CAMDEN — Revenue and expenses at United Mid-Coast Charities, the well-known charitable organization based in Camden, are being scrutinized by a legal entity, according to the president of the organization’s board of directors.

Steve Crane, UMCC board president, said Monday, Sept. 29, that there is an ongoing investigation by legal authorities of an alleged embezzlement by the organization’s former president, Rusty Brace.

 “There is ongoing investigation by legal authorities of an alleged embezzlement by the past president of UMCC of UMCC money,” he said.

Attempts to reach Brace directly have been unsuccessful. Brace has yet to be charged with any crime.

No one has filed a complaint with Camden Police Department concerning UMCC, or Rusty Brace.

“We have received nothing,” said Lt. Michael Geary, of the Camden PD. Nor has the the Maine Office of Attorney General. Nor has the District Attorney in Knox County.

“It is in the investigation stage,” said Dennis Bailey, who has been retained by UMCC as a spokesman. Based in Portland, Bailey is with Savvy, Inc.

But Bailey declined to say which agency or department has initiated the investigation.

Rumors about the investigation ripped through the local community beginning over the weekend, after an email was circulated to the 42 board members of UMCC by the organization’s executive committee. By Monday, queries and suppositions were filling conversations throughout the community. Crane said by Tuesday that UMCC needed to hire a spokesman because he was fielding constant phone calls.

The executive committee comprises Crane, Carol B. Robbins, John P. Williams, Carole L. Martin and Eric G. Belléy.

“The banks are obviously involved and going through records and financial accounts,” said Bailey. “We don’t have a full understanding. It involves a substantial amount of money over the years.”

There are couple of banks involved, but Bailey declined to identify them.

“This just happened within last week,” he said. “Folks are pretty devastated by it. We are not trying to withhold anything, but we don’t have all the facts. It is complicated with law enforcement and banks involved.”

The allegations also hits the family hard, many members of which live locally and are bearing the fallout of the circulation of UMCC’s weekend email.

UMMC has hired Jay McCloskey, of the Portland-based McCloskey, Mina and Cunniff, LLC.

Bailey said UMCC may release a statement on Facebook or its website to update the public.

On Tuesday, Sept. 30, UMCC posted the following at its website:

“Dear Friend of United Mid-Coast Charities,

We write to you today with deep sadness.  We recently discovered that UMCC has been the victim of substantial embezzlement of donations by its former president, Russell (Rusty) Brace.  We have engaged an attorney; and law enforcement authorities, including the FBI, have been notified.  We are working with local banks to determine the full extent of the missing funds.  We also have begun the legal process to recover the money that rightfully belongs to UMCC for its charitable giving.

“As you know, donations to UMCC are distributed to more than 50 local agencies to support children's services, medical care, community services and education programs for people in need throughout Knox and Waldo counties.  We want to assure you that we are honoring our 2014 commitment to distribute $325,000 to those agencies in the coming weeks.

“We will provide more details as the investigation allows.  If you have any questions or concerns, please send an email to UMCC@Midcoast.com and, if you wish us to call you, leave a phone number.

“We ask for your patience and support during these difficult times. 

“Sincerely,

“Steve Crane, President, United Mid-Coast Charities”