City strives to get stolen funds back
Ex-property coordinator's home latest target asset
By David Slade
Danny Molony, who was sent to prison in 2004 for his role in the largest public corruption scandal Charleston had seen in decades, is living a quiet life these days selling eyeglasses at a King Street shop, while the city continues its effort to recoup all the money he stole.
On Tuesday, Molony's Mount Pleasant home is scheduled to be sold on the steps of the Charleston County Courthouse, as part of that effort. Charleston gained control of Molony's half-interest in the house in 2006 and is seeking to turn that equity stake into cash.
Susan Molony, Danny's wife, essentially co-owns the 2,600-square-foot house in a marshfront development along with the city. Efforts to sell the house on the open market for as much as $750,000 were unsuccessful, leading to what's known as a partition sale on Tuesday.
Danny Molony in 2003
"If we have to move, we have to move," Danny Molony said Friday, in what may be his first public comments since being released from prison in 2006.
"There's nothing else anyone can do to me, I just want the pain for her (Susan Molony) and my family to end," Molony said. "I've done everything I can to pay my debt to society."
Charleston might disagree, considering that the city still is trying to collect money awarded in a civil judgement against Molony. So far, the city has collected $402,621 of the $635,000 judgement.
Molony was the city of Charleston's property coordinator until 2002, when it was discovered that he and his son, Mark, had been stealing city money for years through a scheme in which the elder Molony wrote city checks for appraisals and other property-related services to his nonexistent company, Appraisal Group of Charleston, and also to his son's real company, Exterior Forensics, for work that wasn't performed.
The father and son each pleaded guilty in 2003 and were sentenced in 2004 to federal prison terms of 30 months and 24 months, respectively. In 2005, the city won the civil judgment, giving Charleston the right to go after the Molonys' assets. Danny Molony also was ordered as part of his sentence to pay restitution.
"I still pay them (the city) $200 a month, and I paid them $25 a month when I was in prison," Molony said.
Susan Herdina, a lawyer for the city, confirmed that Molony has been making payments, though they have amounted to less than $6,000.
Most of the money recovered by Charleston has come from seizing Molony assets, and from a settlement with SouthTrust Bank, which the city had sued, claiming the embezzlement might have been discovered sooner if Molony had not been allowed to deposit city checks written to his fictitious company into his personal account without endorsing them.
The bank agreed to pay $186,000 to the city, while admitting no wrongdoing.
Charleston also reached a settlement with some of Molony's relatives, who agreed to buy out his interest in a house on the Isle of Palms that was held in a family trust, for just over $165,000.
Those two large settlements account for most of the money that the city has recovered so far.
"We have been focusing on the big assets during the last couple of years, the house on the Isle of Palms and the interest in the other house," Herdina said.
The city and Susan Molony had agreed to try to sell the Mount Pleasant home on the open market, and failing that, list it for sale by the county. The house was listed for sale for at least the past year but was not sold. There are mortgages of about $310,000 on the house, and the city's share represents half the remaining equity in the property.
"Unfortunately, the real estate market has taken a dive, and we don't think it is worth what it might have been at one time," said Thomas Bunch, II, a Columbia lawyer representing the city in the property sale.
"You always have the possibility that a settlement could be reached prior to the sale," he said, noting that the Molony family potentially could buy out the city's interest in the property.
If not, the auction is set for 11 a.m. at the Charleston County Judicial Center, 100 Broad St. The sale is not a foreclosure, but will take place amid the county's twice-monthly sales of foreclosed-upon properties.
Molony, meanwhile, continues to serve out his probationary term, which is due to end in August. He was released in August 2006 and has been working at Jackson Davenport Vision Center since that time.
"People will never forgive me for what I've done, and I've paid a price," Molony said. "I wish my family didn't have to."
Reach David Slade at937-5552 or dslade@postandcourier.com.
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Comments
abitskeptical (anonymous) says...
I am curious as to why this is big news today?
I guess someone at the PnC decided the horse wasn't dead yet.
