Board Members Subject to Bribery Statutes?

Started by WalterM3 • 9 replies • 2260 views

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WalterM3 (Georgia)
Posts: 442

Posted:

Hi, I have a question:

Are Board members subject to statutes making taking bribes or kick-backs a crime? If a vendor does extra work for a board member or pays actual money to gain favor with that vendor is that Board member committing a criminal act?

I -think- that only government or other officials of that type are subject to bribery statutes. An HOA Board member is only subject to what the residents want and can make happen - that is, remove an offending Board member based on that behavior.

Thanks,

Ed

KerryL1 (California)
Posts: 14,550

Posted:

How many are on your Board, Walter? Are you on it?

Do you have hard, cold evidence that this director paid extra to get special favors or accepted bribes from the vendor? Or is this speculation? Or a hypothetical case?

If real & proven, if the Board appointed this director and if your documents, probably your bylaws or state law, support it, the Board can vote to remove the person as a director.

If HOA members elected this director, they are the ones who need to vote her/him out.

But I can't answer your question about who this would be treated in the criminal justice system.

WalterM3 (Georgia)
Posts: 442

Posted:

The one Board member is claiming that someone has said she took a bribe, thereby imputing that she broke a law.

The question is - did she break a law if she took a bribe or kickback?

Walt

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By WalterM3 on 07/05/2014 9:24 AM
The question is - did she break a law if she took a bribe or kickback?

Well, I don't know about bribery laws, but if she didn't report the income on her taxes she broke the law.

KerryL1 (California)
Posts: 14,550

Posted:

Are you, to ask again, on the Board? How many are on it? Has anyone asked the accusing director for evidence from the one who claims your director accepted a bribe?

Is the one who's claiming to the director that a director took a bribe an HOA member?

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I am not nor do I play a lawyer.

The law of fiduciary responsibility is intended to guide proper conduct and avoid inappropriate actions. The other role of the law of fiduciary duty is to act as a practical tool for restitution. If a homeowners association is damaged because of a breach of fiduciary duty by the director, the law affords a remedy to recover the resulting damages.

Breach of fiduciary responsibility does not cover dumbness, bad/stupid decisions, hind sight, etc. It does cover knowingly doing bad/illegal like taking bribes, kickbacks, etc.

I see three courses of action. Press criminal charges as in call the Police. Take civil action as in sue to recover. Recall the person having done so to get them off the BOD ASAP.

Hope this helps.

KerryL1 (California)
Posts: 14,550

Posted:

But John, the accusations against the director are from an anonymous source!! Surely you wouldn't advise pressing charges under those circumstances!

I say that the director making the accusations bring evidence to the Board. One piece would be testimony from this anonymous "witness." As Tim just stated elsewhere, start looking at this at the lowest level.

(I'm not an attorney nor invalided in the legal profession.)

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Kerry

I should have added my favorite method. Benign neglect.

WalterM3 (Georgia)
Posts: 442

Posted:

Quote:

Posted By JohnC46 on 07/05/2014 9:47 AM
I am not nor do I play a lawyer.

The law of fiduciary responsibility is intended to guide proper conduct and avoid inappropriate actions. The other role of the law of fiduciary duty is to act as a practical tool for restitution. If a homeowners association is damaged because of a breach of fiduciary duty by the director, the law affords a remedy to recover the resulting damages.

Breach of fiduciary responsibility does not cover dumbness, bad/stupid decisions, hind sight, etc. It does cover knowingly doing bad/illegal like taking bribes, kickbacks, etc.

I see three courses of action. Press criminal charges as in call the Police. Take civil action as in sue to recover. Recall the person having done so to get them off the BOD ASAP.

Hope this helps.

I still don't see how breaching a "fiduciary responsibility" makes a Board member liable to criminal action. But I guess I will have to do some more research. Board members don't take an oath or sign contracts/agreements that make them liable to criminal penalties.

Thanks for everyone's responses.

Walt

JohnB26 (South Carolina)
Posts: 1,001

Posted:

OP;

In answer to your original question:

We do not know.

You may ask your local prosecuting attorney's office if the acceptance of money to influence a decision by a volunteer corporate director is a crime under criminal law.

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