Cohousing-L Mailing List: Re: CPA

[Katie Henry (katie-henry]

If you decide to use an outside entity to pay your bills and manage your books, 
you have to watch them closely. You can't just walk away. If you are informed 
enough to perform decent oversight, it might be easier to do it yourself.
My former community used a management company whose owner was convicted of 
stealing over $2.5 million from condo associations and sentenced to 42 months 
in federal prison. We spotted a lot of carelessness, petty pilfering, and 
sketchy bid practices, but nothing on the scale of what he took from other 
associations. 
Katie Henry
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According to his plea agreement, from October 2011 to August 2012, Francis 
defrauded at least 51 of Legacy’s HOA clients by taking reserve funds that 
belonged to the HOAs.  For many of the HOAs, Francis created false bank 
statements that he gave to the HOA representatives that falsely reflected that 
their reserve funds were intact and earning returns.  In fact, Francis had 
spent the funds for his own personal and business benefit, including: $7,165.70 
to Dogtopia, a dog grooming service; $2,339 to Delicate Touch Nails, a nail 
salon; $8,244.42 to the Washington Wizards; $1,000.01 to Bare Exposure and 
$3,848.67 to Pure Gold, adult entertainment clubs; $2,088.50 to A Platinum Plus 
Limousines; $3,700 to Shadow Room, a Washington D.C. night club; thousands of 
dollars for the purchase of clothing, liquor, restaurant meals, groceries and 
other living expenses; $40,025.07 for payroll for Legacy Inc. employees; and 
payment to AT&T.


Management Firm Owner Admits to Stealing Over $2.5 Million from Client 
Homeowner and Condo Associations

  
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Management Firm Owner Admits to Stealing Over $2.5 Million from Client Home...
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