South Hampton Homeowners’ Association president Ulysee Davis, his wife Linda and HOA treasurer Benedicto Afroilan have each been charged with felony theft and conspiring to steal in excess of $100,000 for allegedly stealing money from the South Hampton Homeowners Association over the course of at least five years, according to charges filed by the Charles […]
Former treasurer gets jail, probation after embezzling from Costa Mesa homeowners association (CA)
A former homeowners association treasurer who embezzled more than $100,000 was sentenced Monday to probation and jail after agreeing to pay the money back. Bonnie Harris, 71, was sentenced to three years of felony probation and 36 days in local lockup after pleading guilty earlier this month to four felony counts of embezzlement, according to […]
Elderly Seal Beach Woman Accused Of Embezzling Over $100K (CA)
A 71-year-old Seal Beach woman was accused of embezzling over $115,000 from the Costa Mesa homeowner’s association, of which she was treasurer, court documents said. Bonnie Diane Harris, 71, of Seal Beach, served as the former treasurer for the Cedar Glen Homeowner’s Association, and was scheduled Monday to make her initial court appearance on charges […]
Is your Association Protected Against Theft, Embezzlement and Fraud?
Condominium associations and homeowners associations collect assessments from homeowners earmarked for the benefit of the community. However, there are times when board members, property managers or, more generally, thieves misappropriate or embezzle monies intended to benefit the community. Read the article………………
Woodlake embezzler sentenced (CA)
A man accused of embezzling millions of dollars from the San Mateo Woodlake Condominium Association between 2007 and 2013 was sentenced to seven years state prison Friday and was ordered to split the restitution with his co-conspirator, according to the San Mateo County District Attorney’s Office. Read the article………………
One of three charged in time share scheme sentenced in Boulder District Court (CO)
One of two men accused of running a timeshare transfer scheme was sentenced in Boulder District Court on Friday to 10 years of probation. Timothy Hatcher will also have to serve 200 hours of community service, pay restitution jointly and be severally liable with his business partner, Kristopher Chavez. He faced up to six years […]
Valhalla Man Charged With Stealing From His Homeowners Association (NY)
A 43-year-old Valhalla man was arraigned on Tuesday for allegedly stealing nearly $94,000 from his homeowners’ association. John Pacor, an attorney and a former board member of the Pleasant Ridge Homeowners Association where he lives with his wife and children, deposited 51 checks totaling $93,955 from the association’s bank account into his own checking account […]
HOA Embezzlement – Detecting and Preventing It
One of the most common issues HOA board members deal with is the inappropriate use of funds and embezzlement. This is because committees are usually made up of volunteers who have limited leadership and financial experience, which can create an ideal opportunity for embezzlers to get their hands on some money. There are a few […]
Community Embezzlement Case Studies – Connecticut
In our series of blog posts titled: “Association Greed – Board Members, Managers & Missing Money” we highlight wrongdoing by community association managers and board members. In this first installment: Community Embezzlement Case Studies – Connecticut – we go over the facts of the crime and how you can prevent it at your community. The […]
Ex-HOA president gets probation, fine after accusations of stealing money from association (TX)
The former president of the Cole’s Crossing Homeowner’s Association in Cypress was sentenced to probation Monday as part of a plea deal related to accusations that he stole money from the HOA. Court records showed Nathaniel Hurt pleaded guilty to theft greater than or equal to $750 but less than $2,500. In exchange, he was […]
Man Busted Stealing Nearly $100K From Homeowners Association (NY)
A Westchester attorney turned himself into police custody for allegedly stealing nearly $100,000 from his homeowner’s association while he was acting as a board member. Valhalla resident John Pacor was arraigned this week on charges claiming that he stole $93,955 from the Pleasant Ridge Homeowners Association, where he lives with his wife and children. Read […]
Lawsuit filed in condo association theft case (HI)
A Hilo condominium owners’ association is suing a former vice chairman of the state Real Estate Commission and his wife for allegedly embezzling about $120,000 in funds. The civil lawsuit was filed Monday in Hilo Circuit Court by Hilo attorney Steven Strauss on behalf of Kawili Regency Association of Unit Owners. The defendants are Scott […]
I-Team: Mastermind behind Las Vegas HOA defraud scheme sentenced (NV)
The largest political corruption case in southern Nevada came to an end Friday with the re-sentencing of the ringleader. The scheme focused of seizing control of local homeowner associations and involved dozens of co-conspirators including lawyers, retired police officers, and others. Former construction company owner Leon Benzer will serve 12 more years in federal prison […]
Fight Fraud With Board Oversight and Strict Internal Controls (NY)
As auditors, we’re required by professional standards to make certain inquiries of the boards in connection with our audit. One of the topics we discuss is their internal control procedures. We assess the risk of material misstatements in the financial statements and consider the co-op or condo’s internal controls as we plan our audit. We […]
Every Board Needs a Fidelity Bond. Here’s Why (NY)
A board treasurer’s heart will always sink when he notices a pattern of odd expenditures in the monthly run of checks. With a little digging, the treasurer might learn that the managing agent paid a small amount each month to a phony vendor, a limited liability company set up by the agent. Read the article……………..
