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Detroit, MI - A Michigan attorney accused of exploiting his wealthy Carhartt heiress client as trustee testified Wednesday that he intended to repay the roughly $15 million he had loaned himself from her trust. David P. Sutherland took the stand during the second week of his jury trial.

Grosse Pointe Farms attorney David P. Sutherland was questioned extensively about his relationship with the late Gretchen Valade, his former client and a leader at Carhartt, and the loans he took from her irrevocable trust to fund other business ventures.

Sutherland's attorney, James Joseph Sullivan, asked Sutherland directly if he had done anything dishonest or defrauded Valade's trust. Sutherland responded, "No. My intention was to borrow the money and to pay it back."

Sutherland, who is in good standing with the Michigan State Bar, faces charges of embezzling from a vulnerable adult, two charges of embezzling more than $100,000, and one count of conducting a criminal enterprise. Prosecutors allege he issued himself a series of loans from one of the trusts without Valade's permission.

Valade, known as the "Angel of Jazz" for her philanthropic donations to the Detroit Jazz Festival and her $9.5 million donation for jazz studies at Wayne State University, died at age 97 on Dec. 30, 2022. Sutherland was charged about two weeks later.

Sutherland testified that he worked with Valade from 2004 to August 2020, when he was removed as trustee. He said he began working with Valade after being recommended to her and initially discussed the management of the Detroit Jazz Festival, a longtime interest of Valade's. Sutherland helped her set up nonprofits to manage and operate the festival and assisted with other business ventures, such as establishing the Dirty Dog Jazz Café in Grosse Pointe Farms.

He also drafted the 2009 irrevocable trust at issue in the trial, with Valade appointing him as trustee.

During cross-examination by Scott Teter of the Michigan Attorney General's Office, Sutherland had difficulty answering questions about promissory notes for two approximately $7.6 million loans from the trust to himself and his real estate business Byzantine. The notes bore Sutherland's signature, dated Jan. 1, 2016, and Jan. 1, 2017. Teter questioned whether the signatures were accurate, and Sutherland responded that he didn't believe the notes were signed on those dates.

Teter asked if Sutherland backdated the notes, to which Sutherland responded that he wasn't fully aware of what Teter meant by backdating, acknowledging that the dates might be incorrect. Sutherland suggested he might not have noticed a date on the document when he signed it and was unsure if he signed a document with a blank date.

Carhartt Heiress's Trust attorney lawsuit

Sutherland testified that he offered to repay the loans with annual payments of $2 million to $4 million until satisfied, an offer he said was rejected. He claimed to have paid $500,000 in December 2020.