A lawyer for the late Carhartt clothing company heiress has appeared in Detroit court accused of defrauding the beloved philanthropist and jazz lover of at least $21 million.
David Sutherland, 57, worked as Gretchen Carthartt Valade’s “trusted advisor,” Michigan’s attorney general said.
She died on December 30 at the age of 97.
Sutherland from 2017 until her death “exploited the resources of his law firm, exploited his position of authority to subvert a client’s irrevocable trust, while simultaneously acting as lender, borrower, counsel and trustee for the money he took from his client’s account.” would have”. according to court records.
Gretchen Carhartt Valade died on December 30 at the age of 97. Her lawyer has now been charged with embezzlement
David Sutherland, Valade’s attorney, was charged with fraud on January 4 and is pictured during a January 11 arraignment attended by Valade’s son, Carhartt CEO Mark Valade
Sutherland was removed as trustee from Valade’s trust in 2020.
A year later, he was accused of borrowing more than $7.7 million from the trust and another $7.6 million to a company in which he was the majority owner.
After her death, Sutherland faced four more charges on January 4 – two charges of embezzlement of $100,000 each; a count of embezzlement by a vulnerable adult of $100,000 or more; and a census of criminal enterprise conduct.
The charges are believed to be linked to a $5 million “loan” that prosecutors allege Sutherland pressured Valade to approve and an additional $2.7 million .
Judge Charles Berschback, who presided over a Jan. 11 hearing that released Sutherland with $250,000 in cash or bail, told him “the amount that is being claimed is staggering.”
Michigan Attorney General Dana Nessel said the case reflects how many older people are being taken advantage of.
“Mr Sutherland abused his authority as a lawyer and trusted advisor to steal millions from a longtime client and must be held accountable,” she said.
“Our elderly population is particularly vulnerable to financial exploitation, and my Financial Crimes Unit stands ready to hold these bad actors accountable for such egregious and illegal breaches of their clients’ trust.”
Judge Charles Berschback called the sums of money at stake “staggering”.
Sutherland will be seen in court on January 11. Another hearing will be held on January 25 and his lawyer says he expects his client to be acquitted
Special Agent Doug Sharp, an investigator in Nessel’s office, told the court that janitors at Valade’s home and her healthcare assistants saw Sutherland pressuring them to sign documents.
Valade was known as the “Angel of Jazz” for her philanthropy in the arts and musical businesses
“As a 97-year-old person with limited mobility and declining business acumen, Ms. Valade was vulnerable,” Sharp testified.
Valade’s son Mark, the CEO of the family business, was in court to see Sutherland charged.
Ron Fournier, the family spokesman, said the Valade family appreciated the efforts of Nessel’s office in investigating Sutherland’s conduct.
“They trust the court process and are optimistic that justice will prevail and that no other members of our community will be victims of Mr. Sutherland,” he said.
Sutherland’s attorney James Sullivan said Nessel’s office has yet to establish the full facts and he believes his client will be exonerated, The Detroit Free Press reported.
Sullivan said the court documents show “a small fraction of the whole story.”
He added: “I think once the whole story is told, when people hear it, there’s going to be a very different climate and attitude towards it and for him, my client, than there is now.”
Valade’s grandfather Hamilton Carhartt founded the clothing company in 1899 in Dearborn, Michigan.
Hamilton Carhartt founded the workwear company in Dearborn, Michigan in 1899. It continues to be headquartered in Detroit, is still family-owned and is managed by approximately 5,500 employees
Valade built this home 100 miles north of Detroit on the shores of Lake Huron in 2000. She sold it in 2010
Valade is seen at the Music Hall Center for the Performing Arts in Detroit in March 2005 with her record label Mack Avenue Records President Tom Robinson. The photoshoot was to announce Valade’s label, which sponsors the Detroit Jazz Festival
Today, Forbes values the family at $1.2 billion.
Valade served on the Carhartt board of directors from 1958 and was appointed chairman of the board in 1998 following the death of her husband, company president Robert Valade.
Two years later, she built a stunning stone and cedar mansion on 17 acres on the shores of Lake Huron in Deckerville, 100 miles north of her primary home at Grosse Pointe Farms.
Grosse Pointe Farms is known for its elegant mansions and for housing the heirs of Ford and Dodge.
Valade sold the lakeside mansion circa 2010 and died at her suburban home.
Valade was known as the “Angel of Jazz” thanks to her passion for music and generous philanthropy.
She established a foundation that has enabled the Detroit Jazz Festival to become the largest free jazz festival in the world and has donated a total of $9.5 million towards jazz studies and performance at Wayne State University.
Valade is pictured at the Dirty Dog Jazz Cafe with her granddaughter (far right), who is named after her
She also funded the renovation of the university’s performance space, which now bears her name.
At the age of 74 she founded the jazz label Mack Avenue Records, which went on to receive 11 Grammy Awards and more than 50 nominations.
And at 82, she opened Dirty Dog Jazz Cafe, an award-winning jazz and dinner club in Grosse Pointe Farms.
She also owned another coffee shop, coffee shop and women’s shoe and clothing store.
“I prefer not to get bored,” she once explained.
“I wanted to spend my time surrounded by things that are important to me, my family, my passions, my joys and my community.
“And for me, employment is a big part of a long life.”