Woman who embezzled from Ann Arbor Amateur Hockey Association files for bankruptcy
A Chelsea woman who was ordered to pay restitution after being convicted last June of embezzling nearly $1 million from the Ann Arbor Amateur Hockey Association has filed for bankruptcy.
Kimberly Kay Knight, 46, filed for Chapter 7 bankruptcy on May 28, federal bankruptcy court records show.
The filing comes less than three weeks after Knight was arrested by Washtenaw County sheriff's deputies on charges that she wrote two bad checks on Feb. 1 to the Dexter Pharmacy.
Knight pleaded guilty in June 2009 to two counts of embezzlement.
Her sentencing was delayed by Washtenaw County Circuit Judge Melinda Morris, who gave Knight a year to prove she's capable of paying back the stolen money and deserves probation.
Knight embezzled $934,000 while she was the association's bookkeeper from 2005 to 2007. Pittsfield Township police say she used the money for jewelry, elaborate family vacations and other items, including a 2005 Cadillac Escalade.
According to court records, Knight had been making the required $1,500 monthly
restitution payments through April.
It’s unclear how the bankruptcy filing will affect her embezzlement case.
Washtenaw County Prosecutor Brian Mackie did not return a phone call Friday seeking comment. Knight’s attorney for the embezzlement case, Michael Le Gris, also did not return a phone call.
Knight is a defendant in a lawsuit filed by the AAAHA, which is seeking repayment of the stolen funds and other money. The suit alleges Knight, her husband Jon Knight and father Richard Marshke collaborated in a scheme to launder the stolen money through legitimate companies.
Lee Higgins covers crime and courts for AnnArbor.com. He can be reached by phone at (734) 623-2527 and email at leehiggins@annarbor.com.
Comments
15crown00
Sun, Aug 8, 2010 : 11:45 p.m.
this is bogus.she's trying to get out of punishment by filing Chapter 7.stick it to her GOOD
Trouble
Tue, Jun 29, 2010 : 6:55 a.m.
She still much more smarter than Judge. Much more!
krc
Tue, Jun 8, 2010 : 7:16 a.m.
Thanks, David. Not that anything will get through her thick skull.
jns131
Mon, Jun 7, 2010 : 8:54 p.m.
I really have to giggle at the comment, this should be turned over to the IRS. If the IRS couldn't get at Kwame's ill gotten gains, what makes you think they can with her? Yes, do the math and she will be long gone before that is paid? So, what, are they are going after the family to get it? Can't. She did the deed, not the family. Very interesting indeed. Plus if she isn't making $1500 a month, who would if you are convicted felon, where is she going to get the money? Good luck. She is better off in prison. Shared cell with Kwame talking about the good ole days.
treetowncartel
Mon, Jun 7, 2010 : 8:43 p.m.
The judgement is protected in bankruptcy, somehwat. Her restitution is under the guise of a judgment creditor, they would be in front of the credit card companies.
jcj
Mon, Jun 7, 2010 : 7:11 p.m.
@Heardoc It is one thing for a person to get in over their head with credit cards etc. But this women stole this money plain and simple! And you can't spin that into a debt! Other than the debt she owes society! Our founding fathers might have not been so kind as to give her a feeble chance a repaying her debt.
LaMusica
Mon, Jun 7, 2010 : 1:52 p.m.
I hope she still has to pay the restitution. My best friend's mom was in a car accident (which ultimately resulted in her death 4 years later) because some idiot was drag racing down the road. She sued, won, and he declared bankruptcy. He only had to pay her $25/week. COMPLETE injustice. I don't know if this was different because it was a civil suit, but this kind of thing hits close to home to me. She better still have to pay her penalty.
Saldog
Mon, Jun 7, 2010 : 1:39 p.m.
Piggybacking kmgeb2000's comment...Discounting these payments at a conservative 3% rate (rate of inflation) during this period, these 628 payments of $1,500 each equates to a present value of $474,928.09! She would need to make monthly payments of $2,949.92 per month to meet the $934,000 --- and that's given she makes restitution at 98 years old. Where is the punishment??? Who's crunching numbers for the Judge???
