BAY COLONY CLUB CONDO - BLOG'S FUTURE?

Since your blogger has moved out of Bay Colony Club and readers or former readers have not provided any info for updates, the blog has necessarily been quiet.  I'd be happy to publish comments or, if given some information write new articles.

There has been encouragement from some readers ("anonymous" really?) to take down the blog and delete it from the internet.  That is not about to happen.  There may be, in the future, some residents who want to bring honest, intelligent governance to BCC and who are willing to work to elect an honest Board of Directors.  This blog allows folks to research the historical record and see the details of how a conniving group of leeches has enriched themselves and rigged elections.  My best wishes go with anyone attempting to clean house at BCC.

The following article from the Fort Lauderdale Sun-Sentinel was brought to my attention thanks my subscription to Becker & Poliakoff's  Condo and HOA Law blog.  Their blog is a very useful and wonderful public service.  Considering the results of our latest BCC election, its re-publication here seems timely.(http://www.floridacondohoalawblog.com/) 

Condos and HOAs

Living with Rules

Arrests continue against condo/HOA leaders for fraud or theft

by: Lisa Magill, Esq. April 16th, 2014 | 12:07 PM

The story about the arrest of the former acting president of a homeowners’ association in Sunrise, Florida prompted me to remind community leaders of the most common fraud techniques.

Fraud and theft in community associations seem to have risen exponentially in recent years. In many cases the fraud occurred over a period of several years and it is just being discovered now. In the recent case reported in the Sun-Sentinel, funds were allegedly transferred directly from the association’s account to former acting president’s personal accounts. Typically the methods utilized are not that obvious, so do you know what to look for?

Some common fraudulent activities include:

• Theft of cash receipts
• Under-the-table payments, bribes or kickbacks.
• Pay & Return – The employee purposely overpays a vendor. When the vendor returns the overpayment, the employee embezzles the refund.
• Kickbacks – The vendor gives the manager money in return for awarding a contract to the vendor or an inflated check is delivered to the vendor and they split the overpayment.
• Tampering with checks issued (forged signatures, altered dates, adjusted amounts)
• Stealing blank checks or counterfeiting duplicate checks with altered payees
• Creating and paying fictitious vendors
• Shell Company – An employee sets up a shell company (often with a fictitious name) and bills the employer for goods or services it does not receive. The employee converts the payment to his/her benefit.
• Pass-Through Scheme – A shell company (owned by the employee) purchases goods and resells them to the employer at a marked-up price.
• Creating inflated or phony expense vouchers
• Theft of inventory
• Altering purchasing, receiving or shipment records
• Paying non-existent employees
• Lapping – This involves the manipulation of accounts receivable to steal cash. One payment is taken and then other receivables are applied to the account – the process continues so all accounts would appear current.
• Voiding checks – the employee writes a check to a vendor for a certain amount, but records the payment as higher in the books. Then the next check is written for the difference and entered as a void. When the bank statement arrives the checks are destroyed and the account is reconciled as if one payment was made for the higher amount.
• Credit card usage and credit card refunds – using the credit cards for personal expenditures or purchasing and returning items, then using the credit for personal expenditures.

These are just some of the examples of the types of fraud encountered by community associations. Of course, establishing (and complying with) internal controls is paramount in order to prevent fraud and to detect it before losses escalate.

Comments (1 Comment)

Steve Feldman, CPA

April 16, 2014 at 2:37 pm

Unfortunately, the HOA/Condo environment often is a target for fraudulent activity. Volunteer board members, and finance committee oversight may not be adequate. Contact a competent CPA, who is knowledgeable in HOA/Condo accounting matters. The CPA can suggest several ways to monitor financial affairs of the Association, making it more difficult for fraudsters to perpetuate or get away with the Association’s funds. The solutions may not be fool proof but will serve as a deterrent, which will make it difficult to avoid detection.

BAY COLONY CLUB CONDO - ELECTION HANKY-PANKY?

Just another rigged election?

Does our recent election of Board members fall into the same old flim flam?  Please see the reprint of old blog articles below.  Apathy, indifference and ignorance is what has brought BCC owners to this sorry state.  You get the governance you deserve they say and if no one is willing to put a stop to it then shut up, bend over, grab your ankles and think of England.

Easy enough to prove fraud, though a computer would help: 

1. Review ballot return envelopes from that prior election that had random, non-sequential numbers printed on the envelopes.

2. Make a list containing names and addresses of all who voted in that election.

3. Review ballot return envelopes from this election.

4. Make a list containing names and addresses of all who voted in this election

5. Compare the lists and list all those who voted in this election, but not in the prior election.

6. Discard "new" voters who purchased since the prior election.

7. Contact the remaining "new" voters to determine if they actually voted.

.Any questions?

Wednesday, November 11, 2009

ELECTION FRAUD A BCC TRADITION

BCC’s 2003 election for members of the Board of Directors (BOD) was obviously fraudulent. Illegal ballots were added to validated ballots and counted in the totals, among other ballot tampering.  It was judged so by Election Supervisors Carl Dressel and James Gordon and the Florida DBPR.  Please click on “BCC 2003 Election Fraud” in column to left under “Links to Other Condo Related Sites”.  (Please note that I strongly disagree with Dressel and Gordon speculations on the possible source of ballot box stuffing.)

Despite requests to then BOD President Sam Slota, nothing was done to correct the fraud or improve election policies and procedures so it wouldn’t happen again. It’s been seven years and nothing has been done. Unless we do something about it as soon as possible we can look forward to a future of fraud and chicanery, most notably at the upcoming BOD elections in February.

