PORTLAND — U.S. District Court Judge George Singal is expected to sentence Russell Wing Brace of Rockport on Friday, Oct. 9, in the final federal court act following Brace's conviction in June for felony fraud. His attorney, Peter DeTroy, is hoping the judge will allow some time for Brace to go home and collect himself if he is expected to report to prison.

The sentencing, however, has yet to take place, so it is not cast in stone that Brace will go to prison; however, the 81 year-old convicted felon faces a punishment that could carry up to 30 years in a correctional facility, plus substantial fines.

But Brace doesn't have any money left to speak of, having purportedly forfeited his assets and cash last year in a civil suit brought by United Mid-Coast Charities, the nonprofit from which he stole charitable donations intended for the poor and needy throughout Knox and Waldo counties.

And the prison, if Judge Singal sentences him so, will depend on where the federal Bureau of Prisons has space, what Brace's medical condition is and the court's determination of the severity of the crime itself.

"I am hoping he [the judge] will release him and have him report to the Bureau of Prisons, which is usually two or three weeks after sentencing," said DeTroy, who has been Brace's attorney since he first stood accused of the donation thefts in September 2014.

The sentencing will take place in Portland at U.S. District Court, the federal court where last May Brace pleaded guilty to more than 15 years of siphoning UMCC donations into his own bank account at The First. In total, Brace had moved more than $4.6 million into his private account.

Brace's conviction of tax and mail fraud in federal court followed a civil suit settled in 2014, whereby Brace admitted to his criminal actions, and agreed to turn over his assets and cash to UMCC.

On May 29, Brace pleaded guilty in federal court to three felony charges: Mail fraud affecting a financial institution, and two tax frauds that include making false statements to the Internal Revenue Service.

Brace, a Dartmouth graduate who earned the Camden-Rockport-Lincolnville 2005 Townsperson of the Year award, had been volunteer president of UMCC since 1997. Following his retirement as president of UMCC in 2013, the town publicly honored him, as did the state, in a special ceremony.

Despite UMCC's structure as a nonprofit, which entails having a board of directors, no one knew Brace had redirected more than 377 donor checks into his own private checking account at The First. The nonprofit, along with the community, was shocked and angered that for more than 15 years, individuals and foundations had been duped into thinking their money had benefited those who needed it most.

Instead, a portion of it was being directed to the private coffers of one Rockport resident, and used for personal gain.

This was going on, even as Brace was publicly announcing in his 2006 college reunion yearbook (Dartmouth College Class of 1956) that as UMCC president: "We see to it that those who need a boost, get it. Protection of scenic and special land from drooling developers can leave you with enough bruises for a lifetime. Our community involvement is quite extensive, but perhaps it will be a small legacy in this corner of the country."

In 2012, Brace pitched to media that, in light of UMCC's 70th birthday, stories would interest readers about the nonprofit's volunteers, and the fact that 100 percent of "all contributions are 100 percent distributed."

He suggested a profile, "of UMCC, started by summer visitors to the Camden area as a way of giving back to the community they loved," or "a profile of one or more of our board members, who can explain the value of community-based philanthropy."

The federal case, brought against Brace by the U.S. Attorneys' Office, followed a lengthy investigation by the Federal Bureau of Investigations and the IRS. The two agencies worked independently and determined that over the last five years alone, Brace moved between $176,000 to $334,800 per year into his own bank account, money that had been intended for UMCC to ultimately benefit the more than 50 social service agencies it partners with.

The sentencing

DeTroy said Wednesday he anticipates the Oct. 9 sentencing hearing will last one to two hours. Often, the judge will allow the victim — in this case, UMCC — to make a statement, and allow Brace to make comments.

Jay McCloskey, attorney for UMCC, said Oct. 8 that he will be at the sentencing but will remain quiet, allowing UMCC president Steve Crane, and others, to make their statements directly to Brace.

"It will be an emotional day, no matter what," said DeTroy, Oct. 7.

He said Brace is still recuperating from bilateral knee surgery and is not able to walk more than a few feet.

"His overall health is certainly not robust," he said. "But there are no life-threatening illnesses, yet."

DeTroy said those sentenced to prison are either escorted directly from the courtroom into the custody of U.S. Marshals, or they are allowed to return home, where they receive a letter from the Bureau of Prisons, outlining what prison to surrender to, and on what date and time.

In New England, there are three correctional facilities: Fort Devens, in mid-Massachusetts, which is an administrative security federal medical center with an adjacent minimum security satellite camp; and a Federal Corrections Institution in Danbury, Conn., with an adjacent minimum security satellite camp. The third is a medium security prison in Berlin, Vt.

McCloskey said the court has no jurisdiction over where a criminal is sent, although a judge can made a recommendation. The Bureau of Prisons will make its decision depending on the crime, the incoming inmate's medical condition, and the availability of beds. If New England is filled up, and Brace is sentenced to prison, he could end up anywhere in the country.

