A disbarred local attorney has pleaded guilty to defrauding elderly clients out of millions of dollars in trust funds.
M. Dewey Bain, 59, of Cumming, pleaded guilty in federal court Tuesday to one count of wire fraud. He could be sentenced to a maximum of 20 years in prison and up to $250,000 in fines.
Bain’s sentencing is scheduled for 10 a.m. July 7 in front of U.S. District Judge Thomas W. Thrash Jr.
According to a statement from U.S. Attorney Sally Quillian Yates, Bain “entered into trust agreements with elderly victims, told them that he was placing their money in safe investments, and then lost it all after diverting it to his own personal and business use.”
“His egregious abuse of trust defrauded clients out of more than $4.5 million in retirement savings and inheritance money,” she said.
Bain, formerly licensed to practice law in Georgia and Texas, was disbarred in Georgia in October.
The statement goes on to say that between May 2006 and March 2009, Bain stole more than $4.5 million from his clients using a fraudulent trust scheme.
He entered into trust agreements with them, many of whom were elderly, and agreed to act as their financial advisor and invest their retirement savings and inheritances in safe accounts.
“During the scheme, however, Bain diverted their money to pay for his own personal expenses and, without their permission, used it to support his business interests,” the statement said.
Bain’s business, DnC Multimedia Corp., formerly known as PlanetLink Communications, filed for bankruptcy. Through early 2009, he assured his clients that their trust accounts were earning good interest based on the investments, when by at least February 2009 the accounts had no value, the statement said.
Bain reportedly defrauded one 97-year-old client of nearly $1 million and as a result, she was no longer able to pay for her assisted living residence.
The FBI and United States Secret Service investigated the case.
Jeffrey T. Gilbert, special agent in charge of the Secret Service Atlanta field office, said the agency takes such cases seriously.
“This case demonstrates the wide reaching effects of bogus financial and real estate schemes, the impact on innocent victims and the importance of cooperation among our law enforcement partners,” he said.
M. Dewey Bain, 59, of Cumming, pleaded guilty in federal court Tuesday to one count of wire fraud. He could be sentenced to a maximum of 20 years in prison and up to $250,000 in fines.
Bain’s sentencing is scheduled for 10 a.m. July 7 in front of U.S. District Judge Thomas W. Thrash Jr.
According to a statement from U.S. Attorney Sally Quillian Yates, Bain “entered into trust agreements with elderly victims, told them that he was placing their money in safe investments, and then lost it all after diverting it to his own personal and business use.”
“His egregious abuse of trust defrauded clients out of more than $4.5 million in retirement savings and inheritance money,” she said.
Bain, formerly licensed to practice law in Georgia and Texas, was disbarred in Georgia in October.
The statement goes on to say that between May 2006 and March 2009, Bain stole more than $4.5 million from his clients using a fraudulent trust scheme.
He entered into trust agreements with them, many of whom were elderly, and agreed to act as their financial advisor and invest their retirement savings and inheritances in safe accounts.
“During the scheme, however, Bain diverted their money to pay for his own personal expenses and, without their permission, used it to support his business interests,” the statement said.
Bain’s business, DnC Multimedia Corp., formerly known as PlanetLink Communications, filed for bankruptcy. Through early 2009, he assured his clients that their trust accounts were earning good interest based on the investments, when by at least February 2009 the accounts had no value, the statement said.
Bain reportedly defrauded one 97-year-old client of nearly $1 million and as a result, she was no longer able to pay for her assisted living residence.
The FBI and United States Secret Service investigated the case.
Jeffrey T. Gilbert, special agent in charge of the Secret Service Atlanta field office, said the agency takes such cases seriously.
“This case demonstrates the wide reaching effects of bogus financial and real estate schemes, the impact on innocent victims and the importance of cooperation among our law enforcement partners,” he said.