Question:
What options to association residents have if they
suspect board president and community mgmt company of fraud!?
– Richard
Answer:
Hi Richard,
You may first inspect the association’s financial records to verify this. It may be wise to gather evidence to back up these claims. You may also request an external audit of the HOA.
As for the next steps, it will depend on the governing documents. You may need to call a special meeting to discuss the issue. If the special meeting does not help, you may report the issue to the police or sheriff’s department.
Aside from this, the consequences the board members in question will face depends on the specific fraudulent activity. For instance, the Florida Homeowners’ Association Act Section 720.3033(3) specifically states that directors, officers, or managers who have solicited, offered to accept, or accepted kickbacks shall be immediately removed from office. They are also subject to monetary damages.
Meanwhile, Section 720.3033(4) says those charged with ballot forgery, theft, embezzlement, obstruction of justice, or destruction of or refusal to allow record inspection shall be removed from office. If the charges are pending, they cannot be appointed or elected at any association and cannot access the association’s official records.
As for the management company, you may consult with an HOA attorney. They may help you understand what options you have and how to go about them.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
