Mon, 10/20/2014 - 9:45am

Lynda Clancy

ROCKLAND — On Oct. 17, The First N.A., a Damariscotta-based bank with branches in Camden and Rockport, submitted its court disclosure of “goods, effects or credits” of Russell Brace, the defendant in a lawsuit that was filed by the very nonprofit of which he served as president since 1997.

While the federal investigation continues into allegations that Brace diverted $3.8 million over a span of 13 years continues, the bank that he did business with has declared how much those accounts are worth.

1) Personal checking account in the name of Russell Brace, $15,346.86

2) Personal checking account in the name of Rebecca W. Brace/Russell W. Brace, $30.23.

3) Business checking account in the name of Brace Management Group, Inc.: $8,051.60

4) Business checking account in the name of Brace Management Group, Inc., DBA UCRC Char Fund: $694,731.30

“All of the funds in said accounts are subject to the bank’s first priority security interests and rights of offset under a certain Business Loan Agreement by and between the bank and Russell W. Brace and Brace Management Group, Inc., dated Dec. 8, 2004, and applicable law,” the First said in its document filed Oct. 17 at Knox County Superior Court in Rockland.

The document did not specify anything more about that agreement.

On Oct. 3, Attorney Jay McCloskey, of the Portland-based McCloskey, Mina & Cunniff LLC, filed a civil suit against Brace in Knox County Superior Court on behalf of his client, United Mid-Coast Charities. The nonprofit said in its suit that it had determined that its former president had diverted checks intended for the charity into his own Brace Management Group checking account held at the First N.A., a bank with branches in Rockport and downtown Camden. The First rents ground floor space in the downtown Brace Building, which is owned by Brace Management Group. The Brace Building sits at the corner of Elm and Washington streets.

By Oct. 9, McCloskey obtained a judge’s approval to place liens on assets owned by Brace, as well as the Brace Management business accounts at the First.

UMCC spokesman Dennis Bailey said Oct. 10 that the U.S. Attorney’s Office would likely subpoena all banks in Maine — do a “sweep of all banks” — to see if there is any money elsewhere.

The First N.A. voluntarily froze Brace’s accounts as soon as the allegations surfaced, said UMCC spokesman Dennis Bailey, on Oct. 14.

Real estate property owned by Brace, and which are now attached, include:

• The Brace Building, 21 Elm St., Camden, assessed by the town at $1.7 million;

• House and land, 39 Spruce St., Rockport, assessed at $774,800;

• House and land in Washington, 69 Steele Lane, assessed at $314,954; and

• House and land in Rangeley, assessed value approximately $256,000.

The properties remain under the ownership of Brace, but the judge agreed to attaching the assets last week, after McCloskey’s argued that: “In the present case, the affidavit of Stephen [Crane, current UMCC president] demonstrates that the plaintiff is more likely than not to obtain judgment of not less that $3,803,000. In order to protect Plaintiff’s likely recovery, it is necessary to obtain an attachment against Brace’s property, goods and chattels, as well as trustee process against Defendant’s goods, effects, accounts and credits held by others.”