Past HOA stilling money from HOA bank.

Started by AnyaR • 7 replies • 499 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

AnyaR (Georgia)
Posts: 65

Posted:

I have posted in the past that we had one person running the HOA. That one person refusing to give me any recent five-year records since I got on the board. That same one person broke a lot of laws and on top of that did not paid HOA Dues. There’s a lot of money missing from HOA accounts with no explanation, none of the financials makes sense. What do I do? Who do I report it to? Who’s do I hire to investigate? Is it worth it to go after previous board member and spend HOA money?

ChrisE8
Posts: 454

Posted:

I would get copies of bank statements and checks from the bank.

The HOA can certainly go after the person for misappropriation of funds, if payments were not approved by the board.

I would also turn this over to law enforcement, but you'll need to have clear evidence of theft for the police to do anything.

AugustinD
Posts: 5,144

Posted:

AnyaR, at this point, I think your best course of action by far would be to talk to a competent HOA/condo attorney.

CathyA3 (Ohio)
Posts: 6,299

Posted:

There may/will probably be a problem with the bank. They are sticklers about giving about business records to anyone who isn't listed on the accounts as an officier, and I'm taking it as given that Anya's name is not on the accounts.

The usual advice for dealing with former directors or officers who won't turn over association records is to have the HOA attorney write a letter giving the stubborn person a deadline for complying, to be followed by whatever legal options that are available to the HOA.

At this point, with missing records there probably isn't enough to prove wrongdoing, only suspicions. So get the records. The next step should be an audit by someone who understands financial records, and deciding on further steps depending on what the audit reveals.

I don't think you're ready to call the cops yet. Remember that the burden of proof is on the accuser, and someone who is falsely accused can also take legal action against the accuser. So be sure you're on solid ground, which means facts, not suspicions.

ChrisE8
Posts: 454

Posted:

Quote:

Posted By CathyA3 on 02/14/2021 9:56 AM
There may/will probably be a problem with the bank. They are sticklers about giving about business records to anyone who isn't listed on the accounts as an officier, and I'm taking it as given that Anya's name is not on the accounts.

The usual advice for dealing with former directors or officers who won't turn over association records is to have the HOA attorney write a letter giving the stubborn person a deadline for complying, to be followed by whatever legal options that are available to the HOA.

At this point, with missing records there probably isn't enough to prove wrongdoing, only suspicions. So get the records. The next step should be an audit by someone who understands financial records, and deciding on further steps depending on what the audit reveals.

I don't think you're ready to call the cops yet. Remember that the burden of proof is on the accuser, and someone who is falsely accused can also take legal action against the accuser. So be sure you're on solid ground, which means facts, not suspicions.

Good point-that's good advice.

Perhaps the board can now pass a resolution showing who the board members and officers are---and remove the other person as an authorized signatory.

SueW6 (Michigan)
Posts: 814

Posted:

Bring the minutes of the meeting showing that you were elected and have authority over the financials to the bank.

Ask for the bank statements from the last year and compare to the ledger this person used ( electronically or hand written)

Back up receipts should be shown for reimbursement checks. The minutes should authorize payments of large amounts, or vendor contracts.

You’ve made some serious allegations. From this info you should be able to prove your case.

LetA (Nevada)
Posts: 2,679

Posted:

Are you a self run HOA or do you have a property manager? Regardless, ALL Directors, The PM need to go to the bank and remove anyone who is not authorized from all accounts and signature cards IMMEDIATELY.

CindyH6 (Florida)
Posts: 71

Posted:

Stilling? Or stealing? 🙄

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here