Ex-investor of Old Town mill found guilty of embezzlement
A founding partner of an investment firm that bought the Old Town mill and later filed for bankruptcy has been found guilty of embezzlement in a separate incident.
The Bangor Daily News reported that Jody Flynn, 61, was found guilty by a Cumberland County jury last week of embezzling more than $300,000 from a Chinese company that was seeking to invest in a Baileyville paper mill five years ago.
Flynn — who had no formal education in investment, according to court documents — was a founding partner of Red Shield Environmental, an investment firm featured in a 2006 Mainebiz article that bought the Old Town mill in 2006 and filed for Chapter 11 bankruptcy in 2008, two months before it was purchased by New York-based Patriarch Partners. The mill, now called Old Town Fuel & Fiber, closed unexpectedly last week and laid off 180 workers.
In 2009, Flynn started another firm, Greentree Renewable Energy Inc., to help Hong Kong-based International Grand Investment Corp. purchase the Baileyville mill from Canadian paper firm Domtar. After making an initial purchase bid that failed, Flynn kept more than $300,000 that was wired to her from the investment firm's sister company. After the investment firm successfully purchased the mill, that amount was withheld in a $1.5 million fee to Berthier Martin, a consultant working for Greentree on the deal
This prompted Martin to sue Flynn in Cumberland County Superior Court. But the case was stayed after Flynn was indicted on the embezzlement charge in February 2006. It’s unclear how Flynn’s conviction will impact Martin’s lawsuit.
Flynn could face up to 10 years in prison, a fine of up to $20,000 and restitution costs to Martin. A sentencing date has not been scheduled.
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