Ann Arbor Amateur Hockey Association sues former bookkeeper convicted of embezzling nearly $1M
An Ann Arbor youth hockey league is suing its former bookkeeper in an attempt to recoup the nearly $1 million she swindled from the organization. And the league isn’t stopping with her.
In a suit filed earlier this month, the Ann Arbor Amateur Hockey Association alleges Kimberly Knight, her husband, Jon Knight, and her father, Richard Marshke, collaborated in a scheme to launder the stolen funds through legitimate companies.
Kimberly Knight is shown in this file photo.
Knight, 45, stole $934,000 while acting as the organization’s treasurer and sole bookkeeper from 2005 to 2007. A lengthy police investigation showed she spent large sums on personal luxuries such as expensive jewelry, vehicles, and tropical vacations.Â
She pleaded guilty to felony embezzlement charges last June and received a delayed sentence as long as she began paying the money back.
Detectives previously said they thoroughly investigated other individuals for potential involvement, including Jon Knight, but no evidence was found.
Mike LeGris, Knight’s attorney, successfully argued in the criminal proceedings that more than $200,000 was repaid to the organization after bank officials discovered the embezzlement in 2007. He said the majority of that money came from Marshke.
Organization officials always questioned that argument and say in the lawsuit AAAHA has only received one $75,000 lump sum and several monthly payments of $1,500 since September. Circuit Judge Melinda Morris required both the lump sum and monthly payments for Knight to stay out of jail. Morris will review Knight’s case this fall before rendering a final sentence.
Knight appeared briefly in court last week to answer Morris’ questions about a possible violation of her court order. LeGris said she didn’t turn in tax documents for the businesses, as the judge requested, because they weren’t prepared yet for tax season.
Morris set a hearing for April 30 and ordered Knight to submit the tax records at least seven day earlier.
LeGris said she’ll comply with the judge’s order and is concerned about the civil suit.
The lawsuit requests full repayment of the embezzled funds, plus three times that amount, to be determined at trial. The organization also seeks punitive damages, interest payments and attorney fees.
“We’re committed to tracing and the recovery of every cent of the stolen money,” said Thomas O’Brien, one of AAAHA’s attorneys. He declined further comment Wednesday.
In the 25-page filing, AAAHA alleges Jon Knight knew his wife systematically embezzled funds and deposited small amounts into accounts used by their shared business, Diversified Services of Washtenaw. That money was then used for the company’s operating costs and to purchase its construction equipment.
The suit also alleged Jon used some of the money to purchase Grant’s Towing in Ann Arbor not long before the police investigation began.
The suit accuses Marshke of covering various AAAHA bills with money from his personal accounts on occasions when the organization couldn’t pay because of Knight’s embezzlement. The lawsuit doesn’t detail when or how frequently those payments occurred, but attorneys said they could only determine the extent of Marshke’s alleged involvement through further investigation.
“It’s absurd,” LeGris said. “I don’t understand how they can say that because it was all investigated. If there was a way to bring others into the case than I think it would have happened.”
Grant’s Towing was purchased with lines of credit nearly two years after Knight left AAAHA, he said.
The hockey league still operates out of the Ann Arbor Ice Cube in Pittsfield Township, but the lawsuit notes the money Knight stole was to be used for construction of its own ice rink. The executive board is under new leadership, which implemented tougher safeguards on finances.
LeGris said Knight’s focus is on moving forward with her life but that’s being stymied by the legal activity and media scrutiny. Her case was recently highlight on ESPN’s “Outside the Lines” investigative reporting series.
LeGris said Marshke and Jon Knight will likely have their own attorneys.
Circuit Judge Timothy Connors has yet to set a hearing.
Art Aisner is a freelance writer for AnnArbor.com. Reach the news desk at news@annarbor.com or 734-623-2530.
Comments
Lee1968
Fri, Feb 19, 2010 : 6:06 p.m.
STEALING is a willful act - she knew it was wrong but did it anyway. She should do time in jail! We hear about such greedy/manipulating people all the time so the punishment must not be harsh enough. The young man that ACCIDENTLY killed the biker will have to live with his MISTAKE for the rest of his life... that is punishment enough and so sad for EVERYONE involved. Shame on you for comparing these cases
hockeymom123
Thu, Feb 18, 2010 : 6:44 p.m.
