Rockport businessman faces second lawsuit
A Rockport business owner being sued for allegedly embezzling $3.8 million from the charity he led for 17 years is facing another lawsuit, this time from a local business he recently sold.
The Bangor Daily News reported that the second lawsuit against Russell “Rusty” Brace, the founder and owner of Brace Management Group, claims that Brace’s alleged embezzlement has damaged a company he and his wife sold to a local businesswoman earlier this year.
The lawsuit filed by Tamara Swasey-Ballou alleges that KAX Office Center, the business she bought from Brace and his wife in February, has lost accounts and revenue since Brace’s alleged embezzlement was revealed in September. She seeks at least $125,000 in damages and a reversal of the business’s sale.
Under Brace’s ownership, KAX Office Center provided bookkeeping and accounting services for United Mid-Coast Charities while Brace served as the charity’s president. The BDN noted that the charity’s income tax filings show that KAX Office Center was paid $50,000 a year on average for business services when Brace was in charge. KAX Office Center, the charity and Brace Management Group are located in an office building owned by Brace.
No criminal charges have been made against Brace, but the charity's current president indicated that law enforcement authorities have been contacted.
Correction: The story has been updated to reflect that Brace lives in Rockport.
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