CAMDEN, Maine - The former head of a Midcoast charity who embezzled more than $4 million from the organization will plead guilty to three federal criminal charges at the end of the month.
Rusty Brace has already admitted to breach of duty, fraud and conversion of money belonging to United Midcoast Charities, as part of the settlement of a civil lawsuit. Word of the impending federal plea comes from Rusty Brace's lawyer.
Peter DeTroy says his client faces a bank fraud charge, a tax fraud count for failing to declare the more than $4 million he embezzled and another charge for falsifying tax documents during his years as head of United Midcoast Charities.
DeTroy says Brace will plead guilty to all three counts in U.S. District Court on May 29. "I think it's fair to say that, under the sentencing guidelines, that incarceration will be what is called for. Whether that ultimately happens or not is ultimately up to the judge."
As part of a separate civil settlement, Brace is required to sell properties and liquidate bank accounts to pay back the money he stole.
The scheme came to light last fall, when the charity's new CEO asked a board member, and frequent donor, for a contribution. The donor had just written a check for $35,000, but the charity had no record of the contribution.
A lawyer for United Midcoast Charities says he's optimistic the organization will get back most of the money it lost.