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BRECKENRIDGE — Police suspect missing attorney Royal “Scoop” Daniel III stole more than $500,000 from his clients before disappearing 13 days ago, an allegation that has shocked friends of the well-known Breckenridge local.
An arrest warrant was issued for Daniel, 61, on Tuesday evening for suspicion of class 3 felony theft.
“The more that we have looked into this case and the more that we have done, what we’re finding is there is evidence ... that Mr. Daniel was involved in criminal activity,” Breckenridge Police Chief Rick Holman said at a Wednesday press conference that was swarming with Denver media outlets and Breckenridge community members.
Holman said police don’t know Daniel’s whereabouts and nothing has led them to believe he has left the country.
According to the arrest warrant affidavit, Daniel allegedly took the money from clients he assisted with 1031 Real Estate Exchanges, which allow people to defer capital gains taxes when they sell a property. The sale money is held in a trust until the client is ready to make another purchase. As a qualified intermediary for 1031 exchanges, Daniel had access to clients’ trust accounts between real estate transactions.
Former client Gene Gregory of Franktown told police that Daniel handled a 1031 exchange for him last year, and that he gave Daniel $254,000 to place into a trust account. When Gregory approached Daniel about retrieving his money, Daniel said it was gone.
“Royal Daniel told Gregory he was in $300,000 of debt, and he had been using 1031 money from client trust accounts to pay off his debts,” the warrant said.
Daniel said he would pay the money back as soon as he could collect more 1031 money, and eventually repaid Gregory all but $8,500 of what he owed him.
The state Supreme Court’s attorney regulation office moved to suspend Daniel’s law license on Tuesday.
Since Daniel disappeared on April 27, seven of his clients have told police he should be holding their 1031 money. Figures obtained from four of those people indicate Daniel should have $561,571.25, the affidavit said.
“We anticipate identifying more victims in this case, which could lead to more criminal filings on Mr. Daniel,” Holman said.
District Attorney Mark Hurlbert said his office hasn’t filed charges against Daniel yet, but will contemplate doing so in the next several weeks.
Daniel’s passport, which he renewed last December with the explanation of “travel in late April 2007,” has not been found, the affidavit said.
A 1979 Kawasaki motorcycle he owns is also missing.
Friends have speculated that Daniel fled to Brazil, where he once had clients and traveled to often. He still has friends there and speaks Portuguese fluently.
Close friend and former law partner J.B. Katz said there’s no extradition treaty between the U.S. and Brazil, meaning law enforcement agents couldn’t bring him back to the states to face charges.
“There’s no reason not to go there; it’s where he loves,” Katz said.
Katz said she was shocked at the allegations against Daniel and was disappointed in him for leaving his friends and families wondering about his well-being.
Cindi Krane, the church administrator at Father Dyer Church where Daniel was actively involved, was one of about 60 locals who showed up to listen to Wednesday’s press conference.
Krane saw Daniel at a fundraiser the night before his disappearance and said she didn’t notice anything out of the ordinary about it. All along, Krane said she’s believed Daniel was abducted, until Wednesday’s press conference.
“What I find fascinating about Scoop is if indeed he has taken off and stolen this money from people what an interesting combination of traits that he has because he helped so many people. He did so much for free. It just makes you think the pieces of the puzzle don’t fit together,” Krane said referring to pro bono immigration work Daniel was known to do.
Daniel is a divorced father of eight children. His family issued a brief statement through their attorney on Wednesday, saying in part: “The family of Royal Daniel is saddened by the allegations against him. We continue to be concerned for his safety.”
The investigation into Daniel’s disappearance is ongoing and Holman said police will exhaust all means in the attempt to locate him. He said investigators have not ruled out foul play in the case.
<i>Nicole Formosa can be reached at (970) 668-4629, or at nformosa@summitdaily.com.</i>
<b>Timeline of Royal Scoop Daniel III disappearance</b>
Friday, April 27: Scoop Daniel’s co-workers report him missing to police after he uncharacteristically doesn’t show up for two appointments.
Sunday, April 29: More than 140 volunteers comb a 2-mile radius around Scoop’s Ski Hill Road law firm finding no trace of the missing attorney.
Tuesday, May 1: The FBI joins the search for Scoop, saying it often helps smaller police department with specialized tasks.
Wednesday, May 2: Authorities confirm a 9-second phone call was placed to 911 the morning Scoop disappeared. Nothing was said the phone call and attempts to call the number back were unsuccessful. Police also obtain 10 search warrants relative to the case, eight in Breckenridge and two out of state.
Thursday, May 3: Friends launch a website pleading for tips in Scoop’s disappearance.
Friday, May 4: Police obtain three more search warrants, two in Breckenridge and one out of state.
Monday, May 7: Police obtain three additional search warrants, two in Breckenridge and one out of state.
Tuesday, May 8: Police obtain and executive one additional search warrant in Breckenridge. Media reports begin to surface that Scoop is suspected in stealing clients’ money and may have fled the country.
