State seeks jail time for Beverly man

SALEM – The Beverly man who admitted swindling several local residents out of over $500,000 in an investment market scam has failed to pay the fines and now the state wants him to go to jail for a year.Michael M. Abbot, 53, of 1 Ellis Square, 4 Essex St., Unit 3B, Beverly, had until Feb. 15 to pay $400,000 in fines after he pleaded guilty last year to 10 counts of fraudulent sales of securities, 10 counts of being an unregistered broker-dealer and three counts of failure to file tax returns.In that sentence, Abbot received a suspended one year jail sentence with seven years probation, with the conditions he be on house arrest for the first 18 months of his probation, monitored by an electronic bracelet, pay the $400,000 in fines by Feb. 15 and approximately $526,500 in restitution.In Salem Superior Court Monday morning, Assistant Attorney General Mark Jones told Judge Howard J. Whitehead that Abbot has failed to abide by the sentencing agreement to pay the fines and should go to jail for a year.But defense lawyer Fred B. McAlary asked that the case be continued a week, until March 17 in order for his associate, Attorney Robert L. Sheketoff to be present for the hearing.Jones insisted, as did probation officer Jeff January, that Abbot should be put in jail, telling Whitehead that the state at this point feels he can’t pay and coming back on Monday seems like a waste of time.McAlary pointed out to Whitehead that the notice his client received from probation did not stipulate that the hearing was a final surrender, and the judge agreed.Whitehead said he felt Abbot should remain in custody, despite a plea from McAlary to let him remain free until the final hearing.Whitehead reminded Abbot that he had swindled millions of dollars from friends and entered into an agreement with the commonwealth.In his decision, the judge said that Abbot is vague about his ability to pay and “not trusting,” adding that he has real concerns that Abbot is “stringing us along.””Why should we accommodate him any longer,” Whitehead said as he ordered Abbot placed in custody until the next final probation hearing on Monday, March 17.But Abbot still insisted to Whitehead that he has access to funds and to an extremely rare wine collection, but when a judge earlier ordered Abbot to produce the rare wine collection in a civil action, he failed to do so. Now Abbot says he expects to have access to the warehouse where it is stored.”I’m prepared to go ahead and put my livelihood on the line here,” Abbot told Whitehead, saying he’s part of three trusts and that the rare wine collection “exists.”Abbot’s victims included a woman who had a business in Peabody and invested nearly $90,000; a Lynnfield couple who invested $125,000; and a retiree living in Florida who invested $25,000.Abbot, who is a descendant from two prominent Boston Brahmin families, the Moseleys and Abbots and was raised with great wealth on an estate in Beverly Farms, still has several larceny charges pending against him in Superior Court.