Doug Dyer was sentenced on Friday to serve 60 months, and James Brennan was sentenced to 48 months in federal prison for carrying out a $4.9 million swindle that victimized many Chattanoogans and investors elsewhere
They appeared before Judge Travis McDonough. Both Dyer and Brennan addressed the courtroom.
“The reason I am here is of my own doing. There’s no one else to blame,” Dyer said. “I was reckless and greedy.”
Through tears, the defendant spoke directly to the investors who were affected by his actions, many of whom he said were friends.
“I’m truly sorry for what I’ve done to you and ask you to please forgive me,” he said, going on to state that many of these relationships were now “damaged beyond repair.”
Dyer told the court that he hopes to share his experience with others in a positive manner, and that he has reached out to UTC in hopes to speak to business students as a volunteer.
His attorney, Lee Davis, said that Dyer is now working “essentially a minimum wage job” and that it would “take a lifetime” to make his restitutions.
“In my many years of practice before the court, I think that there’s sincerity here,” said Davis.
“You have a man that was born and educated in this community for the better part of his lifetime.”
Brennan also took the opportunity to speak.
“I’m not here to make excuses,” he said. “I plead guilty to the government’s charges because I am guilty.”
The defendant said that he and Dyer had “misrepresented opportunities” that were there for the investors. “If I could change the circumstances, I would gladly do so,” he said.
Since Brennan’s assets were frozen, he said he has lost his wife of 16 years, his house, and his car. For work, he is now washing cars. “My reputation has been ruined in Chattanooga and beyond,” he said.
Brennan stated that three months after his assets were frozen, his ex-wife was diagnosed “with a rare and aggressive form of cancer,” which took her life shortly after. The defendant said he is now the sole caregiver for his children, one of whom has special needs.
Brennan continued, saying that he is now trying to volunteer with the Darden Initiative at the University of Virginia, where he graduated from business school. He said he was trying to improve his life “as a result of the lessons” he had learned.
“I sincerely want to give something back,” he said.
Victims also had the opportunity to speak.
Reed Bacon, president of Bacon Products, said he was Dyer’s neighbor and that Dyer has now been working for him for four months. He said he would like to see Dyer not go to jail so that he will “be able to work and pay some taxes.”
“He is a good person, and he is sorry,” Mr. Bacon said.
Judge McDonough said he believed Mr. Bacon had invested about $32,000. He read a quote from Mr. Bacon which stated that the victim still did not know if he would lose his investment or not.
Mickey McCamish, who is president of the Epilepsy Foundation and retired U.S. Navy, talked about the ways that Dyer earned the trust of his investors. He cited the fact that Dyer was a past president of the Mocs’ Quarterback Club and “a man of the community.”
He also said that Dyer approached some people about investments after they had received inheritance from a death in the family.
“If he’s so concerned about his family, if he’s so concerned about his community, then why did he proceed with this type of behavior?” Mr. McCamish asked. He went on to say that it would be a “tremendous disappointment” to victims if Dyer did not receive the maximum possible sentencing.
Paul Smith, another victim, said that Dyer and Brennan had been “swindling people for 20 years.” He said that the $25,000 he invested came out of his retirement fund.
Mark Smith, the last victim to speak, said he had no sympathy for the defendants.
“These men are monsters,” he said. “To me these men are no different than the drug dealers selling cocaine in the streets of our schools.”
Judge McDonough said Dyer took money from investors “to fund a lifestyle [he] couldn’t afford and didn’t deserve.”
“It’s a scheme that lasted for years,” he said. “You lied and defrauded over and over.”
He said he believed that if the SEC had not intervened, Dyer would still be going. He also addressed the letters sent in support of Dyer, which spoke of the defendant’s “generosity and care.” Judge McDonough called such claims “hollow.”
“It’s obvious to me you abused those same social skills,” said Judge McDonough.
When reading about Dyer’s generosity, such as when he paid others’ expenses for UTC sporting events, Judge McDonough said he always found himself wondering whose money the defendant had used.
He went on to say this was a “very serious crime” with over 200 victims, which took “years of hubris and calculated deception.” He also said he still perceived “a lingering sense of entitlement” in Dyer.
Both Dyer and Brennan must report to federal prison on Dec. 1.