An excerpt from a news story read: “Bridgett Freeman of Sheboygan stole more than $11,000 from the Westridge Homeowner’s Association in West Bend. Thursday, she was sentenced to six months in jail and three years probation, and was ordered to pay back $11,617.41. She said she was sorry.” Read more……….
Couple sentenced in theft of HOA funds (IN)
Before sentencing Janice L. Leach to three years in jail and her husband Clemmeth Leach Jr. to one year in jail, Morgan County Circuit Court Judge Matthew Hanson had strong words for the couple. (The rest of the article is behind a subscription requirement)
New Case of Theft, Fraud by a South Florida Homeowners Association President
Yet another case of theft and fraud inflicted on an association by an HOA president made local South Florida headlines recently. According to news reports, Michelle Changar-Coe, a former homeowners association president, has been arrested and stands accused of embezzling more than $180,000 from her Tamarac community. Police reports indicate that she forged dozens of […]
Man sentenced for embezzlement
(Second item down) A Livingston County judge sentenced a former board member of a Hamburg Township homeowners’ association to probation and community service for embezzling from the group. Read more……..
What to Do When You Suspect Financial Fraud: From Step One to Forensic Audit
Despite taking every possible precaution and being on top of your building’s financial activity, there may still come a time when your condo or co-op board suspects fraud. Don’t panic. Here’s what you should do. “The first thing to do is to be in touch with your auditor and your attorney,” says Mindy Eisenberg Stark, […]
Embezzlement
A Homeowners Association’s (HOA) board of directors acts like a mini-government. Like a government, it has the power to collect taxes, through assessments, and spend those funds, which it does through a wide variety of vendors, including property managers, contractors and attorneys. Like a government, this authority sometimes leads to corruption. Although it is impossible […]
Who Cleaned Out Our Bank Account? D.A. (NY) Launches Management Probe
Rumblings of malfeasance are circulating and sources confirm that a New York City District Attorney’s office is investigating a major property-management company. For co-op and condo boards, this is wakeup call that financial controls and vigilance should be the order of the day. Read more…….
Southern California Management Company Owner and Employee Arrested — Embezzlement and Community Associations: Do Not Let It Happen To Your Association
Unfortunately, there is fraud and embezzlement being committed at community associations throughout California as well as across the country every day. We have written about this issue in the past; follow this link to an article we wrote that describes how SwedelsonGottlieb recovered $500,000 for one association after it was discovered that the former manager […]
Protect the HOA / Condominium Operating and Reserve Accounts
I know anyone that has any affiliation with an HOA or Homeowners Association has heard of someone stealing or trying to steal money from the Community. The scams are often as simple as writing a check to themselves, either as an administrator, treasurer or president. This is the one constant to which no one paid […]
Neighborhood residents should be more vigilant
Laurie Vanover will have her day in court. Accused of looting nearly $192,000 from the Stratford Property Owners Association where she served as treasurer, Vanover is expected to be charged soon. Police, prosecutors and courts will take care of the rest. Read More……
Why you need to pay attention to the money
David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that the owner of a Kansas City, Missouri business was sentenced in federal court today for embezzling more than $750,000 from dozens of homeowners associations. Dale Palmer, 54, of Kansas City, Missouri, was sentenced by U.S. District Judge Nanette K. Laughrey […]
Insurance Fraud! We All Pay the Price
Last year in New Jersey, a former property manager in Freehold Township was accused of embezzling $75,000 from homeowner dues. In a separate case, a woman, her husband and mother were charged with theft from an Aberdeen condo association after misappropriating $995,000 of the association’s money from January 2005 through September 2006, and in Readington, […]
Why you should pay special attention to closing your books this year
I’ve been posting the condo and HOA news for over 8 years now. During the first 6 years, I might have run across 3 or 4 cases of people stealing from an association. During the last 2 years, I’ve seen over 20. And most of them haven’t been for small amounts. The scams were often […]