- Associated Press - Wednesday, September 24, 2014

MONTGOMERY, Ala. (AP) - The charges against a former Dothan attorney keep growing and now involve more than $10 million that investigators accuse him of misappropriating from clients.

District Attorney Doug Valeska and state Securities Commission Director Joe Borg said a Houston County grand jury indicted 53-year-old Frederick Mitchell “Mitch” McNab on 31 charges, including securities fraud, sale of securities by an unregistered agent and financial exploitation of the elderly.

The indictment charges that over an 11-year period, McNab misappropriated and misused more than $10.5 million in funds from multiple clients in Dothan and the surrounding area.

His attorney, Joe Espy, said McNab entered a plea of not guilty Tuesday. He is free on $310,000 bond. Espy is seeking to consolidate all the charges into one case.

McNab was indicted in December and April on charges of theft of property by deception involving about $2 million in client’s money. He pleaded not guilty to those charges. The new charges mean he faces more than 50 felonies.

Borg said the latest indictment accuses McNab of getting clients and estates he represented to make investments that he said would earn them interest. Instead, Borg said McNab used the money to pay for “a great lifestyle” and to give to earlier investors to cover up what was happening.

“He was basically running a Ponzi scheme,” Borg said Wednesday.

The indictment accuses McNab of mishandling $2.3 million for one client and more than $1 million each for three others. Several others are listed in the indictment for smaller amounts.

Borg said some of the clients involved in the earlier theft charges are also involved in the new securities fraud charges, but not all. He said investigators are trying to determine the total loss to clients.

Some of the charges against McNab carry maximum sentences of 10 years in prison and some 20 years.

McNab had practiced law for more than 20 years before the Alabama State Bar pulled his license last year.

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