Mass. man admits $20M fraud at trusts company

AP News
Posted: Nov 30, 2009 8:11 PM

A Massachusetts man has pleaded guilty to committing a fraud that netted him more than $20 million from the descendants of a 19th-century industrialist and using the money on personal extravagances including three private jets.

Federal prosecutors say Peabody (PEE'-buh-dee) resident John Doorly stole from the Tenens Corp. The company was created to manage trusts for descendants of the late Frederick Ayer Jr., who owned textile mills in nearby Lowell.

A 2008 lawsuit by Tenens against its auditors estimated the theft at $57 million.

Authorities say Doorly used the money to buy homes for relatives, friends and mistresses, pay off credit card bills and buy memberships at exclusive clubs.

The 60-year-old former chief operating officer pleaded guilty to mail fraud and money laundering Monday. He faces up to 20 years in prison at his March sentencing.