The condo association's maintenance and savings
accounts were allegedly depleted recently by a property manager. Some
residents estimate losses total close to $1 million.
"This is tremendously affecting the quality
of life of some very senior citizens and it's the uncertainty,"
Dessart said. "We don't know the outcome or how deep and extensive
this thing goes."
The situation at Charlotte Square is every
condominium owner's nightmare: A trusting board hands over financial
responsibility to a property manager, and fails to keep a close eye on
the books until it is too late.
While most condominium managers are trustworthy,
theft is a risk. To protect their property and assets, condo
associations need to be vigilant and take measures to protect their
finances.
"I wouldn't say it's a common occurrence, but
it happens often enough for associations to be concerned and
alert," said Dan Lobeck, a Sarasota attorney who represents 600
condominium and homeowners associations in Southwest Florida.
In his 30 years of practicing law, he has seen
about 10 associations become victims of embezzlement.
In one case, in a building where many of the
owners were absentee investors, managers took money budgeted for paint
jobs that never occurred. In another, a company stole hundreds of
thousands of dollars from an association's bank accounts by making
telephone transfers.
Obvious warning signs are neglect of the property
and unpaid bills, but sometimes small changes in the way the manager
conducts business can indicate a problem.
Maintaining enough insurance to cover theft losses
and putting good accounting measures in place that require financial
reporting are two of the most important protections condo associations
need, Lobeck said.
A board that is actively involved also provides
some protection, but Lobeck said he has seen mischief in active
associations as well.
At Charlotte Square, where the average resident's
age falls between 75 and 80, the board was uninvolved, said Lance Day,
who served as president of the Cambridge House until medical problems
caused him to step down.
Day said he started to suspect management problems
shortly after Hurricane Charley in 2004, when the figures for some
insurance claims did not add up.
He called for an audit, but was ignored. He
requested audits again in 2006, 2007 and 2008.
"But the board said it was too expensive and
voted it down," Day said.
The executive board, which acts as an umbrella for
the other nine associations, is supposed to have representatives from
each of the nine buildings. But meetings were sparsely attended.
He said condo officers are confused to the point
of paralysis by the loss.
"This is going to cause a lot of these
elderly people extreme stress," Day said.
The association at Chelsea House filed a complaint
with Charlotte County Sheriff's Office last week alleging that condo
association manager Stacey Tuck had embezzled $143,000. Tuck, also known
as Stacey Herrin, declined comment when contacted this week.
Now the residents will likely face additional fees
to make up for the losses, to pay for legal expenses and to keep the
buildings maintained.
Dessart, a community activist, said she never
imagined she would be in such a helpless situation.
"I've been a senior advocate for 25 years
here in Charlotte County, solving other people's problems and probably
so busy not realizing we were sitting on one ourselves," Dessart
said.