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California HOA Manager Embezzles $228,000 from Condominium Association

May 27, 2015

A property manager is alleged to have stolen $228,000 from a Florida HOA by writing checks to a fake company she owned and controlled. The company had a name similar to the Association's insurance company name and it appears she was passing off the payments as insurance payments. The Association has filed suit and the police are investigating. This is one more reason to maintain a good crime insurance policy, commonly referred to as a bond or fidelity bond. Given the trust placed in managers and the limited interest each owner has in the operations of the association, there is simply no other way of properly protecting the association's money. Diligent oversight will help, but in the long run a clever manager determined to steal money will eventually figure out a way. For one of its client associations,

Morris Sperry aggressively pursued a manager who embezzled over $100,000 by initiating and supporting a criminal prosecution and by recovering a significant portion of the embezzled funds in a quickly filed civil lawsuit. With prompt notice from their client, Morris Sperry was able to quickly lien and obtain the sale of the manager's home to fund a significant part of the recovery. Morris Sperry also initiated quick action to properly preserve evidence and assist the association in a transition to new management in the middle of a financial crisis. In any situation where an association discovers that a manager has stolen or embezzled funds, the association's first call should be to Morris Sperry.  

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