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October 21, 2014

Ex-Charity Head Accused of $3.8-Million Theft Faces Federal Inquiry

The former head of a Maine social-service nonprofit accused in a civil lawsuit of stealing $3.8-million from the organization is also the target of a federal investigation, according to the Bangor Daily News. A lawyer for Russell Brace, former board president of United Mid-Coast Charities, said in court filing Monday that he was told by a federal prosecutor of the criminal inquiry.

The Camden, Me., charity filed suit earlier this month against Mr. Brace, alleging that over 13 years he deposited millions of dollars in donations into bank accounts he controlled. Defense lawyer Peter DeTroy sought and was granted a stay of the suit, arguing that having to litigate the civil case would put Mr. Brace at a disadvantage in any criminal case unless he sacrificed his constitutional right against self-incrimination.