Harford County (Map, News) - A former assistant state’s attorney who allegedly helped bilk dozens of people out of more than $2 million has been indicted on 20 counts of conspiracy to commit theft and a host of other charges.

Harold J. Tulley, a 67-year-old Harford County lawyer in private practice, faces up to 300 years in jail if he is convicted of all charges against him. He was taken into custody last week and is free after posting $50,000 bond.

Harford County State’s Attorney Joseph Cassilly said Tully is accused of referring his friends and clients to Michael P. Luby of Hebron, who convinced as many as 54 people to give him money to invest in hotels and motels in Maryland and Virginia.

Cassilly said Luby apparently kept the money, and when the victims complained to Tulley, he reassured them and encouraged them to give more.

“Luby was basically taking the money and running,” Cassilly said. “The investors, most of them came from Harford County, so they came to us and said this guy got a bunch of their money.”

Tulley and Luby had been business partners in at least one venture, purchasing the Mariner Motel on Chincoteague Island, Va. in 2005. The Virginian-Pilot reported in 2006 that Luby borrowed money to renovate and operate the hotel, then spent the money himself. Tulley filed a lawsuit to bar Luby from the property and took over the accounts himself before declaring bankruptcy and selling the property off.

“There were just dozens and dozens of improprieties that came out during the bankruptcy hearing. The judge called it the worst case he’d ever seen,” said Stephen J. Brown, a Virginia Beach attorney who represented the Mariner’s previous owners. “Tulley apparently gave Luby signed checks and let him do whatever he wanted with them.”

Luby was arrested Aug. 29 in Vermont and currently is being held without bond at the Harford County Detention Center, Cassilly said.

msantoni@baltimoreexaminer.com