Trial date set in car dealership embezzlement case

LACONIA — A former employee of Irwin Automotive Group is facing criminal charges after apparently embezzling north of $90,000.

Kelli Mackay, 47, of Ashland, was indicted in June 2023 on charges she obtained unauthorized control over cash or financial instruments exceeding $1,501 in value, and falsifying, destroying, removing or concealing private documents.

An indictment is not an indication of guilt. Rather, it is a finding by a Grand Jury that enough evidence of an alleged crime exists to warrant bringing a case to trial.

An associated civil suit alleges Mackay embezzled about $97,269 from various accounts she assisted in maintaining.

According to the civil complaint submitted to the court by Irwin Automotive, Mackay is a former employee and worked within their financial and accounting department at their location on Bisson Avenue. 

While employed doing that work, she apparently stole large sums of money. Her embezzlement and misappropriation of funds was unauthorized by the company, whose staff were unaware of such illegal actions until after she left their employment. Irwin Automotive later hired a forensic accountant in order to uncover the full extent of the embezzlement.

In addition to the $97,269 identified as having been embezzled, the forensic accounting cost Irwin Automotive another $24,900. The civil complaint alleges that, as a result of Mackay’s actions and behavior, Irwin Automotive incurred further losses in the form of legal fees and related expenses.

The seven-count complaint outlines a period of behavior, including breaches of contract and fiduciary duty, civil theft and unjust enrichment.

One complaint, breach of covenant of good faith and fair dealing, claims Mackay owed a duty of good faith and dealing to Irwin Automotive, who’d compensated her for providing services of fund management and bookkeeping. 

“The Defendant breached this duty by embezzling and misappropriating the referenced funds without the authorization or approval of the Plaintiff, causing the Plaintiff to incur further damages,” that count reads in part.

According to another complaint from the civil suit, Mackay intentionally misrepresented material facts to Irwin Automotive when she carried out acts of embezzlement, and further misrepresented information concerning their funds to conceal the act. Irwin Automotive relied on Mackay’s misrepresentations regarding the funds — and didn’t learn about them until after she’d left their employment — and incurred damages as a result.

A motion by Irwin Automotive to request default judgement was granted by Superior Court Judge Elizabeth Leonard on Nov. 14, 2024. Their motion notes the civil action, filed against Mackay on Sept. 20, 2024, was served by the Grafton County Sheriff’s Office on Oct. 11, 2024. She was afforded 30 days following service to respond, but hadn’t, which can result in a default judgement.

In a document filed to the court on Nov. 18, 2024, Mackay submitted a motion to vacate, noting she’d received a letter from Westcott Law, which represents Irwin Automotive in the matter, on Nov. 16, 2024 — the motion for default judgement. She argued she’d never been hand-delivered the Oct. 11, 2024 summons, and asked for 20 days to answer it.

The motion to dismiss the request for default judgement was granted on Dec. 6, 2024, but Mackay apparently didn’t respond.

Irwin Automotive, through its counsel, submitted a motion for final default judgement. That motion was granted Feb. 11. 

In Chris Irwin’s affidavit in support of financial damages, he notes an approximate total of $122,169, including $97,269 in embezzled funds and $24,900 in costs for forensic accounting. Additionally, attorney’s fees and costs for litigation totaled $5,017.40. Chris Irwin did not return requests for comment.

A jury trial on the criminal charges is set to start Monday, Sept. 22, in Belknap County Superior Court, according to court documents.