Ten steps a property manager can take to prevent fraud in your community association (MA)
As a homeowner who lives in an association, you put a lot of trust in the people designated to manage your association’s money. So it can come as quite a shock if you discover that one of those people has been stealing from your association’s funds. Fortunately, there are steps that board members can take […]
Steps to Take If You Suspect Fraudulent Activity Within the HOA Board
Groups that are run by volunteers that handle money are particularly vulnerable to fraud, embezzlement, illegal activities, and scams. HOA boards are no exception. Access to funds is a temptation that some cannot resist. Dishonest board members can exploit the fact that most volunteers don’t know the details on how to financially manage the HOA’s […]
Detecting Fraud in an HOA
Fraud and embezzlement are topics no HOA wants to ever deal with, but the best way to avoid it is to always watch for it. It is a sad reality, but fraud and embezzlement are more common in HOAs than we’d like to admit, so today we’re going to share four red flags your board […]
Tips for Preventing HOA Election Fraud
HOA governing boards resemble small democracies. A community elects representatives to oversee the daily interests of the condominiums, planned unit developments, and cooperatives they serve. Electing the right governing board is vital. Board members supervise critical infrastructure maintenance operations of the association, construct the community’s budget and collect annual fees along with many other functions. […]
Preventing Community Association Fraud
Fraud can strike just about any community association – even one that is professionally managed – regardless of how small or large the community may be. A good property management company will have the proper checks and balances and other security measures in place to help reduce the risk of fraudulent activity. Read the […]
Protect Your HOA Board Against Embezzlement
It is essential to know how to protect the funds of your community as a member of an HOA Board of Directors. Here are certain practices that will ensure that the accounts of the members of your HOA Board are protected against embezzlement: Read the article……………..
Deerfield woman charged with embezzling from church (and condo) (MA)
According to an initial report filed by Sokoloski in District Court, a representative of the Stillwater Condominium Association came to the police station after being contacted by Greenfield Savings Bank’s fraud and theft prevention division, which reported that $18,173 had been transferred from the condo association’s account without approval over about five years. Read the […]
Hollywood Beach Resort Associations Sue Ex-Property Manager (FL)
The beachfront Hollywood Beach Resort hotel and timeshare is embattled in lawsuits, and the latest alleges a former management company turned a blind eye to improper dealings by former board members and aided the diversion of association money. The Hollywood Beach Resort Condominium Association Inc. and the Hollywood Beach Hotels Owners Association Inc. are suing […]
Detecting and Preventing Theft, Fraud, and Embezzlement in HOAs
All too often, HOAs are the unfortunate targets of theft, fraud, and embezzlement. In some cases, embezzlement and other fraud cases last for an average of around 18 months–but some cases can drag on for more than four years! If you want to prevent your HOA from making the victims list, make sure you’re familiar […]
Community Next: Homes of the Future
Community Next: Homes of the Future is the latest milestone in CAI’s Community Next series, which offers industry insight to empower community association volunteers, managers, and business partners with a strong understanding of how to preserve, protect, and enhance common-interest communities. This Fall 2017 report will provide you with a better understanding on topics like: Integrated technology Government […]
Preventing Community Association Fraud: Part Two – Your Property Management Company’s Role
Fraud can strike just about any association – even one that is professionally managed – regardless of how small or large your community may be. However, a good property management company will have checks and balances and other security measures in place to help reduce the risk. How do you know if a management firm […]
