PORTLAND, Maine (AP) — President Donald Trump’s pardon of former Maine developer Michael Liberty likely won’t absolve him of a civil complaint brought by securities investigators, and it may also mean he could have to testify against a business associate on wire and securities fraud charges.
The pardon wiped out Liberty’s conviction for making political contributions in other people’s names to evade limits on the size of donations.
A judge said this week that the pardon also meant pending charges in a criminal case in which Liberty was accused of bilking investors in a tech company were “resolved,” the Portland Press Herald reported.
But by accepting the pardon, Liberty can no longer claim the Fifth Amendment right against self-incrimination if prosecutors compel him to testify against his business associate Paul Hess, said Paul Mills, an attorney who who studied the pardon of Maine businessman Charles Morse by President William Howard Taft.
In the criminal case, prosecutors accused Liberty of lining his pockets with investors’ money and of lying to them by telling them Hess was not being paid when he was receiving a commission.
Mills said that Liberty’s pardon doesn’t cover civil cases, which means a lawsuit filed by the U.S. Securities and Exchange Commission in 2018 against Liberty and others can likely move ahead. The SEC charged Liberty and others with defrauding investors of nearly $50 million, but the case was on hold while the criminal charges were pursued.
Thimi Mina, Liberty’s lawyer, told the newspaper that his firm is monitoring the SEC claims, and that he wouldn’t comment on the Hess case until government lawyers tell the judge how they plan to proceed. Hess’ lawyer said the most serious charges were primarily lodged against Liberty.
Liberty, who now lives in Florida, is remembered in Portland for big real estate developments, including twin office towers at 100 Middle Street and Chandler’s Wharf waterfront condominiums.
- Posted February 05, 2021
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