Longtime Social Club President Charged With Secretly Taking Out Mortgages Secured By Club Property, Pocketing Some Of The Proceeds; Probe Triggered When Unpaid Lender Published Foreclosure Notice Announcing Auction Of Premises

In Beverly, Massachusetts, The Salem News reports:

• The former police officer and longtime president and treasurer of Beverly's Franco-American Club loudly pleaded not guilty to criminal larceny and fraud charges during his arraignment Monday in Salem Superior Court.
  
  And outside court, William "Bill" Gates told a reporter, "I am innocent of everything."
  
  Gates, who was accompanied to court by his son, remains free on personal recognizance in the case; prosecutors did not request bail for the former officer.
  
  Gates was indicted late last month on 14 counts, charging him with felony larceny, larceny by false pretense, and fraudulent use of corporate credit. Prosecutors allege he secretly took out a series of mortgages against the club's Park Street property, without the authorization of the club's board.
  
  The mortgages were discovered when one lender, Middlesex Loans LLC, placed a legal advertisement in The Salem News last January, announcing a foreclosure auction of the club.
  
  That's how club members learned Gates had allegedly taken out a $300,000 mortgage, at a 15 percent interest rate, against the club, and that he used some of the proceeds to pay off an earlier, $130,000 mortgage from Century Bank. Prosecutors allege he'd also sought another $300,000 mortgage from Yellowstone Capital.
  
  Some of the proceeds from those mortgages were used to pay taxes and other club obligations, including an earlier mortgage, but prosecutors claim Gates took at least $22,500 for his own use.
  
  He's accused in a separate civil lawsuit, brought on behalf of the club's board, of taking more than that amount, an estimated $60,000.

For more, see Gates: 'I am innocent of everything' (Social club president, former police officer, pleads not guilty to criminal charges).