#HOA #embezzlement #classactionlawsuit #transparency #condo
Has your HOA employee embezzled over $200k, leaving you with unanswered questions and financial uncertainty? You’re not alone. Many individuals like you have faced similar situations, feeling betrayed and frustrated by the lack of transparency and accountability within their homeowners’ association.
The Problem:
Living in a condo, you trust that your HOA will manage your funds responsibly and efficiently. However, the recent arrest of the former secretary for embezzling over $200k has shattered that trust. With monthly HOA fees on the rise and no clear explanation of where the funds are going, you’re left wondering what steps to take next.
Solutions:
1. Seek Legal Advice: Talking to a lawyer about a potential class action lawsuit can help you understand your rights and options for seeking compensation for the embezzled funds.
2. Demand Transparency: Insist on transparency from your HOA board regarding financial records and expenditures. Hold them accountable for their actions and decisions.
3. Communicate with Other Residents: Form a united front with other residents to address the issue collectively. Strength in numbers can lead to a more effective resolution.
4. Stay Informed: Stay updated on the progress of any legal actions or investigations related to the embezzlement. Knowledge is power in seeking justice.
Let’s face it, discovering that the HOA employee you trusted has betrayed that trust can be emotionally draining and financially damaging. But by taking proactive steps, seeking legal advice, demanding transparency, and working together with other residents, you can start to regain control and hold those responsible for their actions accountable. Don’t let embezzlement go unchecked – take action and fight for what is rightfully yours.
Go to the next board meeting and ask the other members if there is anything they are doing to try and get this money back. If not, talk about seeing if they want to bring a suite against them.
Some states require HOAs to carry liability insurance. Most liability insurance likely excludes criminal acts, however it might be worth trying to get the board to file a claim to see if there is coverage for this type of loss.
NAL, but i have herved on my HOA board for many years. The treasurer should have caught this, as well as the other board members. If they did not, there is a huge problem with your elected officials. Ask the management company for the last 5 years of Financials, and in some states, they should have to provide them.
The HOA should get an attorney and sue the former secretary
Remember, if you sue the HOA, which you are part of, you are suing yourself. The HOA will have to pay legal fees, which will come out of the budget, and you pay for that. Instead, go to the next board meeting and bring it up and ask what the next steps are. The board should be retaining counsel to sue her in civil court for the full amount, interest missed, and legal fees.
If the guy has a lot of money, then he can pay it back while also being prosecuted. If he’s broke, then … blood from a stone?
If you sue other board members, you’ll be paying for their lawyers as well as yours. Their legal defense is likely guaranteed by the HOA unless their actions are way beyond what is defensible – which iwll be a fight in itself to determine.
Your best bet is to hope the perpetrator has assets and get it back from them. The community can also vote out the board and replace them with others who can put in the work to better manage the community and its finances. Then move along. Hopefully there’s insurance that can help with this – though that’s going to have to get lawyered too.
No annual meeting with a complete expense report? That’s on the membership.
The chance of getting 200k from restitution is low, most likely will be small amounts over time unless the person has $$$.
Remember don’t spend dollars to get pennies
We had that happen with our HOA. The secretary stole over half a million. She got away clean. The board never reported the theft to the police because she took the payment record binder with her. Turns out, one of the board members was in on it with her. The worst part is that the HOA proceeded to sue a bunch of homeowners for back payments.
>Should I talk to a lawyer about a class action lawsuit or something?
If you sued the board, you would be suing yourself (oversimplification but accurate). The correct response is to get the management company. Funds may or may not be recovered through criminal proceedings and would not require suing the HOA employee. Additionally, you can run for the board in the next election to remove the folks asleep at the wheel.
But remember that serving on an HOA board is a full-time, unpaid job. With a management company, it is more equivalent to a part-time job, but it is still unpaid work.
They should have directors liability insurance. The homeowners should collectively sue them for negligence.
Have the HOA place a lien on the former secretary condo and force sale to reimbursement the funds stolen