Breckenridge – A Breckenridge lawyer who vanished more than a week ago staged his own disappearance and absconded with as much as $1 million from clients, authorities said Tuesday.
Breckenridge police have announced a news conference for this afternoon, but sources confirmed police are set to obtain an arrest warrant for Royal “Scoop” Daniel III, who was last seen at his office April 27.
A judicial department regulator sought an immediate suspension of Daniel’s law license Tuesday.
“We believe Mr. Daniel took clients’ funds. We are not sure how much. My concern is that it is a lot – as much as $1 million,” said John Gleason, the Supreme Court attorney regulation counsel. “We certainly don’t want him practicing law in Colorado or anywhere else.”
Daniel, 61, is said by friends to have been in chronic financial trouble, but he was celebrated for frequently providing free legal work, particularly for immigrants.
A search warrant posted on his office door last week indicated that investigators were focused on so-called 1031 documents, named after a portion of Internal Revenue Service code that governs the tax-free rollover of real estate as investments.
Daniel had gained status as a “qualified intermediary” that allowed him to hold money for real estate investors between the sale of one piece of property and the subsequent purchase of another.
Sources say authorities are investigating a number of cases involving Daniel.
Officials do not know where Daniel is, but sources say his passport has not been used.
Subject of search
Daniel, a member of the choir at Father Dyer United Methodist Church, has been the subject of an intensive search and publicity campaign staged by his expansive cadre of friends.
They consider the latest development a relief – knowing that he’s alive – despite the potential criminal allegations he may face.
“It doesn’t change the way I feel about him at all. I think he’d be welcome back into the community. … There’s a real possibility that this could be a ‘Wonderful Life’ ending,” said one of his closest friends, Steve Shockey, referring to the Jimmy Stewart movie about forgiveness.
Several friends say they don’t know where he is, nor how to contact Daniel and convince him that he should return to Breckenridge.
“I sent an e-mail a couple of days ago saying, Where … are you? I’m sure he’s not answering e-mails. I’m sure if he’s alive and well that he’s monitoring events,” said J.B. Katz, a former law partner.
Ex-colleague shocked
She said she was shocked that he might have taken money from clients and was floored by the amounts being discussed.
“I’ve known him for 20 years, and I don’t think I’ve ever seen him jaywalk,” Katz said, invoking a bit of hyperbole. “I honestly believed if he was forced to leave, it was circumstances that got out of control. But this isn’t what I had in mind when I said that.”
The Summit County dispatch center received a 911 hangup call from Daniel’s cellphone April 27, and colleagues reported him missing later in the day after he uncharacteristically missed a couple of appointments.
He left behind his beloved golden retriever, Ben, and investigators found a pair of broken sunglasses and a prized pen on the floor, giving credence to the possibility he had been abducted.
In 1995, Daniel abruptly left his wife, Joyce, and eight children, and some friends speculated that he could have just as easily abandoned his life in Breckenridge.
Joint investigation
Gleason said his office began working on a joint investigation with the Breckenridge Police Department late Friday and filed the petition Tuesday with William Lucero, the presiding disciplinary judge of the Colorado Supreme Court, seeking to suspend Daniel’s license.
“Our first concern is the protection of any other clients and members of the public,” Gleason said.
He said the petition is not a public record and will become public only after Lu cero – and then the state’s Supreme Court justices – act on it.
Staff writer Steve Lipsher can be reached at 970-513-9495 or slipsher@denverpost.com.
