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AminB
Posts: 313
Posted:
I am having some questions about discrepancies financial in my HOA insurance distributions for Hurricane Ike. I asked these questions (prepared by my accountant) from my management company and instead of addressing my questions, they just asked me to come over and look at their documents. They did not want to reveal the uncollected maintenance fees during years 2009 and 2010 which would have helped my accountant answer my questions.I posted my questions here also and asked from other people who have been in similar situations to give me advice. Ofcourse I got some advice here as to take their offer and go there and check what they wanted me to see. That was the same advice that my attorney gave me and also offered to go with me charging me $500. Knowing better than to go as a non-accountant and my attorney a non-accountant also and waste my money and time, I refused and instead ordered the audits for those years. The uncollected maintenance fees were there as well as other information that my accountant needed and he came up with discrepancies in the amount of insurance received and deposited which was over $16,000. Unbeknownst to me, over $74,000 was also unaccounted for which was the difference between the total check issued by the insurance company and what the homeowners who suffered damage got paid.
The quest has come to a new phase. I asked these from the property manager whose company was responsible for those reports. She immediately forwarded the questions to the Controller. I asked the Controller about the two amounts of money. For the $74k she just wrote that all the money received from the insurance company was deposited in a bank account without being specific about the $74K. About the $16K she just wrote that she acknowledged the discrepancy and just said she has to get with the auditors to see how they came up with these figures. It has been about 3 weeks and no answers. I aksed for a time frame and she did not even give me a time frame. She keeps telling me as to such an important question that would take their integrity under question, that she is just too busy.Please note that I have asked the same question from the Board and they are silent. Ofcourse I knew that they most probably have their hands in the cookie jar too. the distribution was handled under their supervision also. Now my question is, if somebody knows what would be the best next course of action, because I am pretty sure they won't have a good answer. I am very strongly suspecting fraud. This is what happens when common man has unchecked powers.What should I do? Should I call DA, Comm. Assoc. Inst.,or some other institution ? You see, when common man grabs power, he tries to close all avenues that would be easy to check on his fraudulent activities. I understand , being an HOA, the choices for seeking grievance are severely limited. Would appreciate your helpful input though.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Amin is back and can not be helped... Conspiracy theorist commence responding... I am out....

Former HOA President
AminB
Posts: 313
Posted:
Yes please be out. For my previous phase you just added that you slept your way to the top. I am only interested in people knowing anything about the subject I presented not your sexual habits and the con guys you sleep with to achieve your goals.
DaveD3 (Michigan)
Posts: 796
Posted:
Quote:
Posted By MelissaP1 on 10/17/2013 10:16 AM
Amin is back and can not be helped... Conspiracy theorist commence responding... I am out....

Then why were you IN to begin with? (and I suspect you're anything but "out")

Seems as though the HOA is looking into "discrepancies" that were pointed out to them. It will be interesting to see where this goes.
FrankS10 (Kansas)
Posts: 276
Posted:
Speaking for myself only and what I would do, yes I would take your information to the DA. First, you may want to send a certified letter to the person you are working with that you need the information by a date? and if not received by then you will move forward with asking for authorities to look into the matter. Just my opinion.
AminB
Posts: 313
Posted:
The Controller finally relented and agreed to give me an answer by Oct. 25, next Friday. It would be very interesting to see how she could explain the discrepancies her auditors had. I don't know how she can explain $16K difference. She probably doesn't know that I have an accountant that will review her answer and has already found her previous answer about the $70K more interesting than informative.
Well, just another HOA under investigation for fraud.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By AminB on 10/17/2013 10:01 AM
I posted my questions here also and asked from other people who have been in similar situations to give me advice. Ofcourse I got some advice here as to take their offer and go there and check what they wanted me to see. That was the same advice that my attorney gave me and also offered to go with me charging me $500. Knowing better than to go as a non-accountant and my attorney a non-accountant also and waste my money and time, I refused and instead ordered the audits for those years.

Amin,

I'm confused. Does this mean you refused the offer from your attorney to go with you and went yourself?

OR

Did you refuse the offer from the management company and not go at all?
AminB
Posts: 313
Posted:
I have no idea why you were confused. It is laid out clearly as to what I did. I did not go at all because as I had stated numerous times before, the insurance documents before that sent by the insurance company , was opened by the management company owner before being handed to me. I knew any new offer to inspect documents as a non-accountant would be a waste of time and it would be cleared of any incriminating evidence prior to being handed over to me. I also did not want to go with my attorney, because she was not an accountant and it would cost $500 that I knew would be wasted.
Instead of that I asked just for the audits of the years 2009 and 10. I guess they figured they had to give them to me or I could go to DA, so probably they thought they would give them to me and wait and see what I do with them and do something then. I gave those to my accountant and a little bit less than $500 and in one hour he found out $16K discrepancy and over $70K that he can't see where it was deposited form the insurance proceeds. When the Controller who was suddenly notified answered me , she could not account for the $70K and gave me a general answer and promised to find out about the $16K three weeks after I first asked her and by October 25. I am not holding my breath on that. She probably doesn't know that anything she would say would be given to my accountant to clear out the BS. She also doesn't know that even with any type of answer, she would have to point out where and when the $70K was deposited.
My guess is that the money was used to put down payment on the new Cadillac and the shiny new truck by couple of Board members that I saw couple of years ago and the rest distributed to other Board members. There could be much more and that is just the tip of the iceberg.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Amin,

Thank you for clarifying.

I was confused because when I read what you posted, I could interpret that section I cited two different ways. Therefore, I simply asked for clarification.

Again, thank you for clarifying.

As I've posted in the past, I wish you luck.
AminB
Posts: 313
Posted:
Sure. I just didn't ant to go to civil court to get these documents. It would be nothing by lining up my attorneys pockets and nobody knows where it would end. Thats why I couldn't understand before why you were saying that it would be good if I go in front of the judge. It was a sound advice as some other people told me that too. However, I only wanted to see if I have a criminal case and let the DA handle that. If I didn't , then that would be it. This is my first time doing this, so I am in uncharted waters. I have to take it step by step.

All I can tell you is that for everyone that is being caught (and I have plenty examples in different states police arresting treasurers, presidents and property managers for embezzlement) , there could be 10 or more roaming around that should be caught. They just hope nobody will look at the books.

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