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Pen Bay Healthcare reviewing capital campaign finances in wake of allegations against Camden charity ex-president [Bangor Daily News, Maine]
[October 23, 2014]

Pen Bay Healthcare reviewing capital campaign finances in wake of allegations against Camden charity ex-president [Bangor Daily News, Maine]


(Bangor Daily News (ME) Via Acquire Media NewsEdge) Oct. 23--ROCKPORT, Maine -- Pen Bay Healthcare is reviewing the finances of its recent capital fundraising campaign because the honorary chairman of that effort is accused of stealing nearly $4 million from a Camden charity.



Jenifer Harris, the regional director of marketing for Pen Bay Healthcare, said there have been no allegations against Russell "Rusty" Brace in connection with his work on the capital campaign.

"We are not aware of any issue, but we are conducting the review out of an abundance of caution," Harris said Thursday.


Brace served as honorary chairman until the campaign concluded in November. Harris said the fundraising campaign helped benefit such projects as the Sussman House, which provides hospice care on the Pen Bay Healthcare campus in Rockport. The Better Together Capital Campaign also raised money for women and family health programs, including the birthing center at Pen Bay.

According to the Pen Bay website, the campaign began in 2010 and sought to raise $15.5 million by 2014. In the Pen Bay 2012 annual report, Brace and his wife, Rebecca, are listed as members of the Osprey Club, which consists of people who donated $10,000 or more for major equipment purchases. The Braces also are listed as donating more than $1,000 to the capital campaign.

Brace had served for some years and until 1983 on the board of trustees of Pen Bay Medical Center.

Brace has not been charged with any crimes, but his attorney, Peter DeTroy, confirmed in court papers that his client is the target of an investigation by the U.S. attorney's office into allegations that he stole $3.8 million in donations that had been earmarked for United Mid-Coast Charities Inc. of Camden. Brace served as president of the charity's board from 1997 until August.

United Mid-Coast Charities filed a civil lawsuit against Brace earlier this month in Knox County Superior Court. A judge has approved liens being placed on his properties and on his bank accounts pending resolution of the case.

Brace Management owns a downtown Camden office building assessed at $1,647,000. Brace and his wife also own a home in Rockport that is assessed at $775,000, a home in Washington valued at $320,000 and a home in Rangeley valued at $256,000.

Brace also has funds in bank accounts at The First, N.A. in Camden, including $694,731 in a checking account in the name of Brace Management Group Inc., doing business as UCRC Char Fund.

And on Wednesday, Justice Daniel Billings approved a modification to the lien that allows one of Brace's account at The First totaling $8,051 to be transferred to a new account that will be used solely for maintaining the Brace Management building at 21 Elm St. until its expected sale to repay the charity.

The court also approved the appointment of Megunticook Management to manage the property. The court appointed Rosemary Weymouth of Megunticook Management to be the sole person to accept rent payments and make payments related to expenses for the property.

___ (c)2014 the Bangor Daily News (Bangor, Maine) Visit the Bangor Daily News (Bangor, Maine) at www.bangordailynews.com Distributed by MCT Information Services

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