Ann Arbor Amateur Hockey Association embezzler drops motion fighting restitution

A Chelsea woman who stole nearly $1 million from the Ann Arbor Amateur Hockey Association is no longer contesting the restitution amount a judge ordered her pay to stay out of jail.

Court records show Kimberly Knight dropped her motion challenging the $700,000 she was required to pay back to the association upon pleading guilty to felony embezzlement charges in June.

An evidentiary hearing was scheduled earlier this month, but was canceled when Knight officially waived her right to challenge restitution in court, said her attorney, Mike LeGris.

Kimberly Knight

Knight claimed in court documents that roughly $83,000 of the restitution amount was charged to her in error because it was for accounting fees and fines imposed on the organization by the Internal Revenue Service for failing to file timely tax returns.

The IRS waived the fees against the organization in October, LeGris said. Knight will also pay $50,000 of the restitution to AAAHA’s insurance carrier, but only after the organization recoups its money.

Knight, 45, took more than $934,000 from AAAHA while acting as its bookkeeper over several years, according to police reports.

The fund she raided was intended for construction of an independent hockey rink for the organization, which currently leases office space and ice time from the Ann Arbor Ice Cube in Pittsfield Township.

A lengthy investigation by the Pittsfield Township Police Department showed Knight used the money to shower herself and family members with gifts, including lavish jewelry and exotic vacations.

Washtenaw County Circuit Judge Melinda Morris sentenced Knight in September to one year in jail followed by probation. However, Morris opted to defer sentencing for one year, allowing Knight more time to pay back as much of the money as possible.

Knight paid $75,000 to the court at sentencing, and has made the monthly $1,500 minimum payment Morris ordered in installments of $500, court records show. At the time, she indicated she was working for her husband’s towing company.

“She’s making the payments and doing well, and I’m hopeful that will continue to happen,” LeGris said.

Hockey organization officials were consulting with attorneys about possible civil litigation at the time of Knight’s sentencing, but no suit has yet been filed in Washtenaw County.

Art Aisner is a freelance writer for AnnArbor.com. Reach the news desk at news@annarbor.com or 734-623-2530.