missapropriation of funds

Started by RichardP2 • 7 replies • 1153 views

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RichardP2 (Texas)
Posts: 1

Posted:

We had two board members(the president and secetary) that went and ran up hi bills. No one in the subdivision had the numbers. The people did not have a clue till the annual meeting, and saw the finance report. The president said they were for HOA buisness,yet no phone numbers. It was said that the numbers would come out in the news letter.We have not had a news letter in two years.

Steve contacted or management co. and was told that there was nothing to put in a news letter.
Well after months of struggle with the management co. going to the DA.and so forth steve requested the phone bills through the freedom of information act. The said people were suppose to pay back the money,but no receipts.Steve took this to the local news. Shortly after the broad cast the management co. said they payed what was owed. Steve ask to look at the books or see a reciept, and no action on the part of the management co. This has been going on for 18mo.

WHAT CAN WE DO?

JoeW1 (New York)
Posts: 728

Posted:

RichardP2 - Just curious if you think the ends justify the means by going to the local news with your internal association issues. In your effort to re-coup what was spent, think about the bad press that has resulted and it's effect on property values.

DaneC (California)
Posts: 210

Posted:

Forgive me for being cynical, but you all seem to deserve each other. The business of an Association is conducted within its confines, or the MC office, so why they should have high phone bills is a mystery. Also, why would a MC pay those bills, since they are the ones supposedly running the daily operations.
President and Secretary ....Annual meeting...finance report... er the word that's missing here is Treasurer.

WHAT CAN WE DO?
Split your contract - Management Company to handle property matters, CPA to handle finances. There are many CPA's who handle accounting functions only for Associations.

JeanneK3 (Maryland)
Posts: 562

Posted:

Richard P 2. Bravo to you for being willing to go the extra mile to get at the truth. Looks like you really care about the financial stability of your development. If everything doesn't get explained soon, you may need to retain an attorney to straighten out finances.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

When this kind of Battle Lines are drawn, and it seems impossible to sit down and work together, there is really only one course to take. What a shame this happens. Some people in all this just can't understand the advantage of conversation. If there is a power base (members) in the association willing to take this on (pay money), you are lucky and can split the cost. I would have a sit down with your group and the Board to inform them of your intentions if a solution can not be reached within a week. Then take the Board to court (All Board members have resposibility) Sort it out in the courts. Don't continue listening to false promises and get your records straight and specific to have a talk with an attorney, you should find this visit enlightening and helpful and most of all fair. I would insist that your first visit be charged at a reduced hourly rate or maybe a free consultation.
Don't worry about the lawyer not getting paid, if he meets your needs, he will make sure he is compensated.

JosephC2 (Florida)
Posts: 23

Posted:

Quote:

Posted By JoeW1 on 08/10/2007 12:01 PM
RichardP2 - Just curious if you think the ends justify the means by going to the local news with your internal association issues. In your effort to re-coup what was spent, think about the bad press that has resulted and it's effect on property values.

actually, you could argue the other side as well. Boards are transient. Getting rif of a bad board is in the long term best interestes of the association. Being able tell tell prospective buyers that the rotten eggs are off the board is a positive.

The truth is that the standard ways of resolving problems are ineffective. Exposing legal violations publically can be effective.

Arbitration decisions are public record. So what is the real difference of going to the press?

JoeW1 (New York)
Posts: 728

Posted:

Quote:

Posted By JosephC2 on 08/11/2007 7:37 AM

The method of getting rid of a bad board is what I question. I believe that going to the media and making such dramatics undermines what is in the best interests of the association.

If I were a new purchaser, the last thing I'd want to know is the Board and community drama that transpired. If everything is resolved, why disclose something you don't need to? Not an effective marketing tool for prospective buyers, are you in real estate?

Why was the standard way of resolving matters ineffective?

There's a difference between something being public record and broadcast in print from the media.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

To all,
This case seems to be laced with about everything that could go wrong in an association has reared it's ugly head.

I honestly think the folks that answered this post tried their damndest to be helpful and now have reached the point of frustration. SC hasn't been real forthcoming and clear about what his role in all this is. He obviously is a well intentioned member of the Regime but for the life of me I just don't understand how he and his fellow owners allow this kind of thing to continue. What have you done to get some help and direction over the years SC. Surely you must have some like minded owners that should be as concerned as you are.
The time to question all this stuff is not two weeks before the meetings. Judith muses we are not giving enough how to's as oppossed should do's. Sure, I don't sense you to be a timid individual and you obviously have given this considerable thought. You have heard some very sound advice, the more knowledge you have about your state, county, local and your CCR's the better you will be prepared to make use of these opinions. Your, and your fellow companions should not have an opinion of "what can we do,?", but approach the board with, "We are equal members in this Mad House and we demand equal voice. The board either sits down with us and talk this through or we walk out of this meeting with a promise that we know our rights and we will do what it takes to get them back. We expect an answer now, you have been unresponsive to our concerns.

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