SAYBROOK TOWNSHIP - - A sentencing hearing for Kathleen DeSalvo, co-owner of the firm that managed Mariners Point Condominium Association, was postponed to allow the affected associations to question her further about the matter.
DeSalvo, who pleaded guilty to one count of mail fraud back in April, was scheduled to go before a judge at the Cuyahoga County
Courthouse Tuesday morning for sentencing. DeSalvo, who co-owned Willoughby-based MultiVest Management Inc. with her husband, James DeSalvo, admitted transferring funds from clients' bank accounts and depositing the funds into MultiVest's accounts since 2000. She also admitted to creating false bank statements, which reflected inflated balances in client accounts, and providing the false statements to the accounting department, which unknowingly created false financial statements, which were mailed to MultiVest's clients each month.
MultiVest managed 50 condominium associations across northeast Ohio, from North Ridgeville to Ashtabula. The firm closed it's doors Feb. 16. The missing funds are said to be more than $3.4 million.
In addition to facing criminal charges, several of the condominium associations have filed a civil lawsuit against MultiVest and the DeSalvos on claims of fraud, unjust enrichment, breach of contract and negligence.
Kathleen DeSalvo's sentencing hearing was postponed last week, after association members wanted another opportunity to question her in the civil lawsuit prior to her sentencing, said David Kaman, of Kaman and Cusimano law offices.
"Her attorney wants the associations to acknowledge to the federal judge that (Kathleen DeSalvo) has cooperated with their request for information," Kaman said. "Because the associations need more extensive answers to questions, everyone agreed (that) her sentencing would be postponed to Aug. 21."
The associations now will have the opportunity to ask Kathleen DeSalvo additional questions. A meeting between DeSalvo and her attorney, and the various associations and their attorneys, has been scheduled for July 18, Kaman said.
In addition to DeSalvo's charges, the civil complaint has been amended to include Anthony and Nicholas DeSalvo, the DeSalvos' children.
"We're expanding our search to include both of them to determine if anything they own is owned as a result of the theft," Kaman said.
No charges have been brought against James DeSalvo in the criminal matter yet, he said. In the civil suit, Kaman said 15 different entities have been subpoenaed to try to obtain records to determine where the stolen money was spent and whether any of it remains.
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