Wednesday, May 9: Police issue an arrest warrant for Scoop for suspicion of felony theft.
<i>— Nicole Formosa</i>
An arrest warrant was issued for Daniel, 61, on Tuesday evening for suspicion of class 3 felony theft.
“The more that we have looked into this case and the more that we have done, what we’re finding is there is evidence ... that Mr. Daniel was involved in criminal activity,” Breckenridge Police Chief Rick Holman said at a Wednesday press conference that was swarming with Denver media outlets and Breckenridge community members.
Holman said police don’t know Daniel’s whereabouts and nothing has led them to believe he has left the country.
According to the arrest warrant affidavit, Daniel allegedly took the money from clients he assisted with 1031 Real Estate Exchanges, which allow people to defer capital gains taxes when they sell a property. The sale money is held in a trust until the client is ready to make another purchase. As a qualified intermediary for 1031 exchanges, Daniel had access to clients’ trust accounts between real estate transactions.
Former client Gene Gregory of Franktown told police that Daniel handled a 1031 exchange for him last year, and that he gave Daniel $254,000 to place into a trust account. When Gregory approached Daniel about retrieving his money, Daniel said it was gone.
“Royal Daniel told Gregory he was in $300,000 of debt, and he had been using 1031 money from client trust accounts to pay off his debts,” the warrant said.
Daniel said he would pay the money back as soon as he could collect more 1031 money, and eventually repaid Gregory all but $8,500 of what he owed him.
The state Supreme Court’s attorney regulation office moved to suspend Daniel’s law license on Tuesday.
Since Daniel disappeared on April 27, seven of his clients have told police he should be holding their 1031 money. Figures obtained from four of those people indicate Daniel should have $561,571.25, the affidavit said.
“We anticipate identifying more victims in this case, which could lead to more criminal filings on Mr. Daniel,” Holman said.
District Attorney Mark Hurlbert said his office hasn’t filed charges against Daniel yet, but will contemplate doing so in the next several weeks.
Daniel’s passport, which he renewed last December with the explanation of “travel in late April 2007,” has not been found, the affidavit said.
A 1979 Kawasaki motorcycle he owns is also missing.
Friends have speculated that Daniel fled to Brazil, where he once had clients and traveled to often. He still has friends there and speaks Portuguese fluently.
Close friend and former law partner J.B. Katz said there’s no extradition treaty between the U.S. and Brazil, meaning law enforcement agents couldn’t bring him back to the states to face charges.
“There’s no reason not to go there; it’s where he loves,” Katz said.
Katz said she was shocked at the allegations against Daniel and was disappointed in him for leaving his friends and families wondering about his well-being.
Cindi Krane, the church administrator at Father Dyer Church where Daniel was actively involved, was one of about 60 locals who showed up to listen to Wednesday’s press conference.
Krane saw Daniel at a fundraiser the night before his disappearance and said she didn’t notice anything out of the ordinary about it. All along, Krane said she’s believed Daniel was abducted, until Wednesday’s press conference.
“What I find fascinating about Scoop is if indeed he has taken off and stolen this money from people what an interesting combination of traits that he has because he helped so many people. He did so much for free. It just makes you think the pieces of the puzzle don’t fit together,” Krane said referring to pro bono immigration work Daniel was known to do.
Daniel is a divorced father of eight children. His family issued a brief statement through their attorney on Wednesday, saying in part: “The family of Royal Daniel is saddened by the allegations against him. We continue to be concerned for his safety.”
The investigation into Daniel’s disappearance is ongoing and Holman said police will exhaust all means in the attempt to locate him. He said investigators have not ruled out foul play in the case.
<i>Nicole Formosa can be reached at (970) 668-4629, or at nformosa@summitdaily.com.</i>
<b>Timeline of Royal Scoop Daniel III disappearance</b>
Friday, April 27: Scoop Daniel’s co-workers report him missing to police after he uncharacteristically doesn’t show up for two appointments.
Sunday, April 29: More than 140 volunteers comb a 2-mile radius around Scoop’s Ski Hill Road law firm finding no trace of the missing attorney.
Tuesday, May 1: The FBI joins the search for Scoop, saying it often helps smaller police department with specialized tasks.
Wednesday, May 2: Authorities confirm a 9-second phone call was placed to 911 the morning Scoop disappeared. Nothing was said the phone call and attempts to call the number back were unsuccessful. Police also obtain 10 search warrants relative to the case, eight in Breckenridge and two out of state.
Thursday, May 3: Friends launch a website pleading for tips in Scoop’s disappearance.
Friday, May 4: Police obtain three more search warrants, two in Breckenridge and one out of state.
Monday, May 7: Police obtain three additional search warrants, two in Breckenridge and one out of state.
Tuesday, May 8: Police obtain and executive one additional search warrant in Breckenridge. Media reports begin to surface that Scoop is suspected in stealing clients’ money and may have fled the country.
Wednesday, May 9: Police issue an arrest warrant for Scoop for suspicion of felony theft.
<i>— Nicole Formosa</i>
