BATH — A former contractor in Midcoast and central Maine pleaded guilty to theft Wednesday for accepting hundreds of thousands of dollars from dozens of people for home construction and repairs but not doing the work.

Malcolm Stewart entered an Alford plea, in which he pleaded guilty but maintained his innocence while acknowledging that he could be found guilty if a trial were held. He changed his plea during a Zoom hearing in the Sagadahoc County Superior Court in Bath. He is likely to be sentenced in the state court in Knox County in Rockland in October. The sentencing hearing could last two days.

The plea comes after the Maine Attorney General’s Office offered a sentence agreement that would require less prison time than originally sought for the former contractor, who now lives in South Carolina.

Malcolm Stewart appearing via Zoom at the Sagadahoc County Superior Court in Bath on Wednesday. Stewart, 58, was indicted in March 2021 by a Knox County grand jury for two counts of theft by deception.

A jury had been selected last week, and a three-week trial had been scheduled to start Thursday.

Stewart, 58, was indicted in March 2021 by a Knox County grand jury on two counts of theft by deception – one for taking money for work he is accused of not intending to perform and the other for soliciting money for the company by misleading investors. He initially pleaded not guilty in May 2021.

Stewart remains free on bail and resides in Pelzer, South Carolina. He also had to turn in his passport. Stewart is a Canadian citizen and has a green card.

The prosecution had originally offered an eight-year prison sentence with all but five years suspended, which was rejected by defense attorney David Bobrow.

The new offer, agreed to by Justice Daniel Billings, is for seven years with all but 30 months suspended, to be followed by three years probation. That 30 months to serve would be a cap, which means the defense may argue that Stewart should serve less time or even no time.

Billings will decide the final sentence after hearing arguments at the sentencing hearing. Victims will be able to speak about the impacts of the crimes. The amount of restitution Stewart would be required to pay will also be argued.

The plea comes nearly five years after the abrupt closure of Stewart’s contracting business – Castle Builders in Union – in September 2019.

There are 57 individuals who are listed as being victims in the offenses alleged to have occurred from April 2018 until September 2019 in Knox, Waldo, Hancock, Kennebec, Lincoln and Somerset counties. Of those individuals, the overwhelming number are those the state claims paid for home construction projects that were either not done or done poorly.

Stewart is undergoing dialysis in South Carolina. His medical condition is one reason the state made the new offer.

Written motions filed by Bobrow in pretrial filings offered a potential defense if the case had gone to trial.

“As with many construction businesses, there were errors made in accounting and related to the workforce, to name two areas,” the motions stated. “As time progressed, Castle saw its income dwindling and its bills expanding as evidenced by the monthly summary.

“Castle hoped to secure cash infusion by bringing in a financial partner(s), but were unable to close any deal. Finally, without money to pay the employees, Mr. Stewart closed his business on Sept. 8, 2019, leaving behind all of his business and main personal assets.”

Of the scores of alleged victims listed in the indictment, the largest was one couple taken for $192,750, according to the state. The couple, from Damariscotta, contracted with Stewart to build a garage and workshop.

Justice Bruce Mallonee ordered in September 2022 that Stewart, his wife Elizabeth and their defunct Castle Builders company to pay $744,253 to benefit more than 100 former customers. The state won a default judgment after the couple left a Zoom call on what was to be the first day of a civil trial in August 2022.

The couple and the company also filed for bankruptcy in the federal court.

A case in U.S. Bankruptcy Court concluded in March 2023 with only $5,000 in claims being paid while nearly $40,000 in administrative fees were paid. The initial claims filed in the bankruptcy case totaled more than $1.1 million including taxes and payroll. There were 177 creditors listed in their bankruptcy filing with most of them former customers of Castle Builders. Former workers, suppliers and the government are also listed as creditors.

The Office of the Maine Attorney General has previously stated in court filings that Elizabeth Stewart worked primarily as the office manager and bookkeeper for the company. Their son, Cody Stewart, has cooperated with the investigation, the AG’s memo said. Malcolm Stewart was the only person charged criminally in the case.