If she has done this once maybe she has done this before. Where else has she worked as a book keeper?
jcj
Thu, Feb 18, 2010 : 6:40 p.m.
Let me un-personalize my comment.So that it might pass muster. Although I don't think my comment was nearly as objectionable as the one I was responding to. Anyone that thinks that a terrible accident equates with this deliberate act is way off base and should be ashamed of themselves!
Chrysta Cherrie
Thu, Feb 18, 2010 : 6:25 p.m.
A comment containing a personal attack against another commenter has been removed from this story.
Mumbambu, Esq.
Thu, Feb 18, 2010 : 4:21 p.m.
Another nice big photo (same photo repeated in this case) of a well off white woman in trouble. If all photos in mainstream media of whites and blacks in trouble were compared for size, I think I could predict which ones would be consistently larger. I could be wrong. It's something I've noticed over the years, and believe Americans are simply conditioned to white hockey moms in whatever ways possible - there are many ways.
Mumbambu, Esq.
Thu, Feb 18, 2010 : 4:14 p.m.
Raise our taxes so we can house more criminals such as this in our jails!
Mick52
Thu, Feb 18, 2010 : 2:04 p.m.
To those of you wondering (or insisting) that she should be in jail. During my career in LE I investigated many embezzlements. None of the suspects went to prison. The reasons are two fold. One, the prisons are fairly full of violent criminals, and often embezzlers are first time offenders who usually do not get time for a non violent offense. Extreme cases like Madoff get prison time. The second reason is that the suspect is expected to get work and repay rather than sit in prison. Unfortunately the fact that they usually don't get prison time means there is little deterence. Its quite stupid to embezzle, they almost always get caught, especially in cases like this where there is a strong paper trail. I feel very sorry for this organization. However what happened here is so typical of embezzlements. An organization should never, never put just one person in charge of a treasury or have the ability to withdraw funds without another person's signature. Also, all original bank records should be regularly reviewed by multiple members of a governing board to track all expenditures. Most times you hear "but we trusted her/him." The fact is its not a matter of trust but good accounting principles. I am glad to see that the club has instituted better procedures. I hope through the civil action they can take property or other holdings (Grants) from these people.
djm12652
Thu, Feb 18, 2010 : 1:52 p.m.
to all that are holding the victims to blame, understand this...I used to perform forensic accounting when I lived down south and there are some very clever, creative thieves out there...but alas, criminals eventually screw up sooner or later. That said, the Board of Directors were taking this thief at her word along with her prepared financials...I mean, who expects a hockey Mom to rob ya? and yeah, jail time should be mandatory, she can work when she gets out...
scooter dog
Thu, Feb 18, 2010 : 1:38 p.m.
I said father in law should of said father
scooter dog
Thu, Feb 18, 2010 : 1:25 p.m.
I hope she gets a long prison term,her husband and father in law also,but with the way the courts are now days she'll never do a day,sad but true.I also find it hard to fathom that close family members new nothing about where all the extra money was comming from.The pittsfield township police dept must have done a real poor job of investigating this because its just as clear as black and white that more people than her new what was going on.
SemperFi
Thu, Feb 18, 2010 : 12:43 p.m.
Keep her out of jail in order to pay full restitution to the AAAHA. If she fails to make steady restitution, let her know that there is a cell waiting with her name on it. Her cohorts need to be held accountable, too. To think that the husband and father were clueless as to the appearance of $900K is absurd.
Dudley
Thu, Feb 18, 2010 : 12:21 p.m.
despicable. Jail her!
dell
Thu, Feb 18, 2010 : 10:32 a.m.
It is obvious that her husband had to know what was going on. You would think that he was aware of how much she earned and how much he earned and that their life style would not be supported by their earning. A lavious lifestyle would need either a large amount of credit card debt or a large amount of earnings. Was there credit card debt? Second, I would think that they have filed false tax returns because embezzeled money is income and it was not claimed, or was it? They could also have a problem with the IRS! Has anyone looked into this? The IRS could lean their assets and then nothing left for AAAHA. Third, it's not greed on AAAHA part to have the money. The Cube charges a lot for ice time and in the long run, AAHA would be able to service it's members with lower fees owning their own rink. Non profits get a break on property taxes (the Cube's are approx 225K a year). Fourth, I'm not involved with AAAHA at all. I just followed the story and feel bad that the rich get rich and the poor stay poor.
jcj
Thu, Feb 18, 2010 : 9:54 a.m.
