HOAleader.com - Tip of the Week - December 7, 2018
Published: Fri, 12/07/18
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More Alleged Embezzlements at Condos/HOAs--and the Easy Way They Could Have Been Thwarted
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In this week's tip, we tell a familiar tale, but it's one we should never be telling because it's so easily preventable.
Imagine thinking you have a six-figure sum in your reserve account and then one day getting a notice from your bank that a check written on that account has bounced.
That's what allegedly happened in October to clients of Jane F. Bolin, the founding member and managing partner of PeytonBolin, a Florida-based law firm focused on community association law.
Once Bolin did some digging, she found two more of her clients were also alleged victims. Yet, so far, the authorities don't seem to be taking the matter as seriously as Bolin has.
"This management company allegedly wiped out the reserve accounts," explains Bolin. "They basically stole the money from the board. A check bounced from the reserves, and that's how they found out there was a problem."
The HOA management company allegedly accomplished this feat by forging the association's financial statements, a tactic boards can easily prevent. "The board was getting inaccurate financials," she notes. "The management company was literally taking bank statements and doctoring them. They'd make copies and cut and paste numbers they needed and then make copies of those doctored documents to send to the board.
"The boards didn't realize they didn't have reserves anymore, and by the time they did realize it, they'd already been wiped out," she contends. "One thing I've said in all my financial courses and I always suggest to boards is that they must have bank statements sent directly to their treasurer or president, and then another copy can be sent to the manager."
When Bolin understood what had allegedly happened, she asked her association client for permission to disclose the alleged theft to her other clients who'd also hired this management company. "It was a confidential matter, and we're attorneys, so we couldn't disclose it," she states. "It could have been only one client that suffered this. But once we saw what was happening, we just knew that you don't do that to just one client.
"The other clients found the same thing," she says. "We also found this management company had written checks out of one reserve account to the other client. It was shuffling money from one client to another to cover things up."
Though Bolin isn't comfortable sharing the name of the management company publicly because it hasn't been convicted of any wrongdoing, she notes that it's in Fort Lauderdale, Fla. "We don't know if the company is still open and still servicing other accounts that aren't ours."
Find out why Bolin thinks the client's bank may be liable, along with why she's frustrated by both authorities' actions and some board members' response in our new article: https://www.hoaleader.com/members/3829.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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More Alleged Embezzlements at Condos/HOAs--and the Easy Way They Could Have Been Thwarted
In this week's tip, we tell a familiar tale, but it's one we should never be telling because it's so easily preventable. Imagine thinking you have a six-figure sum in your reserve account and then one day getting a notice from your bank that a check written on that account has bounced.
Click here to read full article:
https://www.hoaleader.com/public/More-Alleged-Embezzlements-at-CondosHOAsand-Easy-Way-They-Could-Have-Been-Thwarted.cfm
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New: Three Florida Condo/HOA Associations Are Alleged Victims of Theft By Their Manager
Imagine thinking you have a six-figure sum in your reserve account and then one day getting a notice from your bank that a check written on that account has bounced. That's what allegedly happened in October to clients of Jane F. Bolin, the founding member and managing partner of PeytonBolin, a Florida-based law firm focused on community association law.
Click here to read full article:
https://www.hoaleader.com/members/New-Three-Florida-CondoHOA-Associations-Are-Alleged-Victims-Theft-By-Their-Manager.cfm
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From Pool Chairs to Lobby Benches: Your Condo/HOA's Common Areas Aren't Immune to Theft
People will surprise you and steal things you'd never expect them to steal. In this week's tip, we discuss whether you should bolt down your common-area furniture to avoid theft.
Click here to read full article:
https://www.hoaleader.com/public/From-Pool-Chairs-Lobby-Benches-Your-Condo-HOAs-Common-Areas-Arent-Immune-Theft.cfm
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How to Prevent Theft in Your Condo, HOA's Common Areas
Is there much theft in HOA and condo associations' common areas and common property? Some, and you can often prevent it with a simple solution you're probably already envisioning.
Click here to read full article:
https://www.hoaleader.com/members/How-Prevent-Theft-in-Your-Condo-HOAs-Common-Areas.cfm
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Is It Time to Carry an Umbrella (Policy, We Mean) to Shield Your Condo/HOA?
An umbrella insurance policy is liability insurance that stacks on top of your other policies; it adds extra protection once you've maxed out your limits on your underlying policies.
Click here to read full article:
https://www.hoaleader.com/members/It-Time-Carry-Umbrella-Policy-We-Mean-Shield-Your-CondoHOA.cfm
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