Woman who stole nearly $1 million from Ann Arbor Amateur Hockey Association now headed to prison
Kimberly Knight is headed to prison, nearly a year after a judge gave her a chance to avoid incarceration by paying restitution on the nearly $1 million she stole from an Ann Arbor youth hockey league.
Instead of making good on that restitution, authorities allege Knight committed additional crimes and filed for bankruptcy.
Kimberly Knight is headed to prison.
On Monday, the Chelsea woman who served as the bookkeeper for the Ann Arbor Amateur Hockey Association was ordered to serve two to 10 years and two to 15 years in prison.
Circuit Judge Melinda Morris ordered the sentences to be served concurrently.
Knight, 46, took more than $934,000 between 2005 and 2007 from a special fund the hockey league established to build an independent ice rink. A lengthy probe by Pittsfield Township police revealed the money was instead spent on lavish family vacations, jewelry and vehicles.
Knight pleaded guilty to two counts of embezzlement in June 2009 and was ordered to pay more than $700,000 in restitution.
Morris delayed sentencing for 12 months - it was to occur next month - to give Knight an opportunity to pay portions of the money back. Court records indicate she paid a $75,000 lump sum to avoid jail last summer and has since paid $1,500 a month to county probation officials.
But several delays in producing tax records ordered by the court, and recent unrelated fraud charges tried Morris’ patience, said Mike LeGris, Knight’s attorney.
Knight was scheduled to appear in court Monday for the continuation of an evidentiary hearing that began in May and centered on her assets and her family’s assets. Despite multiple warnings, Knight didn’t produce documents that included 2009 tax returns for her husband’s business, Grant’s Towing, until last Friday - roughly two weeks after Morris’ final deadline, LeGris said.
The judge opted to sentence Knight at the top of state sentencing guidelines at Monday's hearing.
“The judge felt that what she did was not a good-faith effort to comply with her order,” LeGris said. “(Knight) knew this was a possibility, but it still came as somewhat of a surprise.”
LeGris said Knight was not emotional and did not say anything of significance to Morris before sentencing.
A few AAAHA members and their attorneys were in attendance, but could not immediately be reached for comment this morning.
The organization remains based out of the Ann Arbor Ice Cube and filed a civil suit against Knight to recoup its losses.
Knight, who filed for Chapter 7 bankruptcy protection in May, must still pay $585,504 in restitution to AAAHA, and another $50,000 to the organization’s insurance company, LeGris said.
But he said that won't happen within the prescribed five years that probation officials initially designed because of the prison sentence.
Knight is also scheduled to stand trial this fall for allegedly writing bad checks to the Dexter Pharmacy in February, records show.
Art Aisner is a freelance writer for AnnArbor.com. Reach the news desk at news@annarbor.com or 734-623-2530.
Comments
dhs
Mon, Aug 23, 2010 : 10 p.m.
Both Kimberly's parents (the Marshke's)and her brother are very wealthy - it's pretty sad that they have not stepped up to help repay this debt to the AAAHA (instead of trying to help her weezle out of it)when they certainly have the means to.
jns131
Fri, Jul 30, 2010 : 4:40 p.m.
Reverse the comment. How can anyone have known what Kwame did without a whistle blower? I don't think Detroit would have ever known what Kwame did if some one did not come forward. Detroit is crooked and so is those who steal for their own personal gain. I can't wait to see the Kwame court case.
SuperFreckleFace
Fri, Jul 30, 2010 : 4:03 p.m.
I met a man that was involved with AAAHA for over 20 years. He said that he didn't know of the money's existence ever. He thought that the money was invested over 30 years ago and was able to grow to an astounding amount. I was just trying to verify this for curiosity sake. No quarterly statements, no annual statements, no calls from a banker over the years? How could she be the only one that knew of the money's existence? I would never want anyone to be victim to something like this.
jns131
Thu, Jul 29, 2010 : 9:52 a.m.
If she worked for a stipend, meaning she worked to buy necessities of life, then she doesn't have to claim anything. They will try to use this as a way to say, yes she is working, but she needs to eat as well. They have to prove the husband really used the funds or not. The case is more about her and all the damages that this entails is that everyone wants their money no matter how they get it. They won't see a dime because by the time it gets to be a full blown court case, by the dockets I see what? 5 years? Or less? Or when she gets out of jail? They will continue to pursue her. As for the house? Who owns it? Is both their names on it? If she transferred the deed to someone else? Then the ones who want their money will have to sue for it. Good luck there. There are a lot loop holes that one can go thru before any money is found. The husband owns his own company and if the courts can prove anything? Which they might not because of hear say? It is going to be moot. I do agree, we will see in 5 years who is the better person, hockey or the ones who did the deed. Kwame and Kimberly. I wonder if they could share his and her cells. Compare notes? Interesting.