"It's not over until it's over," said McCloskey.

Attempts to reach Brace for a comment have yet to be successful.

How much money has been recovered?

"On Sept. 22, 2014, UMCC contacted The First bank to discuss the missing funds," wrote U.S. Attorney Dan Clark, last May, in a press release announcing Brace's conviction. "As a result of the inquiry, The First bank issued a check for $75,000 to UMCC in order to cover the UMCC loss. The deposit of UMCC checks into The First bank account affected The First bank and exposed it to a risk of loss or civil liability."

That statement was the tip of the iceberg, as federal forensics later found that between July 1999 and September 2014, Brace had deposited $3.8 million, at least, into his The First bank account. The investigators ultimately determined he had deposited 377 checks, totaling $4.64 million, into his account.

IRS investigators also determined he failed to report income, and by his fraudulent scheme, obtained $305,500 in 2008; $335,452 in 2009; $303,000 in 2010; $227,100 in 2011; and $202,000 in 2012.

As of one year ago, after the FBI and the IRS launched its inquires into the theft, The First disclosed that Brace's bank accounts there collectively held a little more than $700,000.

He also had assets — a large 1830s brick corner office building (assessed at $1.7 million and carrying a $1 million mortgage) in downtown Camden, a Spruce Street home in Rockport (assessed at $774,800), a small lakefront home in Washington (assessed at $314,954) and a mountainside home in Rangeley (assessed at $290,000).

He also had two boats and cars.

Over 15 years, $4.6 million moves fast, said McCloskey, especially when there are education bills and houses to tend to.

"It goes quickly," he said.

Brace had no investment portfolios.

As of last summer, UMCC settled with The First, the bank that was responsible for accepting the checks and processing them into Brace's personal account, as opposed to the UMCC account.

That settlement is confidential, and its terms have not been disclosed.

"The bank wanted it confidential," said McCloskey.

Attempts to reach The First Bancorp President Tony McKim, about the need for this settlement to be confidential, have yet to be successful.

Last spring, McCloskey said: “The charity has reached a private settlement... The First cooperated to settle the matter.” He commented no further on that settlement, other than to say it was “reasonable and beneficial to both parties.” 

Although McCloskey declined to specify how much UMCC received in the settlement with The First, UMCC has recovered approximately $1 million from the sale of some of Braces' assets.

That includes the August sale of the Brace Building at 21 Elm St. in Camden. It sold to an LLC for approximately $1.2 million (it had been listed at $2.3 million), and after the mortgage was paid off to the bank, UMCC received $234,000.

UMCC also received the $700,000 in cash from Brace's accounts at The First.

And, said McCloskey, the nonprofit also got a little money from the sale of the two boats, which were not worth much, he said, as well as a car.

McCloskey still holds out hope that UMCC will recover 60 to 70 percent of the $4.64 million.

The Spruce Street house in Rockport is listed at $895,000. When that sells, a portion of the money will go to Brace's wife, Becky, as stipulated by Maine law.

UMCC will receive all the proceeds from the sale of the Rangeley house, which is on the market for $399,000.

McCloskey expects that house to sell, despite the recent demise of the ski area, Saddleback Mountain.

"I think Rangeley will sell," he said. Citing the lake and golf activities, he said, "it is a sought-after area."

What about UMCC?

Steve Crane, current president of UMCC, said Oct. 7 that the nonprofit recently made its annual distribution of funds to the dozens of organizations it supports.

On Sept. 30, UMCC announced that it had distributed $350,000 in funds to 54 nonprofit organizations in the region.

Crane said Oct. 7 that what was distributed included money that had been recovered from Brace, stemming from the sale of assets, as well as money that the nonprofit had collected through fundraising.

UMCC's mission has not changed dramatically from its initial intent in 1942, to collectively raise the standard of living, provide help for those in need, and provide the chance of education, particularly for young mothers. That year, the fledgling organization, then known as United Camden Charities, raised $5,569 and distributed it to the Camden District Nursing Association, Camden Community Hospital, the Boy Scouts, the Camden Red Cross Workroom, the YMCA and to Barrett's Cove on Megunticook Lake.

Now 73 years later, UMCC continues to raise money through its annual appeal, and smaller events.

Last fall, the nonprofit's autumn campaign raised $275,000, which included a $50,000 matching challenge from an anonymous donor.

Crane declined to say how much UMCC has raised so far in 2015, but like McCloskey, he was optimistic that the nonprofit would recover 60 to 70 percent of the $4.64 million Brace stole.

UMCC just closed its books and is preparing its annual tax report to the IRS, he said.

He was upbeat about the future of the nonprofit.

"We are back on the road again," he said. "We look forward to a good year, next year."

Crane said he also looks forward to ending the Brace years with Friday's final sentencing.

"That will be a closure," he said.

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