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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 118789
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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My HOA was reporting the exact same Annual Financial Report

Customer Question

My HOA was reporting the exact same Annual Financial Report for 2 years. Some monthly reports were missing and the detailed monthly reports supplied again showed the same Assets and Liabilities each month. I questioned the accounting in an HOA meeting and placed my name on the ballot to be on the board. The board announced the election ballot would be closed. The results would not be reported during the meeting but would be posted on the web page. The treasurer stated that she was a certified accountant. I strongly suspect financial fraud. How can I bring charges against them? Is the Community Mgmnt accountable? They are a licensed Real Estate Broker.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
As as member of the association, you are entitled to examine the books and get an audit of the books. If you believe there is theft from the association occurring, you would be able to report that to the district attorney, but you need to get the audit first and under the HOA laws, they cannot deprive you of the right to inspect and audit those records.
Also, if they did not hold a proper election, your recourse is to file suit against the HOA for a declaratory judgment for not following their bylaws and it will invalidate any election that they claim to have held.
The management company reports to the board, they would not be liable unless you discover they were the one who tampered with the books or committed the fraud.
If you discover fraud or theft on your audit, you can also report the treasurer to the CPA board if he is a licensed CPA.