Bruce Mcallister Imprisoned for Not-for-profit Embezzlement
Burlington, VT – The Office of the United States Attorney for the District of Vermont announced that Bruce McAllister, 79, of Post Mills, Vermont, was sentenced today in United States District Court in Burlington to 18 months of imprisonment following his guilty plea to wire fraud. U.S. District Judge William K. Sessions III also ordered that McAllister serve three years of supervised release after he completes his prison term and pay slightly more than $800,000 in restitution. McAllister was ordered to surrender to the Bureau of Prisons on January 8 to begin serving his sentence.
On October 19, 2011, a federal grand jury in Rutland returned a one-count indictment charging McAllister with wire fraud. According to the indictment, McAllister had served for many years as the treasurer for a number of not-for-profit organizations in the Upper Connecticut River Valley, including Alpha Theta House, a Dartmouth fraternity, and The Meccawe Club, a hunting and fishing club in Bridgewater, Vermont. Beginning no later than 1985 and continuing until 2010, McAllister misappropriated at least $800,000 from those two organizations by transferring monies from the organizations' bank accounts to accounts controlled by McAllister.
McAllister's sentence was below the 33-41 month range of imprisonment under the non-binding Sentencing Guidelines. The court based its reduced sentence in significant part on McAllister's medical condition, which includes dementia, bladder cancer, chronic obstructive pulmonary disease and kidney blockage. The court recommended that McAllister be confined at the Bureau of Prison's medical facility in Massachusetts.
This case was investigated by the United States Secret Service.
McAllister was represented by George Ostler. The prosecutor is Assistant U.S. Attorney Gregory Waples.