A Hancock man has been convicted of theft after embezzling $225,000 from a former U.S. Senate candidate, causing a significant scandal in the local political landscape. Matthew T. McDonald, 45, was found guilty following a two-day trial in Hancock County Unified Criminal Court in Ellsworth. His criminal activities surfaced during his professional relationship with Max Linn, who ran for the U.S. Senate in Maine before his death in 2021 at his home in Bar Harbor.
During the trial, evidence revealed that Linn had asked McDonald to invest the substantial funds in cryptocurrency on his behalf. However, McDonald failed to carry out this request. When Linn sought the return of the money, the situation escalated dramatically. McDonald accused Linn of brandishing a firearm during a confrontation over the funds, prompting him to seek a restraining order against the candidate. McDonald alleged that Linn intended to use the money to buy unverified COVID-19 cures from Indonesia, claims that Linn vehemently denied.
Subsequently, McDonald disclosed to law enforcement that he had not actually invested the money in cryptocurrency but instead liquidated it for investment in the futures market, where it was reportedly lost. Despite his efforts to deflect blame, the jury found him guilty of the theft charge.
Following the conviction, a spokesperson for the state attorney general’s office declined to comment on the verdict, and no sentencing date has been set for McDonald.
In addition to state charges, McDonald is also facing significant legal challenges in federal court. Linn’s widow and his estate filed a lawsuit against McDonald in U.S. District Court in Bangor in August 2023, aiming to recover at least part of the embezzled funds. The complaint asserts that the loss of the money “ultimately contributed to [Linn’s] untimely death.”
Earlier developments in federal court revealed that a judge had rejected a motion by McDonald to dismiss the case, later finding him in default and ruling in favor of Linn’s widow and estate. A subsequent order mandated McDonald to repay the stolen funds.
However, a recent decision from U.S. Magistrate Judge John Nivison indicated that McDonald may lack the financial resources to repay the money, noting that his bank statement from February 2025 listed a mere $29.19. This revelation adds yet another layer of complexity to an already tumultuous legal battle stemming from the theft and its broader implications on Linn’s tragic passing.
