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WillR (Michigan)
Posts: 68
Posted:
I am the elected president of our POA. I tried my very best to get the board to follow the by-laws and deed restriction. However the majority of the board is controlled by a "very" corrupt group. The board has illegal members serving. They have conducted business outside of meeting even behind the backs of other board members. They've hidden funds, given away association property without the full boards knowledge and altered the books and records. Once I learned of the hidden fund I got the police involved but since the funds where no stolen they refused to do anything. We have had no nominating committee for years even though I try to get one the board just tables it over and over. The voting is better in Iran then at our association. The judge of the election is not allowed to receive returned ballots. The secretary and treasure refuse to follow that rule even if one of them is running for office. The by-laws are only used when it is to their favor. Last years annual meeting I was voted back in office but the majority group wanted their person in since I had the police look in to the missing funds. At the next board meeting the majority group blindside me and voted to remove me from office. I protested two facts first that the board was illegally composed and that under the law only the members can remove an officer. Attorney's were consulted and theirs stated that each co-owner could be a member even though our restriction state other wise. He did inform them that they could not remove an officer only suspend. Well they got around that by stating that since I did not attend two meeting that I was now removed that way. I have now been requested to appear before the board for a hearing to remove privileges. Under our by-laws I must be given at least a fifteen day notice and the failed to even do that. I refuse to follow a illegal board and have no plans to attend since "WHAT'S THE POINT" they have already planned the results. If I have one word of advice I could give is "If you buy into an association don't, sell as fast as you can sell. The headaches are not worth it!!
SusanW1 (Michigan)
Posts: 5,202
Posted:
What do the other members think? Are you the lone wolf, here? You have made some serious allegations (theft, fraud, conflict of interest, etc.)

If you think illegal activity is going on, contact your prosecuting attorney or get a lawyer and somehow get the judge to order an audit.

In the meantime, make sure you have your "hearing" so that their allegations are noted in the minutes. But, yes, you can be removed if you violate your own bylaws.

Michigan is somewhat loosey-goosey on its HOA laws. Study the state's non-profit corporation laws or condo laws.

WillR (Michigan)
Posts: 68
Posted:
I have others that know about what has been going on however the secretary controls the minutes and the group will not publish the truth. How can they? They would have to explain all of this to the members. Their view is the less the members know the better. I have contacted so many people that I'm out of breath. Budgets of the law enforcement limited. The AG's office of Michigan is the same. PA 162 of 1982 is the law but no one will enforce it. And lets face it attorney's are only in it for the money!! The board will not even address this matter at a meeting. Members have tried only to be told "We have already discussed that matter and will not any more"! I keep fighting but again whats the point.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
however the secretary controls the minutes and the group will not publish the truth. How can they? They would have to explain all of this to the members. Their view is the less the members know the better.


1. Start an anonymous blog at blogger.com
2. Tell the story of what is going on.
3. Print out a sheet of paper with the blog address and slip it under everyone's door. You also may want to include a paragraph on what is going on.
4. Watch people get involved.

You dont need the secretary to get the word out. You have the internet.

PS. Your downfall was calling the police before you had any evidence of fraud. That is why no one wants to talk to you anymore.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Will:

When you stated: They've hidden funds, given away association property without the full boards knowledge ...

What kind of property was disposed of?

WillR (Michigan)
Posts: 68
Posted:
First, my down fall was not having the proof, that I have. As far as people not talking to me well if some told you that so& so did a inappropriate act you would say way and not even search for the truth. As for the property that has been given away the yard tractor and lawn furnishing. There's even a attempt to take common land that the association owns and convert over to the lake front property owner. Look everything and more is just a tip of the iceberg. I tried to see records and even what we have stored in the safety deposit box but they refuse. Our past treasurer reported that she used to keep $3000.00 in cash in there and never once reported it on the treasurer report. I wish I had away of showing this forum just a little of the evidence then all could see. Transparency is the only way to operate once the board starts hiding stuff from the members you have problems.
WillR (Michigan)
Posts: 68
Posted:
As for the funds. For over ten months $3018.00 was hidden from the full board and the members. The group had plans to purchase a pool cover. I researched it and found out that it was not needed. That same month the treasurer reported that she had a deposit error. So for ten months she did not use the bank statements to balance the books. No one does that. Your beginning balance is always the ending balance from the statement.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Susan was right regarding the state HOA laws … would be a pain finding items in Act 162 of 1982. If they try to take the land without following the documents and proper procedures you may potentially be able to file a complaint through the attorney general, who in turn may be able to enjoin them from conducting unauthorized affairs. Improperly messing with “real property” can be get someone in big trouble.

RobW (California)
Posts: 279
Posted:
Will,

Is this a condo association?

Rob
DanielH1 (California)
Posts: 482
Posted:
Suppose you woke up one morning and realized that you work for a Corleone family company. What would you do?

You could quit but that doesn't mean that the company goes out of business. The problem still exists ... it just isn't your problem anymore. Quitting = leaving the HOA.

You could fight like hell. Besides being dangerous, it doesn't work. You are just too weak to correct all the corruption and rule-breaking in a throughly corrupt organization. It'll just run you into the ground.

You can make peace and try to change the things that you care about. Maybe you can't keep them from stealing but, at least, you can keep an accounting of all the stolen money. Or maybe you can convince them to steal less. Or maybe you can figure out a way to make the company more efficient so the theft doesn't impact it so much. Or maybe you just ignore it and get the lights repaired near your home. Better to improve the situation than to fight on everything and make no progress at all.

Your situation is so bad that I think that you've been trying to do too much. Instead of fixing everything, try to figure out what you can live with and only fix that. You aren't Eliot Ness.
TomE4 (South Carolina)
Posts: 26
Posted:
In most states, if a board member does not carry out their fiduciary duties,
they can be PERSONALLY be sued (along with the entire board). You'd just need the proof to do so. Sounds like a rather contentious group. If your neighborhood is like ours, good luck getting others to get involved. If dues don't go up from year to year, most people just don't seem to care what goes on (sadly).

Tom
ShawnaT (Maryland)
Posts: 20
Posted:
Wow, I can really sympathize with your plight! I am the president of my association and while my board is 3/4 good, there is that 1/4 that is not and does not have good intentions AND is getting "outsiders" (old board members) involved and attempting to gang up on us all. It is all very frustrating and exhausting. I wish I had the solution to your problem, but sadly I am in a similar position and I honestly feel like throwing in the towel myself BUT know that will just make me look like them.

It is really sad that HOA's are a source of such contention!
DanielH1 (California)
Posts: 482
Posted:
Off topic but I suggest maintaining even but low level of engagement rather than be a shooting star.

It is tempting to try to fix everything for a few months and then quit for a few years. But, if you just go and sit in the back and say nothing, you'll remain informed on what's going, not be blind-sided by major disasters and maybe, just maybe, you'll see an opportunity to improve things. That's better than returning cold after several years absence and getting smacked with a totally unexpected special assessment.
WillR (Michigan)
Posts: 68
Posted:
Thanks for the support. It is hard to step aside and let the foxes take over the hen house. The goal of using the dues in the most effective and honest manner is so very important. If board would just be open ,honest and respectful to the members they serve then things would be great. But when you get those who feel that they're rule is omnipotent. Refuse to listen to the members, cheat and lie. Hide information. They forget that the association is owned by all. We each have an interest in the place. But some have to go on a power trip. If wanting fair,honest and transparency for all member to see is wrong then again "whats the point".

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