ELLSWORTH—Paul C. McFarland, the former Bar Harbor funeral director who stole $480,000 from mostly elderly people who had relied on him when planning burials, was sentenced to nine years in prison Tuesday, with two years suspended.

From the time he bought the funeral home in 1989 until August 1999, McFarland stole some $483,032 intended for the trust funds of 193 clients, Assistant Attorney General Carlos Diaz said during sentencing.

Earlier this month, McFarland pleaded guilty to the four-count indictment brought against him.

McFarland never opened trust accounts for most of his customers, and illegally took money from 37 of the 86 accounts that he did open while the beneficiaries were still alive, Diaz said.

Though nearly 300 customers paid in advance, McFarland had only 86 trust accounts at the time the state investigated his business.

A majority of those who lost money were elderly, many disabled, Diaz said. McFarland also stole from young, disabled people, he added.

In his sentencing memorandum, Diaz wrote that one victim had paid $5,000 in advance to pay for his Alzheimer’s-stricken mother’s funeral. The man considered McFarland a friend and had even worked as a grave digger for McFarland, Diaz wrote.

According to Maine law, a funeral director is required to provide the customer with a written contract or mortuary trust agreement. Within 10 days of payment, the funeral director must deposit the money into a separate interest-bearing account in a Maine financial institution, Diaz said.

McFarland’s thefts went undetected for 10 years until one of his customers, 82-year-old Iris Hayes of Bar Harbor, checked her trust fund at the bank and found she no longer had one, Diaz said. The account predated McFarland owning the funeral home, Diaz noted. Hayes’ complaint prompted a state probe into McFarland’s activities. In August of 1999, McFarland agreed to pay a fine of $1,500 and surrender his funeral director’s license effective at once.

But for six months he refused to turn over records to State Funeral Home Inspector Matthew Cyr despite a court order to do so, Diaz continued.

To his credit, McFarland provided services for those who died, Diaz said. Over the 10 years he was in business, McFarland provided services to 47 beneficiaries representing $139,313.04. But he did so to avoid detection, Diaz said.

McFarland never admitted he had done anything wrong until he pleaded guilty on Nov. 7 to two counts of theft, one count of misuse of entrusted property and one count of violation of prearranged funeral or burial plans.

McFarland maintains he used the money to keep his struggling business afloat, but he stole an average $50,000 a year for 10 years on top of his legitimate business earnings, Diaz noted. A substantial amount never made it into the business account, he added.

"Where it went, we don’t know," Diaz said." The only person who can tell us that is the defendant."

McFarland’s attorney, Marvin Glazier of Bangor did not defend his client’s actions. Instead, he focused on his client’s limited ability to pay restitution. His client is virtually penniless and has a limited ability to work, but will do all he can to repay the victims, Glazier said. McFarland offered to do community service when released from jail, Glazier said.

"I am totally remorseful of what has happened the last 10 years," McFarland said when given a chance to speak. "I spent my entire life trying to help people and I ended up hurting them."

McFarland said he fell into a trap of trying to keep the business going with others’ money.

McFarland asked Hancock County Superior Court Justice Paul Pierson to order 1,000 or more hours of community service in addition to his prison sentence.

Diaz asked Pierson to sentence McFarland to 10 years in prison with two years suspended plus $339,629.18 in restitution. The restitution sought represents the amount stolen or mishandled less the amount for services actually rendered.

Glazier requested an eight-year term with two years suspended.

Pierson described the victims’ letters he had received as very touching and filled with outrage and frustration.

"One can only feel an enormous sadness for the people who have been victims of your actions," Pierson said.

Pierson said state law sets the maximum sentence at 10 years, depending on the defendant’s history.

Pierson sentenced McFarland to nine years in prison with two years suspended in addition to $260,994.14 in restitution. That amount represents the sum sought by Diaz less amounts two financial institutions have paid out to restore some of the victims.