WESTMINSTER - The insurance company that filed theft charges against former Carroll Board of Realtors president Marshall "Mac" Shaw settled the case out of court Monday and has asked the county State's Attorney's Office to drop legal action.

Don Leonhard, treasurer of Donegal Mutual Insurance Co. in Marietta, Pa., said yesterday that he notified Senior Assistant State's Attorney Edward M. Ulsch that he wants to drop all criminal charges against Shaw.

Leonhard said Donegal Mutual was satisfied and asked that the charges be dropped after Shaw paid the company an undisclosed amount of money.

Leonhard said that Shaw's payment was less than the $16,000 he was charged with stealing from the insurance company, but would not give further details of the settlement.

Ulsch said he and Westminster City Police Lt. Dean Brewer were "completely satisfied" with the way the case was settled.

"I think we were all very happy about it and pleased," said Ulsch, who attended a meeting to settle the charges in Pennsylvania last week. "We all agreed that once the money was paid to Donegal, the criminal charges could be settled."

Shaw could not be reached for comment yesterday.

The 39-year-old Realtor was charged on Feb. 28 with felony theft over $300 from the Pennsylvania company.

Felony theft carries a maximum penalty of 15 years in prison, a $1,000 fine, or both.

Shaw pleaded not guilty to the charges at a preliminary hearing in Carroll District Court in March.

Court records show Shaw acted as an agent for the insurance company, collecting insurance payments and turning them over to the Pennsylvania firm.

The charges filed by Westminster City Police said that between Feb. 1, 1987, and April 30, 1989, Shaw kept $16,000 meant for the insurance company.

Shaw originally was scheduled to face those charges on Sept. 4, but the case was postponed and transferred to Carroll Circuit Court when he asked for a jury trial.

That trial was scheduled to begin Nov. 21 before Circuit Judge Luke K.

Burns Jr. but was postponed again when Shaw and Brewer announced that a deal could be worked out between the parties.

Court records show that civil cases also have been filed against Shaw charging that he kept rental payments meant for clients while he managed their properties.

In one such case, retired Circuit Judge Donald J. Gilmore awarded former Westminster residents Omar and Dolores Vasquez $20,250 in compensatory and punitive damages.

The settlement officially will be entered into the court records after a hearing on Dec. 17, Ulsch said.

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