JC3
Posts: 290
Posts: 290
Posted:
If a board member lies about vendor costs, resulting in greater monthly expense to the Association, is that bm liable for the extra costs? Can that person be charged with anything, and by whom?
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Board member lies
Started by JC3 • 3 replies • 1481 views
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MicheleD (Kentucky)
Posts: 4,491
Posts: 4,491
Posted:
Wow.
That's a lot of "ifs" ~ ~ I think the difficulty might be in "proving" that there were actual "lies."
Contractors low-ball all the time and then turn around and, for all sorts of "good" reasons (not really, but they make it appear to be "good" reasons) the costs are way more than quoted and/or anticipated. You know, the proverbial, "gas prices are higher," "the market is tighter," "our supplier doesn't carry that model anymore" and on and on and on.
What type of over-run was there?
That's a lot of "ifs" ~ ~ I think the difficulty might be in "proving" that there were actual "lies."
Contractors low-ball all the time and then turn around and, for all sorts of "good" reasons (not really, but they make it appear to be "good" reasons) the costs are way more than quoted and/or anticipated. You know, the proverbial, "gas prices are higher," "the market is tighter," "our supplier doesn't carry that model anymore" and on and on and on.
What type of over-run was there?
PaulM (Pennsylvania)
Posts: 1,347
Posts: 1,347
Posted:
JC3: Since the budget is created by the agreement of vendor contracts/costs, I don't see how a member can lie about them. However, for you to have to pose this question, IMO, it may be time to review your association's process for approval of invoices and making payments against them. If there is not an accurate process in place to do this, the Board needs to create one immediately ensuring the check signature card with the bank is current.
MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
JC3 stated:
"If a board member lies about vendor costs, resulting in greater monthly expense to the Association, is that bm liable for the extra costs? Can that person be charged with anything, and by whom?"
Your statement brings up several questions:
1) Is this board member the treasurer?
2) Is the vendor being over paid?
3) Is this board member paying the vendor and getting a kickback?
Please clarify your statement.
If the board member is benefiting monetarily from inflated vendor costs, yes he can be prosecuted.
"If a board member lies about vendor costs, resulting in greater monthly expense to the Association, is that bm liable for the extra costs? Can that person be charged with anything, and by whom?"
Your statement brings up several questions:
1) Is this board member the treasurer?
2) Is the vendor being over paid?
3) Is this board member paying the vendor and getting a kickback?
Please clarify your statement.
If the board member is benefiting monetarily from inflated vendor costs, yes he can be prosecuted.
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