 Patricia Cottingham was employed by Cardiology Associates as a bookkeeper prior to
February 1999. Her employment was terminated in 1999. In 2000, she was indicted and pled guilty
to felony embezzlement of funds from her former employer Cardiology Associates. She was
sentenced to five years of probation and required to pay $44,613.49 in restitution at the rate of $800
per month. By the time she was sentenced, Thomas Cottingham was aware of his wife’s criminal
activity and of the $800 per month restitution obligation.

       In between the time she was terminated as a bookkeeper at Cardiology Associates and her
indictment, Patricia Cottingham was hired by Spaces, Inc. as an “administrative assistant full charge
bookkeeper.” Plaintiff Jerome Ewers is the owner of Spaces, Inc. She was responsible for allof the
accounting and in charge of the record keeping for the day to day operations of Spaces, Inc. She,
however, did not have check signing authority for the bank accounts of Spaces, Inc. Her salary
ranged from approximately $30,000 to $38,000 during her employment with Spaces, Inc. Her
weekly take home pay was between $600-650 per week.

       The Debtors paid their living expenses using a joint checking account with the Bank of
Kentucky. Both Debtors had authority to sign checks drawn on this account, and both Debtors in
fact wrote checks drawn on this account. In addition the Debtors had a joint account at Guardian
Savings Bank. The Debtors used this account to pay certain bills, including the restitution payments.

       The Debtors