Fraud? In An HOA? G’wan!!!!!!!!!

As I’ve said before, once in a while you’ll find a lawyer who may actually be given a spot in Heaven. Is this another one?

Fraud in community associations.  by: Bill Raphan September 13th, 2012 | 2:41 PM

Unfortunately, there is fraud being committed in community associations throughout the State of Florida every day.

I spent 5 years working with the Economic Crimes unit of the Florida Department of Law Enforcement in their Condominium Anti Fraud program.

The good news is that the majority of the complaints that were submitted turned out not to be fraud but were only mismanagement or misappropriation of funds.

Usually, it was unintentional and just from a lack of knowledge.

However, there were times when there were red flags that caused the need for further investigation and sometimes arrests and prosecution.

What should you as an owner look for if you suspect fraud in your association?

These are some of the most common fraudulent activities that were found:

Kickbacks – Vendors paying off board members “under the table”

Including over inflating contracts and “kicking back”  the difference

Schemes concerning credit cards

Altering or falsifying financial records

Forged signatures

Paying for work not done

Paying nonexistent employees

Submitting false expense vouchers

Want to learn more about fraud, contracts, dealing with vendors, and much more?

Next Wednesday, September 19, 2012, we are conducting our free “Board Member Basics” board certification class.

The class will be held at our Katzman Garfinkel and Berger Law and Learning Center

5297 West Copans Road from 10 AM – 12PM

To register call 954 315-0372

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Ward Lucas is a longtime investigative journalist and television news anchor. He has won more than 70 national and regional awards for Excellence in Journalism, Creative Writing and community involvement. His new book, "Neighbors At War: the Creepy Case Against Your Homeowners Association," is now available for purchase. In it, he discusses the American homeowners association movement, from its racist origins, to its transformation into a lucrative money machine for the nation's legal industry. From scams to outright violence to foreclosures and neighborhood collapses across the country, the reader will find this book enormously compelling and a necessary read for every homeowner. Knowledge is self-defense. No homeowner contemplating life in an HOA should neglect reading this book. No HOA board officer should overlook this examination of the pitfalls in HOA management. And no lawyer representing either side in an HOA dispute should gloss over what homeowners are saying or believing about the lawsuit industry.

1 thought on “Fraud? In An HOA? G’wan!!!!!!!!!

  1. anonymous

    “Once in a while you’ll find a lawyer who may actually be given a spot in Heaven. Is this another one?”


    He works at Katzman Garfinkel and Berger, aka “KGB Law”, which is your typical rapacious HOA law firm. Evil, nasty, vicious.

    I smell a big rat.


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