Darryl McCauley Pleads Guilty, Sentenced to Five to Six Years in State Prison in Connection with Embezzling Millions of Dollars From Dane Cook
Darryl McCauley, age 45, pled guilty today in Middlesex Superior Court to charges of Larceny over $250 (27 counts), Forgery (3 counts), Embezzlement by a Fiduciary, Uttering and Conspiracy. After the plea was entered, Superior Court Judge Mary Lou Rup sentenced McCauley to serve five to six years in State Prison, with a concurrent probationary period of six years. After the completion of his State Prison sentence, McCauley will have to serve another 10 years of probation. As conditions of his probation, McCauley has been ordered to pay restitution to the victim and submit to financial monitoring by the Department of Probation. He was ordered to relinquish all interest in several properties and business ventures in Maine and Massachusetts that were obtained using the stolen funds.
"For several years, Mr. McCauley abused his position as a family member to gain Mr. Cook's trust, and stole millions of dollars for his own personal gain," AG Coakley said. "We hope that today's sentence will act as a deterrent, and our office will continue to investigate and prosecute these cases."
In December 2008, the Attorney General's Office began an investigation after the matter had been referred by Cook and his lawyer. McCauley was Cook's half-brother and he used this relationship to profit from Cook's earnings. 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. Investigators discovered that during the period of 2004-2008, McCauley stole millions of dollars from Cook's business and personal accounts by transferring those funds to his own personal accounts, and in one instance, forged a three million dollar check written from Cook's account to himself.
Authorities believe that McCauley stole millions of dollars from Cook's business accounts by transferring those funds to his own personal accounts through checks and wire transfers. 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 taken from the company's account in the form of a cashiers' check, which was then cashed by Darryl McCauley. Money was then transferred directly from GDE to the home mortgage company to pay for a mortgage held by McCauley.
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 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.
A Middlesex Grand Jury returned a second set of indictments against Darryl and Erika McCauley in March 2010, and both were arraigned on those additional charges in Middlesex Superior Court. Today, Darryl McCauley pled guilty to all charges and was sentenced.
Erika McCauley is scheduled to appear in Middlesex Superior Court on October 26, 2010, for a pre-trial conference.
The case was by Assistant Attorney General Eileen O'Brien, Chief Trial Counsel and Assistant Attorney General Anne Kaczmarek in Attorney General Martha Coakley's Criminal Bureau, and was investigated by Financial Investigator Paul Stewart and the Massachusetts State Police assigned to the Attorney General's Office.