Sunday, October 28, 2012

Condos now missing $1 million in accounting scandal - Connecticut Post

Condos now missing $1 million in accounting scandal - Connecticut Post:
A Westport property management firm is facing more legal trouble in a widening accounting scandal and from fallout from a string of thefts at a Greenwich apartment complex.

This week, Community Association Underwriters of America Inc. filed a lawsuit against Consolidated Management Group, of Westport, and its former controller in an attempt to recover more than $1 million missing from the bank accounts of eight condominium associations that Consolidated manages.
All these reports, and there are too many to even keep track of these days, demonstrate that people who own units in associations have to watch their BOD and property management firm very closely; that there is a need for governmental oversight of association finances; and that this form of privatization is in need of some serious study.


Anonymous said...

"this form of privatization is in need of some serious study."

Somebody should write a book about it. ;-)

Anonymous said...

What does the self-proclaimed educator, Community Associations Institute, say about all the embezzlement?

I always find it interesting that CAI can extrapolate "survey" results from 800 individuals into claims about how great HOAs are for the 60 million people that are burdened by them. Legislators in Texas call such reports "Made As Instructed". I'm curious as to whether any of the 800 peopled allegedly contacted by Zogby live in this condo or any of the overwhelming number of HOAs/condos where embezzlement has occurred? Given the ubiquitous nature of embezzlement in HOAs/condos...

Why does CAI oppose member access to records? They lobby against access at every legislative session in every state whenever the issue comes up.

It's so obvious - it's because HOA members would have an easier time of uncovering vendor embezzlement and fraud committed by HOA/condo management companies, attorneys, and board members. CAI doesn't even represent the "best" of the industry - it is a trade group for the very worst.

Who are the 800 individuals that Zogby surveys? Names of HOA/condo board members submitted by CAI member management companies? The survey results are only for the suckers that have yet to experience HOA/condo living. Anyone that has owned property burdened by an involuntary membership corporation knows better.

As for the present case, I imagine that some CAI-affiliated management company has recommended an insurance product. One question is who owns that $1 million policy. The second question is whether the coverage amount is shared by 30-300 other HOAs?

Anonymous said...

Dear Professor McKenzie,
Maybe, you can enlighten your readers as to who Community Associations Underwriters of America is, or who they maybe affiliated with. I may be wrong, but isn't this like the pot calling the kettle black? "Some can steal, steal, steal, but not from us! When "we" do it, it is ok, but not from us."

Anonymous said...

So simple...go to your legislature.
Well here in MA expect any proposed bill to be sent to oblivian.
The CAI "lobbys"...or pays our legislature to maintain the status quo of no oversight or consumer protections in CIDs.
With the last 3 speakers of the house in MA facing felony charges for corruption...
Don't hold your breath for change.