Former attorney in Hendershot Sporting Goods embezzlement case dies before sentencing
A former local attorney who pleaded guilty last fall to embezzling money from the owners of a local sporting goods store died the day after Christmas, his defense attorney said Tuesday.
James Kevin Reed’s criminal case was dropped by the death during a brief court hearing Tuesday before Washington County Circuit Court Judge Brett R. Wilson. Reed was due to be sentenced Tuesday.
Reed died of a massive heart attack on December 26, defense attorney John Salvatore said in an interview.
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According to Salvatore and Washington State Attorney Gina Cirincion, the reduction by death verdict invalidates Reed’s conviction because he died prior to sentencing.
On October 11, Reed pleaded guilty to one count of embezzlement in trust or embezzlement of trust funds from clients Lance and Kristy Hendershot, who own Hendershot’s sporting goods.
Reed faced up to five years in prison. Although assistant prosecutor Sarah Mollett-Gaumer said in October the state is seeking a sentence of three to 18 months for Reed, depending on how much of the more than $103,000 in restitution is paid.
Reed had had his license revoked in Maryland and Pennsylvania.
What happens to the redress now that the defendant is dead?
The hendershots have already been “completely done” by the Client Protection Fund, Salvatore said in October. This fund receives revenue from sources such as court fee payments and is used to compensate victims of various crimes, particularly in cases where lawyers are stealing money, he said.
Reed was accused of cheating the Hendershots out of more than $100,000. The couple used a trust, with help from Reed, to buy out a lease from a landlord for their business when it was located at 19828 National Pike, southeast of Hagerstown, according to court documents and officials.
Hendershot’s sporting goods left the National Pike Store in early 2019 and returned to Hancock, where they are located at 65 W. Main St., Lance Hendershot said.
Salvatore said to his knowledge, Reed did not pay a refund to the fund.
According to court filings, the Bar of Maryland Client Protection Fund filed a civil contract fraud lawsuit against Reed in May 2021 in Baltimore County Circuit Court. The case involved multiple claims, including the payment of $103,740 made by the fund to the Hendershots in light of Reed’s embezzlement, the records say.
Salvatore said Reed left a small estate.
Reed came up with the idea of arranging a restitution, Salvatore said. Reed lived with his parents in Frostburg, Md. He helped his parents and had trouble finding a job, Salvatore said. Reed worked part-time in Washington County.
The embezzlement defendant spoke to his attorney shortly before his death
Salvatore said he received a text message from Reed with his client and longtime friend on Christmas Eve, saying he was at Meritus Medical Center with a mild heart attack.
The two spoke on the phone the next morning, when Reed confirmed to Salvatore that he was having a mild heart attack, Salvatore said.
Later that morning, Reed was pronounced dead, Salvatore said.
This article originally appeared in The Herald-Mail: Former MD and PA attorney dies before being convicted of embezzlement