Snazzylass
Guest
- Joined
- Dec 22, 2018
- Messages
- 956
- Reaction score
- 888
- Points
- 153
- Location
- Phoenix, AZ
- Resorts Owned
- Sedona Pines
Why do you say this? I lived in a small town in IN a few years back, and took a call from the president of the local bank who said the HOA account was overdrawn. The bank was being asked to pay an online electric bill for the office manager of the HOA. I can't recall why the bank was calling the office where I worked, but you've got to love small towns - not even sure he should have done that. However, I knew exactly what was happening.
The manager and her husband were very friendly and social. They'd invite me to parties at their house around the corner from me. I'd decline. They took a lot of expensive trips, too. I thought he was selling drugs. There was no way they afford all that...except for the $50k or so they drained out of the HOA account.
The State Police and local prosecutor immediately took over the investigation. The manager was only charged with what could be documented. She went to prison for awhile. She is out now and is still paying restitution, and lives in the same house as far as I know.
The whole thing happened because the Board, and more specifically, the Treasurer "trusted" the manager. Very dumb. Wherever there is money, there is temptation. All the Treasurer had to do is open the checking account statement each month and review it. How hard is that?
There was no SA by the way. The HOA sucked it up and made some changes and has since recovered. Lots of volunteer hours given to make the place run. There was no insurance to cover this loss either.