May 4, 2009 at 6:21 a.m. ( permalink | suggest removal )
charlestt (anonymous) says...
He made a mistake and has paid dearly for it. He is a good man that wants to close the door on this thing. Why is this in the paper again? Why would you mention his place of employment? His debt is paid (criminally) and he is working to repay the rest. At least his kids can read!
May 4, 2009 at 7:28 a.m. ( permalink | suggest removal )
Grinder (anonymous) says...
The city should put its greed aside until the housing market regains at least some measure of health, then it can get more for Molony's house. As it is, I hope the debt is reduced by what the house is worth, not what it sells for. Sad situation.
May 4, 2009 at 7:35 a.m. ( permalink | suggest removal )
Neponset (anonymous) says...
Why? His house goes on the block tomorrow - joe is going to get his pound of flesh - you don't steal from joe - you take what he gives you and nothing else.
May 4, 2009 at 7:48 a.m. ( permalink | suggest removal )
tellthetruth (anonymous) says...
He is a crook, He got caught and now you want sympathy. How and what sympathy do you give his victims?
May 4, 2009 at 8:19 a.m. ( permalink | suggest removal )
scottmcx (anonymous) says...
Publishing his place of work, by name, is as criminal as anything he did. How can he keep a job if you hound his employer? Its not fair to the taxpayers he's repaying as it may cost him his job. Leave him alone and let him work off the debt.
May 4, 2009 at 8:34 a.m. ( permalink | suggest removal )
abitskeptical (anonymous) says...
I don't even know this man, but I agree with all of the other posters(aside from tell the truth) so far.
It seems that maybe someone is not satisfied with the level of punishment that the law allowed, nor with the current level of ruin & humiliation for this man & his family that is a consequence of his actions. Someone wants more. Wonder who it is?
Forcing a sale of this home at this time seems nothing short of vindictive. The city has recouped most of the stolen money. Considering the overall city budget & how much money Riley has wasted on various things over the years, the remaining amount is a drop in the bucket. Why can't it wait another year or so to see if the housing market rises or stabilizes upward a bit?
May 4, 2009 at 8:39 a.m. ( permalink | suggest removal )
nana666 (anonymous) says...
It's amazing how probably these same people who are now complaining that the city is persecuting this poor thief(it's always after you get caught that you are so sorry)were up in arms that he was able to get away with it and demanding he be made to pay. I don't remember all the facts when this occurred, but I don't think he and his family was stealing all that money because they were poor and needed food on the table.
May 4, 2009 at 8:49 a.m. ( permalink | suggest removal )
majorjohnson (anonymous) says...
I can't believe the comments. He stole around half a million tax dollars! He's a good man? The city is greedy for trying to get your stolen tax dollars back? Publishing his name is as criminal as the theft of public money he committed? I bet you're the same people who think it would be theft if a child took education dollars and paid for a decent private education instead of that money going to a failing government school. The same people who think an oil company making 10 cents on a $2 gallon of gas is greedy and stealing, but the government making 15 cents on the same gallon is totally fair and they should actually get more.
May 4, 2009 at 8:59 a.m. ( permalink | suggest removal )
postman01 (anonymous) says...
Most of the posters here are correct. He doesn't have the money needed to "pay back" everything he stole and he probably never will. He has served his sentence. Further punishment is unwarranted.
Also, doesn't anyone find it strange that the government and our society never ever considers the concept of "collateral damage" where disposing of a criminal matter involving our own citizens is concerned? That doesn't even seem to enter the thinking of our public figures here. Oh, we'll fret like hell about collateral damage when we're at war with people who have killed a lot of us and are clearly trying to kill a lot more along with mentally masturbating about "torturing" homidical/suicidal monsters that aren't even Americans but our own citizens who haven't done anything nearly as bad apparently don't warrant the same concern!!!
I can't be the only one that sees something monumentally wrong with this picture.
May 4, 2009 at 9 a.m. ( permalink | suggest removal )
ln1959 (anonymous) says...