Preventing Community Association Fraud: Part One – The Board’s Role
As a homeowner who lives in an association, you put a lot of trust in the people designated to manage your association’s money. So it can come as quite a shock if you discover that one of those people has been stealing from your association’s funds. Fraud can leave you and your neighbors feeling betrayed […]
Bahamas: Condo Owners Hit By Fraud, Says Court
The Court of Appeal has quashed two separate settlements after finding “that a fraud has been perpetrated on the unit owners” at a Freeport condominium complex. Appeal Justice John Isaacs, in a May 16, 2017, verdict backed by his two fellow justices, found that the initial consent Order determining who should pay for hurricane-related repairs […]
Help Your HOA Board Members Understand Crime and Fidelity Insurance
While nearly all HOAs have some type of policies on the books, many HOA boards have little or no idea what type of insurance they have or need. This can potentially lead to expensive litigation and claims that can cost your homeowners association thousands, and sometimes even millions of dollars. There are certain types of […]
The Importance Of Protecting Your Association’s Money
One of the most important responsibilities of a property or condominium association board of directors is protecting the association’s funds. In doing so, it is important for the board of directors and management company (if you are professionally managed) to understand the necessary internal controls and available insurance coverages to properly protect the association in […]
Spotting Financial Irregularities: Red Flags Every Board Member Should Know About
While it’s pretty much impossible for a condo board, HOA or an employee thereof to commit fraud on the scale of a Bernie Madoff or any one of the greed-driven shysters who have made headlines in recent years, building boards and managers certainly aren’t above scrutiny when it comes to shady business practices. Read the […]
Management Firm Owner Admits to Stealing Over $2.5 Million from Client Homeowner and Condo Associations (MD)
William Kyndall Francis, age 39, of Elkridge, Maryland pleaded guilty today to wire fraud. The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office. Francis owned and operated Legacy Investment and Management, […]
Court case continued until June for mother and son accused of stealing over $180K from Leominster (MA) condo association
A discovery hearing in District Court for a mother and son accused of stealing over $180,000 from a local condominium association was continued Thursday. Judith R. Remy, 77, of 131 Litchfield Pines Drive, and Raymond R. Remy, 55, of 92 Middle St., were arraigned in December on charges of larceny over $250 for the alleged […]
How To React to HOA Fraud
This week, we discuss how to react if you do not bulletproof your HOA against embezzlement and discover your HOA is the victim of fraud. Finding the proper authority to investigate allegations of fraud can prove to be extremely difficult. If your association has been a victim of the “condo confidence game,” gather as much […]
After an In-House Theft, a Co-op Board Cleans House (NY)
In April of 2014, shareholders in the 146-unit Lindenwood Village co-op in Howard Beach, Queens, got the worst kind of news from their accountant. The self-managed co-op’s office manager had siphoned $88,000 out of the co-op’s coffers. Read the article……….
Bulletproof Your Homeowners Association’s Funds Against Fraud – Pt. 2
Last week, we gave tips to bulletproof your HOA against embezzlement and asked, “Who is guarding the guardians?” This week, we continue our discussion about HOA fraud and how to protect your investment. Frank Abagnale, one of the nation’s most respected authorities on the subjects of forgery and embezzlement, knows about thievery. Read the […]
Curse as Blessing: How the Discovery of Theft Kept a Co-op From Sinking
Sometimes, what initially appeared to be a curse turns out to be a blessing. This was the case at Lindenwood Village, a 146-unit co-op in Howard Beach, Queens, where the discovery of a theft by the office manager led to a major house-cleaning that helped salvage what had been a sinking ship. Read the article………….