Macabre Sunset
Mon, Jun 7, 2010 : 1:07 p.m.
Now that she has essentially told Morris she has no intention of trying to pay restitution, why isn't she in jail today? I agree this case should be turned over to the IRS as well. They can go after property in ways our extraordinarily irresponsible local judge cannot.
jns131
Mon, Jun 7, 2010 : 12:48 p.m.
I am beginning to see the beginnings of another crime that involved this type of embezzlement. Let me think....O yeah, it had something to do with a Detroit mayor did it not? He feigned debt and could not pay and they put him in jail. I think she is heading in the same direction. Bankruptcy clears out everything and can include the house and car. Otherwise, your credit cards and all debt are wiped from your records. She can do this, sell everything, the courts take what they can and she will live the life of a homeless. O wait, she can't. Better yet, you can live out your life in prison and at the expense of the taxpayer. System is totally flawed. I know I'd go to prison because I wouldn't know where to come up with this money. People just don't think do they? I'd like to see where this ends up in a year.
tinkerbell
Mon, Jun 7, 2010 : 12:25 p.m.
As a former probation officer, I can tell you that bankruptcy does not clear the obligation for restitution.
scooter dog
Mon, Jun 7, 2010 : 10:24 a.m.
Hello, The firefighter got 60 days in jail,not 1 yr,another real frigging farce of a sentence.
BlueNever!
Mon, Jun 7, 2010 : 10 a.m.
Surprising that she isn't held accountable for taxes on that wealth by the Feds and MI. The law requires individuals to declare ALL income legal or not and pay taxes. Remember that is how Al Capone landed in prison for not declaring and paying taxes on his criminal empire. It is unfortunate that the law allows for felons to escape restitution by giving wealth to family members. Kilpatrick successfully bilked Detroit by sequestering his wealth with his family so the City couldn't collect from him. In divorce a spouse is legally entitled to half the marital property including Lottery winnings. Yet, in crimes and bankruptcy, only the felon is responsible for restitution of shared assets and debt. Since her family benefited from the embezzled monies, they should share in the restitution and taxes.
Momma G
Mon, Jun 7, 2010 : 9:53 a.m.
Ok, why aren't they going after her assets and her husbands since it states that her husband was in on this scheme, too. I understand he has a business of his own
Jay Allen
Mon, Jun 7, 2010 : 9:40 a.m.
I think everyone should read kmgeb2000's post again. Awesome Job.
girlhunter
Mon, Jun 7, 2010 : 9:22 a.m.
She stole thousnads of dollars from.. of all things Childern. The jail is a result of a crime.. not a debt. I would hope all things that she bought with the money, can be given to teh court and can be auctioned off. And I wonder if she does die before it is paid back if her estate would end up owing it? Or would her childern then become responsable for paying the remaining amnount?
Rasputin
Mon, Jun 7, 2010 : 9:04 a.m.
If you have a problem Melinda Morris, you can contact her here: http://washtenawtrialcourt.org/general/judge_profiles
AnnArBo
Mon, Jun 7, 2010 : 8:40 a.m.
The Scio Township firefighter who embezzeled less than 150k goes to jail for a year.........whats wrong with Judge Melinda Morris? Way to go Judge Brown, our children are watching and they clearly see the messages these judges send with their sentences.
Smiley
Mon, Jun 7, 2010 : 8:28 a.m.
http://blog.mlive.com/annarbornews/2008/09/man_avoids_prison_for_second_t.html Classic reading for any fans of Melinda Morris.
48104
Mon, Jun 7, 2010 : 8:27 a.m.
A lot of the money was spent on vacations, spa services, digging the family business out of debt, jewelry that really doesn't retain value (like those stupidly trendy Pandora beads) and other things that you can't take back. She frittered that money away. It's really astounding you can waste that much money with nothing much to show for it.
Opinari
Mon, Jun 7, 2010 : 8:01 a.m.
Top Cat you are right.....assuming the person receiving the monthly statement actually reads it. A lot of people treat their monthly bank statement like junk mail and never bother to open it.