This man is worst then the criminals thats on welfare. At least I know they are taking my tax money.
May 4, 2009 at 9:29 a.m. ( permalink | suggest removal )
Reader (anonymous) says...
Grinder wrote, "As it is, I hope the debt is reduced by what the house is worth, not what it sells for."
That won't be a problem. Whatever it sells for IS what it is worth.
May 4, 2009 at 9:29 a.m. ( permalink | suggest removal )
Cid95 (anonymous) says...
He committed a crime and served the punishment imposed on him by our criminal justice system.
He has not, however, completed the judgement of our civil justice system. He needs to pay the money back.
Publishing his place of employment is OTT (over the top), in my opinion.
May 4, 2009 at 9:34 a.m. ( permalink | suggest removal )
flatpickit (anonymous) says...
I agree, leave his current workplace out of it. However, going after the home sounds reasonable. He may be truly repentant, but I don't think he should be owning (even partially) a 2,600 sq ft marshfront home until he has paid back his debt.
May 4, 2009 at 10:09 a.m. ( permalink | suggest removal )
FamilyThatKnowsTheTruth (anonymous) says...
How ironic, Danny and his son steal over $600K from the city under Riley's nose and they get the time they deserve, then they are required to pay back the money. Molony could have sold his house and paid back the money already when the market was higher and would not be in the paper today. Who's fault? His and his only. You steal, you do the time and you pay it back, real simple and real American. Sorry, they are nice people from what I have heard for many years but something went wrong and it was not overnight.
Leads me to a real question of accountability and our City money. Rusty Thomas killed off nine men under his and Joe's watch, when are those two going to pay Charlerstonians back for all that they have cost the families and citizens just in the financial funds that they have caused? Again, it did not just happen one evening but for fifteen years they did it all by themselves, no different from Danny and his son. Rusty and Joes still get to go home and sleep in their own homes every night. Maybe their upcoming criminal trials will at least keep them from going home at night for a few years. Some true and possible wonderful thoughts.
May 4, 2009 at 10:42 a.m. ( permalink | suggest removal )
TTBoy (anonymous) says...
how else could his family buy these properties? hard work? hardly, they stole. until the money is paid back keep running the stories. ever notice what the outcome of a drug dealer bust is - they take cars, boats & HOUSES! if you feel that bad for them pay off the debt.
May 4, 2009 at 11:41 a.m. ( permalink | suggest removal )
tellthetruth (anonymous) says...
At least there are still enough competent people that understand the law and not give sympathy to the devil. The deterrent here is don't do the crime if you don't have the time. There are no rewards given for deception and to excuse it as such, is a bigger travesty than the act.
May 4, 2009 at 11:49 a.m. ( permalink | suggest removal )
JohnS (anonymous) says...
He should have to sell everything until the public debt is paid back. I am glad they can finally sell the house.
May 4, 2009 at 12:22 p.m. ( permalink | suggest removal )
Larz13 (anonymous) says...
This Moloney guy could really piss off good old Joe by marching into an attorney's office this afternoon and declaring bankruptsy. No house for you Joe!
May 4, 2009 at 12:35 p.m. ( permalink | suggest removal )
Cashu (anonymous) says...
I have no sympathy for thieves, private or public. Whatever terrible things happen to them is no concern of mine. I'm outraged for the victims, not the perpetrators. Until they completely atone for their deliberate dishonesty, they should be continuously vilified everywhere. If it were up to me, I would like to see any public piece of trash that abuses the public trust by stealing from the public, have to sport a brand showing that they are thieves... something on the order of a big "T" on their foreheads. I don't think he deserves respect or consideration from his conviction forward.
If the American public would demand honesty and honor from its elected and appointed officials, we would get honest officials. If they want to be respected, they must be respectable. On the other hand, when we give a pass to moral slime, we get more of the same... Cashu
=================
May 4, 2009 at 12:56 p.m. ( permalink | suggest removal )
lovelivininthelowcountry (anonymous) says...
