Darryl McCauley Indicted on Additional Charges in Connection with Embezzling Millions of Dollars From His Former Client
In December 2008, the Attorney General's Office began an investigation after the matter had been referred by Cook and his lawyer. McCauley was the business manager for Cook from the early 1990's until early December 2008. As the book keeper, McCauley was responsible for the management of his client's financial affairs, including the receipt and payment of bills; the receipt, deposit, and management of Cook's income and revenue from various business ventures in which his former client controlled. In March 2009, McCauley was indicted in connection with allegedly stealing millions of dollars from Cook's business accounts by transferring those funds to his own personal accounts, and in one instance, forging a three million dollar check written from his Cook's account to himself.
Subsequent investigation revealed McCauley allegedly stole millions more from Cook, and today's indictments pertain to thefts that are alleged to have occurred between March 2004 through December 2008. Authorities allege that McCauley stole millions of dollars from Cook's business accounts by transferring those funds to his own personal accounts. With these new charges authorities allege that McCauley, without the knowledge or consent of Cook or Great Dane Enterprises (GDE), Cook's corporation, wrote company checks to himself, deposited those checks in a joint account in the name of himself and his wife Erika McCauley, then withdrew and used the money for their own personal use. In one instance, investigators discovered that some of the money was allegedly taken from the company's account in the form of a cashiers' check, which was then cashed by Darryl McCauley. Authorities further allege that money was transferred directly from GDE to the home mortgage company to pay for a mortgage held by McCauley. On June 25, 2009, Erika McCauley, age 37, of Wilmington, was arrested and arraigned in connection with her involvement with the alleged thefts.
On December 30, 2008, McCauley was arrested by Massachusetts State Police assigned to the Attorney General's Office at his residence without incident. He was arraigned the next day in Woburn District Court before District Court Judge Joseph Jennings, where he pled not guilty, and was ordered held on $3 million cash bail. The bail was then subsequently reduced to $500,000.
On March 19, 2009, a Middlesex Grand Jury returned a first series of indictments against McCauley. On March 26, 2009, he was arraigned in Middlesex Superior Court where he entered a plea of not guilty. Clerk Magistrate Michael Sullivan ordered that McCauley be held on bail and raised the amount to $1 million.
On June 25, 2009, Erika McCauley was arrested at her home and arraigned in Woburn District Court on charges of Larceny by Scheme and Receiving/Concealing Stolen Property. At her arraignment she entered a plea of not guilty and was ordered held on $1 million bail. She is scheduled to appear in Woburn District Court on July 24, 2009, for a pre-trial conference.
A Middlesex Grand Jury returned a second set of indictments against Darryl McCauley late last week. He will be arraigned on these indictments at a later in Middlesex Superior Court.
The case is being prosecuted by Assistant Attorney General Rick Grundy, Chief of Attorney General Martha Coakley's Criminal Bureau, and was investigated by the Massachusetts State Police assigned to the Attorney General's Office.