Personal Use of HOA Monies

Started by RogerM3 • 6 replies • 1726 views

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RogerM3 (California)
Posts: 7

Posted:

What can be done if you know that one or more members of the HOA board are using HOA monies for their personal use?
How can this be proved and who would should be contacted to investigate this?
All of the HOA board members are golfing and bowling buddies so each one will cover the other one in this case so we cannot go to another board member.
Even the property manager covers illegal activities of the HOA board.
Where can we turn to get this resolved?

Thank you

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By RogerM3 on 07/13/2013 9:30 PM

What can be done if you know that one or more members of the HOA board are using HOA monies for their personal use?

First, you would need actual proof. Having proof = knowing. Not having proof = suspicion.

Second, you need to decide if you want to handle this as a civil matter or as a criminal matter.

If you choose civil, you gather support and recall the individual/s. You then call for an audit of the books to identify the scope of the issue. You then seek legal action to have the money reimbursed.

If you choose criminal, you take your support to the police.

Quote:

Posted By RogerM3 on 07/13/2013 9:30 PM

How can this be proved and who would should be contacted to investigate this?

An full audit of the books may prove it (or it might not).
Things like cancelled checks, etc. would be a start. Sworn statements from contractors, other Board members, etc. would also be part of the proof.

As for whom to contact, decide if you want it to be a civil matter or criminal matter. Then see my earlier response.

Quote:

Posted By RogerM3 on 07/13/2013 9:30 PM

All of the HOA board members are golfing and bowling buddies so each one will cover the other one in this case so we cannot go to another board member.
Even the property manager covers illegal activities of the HOA board.
Where can we turn to get this resolved?

Start by gathering documents. Request to see the financial records and minutes of the Association (which is the right of all members).

NOTE: Make sure that you have some proof prior to making any claims of misappropriation of funds. Otherwise you could find yourself on the end of a libel or slander suit.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Roger,

I noticed that you have an earlier thread about an enforcement issue. In that thread you mentioned that one individual of the Board doesn't like you. You need to make sure that this doesn't become a this for that type of issue or allow personal emotions to guide your decisions.

I would urge you to deal with the enforcement issue first.

MikeR15 (Massachusetts)
Posts: 389

Posted:

Rodger,
This is a typical problem in HOAs.
There is little to no oversight of HOAs, and law enforcement hardly ever gets involved even in cases of outright theft.
Call your DA and Attorney General and then send any proof you may have to them.
This is called "exhausting your remedies"...

This will give you a ligitimate reason to sue them in civil court when the public authorities do nothing.

JonD1
Posts: 2,350

Posted:

Roger from wht you have posted sounds like you lack any real evidence at this point.

You make the statement you know this is occuring and then you ask how can you prove it? IF you had evidence you would have answered your own question.

As we a this point have no idea what in fact has taken place or if it rises to illegality impossible for some of us to jump the gun in determining whay criminal behavior has occured.

When and if you decide to accuse people of being criminals best to have all the proof you need to prove it.

At this point I would ask what PROOF do you have?

GlenL (Ohio)
Posts: 5,491

Posted:

PROOF, I don't need no stinkin' PROOF, I KNOW.

Studies show that 5 out of 4 people have problems with fractions

DaveD3 (Michigan)
Posts: 796

Posted:

What to do? Surely your bylaws permit individual owners to review the books. Hire a CPA, have them review the books, looking for wrongdoing. Make copies of any relevant information. THEN proceed with accusations.

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