Elaine F. Owsley
Mon, Jun 7, 2010 : 7:58 a.m.
Wait a minute!! Isn't Judge Morris the same judge who's come under fire for leniency in other cases? Maybe she should have attached those assets from the beginning.
Opinari
Mon, Jun 7, 2010 : 7:55 a.m.
@ Heardoc - In 1833 the United States abolished throwing people in jail for debt and all states soon followed suit. Our founding fathers would definitely have thrown a debtor in jail.
Top Cat
Mon, Jun 7, 2010 : 7:51 a.m.
It is amazing how many small, non-profits are vulnerable to this type of graft. A simple precaution of sending the monthly bank statement to someone other than the person writing the checks puts some level of scrutiny in place.
kmgeb2000
Mon, Jun 7, 2010 : 7:51 a.m.
Let do the math: $942,000/$1,500(per month) = 628 months/12 = 52.2 yrs. Shes 46 now, so restitution will be made when she is 98? I guess the Judge didn't do the math. Sounds like she should just be in JAIL. Also, she is not a poor unfortunate soul in a bad situation filing for bankruptcy; she is a CRIMINAL who took a MILLION dollars from kids and parents. This is a crime not debt.
Elaine F. Owsley
Mon, Jun 7, 2010 : 7:37 a.m.
If assets like her car and jewelry were purchased with the money she stole, couldn't they and anything else of value have been seized as part of the restitution? Seems like she's been given more than a chance and if her husband and father profited by her crime, take their possessions too.
Opinari
Mon, Jun 7, 2010 : 7:10 a.m.
Certain debts can not be discharged in a bankruptcy. I would be surprised if a court order restitution would be discharged by a bankruptcy judge. Kwame Kilpatrick is now sitting in prison for violating his court ordered probation, which included making restitution to the city of Detroit. Other than tax evasion, maybe our society should include non-payment of other types of debt and the nature of how the individual incurred that debt. The threat of jail time may make people rethink about their financial decisions before they sign the dotted line.
Rasputin
Mon, Jun 7, 2010 : 6:58 a.m.
Stealing and being in debt as a result, has nothing to do with the founding principals, but the most common social mores that we live by in society. She broke the law, now do the freaking time!!!
Jeffersonian
Mon, Jun 7, 2010 : 6:50 a.m.
Jail time was a stipulation for the original trangression. Although there is is little for anyone to gain from jailing this woman, blatant theft cannot be ignored. This is a testimony toward good business practice. Had there been proper checks and balances in the ametuer hockey league it would have prevented such a sizable loss.
bobr
Mon, Jun 7, 2010 : 6:49 a.m.
I'm an attorney. The law is real clear on this. If the debt is the result of a crime, you can't discharge it in bankruptcy. That may require the organization that is owed the money to have a bankruuptcy lawyer protect their right to try and collect, but it's a simple issue in this case.
matt davidson
Mon, Jun 7, 2010 : 6:45 a.m.
I agree with the comment about not being jailed for a debt. But that was not intended for getting out of punishment. If you did that, you would have to eliminate the fine system altogether. People could just say "I can't afford to pay," after already being sentenced, and then get away scot free. She's not being punished because she can't pay a debt, but because she's a freaking criminal! And stealing from kids to boot! Get real.
5c0++ H4d13y
Mon, Jun 7, 2010 : 6:39 a.m.
@Heardoc this is payment for theft. Our founding fathers would have tossed her in jail and been done with it.
Heardoc
Mon, Jun 7, 2010 : 6:29 a.m.
I think people forget what are some of the reasons we (our founding fathers) wanted for this country. One thing was the need to prevent the jailing of people over debt. With that in mind -- no reason to put her behind bars for a debt. If that is the only reason then that is an inadequate reason. Now if they put her in jail for the current checks and charges then fine -- but not because she cannot pay -- it is unamerican.
Craig Lounsbury
Mon, Jun 7, 2010 : 5:34 a.m.
I'm no lawyer, nor will I play one on the Internet. But it doesn't seem "fair" that one could skate around (pun intended) a sentence for a crime by filing bankruptcy. The restitution was part of a sentence for a crime was it not?