Spotting and Stopping Fraud and Embezzlement in Your HOA

Fraud and embezzlement can cause a homeowners’ association’s (“HOA”) board of directors a lot of time, money, and energy. So how can the board prevent potential fraud or embezzlement before it occurs? The solutions are simple but often overlooked. The board needs to understand its role in fraud prevention and the two key components of fraud: motivation and opportunity. In almost all cases, both of these factors must be present for fraud to occur. Motivation is a factor completely outside the board’s control. For example, a director or manager of an HOA might have a gambling problem, be mired in personal debt, or simply be consumed with greed. The opportunity factor, however, is completely within the board’s control.     Read the article……………


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