MichMom I am sure you were front and center when your children played offering to join the board, helping with fundraisers etc. My point is that while it is easy to point fingers at everyone some of these board members have devoted their lives to helping keep the program going with NO PAY. What did you do? dougfroma2 I wonder how much of your time has been given to non-profits. Like most people the AAAHA learned the hard way. But to throw them in the pot with this pitiful example for a family is wrong! If there is anyone that believes Ms Knight is the only one involved they better watch their own finances because they are very naive!
Trouble
Thu, Feb 18, 2010 : 9:35 a.m.
Traditionally embezzlement cases do not result in long prison terms for the convicted. These results are often criticized and not understood by the public. However statistics have shown most jurists are not inclined to exact heavy sentences to embezzlers. Ergo continued offenders, and continued embezzlement. IE: CRIME PAYS BIG TIME!
AnnArBo
Thu, Feb 18, 2010 : 8:51 a.m.
Wrong Michmom, the money was not derived from player fees but from fund raisers decades ago and parking it in an endowement fund drawing interest. The organization has consistently lost money each year with its revenues, and used that endowment to cover short falls. My kids played in AAAHA and I attended several meetings where financials were made open to the membership supporting my claim.
MichMom
Thu, Feb 18, 2010 : 8:36 a.m.
I would like to know why the AAAHA needed to build a rink? That is insane. My boys played during their big years and we paid A TON of money to skate...well more than they charge now. That is our money and others who had boys skating in the 1980's and 90's. There is no reason for a non-profit to have that kind of money laying around. I blame the AAAHA's previous greedy, power hungry board. The AAAHA basically stole from the parents of the kids who played during that time...so I do not feel bad that someone stole from them. The board and directors are at fault for not paying attention.
Top Cat
Thu, Feb 18, 2010 : 8:32 a.m.
It was obvious from the beginning that this was a conspiracy and not the work of one person. Kimberly and Kwame are both unrepentent crooks and should be behind bars.
AnnArBo
Thu, Feb 18, 2010 : 8:29 a.m.
dougfromA2......are the victims of a crime the ones who should be punished? If you left your door unlocked and are burglarized, should you be punished? Embezzelment is a crime of opportunity, she was a trusted board member who lied, and falsified records. In every embezzelment case, the embezzeler works behind the scenes using trust as their sheild until they are discovered. Bigger and better organizations have been swindled, and the embezzelers need to be punished more harshly as a deterent to others. A low interest loan so they can get on with their life serves as no deterent, she should be followed around all day with a camera then maybe she would start doing ALL she can to pay back the money........
dougfroma2
Thu, Feb 18, 2010 : 8:21 a.m.
Will the AAAHA sue their former executive board members? They clearly failed in their duties...
AnnArBo
Thu, Feb 18, 2010 : 8:16 a.m.
Her lawyer says, Its absurd to think her husband used the money on Grants towing because it was two years after she left the organization? Right, after using the money on his excavating company already, tough sell on that one. These people clearly all knew what she was doing, why else would her father have made deposits to the organizations accounts, clearly he was trying to cover her tracks, and what did she then do? Stole that money also...........She completely emptied their account, and spread the money around her family and husbands business. I say go after her and all the people who knew what she was doing.
jmac
Thu, Feb 18, 2010 : 8:15 a.m.
I totally agree with Wolverine3660. This women stole a million dollars (basically from kids, no less!) and isn't in jail. According to her attoreny, she 'wants to get on with her life'. Her life should be behind bars. I hope the AAAHA finally sees some justice in this case.
Wolverine3660
Thu, Feb 18, 2010 : 7:02 a.m.
I still maintain that Judge Morris ought to sentence Ms Knight to a lengthy jail term. Embezzling nearly a million dollars is no joke. It is not like Ms Knight shoplifted a 99c hamburger from McDonalds.