Criminal charges against Board member & Property Manager

Started by KevinM • 8 replies • 3338 views

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KevinM (Colorado)
Posts: 3

Posted:

Does anyone have experience in the pursuit of criminal charges against a Board Member and Property Manager for improperly managing association funds?

HollyL (North Carolina)
Posts: 10

Posted:

You can contact a Fraud investigator at your local police dept. or the D.A. to investigate. Documentation is the key. We are going through something similar with our former Board President right now. Perhaps if you could elaborate I may be able to help steer you in the right direction.

KevinM (Colorado)
Posts: 3

Posted:

Holly,
Thank you, that is part of what I needed to know. I have contacts both with the local law enforcement authority and with the local DA. I would appreciate it if you would add to this topic as your issue moves forward.
Our case also involves a Board President who in collusion with a (prior) Property Manager mis-managed some HOA funds and resources.
Thanks,
Kevin

KevinM (Colorado)
Posts: 3

Posted:

HollyL
Does there seem to be particular charges the law enforcement agencies you are dealing with seem to be interested in. The 'law enforcement types' in this case seem to be interested in parts of 'criminal simulation', parts of 'criminal impersonation' and 'issuing a false financial statement' and accessory to 'issuing a false financial statement'.
KevinM

MaggieP (Illinois)
Posts: 1

Posted:

Holly; the association I'm in is having similar problems. Many homeowners feel the prior management company separated a former management co. to an llc then said they were losong money and then the manager of the new llc bought this capital asset without notification to homeowners. This former management co. managed 10-14 other associations. Those associations paid a partial monthly fee for the utilities, mortgage, and taxed of our management building. It kept our assessments low. This is difficult to explain. Also, the atty for the association seems to rep the manager and the board against the homeowners. He said the board didn't need to notify us of a capital sale-that only the required budget annually needed to be sent to us. Now, if we get no notice of what is happening, then get no say on major expenses, why are we paying assessments and why are we allowing 11 people to make decisions for 672 properties? Maggie P

HollyL (North Carolina)
Posts: 10

Posted:

Our was more on the line of fraud, embezzlement and breach of contract. We actually only had the former president investigated, although our management company is partially to blame. His lawyer wanted to settle if we agreed not to pursue criminal charges, but before the new Board had a chance to come up with an amount, the D.A. decided this was more of a civil than criminal case. We attempted to hire a lawyer, but didn't feel the Association could afford the fee. Things have been up in the air since then, until 2 weeks ago when I found a lawyer who was willing to take the case at a reduced cost. Im getting all of the documentation together for the Discovery.

CharlesM (Pennsylvania)
Posts: 1

Posted:

I have the same problem where do u start when the board self elected does not want to give any info as to the financial papers for our so called association. We have a president that is the developer and has been secretive in all monies. There has not been any annual budgets shown to any member even though we are assessed each year for dues.
Can you go to criminal instead of civil to get the stae involved with the attorney general pursuing the case or do u need a lawyer to do all this wok whichis pretty expensive for most people.

HollyL (North Carolina)
Posts: 10

Posted:

when a few of us started the investigation against the former president, it was not as a Board, we were just individuals in the community that knew something wasn't right. We have an accounting only mgmt. co who keeps records of all of our financials, and they gave us copies of everything. As we found out, just because you have proof of criminal activity does not mean that the D.A. will pursue the case..consulting a fraud investigator at your local police dept. doesnt cost a penny..its definitely a good place to start. You defintely have a right to financial information..have you requested it in writing? You definitely need to do a little legwork getting you documents together before you present your complaint to anyone. It took us about 2 months to get all of our evidence together. We personally didn't contact the attorney general, so i don't have any information about that, just know that if you have to pursue this as a civil matter, there are lawyers out there that can help without breaking the bank. We finally found one that has a soft spot for Associations that get shafted by those in power, and is pursuing the case for next to nothing.

BillyH (Georgia)
Posts: 9

Posted:

I recently became a board member after questioning the availability of financial reports. Long story short, I personally hired an attorney who went investigated the bylaws found numerous infractions. We held a meeting of the homeowners without the person in question. With the attorneys assistance we elected a new board. We then took what documents we could get from the prior board (which were limited) and had them reviewed by an independent CPA. His findings were then turned over the local financial fraud unit. The FBI was then contacted after review by the local DA office. The FBI has now taken over the investigation. We were told by the authorities that civil action would most likely be useless as the individual would shelter assets and destroy documents and ultimately file bankruptcy. However if the investigation leads to prosecution and conviction, many times the judge will rule that restitution is part of the sentencing. In other words they cannot get out of jail if restitution is not made. Even if restitution is not ordered, if convicted, it assures favor in a civil action.

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