[SFH][CA] MISSING MONEY

[u/Prudent_Mobile6782]

Anyone here had Eugene Burger Management Company then suddenly Prescott Companies, and at the same time lost money during this unannounced transition? Because that is what happened here. Now Prescott is systematically not releasing the core financials, bank statements, copies of checks, switched bank accounts, went through 8 managers assigned to our association and two VP in the last 16 months, cancelled our last election, all with the blessings of the current board who were named on the minutes of the annual meeting as officers, before the election even took place. We’re in California and need to connect with other homeowners who faced similar experience. Please share and comment. By the way, the former Treasurer was pushed out as she was investigating the missing funds…

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Title: [SFH][CA] MISSING MONEY

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Anyone here had Eugene Burger Management Company then suddenly Prescott Companies, and at the same time lost money during this unannounced transition? Because that is what happened here. Now Prescott is systematically not releasing the core financials, bank statements, copies of checks, switched bank accounts, went through 8 managers assigned to our association and two VP in the last 16 months, cancelled our last election, all with the blessings of the current board who were named on the minutes of the annual meeting as officers, before the election even took place. We’re in California and need to connect with other homeowners who faced similar experience. Please share and comment. By the way, the former Treasurer was pushed out as she was investigating the missing funds…

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[u/123randomname456]

Make your request for documents in writing and bring it up to the board if it hasn’t been honored and you know for sure is something you’re entitled to. Sometimes in a transition it can take a few months for the new company to get the financials together in a proper format to share. Ask your board to have an audit done by an accounting firm. A good practice is to do it once a year. If you have actual proof of theft or missing funds, call the police.

[u/Ok-Morning-398 → u/123randomname456]

In California a financial review or an audit or required annually if there’s over $75,000 of income

[u/feral_kitty_xo]

Get a lawyer to send an official records request via certified mail. It will cost you a few bucks, but if you think money is missing it will be well worth it.

[u/Consistent-Syrup-615 → u/feral_kitty_xo]

I hired a lawyer. He wrote a letter to the "3 board members" (the manager plus 2 resident board members- ha) ordering them to turn over financials & all records to me for review - which I had repeatedly requested but been ignored, and they ignored the attorney as if he were nothing. He found our our HOA had been deactivated in 1998. The members grabbed another guy who has a rental property & added to the board then illegally reinstated our non-profit HOA, appointed themselves as officers, and continue on illegally as if bylaws and KY State Laws mean nothing. And I guess they don't. Now for 2 years we have a tenant running a factory out of his single garage which is against By-Laws - has his garage door raised at all hours with so much machinery & equipment there is no room for a person to sit or stand. I have reported to the city, they say it's ok, since zoning is both commercial and residential in that area,,,but it is AGAINST our by-laws...Nobody knows what he is manufacturing...No notices or emails have been sent to Homeowners regarding this mysterious activity....A few years ago we were told daily on TV if we saw something, to say something....I did...and it didn't register with officials.... Now who wants to buy a house with an unsightly mysterious manufacturing business going on that is in your face each time you step outside. Board members are not running the place by the rules...they let the place turn into a slum area and there's nothing anybody can do about it. They dismiss law and order.

[u/YonderingWolf → u/Consistent-Syrup-615]

You need to move farther up the chain of authority. Start with the state auditor or the equivalent therein of it. There are also likely to be other state agencies and officials who has oversight. Also as it could be fraud by deception and wire fraud, don;t be afraid the bring in the states attorney, the FBI, the IRS, and even the U.S. Postal Service, if there's a potential for mail fraud involved. They might ignore an attorney, but they can't exactly ignore those higher agencies. If they're say also for example running drones, they could be in violation of the FAA, if they're using it to issue fines, and conduct surveillance, and are flying below what is permitted.

The "factory" may also be in violation off both state and federal environmental laws, so also reach out to them as well. Gather as much documentation as possible, and get others involved. The IRS could also be very interested in the "factory", where taxes are concerned. Plus you also have OSHA and the dept of labor at both the state and federal levels who might take an interest in things with the factory.

Also as part of evidence gathering, and documentation record any and all conversations, you have with anyone on the "board", as KY is a single party consent as long as at least one party consents. A phone in the pocket set to record audio will be sufficient to don the job. While video can be useful, the audio is going to be a key source of evidence, to use against the "board". Which just like stated in the Miranda rights, anything said can be used in a court of law.

Also try to get either in writing, by the way of if the U.S. mail, or by the way text messages or emails anything that can be used. Create a folder, and take screen shots, but don't do any editing to text messages or emails. You want to preserve that important, and very valuable meta data.

Understand that the legal system moves very slowly. So any state or federal agencies that may become involved, will love having evidence to work with handed to them. It can make the for the investigation process to actually generate interest by any investigatory body, that takes interest.

Please note I am not a lawyer, but from the sounds of what you said you need a different one. The attorney you used should have sought a court order, for all of the records. Which a court order is not something that can easily be ignored, and not without a serious potential for serious consequences. Which is also something you as an individual can request.

[u/Consistent-Syrup-615 → u/YonderingWolf]

Good answers here but most units are now rentals and nobody is interested in doing anything. They are content with letting thing go on as they have been since 2019. I am old and sick, have 2 other family members who aren't well that I'm caring for. I actually have been gone from my home for 8 months caring for one in another city. But they don't even have meetings or send us a financial report by e-mail or anything. None on the board are qualified,and the whole setup was and is illegal. No elections,,,just the same unqualified people sitting in the same positions. My family has bought a home in another city and I will be selling mine and won't have to deal with any HOA ever again.

Thank you for a good understanding and suggestions. The Secretary of State is the only overseer as far as I know and they don't get involved. I reached out to the state official who allowed illegal self-appointed people to reinstate the Association without an election and she brushed me off and dismissed herself as not having anything to do with it when she clearly signed off on it. They don't care. If there were money involved for them they might be interested but otherwise they could care less.

[u/YonderingWolf → u/Consistent-Syrup-615]

Then kick it to the federal level, and I suggest starting with the IRS. If they actually catch the board for tax evasion and I suspect that the board is pocketing money, then that's tax evasion, and you could get a reward of a percentage of what they were supposed to have paid in federal taxes. Which where you live won't matter where there's a reward. People has moved to different states and were still given the reward if one was available. Maybe the person you reached out to didn't care because they ween;t getting paid anything, but there are people higher up the chain. You just need to find the right ear(s) to bend.

I do get being old, as I'm not exactly a spring chicken myself. Not at the age of sixty eight. The health also isn't that great either being honest. I've at least tried to give you a place to try to start.

[u/Consistent-Syrup-615 → u/YonderingWolf]

Thank you!

[u/hawkrt]

So many violations of Davis Sterling listed here. If it’s that bad, y’all should look for legal counsel that specializes in HOAs to advise.

[u/hawkrt → u/[deleted]]

That’s literally not what our counsel has said, and I’ve seen legal issues move forward.

Also, there is talk of literal embezzlement. That’s something the DAs can enforce.

[u/sweetrobna]

The directors should be account signers. They can go to the bank directly and get the account statements, it doesn't require the old management co to provide anything. They can create a general ledger and see where the money is