Nov. 27 (Bloomberg) -- Brooke Astor, the philanthropist and New York socialite, was swindled out of millions of dollars during the last years of her life by her son, Anthony Marshall, and a former lawyer, according to an indictment unsealed today.

Marshall, 83, a child of Astor's first marriage, is accused of stealing money and artwork from his mother, who died in August at 105. The lawyer, Francis X. Morrissey, is charged with forging Astor's name on an amendment to her will.

``The indictment charges that Marshall and Morrissey took advantage of Mrs. Astor's diminished mental capacity in a scheme to defraud her and others out of millions of dollars,'' Manhattan District Attorney Robert Morgenthau said at a news conference. ``I'd have to say the motive was greed,'' said Daniel Castleman, Morgenthau's chief of investigations.

The white-haired Marshall appeared before state Supreme Court Justice A. Kirke Bartley Jr. this afternoon and pleaded not guilty. He was released on a $100,000 personal recognizance bond after turning in his passport. If he's convicted of grand larceny, the most serious charge, Marshall faces a maximum prison term of 25 years.

In 2006, Marshall's son, Philip, sued him, claiming his father neglected Astor, while enriching himself. Susan Robbins, a court-appointed lawyer for Astor in the civil case, told Morgenthau that the third amendment to Astor's will appeared to be forged.

Replaced as Guardian

The civil suit was settled after three months. Anthony Marshall was replaced as his mother's guardian by her close friend Annette de la Renta, wife of fashion designer Oscar de la Renta. JPMorgan Chase & Co. was put in charge of Astor's finances.

``Anthony Marshall faithfully and effectively managed his mother's affairs for more than 25 years, increasing the value of her investments from $19 million to $82 million,'' his attorney Kenneth E. Warner said in an e-mailed statement this afternoon. ``Brooke Astor loved Tony, her only child, and whatever he received was in accordance with her wishes.''

``Just as the original claims of `elder abuse' were found to have no basis, Mr. Marshall shall be exonerated,'' Warner said.

Marshall and Morrissey conspired to defraud Astor in 2001, in a scheme that continued through 2007, according to the indictment. Morgenthau said doctors had told Marshall as far back as 2001, that his mother suffered from Alzheimer's disease.

$2 Million Commission

Morgenthau said the pair schemed to fire Astor's longtime attorney and have her sign a second amendment to her 2002 will. The amendment gave Marshall a portion of Astor's estate, known as the residuary, valued at $60 million.

Under the original terms of the 2002 will, he was to receive an annual payment equal to 7 percent of the residuary estate's value until his death, when the remainder would go to charity, Morgenthau said.

Marshall and Morrissey then had Astor sign another amendment directing the sale of her real property and giving them higher executor fees, Morgenthau said.

Marshall also told his mother she was running out of money, which wasn't true, in order to get her to sell a painting she loved by American Impressionist Childe Hassam, ``Up the Avenue from Thirty-Fourth Street, May 1917,'' according to Morgenthau.

The painting sold for 10 million, and Marshall took a $2 million commission, according to the indictment. He's charged with larceny for the commission.

Unauthorized Raise

In another count, Marshall is accused of giving himself an unauthorized raise in 2005 -- from $450,000 to $1.4 million -- for acting as his mother's financial adviser.

He's also charged with stealing more than $600,000 by using her money to pay expenses at a Maine estate she originally owned. Marshall had persuaded her to give him the property and later transferred ownership to his wife, Charlene, in November 2003, Morgenthau said.

Marshall used his mother's money to pay a social secretary who worked mostly for a theater company he ran, Delphi Productions, and for the $52,000 salary given to a captain of his yacht, according to the indictment.

Marshall is also accused of stealing two artworks from his mother's collection, each worth about $500,000, according to Morgenthau.

18 Counts

In the 18-count indictment, Marshall and Morrissey are both charged with engaging in a scheme to defraud and three counts of conspiracy. Marshall also is charged with seven counts of grand larceny, two counts of offering a false instrument for filing, two counts of possession of stolen property, and falsifying business records.

Morrissey is charged with forgery and criminal possession of a forged instrument.

Marshall, a Broadway producer and former U.S. ambassador to several countries, including Madagascar, Trinidad & Tobago, and Kenya, arrived at Manhattan state Supreme Court at 8 a.m. today wearing a gray suit and dark blue tie and accompanied by his wife. He has previously denied he improperly took anything from his mother or altered her finances against her wishes.

Morrissey will be arraigned later this week. He was suspended from practicing law in 1995 for two years, following accusations he mishandled a client's account.

Millions to Charity

Marshall is the son of Brooke Astor's first husband, J. Dryden Kuser, whom she divorced. He took the name of her second husband, stockbroker Charles `Buddie' Marshall, who died in 1952. She married Vincent Astor in 1953, and he died six years later.

Brooke Astor died on Aug. 13, leaving a personal fortune valued at more than $190 million, including a charitable trust worth over $60 million. During her lifetime, she gave millions of dollars to institutions including the New York Public Library and the Metropolitan Museum of Art.

She was awarded the Presidential Medal of Freedom, the nation's highest civilian honor, in 1998.

The case is People v. Marshall, New York Supreme Court, New York County (Manhattan).

To contact the reporter on this story: Karen Freifeld in New York state Supreme Court at kfreifeld@bloomberg.net.

Last Updated: November 27, 2007 17:56 EST