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?
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
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