PORTLAND, Maine — Sentencing for the former head of a Camden-area charity who admitted to stealing more than $4.6 million from the organization may be delayed.
Attorney Peter DeTroy, who represents Russell “Rusty” Brace of Camden, filed a motion Tuesday in U.S. District Court in Portland asking for a delay in the scheduled Sept. 18 sentencing.
DeTroy stated in papers filed in court that he has not been able to prepare for Brace’s sentencing since June 1 because of commitments in other cases including a slander lawsuit involving Hearts with Haiti and Michael Geilenfeld versus Paul Kendrick, which went to trial and concluded July 23. DeTroy represented Hearts with Haiti and Geilenfeld.
“Given the nature of the offense and my client’s circumstances, additional time will be required to prepare for the sentencing,” DeTroy stated concerning his case with Brace.
Brace, 81, pleaded guilty May 29 to one count of mail fraud affecting a financial institution and two counts of tax fraud and making false statements. Brace faces up to 30 years in prison.
DeTroy asked that the sentencing be postponed to no earlier than Oct. 5, but he also pointed out that he is not available Oct. 13, 14 or Oct. 21 through Oct. 28.
DeTroy stated that the U.S. attorney’s office takes no position on the request for a postponement.
The embezzlement was detected in September 2014, a few weeks after Brace stepped down as president of United Mid-Coast Charities. The new president of the charity discovered the theft when he found out that $75,000 donated by a foundation had not been deposited into the charity’s bank account.
Stephen Crane, the new charity president, said in an earlier statement that when he confronted Brace, who admitted to the theft, Brace never apologized.
Brace remains free on personal recognizance until he is sentenced, and he has turned over his passport to the court.
Brace began serving as president of the charity in 1997, and in 1999, he opened a bank account at The First, N.A. branch in Camden under the name of Brace Management, doing business as UCRC Charitable Fund. He then deposited checks totaling $4.6 million that had been intended for the charity into his account through 2014 when he stepped down as president of United Mid-Coast Charities, according to court documents. The organization distributes donated funds to local nonprofit organizations in Knox and Waldo counties.
The charity did not have an account at The First and since has settled its claims against the bank. Details of that settlement have not been released by either side.
Brace was the landlord of the bank, which has an office in his Main Street commercial building. Four months ago, the charity settled a civil lawsuit against Brace. In the settlement, Brace admitted to breach of duty, fraud and conversion of money belonging to the charity after his theft of hundreds of donation checks made payable to the charity. He also agreed as part of the civil lawsuit settlement to pay back $4,646,636.
Brace also agreed to sell off nearly all his assets in order to repay the charity. None of the properties have yet been sold, but they were put up for sale last winter.
The charity’s attorney, Jay McCloskey, said earlier this year that Brace spent a lot of the money on businesses that he operated that did not do well financially. Brace owned Brace Management, which managed properties in New Hampshire and Maine. That company has been based out of his 21 Elm St. office building in downtown Camden for more than 40 years.
McCloskey also said Brace was living well off the stolen money.