SAYBROOK TOWNSHIP - - Kathleen DeSalvo, co-owner of the firm that once managed Mariners Point Condominium Association, told attorneys last week she used the money, allegedly stolen from the various associations, for personal and business expenses, David Kaman of Kaman and Cusimano law offices said Monday.

DeSalvo met with attorneys representing the 50 condominium associations, as well as Sky Bank, for further questioning in the matter. Attorneys wanted the opportunity to obtain additional information from DeSalvo prior to her sentencing on Aug. 21. Kaman said the questioning took about five hours.

"We received copies of American Express bank statements that show where a lot of the money went," Kaman said. "From 2002 to 2006, there was more than $1 million in personal charges."

DeSalvo, who co-owned Willoughby-based MultiVest Management Inc. with her husband, James DeSalvo, pleaded guilty to one count of mail fraud, in April. She admitted to having transferred funds from clients' bank accounts and depositing the funds into MultiVest's accounts since 2000. She also admitted to having created false bank statements that 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 every month.

MultiVest managed condominium associations across northeast Ohio, from North Ridgeville to Ashtabula. The firm closed it's doors Feb. 16. The missing funds are believed to exceed $3.4 million.

The DeSalvos' home has been sold, as well as all business inventory. The DeSalvos reportedly are living with one of their sons. Kaman said attorneys were also made aware that the DeSalvos had purchased a condominium for one of their sons. Attorneys will be trying to acquire that as well, he said.

"Of the $3.5 million stolen, a lot was spent on the business but also a lot on personal expenses," Kaman said. "There are thousands of dollars of dental work and medical bills."

In addition to facing criminal charges, the DeSalvos face a civil lawsuit filed against them and MultiVest, by several of the condominium associations, on claims of fraud, unjust enrichment, breach of contract and negligence. The civil complaint was amended recently to include the DeSalvos' sons, Anthony and Nicholas DeSalvo.

No charges have been brought against James DeSalvo in the criminal matter yet. Kaman said once Kathleen DeSalvo's sentencing takes place, attorneys will concentrate on James DeSalvo and begin questioning him as to his involvement.

- - STACY MILLBERG - Staff Writer

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