Further, why are BCC owners repeatedly electing people to the BOD who voted AGAINST investigating the mysterious disappearance of BCC property?  See “BCC 2003 Election Fraud” at left.

BCC’s election procedures are not unlike those of many corrupt third world countries.

As yourself WHY people would lie, cheat and stuff ballot boxes.  Perhaps an honest election would be the most significant step towards reducing our maintenance costs.

Support election reform and the appointment of an Election Monitor. Start by adding your name to the petition that will be circulating in BCC.

Thursday, November 5, 2009

HOW TO STEAL A BCC ELECTION*

1. Be a current or past member of BCC BOD.
2. Search past election records for names, unit numbers and signatures of owners who have not voted for years.
3. Get extra election packages (outer envelope, inner envelope & ballot) for “friends who have lost theirs.”
4. Forge signatures on ballot envelopes (a vague resemblance will do) and check your name.
5. Bring ballots to office (no need for postage or several trips) and stuff them in the box.
*Based on a detailed review of past election records.



It is NOT enough to have an election monitor appointed just before the election.  Easily photocopied ballots which are not controlled and freely passed out and a ballot box unobserved and uncontrolled will mean the same undesirables will be with us for ever.

By all means sign the petitions circulating which request an election monitor be assigned.
SIGN THOSE PETITIONS NOW AND SUBMIT THEM SO WE GET THE MONITOR ON BOARD ASAP.  WITHOUT A REVIEW AND REVISION OF OUR ELECTION POLICIES AND PROCEDURES WE ARE GUARANTEED ANOTHER RIGGED ELECTION!


WE NEED VOLUNTEERS TO GET SIGNATURES ON THESE PETITIONS.  WE NEED THEM NOW!
E-MAIL cpukit@comcast.net TO SIGN UP.

Posted by Charles Pukit at 2:36 PM

8 COMMENTS - CLICK HERE TO SEE THEM OR ADD YOUR OWN.

BAY COLONY CLUB CONDO - RENTAL RESTRICTIONS?

Much hoopla, effort  and expense (our money) went into a recent effort to change BCC's documentation.  Changes were sought to lower approval of future documentation changes to 60% rather than the existing 75% of owners and also to restrict rentals.  All rational BCC owners predicted that the votes were unobtainable and the vote was a waste of time and money.  

Then, shock and horror, it was alleged that rigging the vote was suggested  This worked very nicely with our recent Board election, but the pre-vote publication of possible rigging put the kibosh (temporarily) on Document changes.

 As far as rental restrictions are concerned, Becker & Poliakoff, the most prestigious condo law firm in Florida, recently published an article on the subject in their blog.  http://www.floridacondohoalawblog.com/  BCC owners should find it of interest.  The following is quoted verbatim (excepting stress and highlighting by your blogger):

"Rental Caps In Condominiums Are Hard To Enforce

By Joseph Adams on February 2Oth, 2014

Question: Over half the units in our condominium, which was an apartment complex prior to conversion several years ago, are tenant occupied. Those who own property typically treat it with more respect than those who are renting. We have found that tenants overtax our recreational facilities, do not control their pets and generally disrespect the peace and quiet of our community. The majority of our violations are related to tenant-occupied units. Is there any law prohibiting such high rental rates in a condominium setting? If not, can our condominium documents be amended to place a cap on rentals? J.M. (via e-mail)

Answer: With the glut of foreclosures and bank-owned properties being placed on the market at rock bottom prices over the past several years, it is not uncommon to see investors taking advantage of bargain prices. Some investors hold on to the property in the hopes that the real estate market will continue to improve as it has been over the past couple of years. In the interim, they often rent out the property to generate a return on their investment and help with carrying costs. There are other investors that buy for the sole purpose of holding on to the units and generating rental income.

I am aware of no law that limits the number of permissible rentals. It is however, often hard to find conventional mortgage financing in condominiums with high rental percentages. The declaration of condominium can be amended to impose a cap on rentals. As noted in previous columns, I am not a big fan of rental caps because they are difficult to enforce. One reason is this, the Florida Condominium Act specifically provides that amendments prohibiting unit owners from renting their units, altering the duration of the rental term, or specifying or limiting the number of times unit owners are entitled to rent their units during a specified period applies only to unit owners who consent to the amendment and unit owners who acquire title to their units after the effective date of that amendment. A rental cap would have the effect of prohibiting some owners from renting their units if the limit has been reached. Accordingly, unless the amendment is approved unanimously, it will only apply to those who vote in favor of the amendment or take title after the amendment is recorded in the public records."

Bay Colony Club Condo - 2014 ELECTION

Surprise! Surprised?  What are you dim?  It was pointed out

that the ballot return envelopes lacked random, non-sequential control numbers.  Why do you think?  

The Blog will reveal (once again) how it's done in a coming addition to this article.  In the meantime you now have a proper place to comment on our "free and fair" election..

Stay tuned, all will be exposed!

BAY COLONY CLUB CONDO - BOD MEETING AND CANDIDATE DANCE OF JANUARY 16, 2014

Same old tired faces and slippery promises of future glory.  White fly in the ficus?  Spiffy new Rec bathrooms?  No inquiry about why random numbering of ballot return envelopes was discontinued? 

 

Time for all you sheep to get sheered again? 

Thanks for your opinions and, please keep it clean.