SAYBROOK TOWNSHIP - - The co-owner of the firm that managed Mariners Point Condominium Association has been charged with one count of mail fraud.
Kathleen DeSalvo, who co-owned MultiVest Management Inc. in Willoughby with her husband, James, is accused of transferring funds from MultiVest's clients' bank accounts and depositing the funds into MultiVest's accounts since 2000. She is also accused of creating false bank statements which reflected inflated balances in the clients' accounts. Kathleen DeSalvo allegedly provided the false statements to the accounting department which unknowingly created false financial statements that were mailed to MultiVest's clients each month, according to the information filed against her by the U.S. Department of Justice.
No charges have been filed against James DeSalvo yet.
"(Kathleen) admitted doing it, (James) has not," said David Kaman of Kaman and Cusimano law offices in Cleveland. "He said he was unaware of what was going on."
Kaman represents a number of the 50 condominium associations MultiVest provided management services for. The associations have also filed a civil lawsuit against the company and it's owners on claims of fraud, unjust enrichment, breech of contract and negligence.
The Cleveland office of the FBI is investigating the company and it's owners for alleged embezzlement of about $3.4 million. MultiVest closed it's doors on Feb. 16. James DeSalvo told his employees the closure was due to financial irregularities.
"There continues to be an in depth look into where the $3.4 million is at," Kaman said.
The information filed against Kathleen DeSalvo charges that the funds were used to pay business expenses of MultiVest, while some of the unauthorized funds were used for personal expenses.
Kaman said the news that Kathleen DeSalvo was charged resulted in mixed emotions in several of the associations' board members.
"While gratified to see progress in the criminal investigation, the one charge of mail fraud against Kathleen DeSalvo pales in comparison to the devastation and breech of trust that this theft has caused within many condominium and homeowners associations," he said.
Kaman is also investigating the liability and responsibility of other parties that may have been involved, including financial institutions.
"Our association boards continue to work with the FBI in their ongoing investigation to determine if others were involved," he said. "The extensive search continues for assets that may be used to repay associations."
The fact that charges have been filed does not make up for what volunteer board members have had to endure the past three weeks, Kaman said.
"The challenges to get their associations back on sound financial footing continues," he said.
Local News
Charges filed against condo management firm co-owner
FBI investigating company, owners for alleged embezzlement of about $3.4 million
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