Breckenridge – Missing Breckenridge lawyer Royal “Scoop” Daniel III has been in serious debt for some time and may have been planning an international escape for months, authorities said Wednesday.
Daniel, 61, who vanished April 27, is accused of playing a shell game with more than $500,000 of his clients’ money and faces felony theft charges, according to Breckenridge officials and the arrest warrant.
“What we are finding is evidence that led us to believe Mr. Daniel was involved in criminal activity,” Breckenridge Police Chief Rick Holman said.
Daniel has been the subject of a large-scale search effort since co- workers reported him missing. But investigators said Daniel dug himself deeply into debt and apparently was using money held in escrow from real estate investors to cover his expenses and other investors, police said.
In addition, Daniel had many Brazilian friends, and officials fear he may have fled the country.
“We do not know where he is at this time,” District Attorney Mark Hurlbert said. “We only have probable cause to believe he committed a crime.”
Investigators have not been able to find Daniel’s passport, which he renewed in December, claiming he needed it for “travel in late April 2007,” the arrest warrant said.
Holman also said investigators have not entirely ruled out foul play in his disappearance. “I know there are many people in this community that are concerned, as are we, in determining the whereabouts of Mr. Daniel,” he said.
Friends maintained his innocence.
“He just would not do this. It just does not fit,” said Judy Rice, a former girlfriend.
Daniel’s girlfriend of five months, Jennifer Rathbun, told investigators that Daniel had been in “extreme credit-card debt” and that Daniel was rejected for a loan because of his high debt and current tax liens, according to the affidavit.
Daniel’s secretary, Sarah Bailey, told investigators she believed he moved money from client trust accounts illegally, sometimes using the money for office operating expenses and personal debts.
Daniel is accused of taking money he was supposed to be holding for real estate investors as they sold one piece of property in anticipation of buying another one.
One client – Eugene Gregory of Franktown – told investigators that Daniel could not come up with his $250,000 last year when he was ready to make a new purchase.
“Daniel told Gregory he had moved the money to a 90-day certificate of deposit without Gregory’s permission,” Greg Morrison, the assistant police chief, wrote in the affidavit. “Gregory checked with the bank and found the money was not on account there.”
When Gregory confronted Daniel, the attorney confided he was $300,000 in debt and could repay the money only after additional investors provided him with money for other transactions.
Since Daniel disappeared, seven people have contacted authorities claiming Daniel has been holding more than a total of $500,000 in escrow money for them. Daniel’s personal and business bank accounts have a balance of about $234,000, police said.
On the day he vanished, Daniel dropped Rathbun off at her home about 5:30 a.m. and gave her a key to his house. She said that was strange because he never locked his house. She also said he gave her his jogging suit and Sorel snow boots, saying he wouldn’t need them for a while.
Staff writers Howard Pankratz and Mike McPhee contributed to this report.
Staff writer Steve Lipsher can be reached at 970-513-9495 or slipsher@denverpost.com.