AnnArBo
Wed, Jul 28, 2010 : 1:18 p.m.
jns131, you are not entirly correct. In this case, the father deposited money into AAAHA's account at the request of his daughter to obstensibly bail her out, which makes him an unwitting accomplice since he did not come forward to AAAHA or the authorities about the theft. She used stolen funds to purchase assets for her husbands bussiness, which also draws his financial records into the fray. The civil suit will sort thru this with much more detail than the criminal suit which goes for an easy conviction with their limited resources. The civil suit will use discovery motions agaisnt her husband and father etc.to track down where some of the money went. The criminal case required her to produce tax records to verfiy income (she worked for her husbands company claming for almost no pay) and she was required to list her home for sale, liquidate some jewlry all of which she never did. As with Kwame, they both thought they could outsmart or outlast the courts, but it catches up with you sooner or later (they are both now in prison and the damages are still in effect). There will be much more to this story as the civil suit unfolds.
jns131
Wed, Jul 28, 2010 : 9:54 a.m.
If we take a look at the Kwame situation the feds are looking at his wife. She is telling the courts she does not have to give a deposition statement to the courts because she does not have to testify against her husband. This is the law. So unless the feds have something on her they will get nothing out of her. Also, Kimberly's husband does not have to pay anything and why they wanted his taxes? Is beyond me. They can't. At least that is what was stated in the Kwame trial. They want to know where his money went even though they know he gave most of it to his wife. Who by no means is innocent in all of this but, they can't touch her. They can't touch Kimberly's husband because he didn't know what was going on in the second place. Feds, the hockey assoc and the state cannot go after him because according to what I have read, had no dealings in Kimberly's affairs. Kwame and Kimberly both knew what they were doing and got caught. If the spouses knew? They are not talking and won't. No one will see a penny of this money ever. Husband does not and is not liable for his wife. Unless they both break the law and both are caught and both are charged. Only one was. Even though he is married to her. Same with Kwame. She will do about 5 to 7 and Kwame? Maybe 20? I can't imagine him doing more then 50. Unless the feds push it. As for restitution? If Kimberly doesn't work ever? They can't get a dime out of her. They can try by forcing her to work. I do know that with bankruptcy? They can't touch the 401K. This includes social security. This is fed money. You can't garnish money from the feds. If we could? Maybe this might end the federal deficit. Kimberly will go home to her husband, if he takes her back, but life for her will be miserable. Long story short? Detroit won't see a penny from Kwame and neither will the hockey association. Tail between legs, rub wounds and go home. Learn from this and remember the past.
Elaine F. Owsley
Wed, Jul 28, 2010 : 9:13 a.m.
Can't the court attach her husband's holdings if the stolen funds were used in any way to buy or support him or his business? As one of the comments said - the money had to go somewhere.
mkm17
Wed, Jul 28, 2010 : 8:10 a.m.
I agree with Mr. Sloan's comment: ".. she NEVER should have been in a position where she could do steal the money for more than a year." Were there no treasurer's reports, no audits (even if internal audits?), no checks and balances, no oversight?
Bulganzio
Wed, Jul 28, 2010 : 7:53 a.m.
I was on the board of a hockey assoication up north a few years ago and we had a treasurer embezzle about $20,000 that was, thankfully, paid back in full. In looking up what put non-profits at risk for being embezzled, the three big caveats were giving one person the authority to sign checks by themselves, having the person who handled the money do the monthly reporting of income statements and balance sheets to the board, and not having an thurough annual audit by outside accountants. Whether she "looked the parents in the eye every day" is besides the point - she NEVER should have been in a position where she could do steal the money for more than a year. That having been said, I hope the time she serves is hard and long.
Jarhead
Tue, Jul 27, 2010 : 11:43 p.m.
It's hard for me to understand several things; How can a person do this in the first place, to freinds and neighbors? How come no-one in the organization did not notice $934,000 missing over a three year period? Did they not hear of audits? She paid back $93,000, that leaves about $840,000. At $1,500 a month it would take 47 years or so to pay it ALL back, which the judge should have ordered, not a "settle for" sum. How many lavish vacations and gifts can you buy? There has to be a pile of money somewhere. Her husband bought the towing company during that time and apparantly owns another business in the chelsea area. I'm assuming money was funnelled into these businesses, as the economy has been so bad during these years. I understand leaving the household intact for the childrens sake but there has to be money tied up in some of these assets. Finally, the court systems seem to treat embezzlars as misdemeaners.
breadman
Tue, Jul 27, 2010 : 7:22 p.m.