How a Self Mis-Managed Co-op Ran Amok
As New York real estate scams go, this one was not staggeringly lucrative, but it gets bonus points for creativity and audacity. It was a scam made possible by the fact that, for years, the Lindenwood Village (Section D) co-op in Howard Beach, Queens, was run like a personal fiefdom by the board’s vice president, […]
Bulletproof Your Homeowners Association’s Funds Against Fraud – Pt. 1
Last week, we discussed some clues that your HOA might be the victim of embezzlement. This week, we give tips to bulletproof your HOA againstHOA embezzlement and ask, “Who is guarding the guardians?” Unless boards are vigilant, the answer is: “No one. No one is watching. Absolutely no one and nothing.” Read the article………
Clues That Your HOA Might Be The Victim Of Embezzlement
Last week, we talked about the ways that your HOA can unwittingly be stripped of their monies. This week, we talk about the signs that your HOAHOA might be the victim of embezzlement. There are many clues to embezzlement, but the primary clue that theft or misappropriation of funds is occurring is secrecy. Any board […]
The Many Names For Theft Inside Your HOA: Part TWO
Last week we covered: the kickback, overbilling, expense padding, volunteer compensation and underreporting income. In the final installment of this two-partHOA series, we continue highlighting common examples of how HOA’s can unwittingly be stripped of their monies: Read the article……….
The Many Names For Theft Inside Your HOA
In this two-part series, we will highlight common examples of how associations can unwittingly be stripped of their monies: Read the article………….
Watertown (CT) Police arrest suspected embezzler
Police have arrested a woman they say embezzled approximately $50,000 over three years from a condominium association. Read the article……….
Fraud and Embezzlement in Your Association-How to Spot It & How to Avoid It
It has happened; there are funds missing from the checking account. Figures do not line up and you cannot get in touch with anyone. The board always sees a financial statement at each board meeting, so what went wrong? Any organization that believes it is immune from the fraudulent use of funds is destined to […]
Theft, Fraud Schemes and How Community Associations Can Avoid Them
In her blog entry below that was posted on Sept. 10, Laura Manning-Hudson wrote about the disturbing trend of increased cases of fraud, theft and embezzlement at Florida community associations that she and many other association attorneys have been seeing. The damage that can be inflicted on associations by unscrupulous managers, employees and board members […]
A Board Follows Its Gut Instinct and It Pays Off Big Time (NY)
When the cops finally came for Michael Richter, the board members of one Queens co-op knew they had done the right thing. Richter, owner of Charter Management, had acted as managing agent for Forest Hills South Owners, a 605-unit co-op spread across seven buildings. They fired him. Read the article…………………
New Embezzlement Case at S. Fla. Condo; Best Practices for Associations to Avoid Theft
If it seems as if there have been more and more stories in the news recently about condominium association’s funds being stolen or misappropriated by either board members or property managers, it’s because it’s true. Many of the reports have been coming from Bob Norman of Local 10 News (WPLG), the ABC affiliate for Miami-Dade, […]
Three-Year Jail Term Begins for Former Condo Manager Convicted of Stealing Over $200,000 from Association (FL)
The recent news about the start of a three-year jail sentence for the former property manager of a Sarasota, Fla.-area condominium who was convicted of stealing more than $200,000 from the association she managed sent a resounding message about the severe repercussions that property managers and association directors can face for theft and fraud. Read […]
….foreclosure auction fraud for Tampa Bay (FL) community association
Ellis said bidders who pay an initial fee but never follow through with the property purchase are hijacking online, court-ordered auctions. “We are seeing this happen countywide,” said Ellis. “The fraudulent investor can rent or lease a property for a longer time period before another sale is scheduled, throwing a roadblock in the process,” he […]
Circuit Clarifies Multiple-Victim Sentence Enhancements
The U.S. Court of Appeals for the Second Circuit has clarified the law on applying the multiple-victim enhancement under federal sentencing guidelines. The circuit found that a property manager who stole $139,292 from a condominium association bank account had victimized every one of the association’s members, justifying a four-level sentencing guidelines enhancement. Read more……..