CAMDEN — As the immediate public shock and reaction to the United Mid-Coast Charities theft allegations subside, it is now the lawyers and investigators who turn to quiet conversations. Criminal charges, if any, will come from the U.S. Attorney’s office in Portland. But first, it is the Federal Bureau of Investigations, with personnel based in Augusta, which is now analyzing bank records and interviewing individuals.

On Monday, Oct. 13, Brace’s attorney, Peter DeTroy, said the investigation into the allegation that Rockport resident Rusty Brace diverted $3.8 million over a span of 13 years from the charity nonprofit he once presided is just getting started.

The U.S. Attorney’s Office in Portland declined to comment on whether a criminal investigation is under way or not, per its standard practice of not talking about cases until a complaint or indictment is filed.

At this point, DeTroy said, the investigation has not targeted nor implicated Brace’s wife, Becky, in any way.

DeTroy, of the Portland-based Norman, Hanson and DeTroy firm, said last week that the Braces appreciated the support of family and friends. On Oct. 13, he said Brace, who is 81 and whose health has been characterized as fragile, is overwhelmed.

In court documents, current UMCC President Stephen Crane is cited as stating that he met with Brace on or about Sept. 25 and that’s when Brace admitted to the diversion of the checks, some in the amount of $100,000 to $200,000, into his personal account.

On Oct. 3, Attorney Jay McCloskey, of the Portland-based McCloskey, Mina & Cunniff LLC, had 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 account at the First.

McCloskey himself held the position of U.S. Attorney for Maine for eight years, having been nominated by former President Bill Clinton. He was also a former Assistant United States Attorney for the District of Maine from 1980 until 1993.

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.

Bailey said it was not possible to specify how much money was in the Brace Management account at the First because the donation checks deposited there were co-mingled with other Brace money. The bank voluntarily froze that account as soon as the allegations surfaced, he said.

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.”

Brace’s attorney, DeTroy, said Oct. 13 that his response to the civil suit filed in Knox County Superior Court (due 21 days from the initial Oct. 3 filing) could simply be a request for more time, until the criminal case was resolved. The response is neither an admittance or denial, he said.

When the federal agency concludes its investigation, it is then possible that DeTroy and Brace will sit down with U.S. attorneys. To do so demonstrates to the court a willingness to cooperate, DeTroy said.

The U.S. Department of Justice groups investigate various “economic crimes” and those include public corruption, bank fraud, bankruptcy fraud, advance fee schemes, insurance fraud, “con man” schemes, money laundering offenses, tax offenses, securities fraud, commercial bribery, copyright infringement, defense procurement fraud, environmental crimes and complex computer-related crimes.

In the meantime, UMCC distributed its 2014 grant checks totaling $325,000 to 50 area nonprofits in a ceremony held last week at the Camden Congregational Church.

Related stories

• Camden business files suit against Rusty Brace; UMCC will be stronger, more transparent, board president says

• Camden’s UMCC files suit against Rusty Brace, wants $3.8 million returned

• Camden’s United Mid-Coast Charities embezzlement investigation underway, says president 

Editorial Director Lynda Clancy can be reached at lyndaclancy@penbaypilot.com; 207-706-6657.