That's histarical - "he's a nice man." A nice man who stole thousands of dollars from taxpayers and the city of Chas. That's real nice.
May 4, 2009 at 2:45 p.m. ( permalink | suggest removal )
rebcsc (anonymous) says...
I agree with most of what's happening to this guy ... but this story does seem to have a slightly malicious stench to it.
May 4, 2009 at 2:47 p.m. ( permalink | suggest removal )
rebcsc (anonymous) says...
... and I suppose publishing his place of employment falls under "absence of malice".
May 4, 2009 at 2:55 p.m. ( permalink | suggest removal )
realamerican (anonymous) says...
Since he is a white man the posters here consider him a "good" crook.
I guess the outrage is saved for people of color.
May 4, 2009 at 3:05 p.m. ( permalink | suggest removal )
Larz13 (anonymous) says...
Since he is a white man the posters here consider him a "good" crook.
I guess the outrage is saved for people of color.
====
Looks like the "Clyburn Crew" are here. Racist jerk.
While I wouldn't condone what this guy did--he didn't kill anyone and is making restitution for it. More than likely, he didn't have a rap sheet 10 miles long or he would be in with the hardened criminals. At least this guy went out and got a job to pay restitution instead of comitting more crimes.
May 4, 2009 at 3:22 p.m. ( permalink | suggest removal )
CNN_10 (anonymous) says...
I wonder if he is working at Jackson Davenport on King Street lol.
May 4, 2009 at 4:58 p.m. ( permalink | suggest removal )
CNN_10 (anonymous) says...
Disregard my last post sorry guys.
May 4, 2009 at 5 p.m. ( permalink | suggest removal )
abitskeptical (anonymous) says...
Yes, he should pay back what he took & it appears that he has been working on doing that. If the house had been in his name only, perhaps it would have been sold sooner. However there was another owner(his wife) who had rights regarding her part of the property.
I imagine that the authorities looked at when that house was bought when he was being investigated. More than likely, it was bought before his criminal activity, or it would have been brought into the criminal part of the case.
In my previous posts I did not intend to diminish in any way what he did.
However it is difficult to understand what purpose this article is serving. Perhaps if he was being difficult or stonewalling the sale or something like that, but I get no indication that is the case.
Stealing is bad & wrong. Period.
Stealing is against the law. Period.
Wasteful spending of taxpayer dollars to further pet agendas is bad & wrong also.
Too bad this form of stealing(under the color of law) from the taxpayers is legal.
May 4, 2009 at 5:19 p.m. ( permalink | suggest removal )
rebcsc (anonymous) says...
@"realamerican" ...
Frankly, I don't recall the paper publishing any lists of where ex-convicts work, black or white. That strikes me a slightly peculiar ... regardless of race.
May 4, 2009 at 6:22 p.m. ( permalink | suggest removal )
CWL922 (anonymous) says...
On one hand, he is paying it back. He should have to pay it back with interest. All theives should have to pay back the victims with interest. That is not done in 99% of the cases.
On the other hand, he did steal it. That is wrong, period.
May 4, 2009 at 7:55 p.m. ( permalink | suggest removal )
TheTruthFighter (anonymous) says...
This is a waste of print. Yes, he is a crook, but darn they place the man place of employment in the papers? Come on now! Next we will be reading he was attacked because of this story at work!
May 4, 2009 at 8:45 p.m. ( permalink | suggest removal )
bootlicked (anonymous) says...
Is it just me or does anyone see a pattern ? Molonys were nice guys. Rueben was a nice guy. Rusty Thomas was a nice guy. I guess Cotton-eyed- Joe is a nice guy also. Birds of a feather flock together. I bet a good hard look at Riley and his friends and you might just find a few more nice good ol' boys.I've heard Riley and the Molonys were pretty tight. Little Joe your inner-circle seems to be srinking. Maybe it is time to retire, or are you afraid to go because someone might audit the city ? Just a thought.
May 4, 2009 at 9:59 p.m. ( permalink | suggest removal )
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