Kathleen Desalvo To Be Released From Prison

Kathleen DeSalvo, former MultiVest Management, Inc., bookkeeper and owner, is scheduled to be released from federal prison on June 29, 2011. As you may recall, DeSalvo pleaded guilty to mail fraud in 2007 after allegedly embezzling funds from 43 community associations across Northeast Ohio. She created false bank statements for several associations after she transferred their funds to other accounts so that board members were unaware of any problems.

DeSalvo was sentenced to 51 months in the custody of the federal prison system, and will be on probation for a period of three years following her release from prison.

In the Court’s judgment, filed on September 5, 2007, DeSalvo is ordered to pay restitution in the amount of $3,450,000.00 to associations with monetary losses due to DeSalvo’s criminal misconduct. The hope is that once she is released from prison, she will find some sort of gainful employment that will slowly pay back the associations through the court-administered restitution program.

The Court has the ability to attach bank accounts or garnish the wages of a criminal who owes restitution. Accordingly, the Court can move for these garnishments on behalf of the victims in order to collect restitution.

We will keep you updated in our newsletters, as well as on our website, www.ottesq.com, regarding any developments in this matter.

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