also, the money in the firm’s bank account is being forfeited to federal authorities.

Schultz’s prison sentence, if he’s convicted, could reach 184 years because of a 1984 law that says the penalties can be doubled if the crime occurs within 1,000 feet of a school. Rich Man Poor Man is within 1,000 feet of Wilson Middle School. This is the first time this rule has applied in San Diego, officials said.

Schultz and Ladley are to be arraigned today.