At least noone will want too send her any funds to be in prison. Just go to the nearest ATM machine!!
fishguts
Tue, Jul 27, 2010 : 5:46 p.m.
It is about time.
Brian Bundesen
Tue, Jul 27, 2010 : 4:58 p.m.
I've followed this story from the beginning, and remain consistently astounded by the: "Let her work so she can pay it back," and the "How did the Assn have so much money, anyway" comments. #1) She looked these parents in the eye, every day, for a period of years, while stealing them blind. The Judge gave her multiple chances to pay back, and it's clear she (like Kwame) has NO conscience and NO intent to pay. #2) This comment seems to somehow imply that the Association 'was asking for it' or maybe otherwise raised the money in a less than honorable way. Or maybe the implication is that the large amount of money was simply too tempting NOT to steal. The Association parents worked, sacrificed, and were committed to building a first rate facility for their kids, and the kids to follow. Period. I am as much for Second Chances as the next fella, when the person in question demonstrates a modicum of worthiness for that second chance. She stole money from kids and dedicated parents without remorse or contrition. Despicable.
a2phiggy
Tue, Jul 27, 2010 : 4:39 p.m.
Art, is there any ongoing investigation into other people who knew this was happening? I can't imagine a household amassing $1 Mil without others' knowledge, specifically family members - all involved need to be held accountable, in my humble opinion.
Marshall Applewhite
Tue, Jul 27, 2010 : 4:36 p.m.
Sounds like Mrs. Knight is headed to the penalty box for a ten-year major!
Gorc
Tue, Jul 27, 2010 : 4:17 p.m.
She is serving time concurrently for two crimes....she will spend more than two years in the slammer. And when she is released she will have to pay a very small amount restitution each month. The hockey association will never get most of their money back.
cleaningman
Tue, Jul 27, 2010 : 4:05 p.m.
Don't do the crime if you can't do the time.
SuperFreckleFace
Tue, Jul 27, 2010 : 3:47 p.m.
I'm still trying to figure out how a hockey association was able to amass $1,000,000 to begin with.
AnnArBo
Tue, Jul 27, 2010 : 12:05 p.m.
The prison time is not in lieu of restitution, but punishment for not adhering to the judges orders and probation violation. When she gets out of prison, this judgment will still dog her, and the additional civil suit is still being litigated against her, her husband and her father. It may take time, but justice will be served.
bunnyabbot
Tue, Jul 27, 2010 : 11:39 a.m.
while I don't think crime pays I don't see how they will get ANY money back if she goes to prison. She would be better off under house arrest with the ability to go to work, have her con't to pay restitution and do community service (and that way the tax payers don't have to pay to keep her in prison). That and if she goes to prison I am sure her husband would dump her leaving her with little ability to pay restitution after she exits prison.
John of Saline
Tue, Jul 27, 2010 : 11:35 a.m.
All of her assets should be sold to pay back the hockey association.
JHW426
Tue, Jul 27, 2010 : 11:17 a.m.
It looks like crime does pay. Stole $934k. Ordered to pay back $700k. She will probably serve 12-18 months. She netted $234k for 18 months time.
Hmm
Tue, Jul 27, 2010 : 11:07 a.m.
What's good for Kwame is good for Kimberly Kay Knight
Jay Allen
Tue, Jul 27, 2010 : 10:29 a.m.
My question is, she has filed for bankruptcy, is now going to prison, what happens when she gets out if she still does not pay? I can see now way on earth that the money will ever be recovered. Civil Suits and judgments are great but you cannot get blood from a turnip.
onlytruth
Tue, Jul 27, 2010 : 10:22 a.m.
I personaly think that she got what she deserved! The judge was good enough to work with her and give her a chance to redeem herself. She took advantage of those that trusted her and the judge that tried to give her a chance. I do however feel bad for the kids, they are the main ones hurt by this. I hope that they one day get their ice rink. As for Mrs. Knight, maybe next time a judge trys to work with you, you will be smart enough to follow the instructions. If her husband knew anything about where the money was coming from, than he should be joining her as well.
snapshot
Tue, Jul 27, 2010 : 10:20 a.m.
Crime doesn't pay.
scooter dog
Tue, Jul 27, 2010 : 10:19 a.m.
Just another farce of a sentence by the local judges. 2 to 10,she'll be out in less than a year. What a friggin joke!