Cases dismissed against attorney accused of embezzlement from former Carhartt leader

Criminal cases were dismissed Monday against attorney David Sutherland, who was accused of embezzling from the trusts of former Carhartt leader and philanthropist Gretchen Carhartt Valade and a foundation that benefits a Catholic school in Grosse Pointe Farms.

The Michigan Attorney General's Office filed motions Thursday to not prosecute Sutherland on the charges of embezzlement of $100,000 or more and embezzlement of a vulnerable adult $100,000 or more in the Valade case, as well as a charge of embezzlement of $100,000 or more in the school case.

The orders were signed Monday in Wayne County Circuit Court, according to court records. The reason listed on the AG Office's motions were "the best interests of justice."

Sutherland, 59, of Grosse Pointe Farms, was acquitted in June on two of four charges in the Valade embezzlement case by a Wayne County Circuit Court jury after deliberating about 22 hours over five days. Judge Paul John Cusick declared a mistrial on the two other charges on which the jury was hung.

"The Department of Attorney General takes allegations of embezzlement and theft very seriously — especially when perpetrated against elderly adults," Kimberly Bush, director of the Office of Public Information and Education, wrote in an emailed statement Monday.

"We remain confident in the case we brought forward; however, we have heard and respect the jury's contrary decision. While we did not receive the resolution we had originally sought, we hope this case, and the hundreds of similar cases we have successfully prosecuted, serve as a warning for those who aim to exploit vulnerable Michigan residents."

Sutherland's attorney, James Joseph Sullivan, said his client is "very happy that he's not being accused of these crimes anymore. I mean, of course ... the mere allegation of such a thing can cause a lot of damage to a person. And I hope he's able to restore his good name."

Each case was dismissed without prejudice and the Attorney General's Office could refile charges at a later time, according to Sullivan and the court. Sullivan said it's "very rare" when a case dismissed without prejudice is brought back "and I suspect that these cases are no different."

Sutherland was arraigned in January 2023 in the Valade case, less than two weeks after she died. Valade, a businesswoman, philanthropist and arts patron, died at her Grosse Pointe Farms home on Dec. 30, 2022. She was 97 and the granddaughter of Carhartt Inc. founder Hamilton Carhartt.

A jury acquitted Sutherland on one count each of embezzlement of $100,000 or more and conducting criminal enterprises. It was hung on another count of embezzlement of $100,000 or more and one count of embezzlement from a vulnerable adult $100,000 or more.

In a separate case, Sutherland was accused of one count of embezzlement of $100,000 involving alleged embezzlement of more than $1.4 million from the William Cardinal Foundation, which is to benefit education at St. Paul on the Lake Catholic School. That alleged crime was said to have occurred between Aug. 1, 2018, and last year, according to statements made during an arraignment in June 2023 in Grosse Pointe Farms Municipal Court.

A trial date was set in the Cardinal case for Jan. 21, 2025 in Wayne County Circuit Court, but that has been canceled, per court records.

After the verdict in the Valade case, Danny Wimmer, press secretary for the Attorney General's Office, wrote that the office was assessing next steps in consultation with the victims and the court.

Sullivan said when the two sides returned to court in mid-June to handle some matters after the Valade case verdict, he said prosecutors expressed that they intended to go forward; and he didn't see anything in the interim that would cause the change in course.

Prosecutors accused Sutherland of embezzling millions from Valade's trusts when he served as trustee of them. The trial began May 15 and wrapped up May 31. It included about two dozen witnesses who testified, including Sutherland, who took the stand.

The jury of six men and six women indicated on the first day of deliberations it was deadlocked. It was deadlocked before lunch the next day, too, but continued deliberations through Friday afternoon of that week.

Prosecutors asserted to jurors that Sutherland betrayed Valade and used her "like a human ATM" for his business ventures. Sullivan asserted to jurors that no crime was committed and his client had authority as trustee and kept a complete, accurate record.

Sullivan said there are civil cases in the matter that are still pending.

Contact Christina Hall: chall@freepress.com. Follow her on X, formerly Twitter: @challreporter.

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