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Subject: Property Management issuing check with old board member
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Author Messages
ChristinaB2
(California)

Posts:23


09/07/2021 7:01 PM  
I am new to the board and I just realized that the property management company has been issuing checks with an old board members signature for the last year and a half (almost 2 years). One of the checks was issued to one of the current board members and was cashed, they knew full well that this board member is not and has not been on the board for almost 2 years. What are your recommendations as I feel this is check fraud.
AugustinD


Posts:1695


09/07/2021 7:14 PM  
Document and gather evidence. Request an executive session of the board to discuss a confidential matter. At the executive session, present what you have. If no one has a good explanation, then motion for the HOA attorney to be consulted.
MelissaP1
(Alabama)

Posts:10534


09/07/2021 7:28 PM  
Are you sure the former HOA board member isn't still on the signature list at the bank? We had a 2 signature requirement on each and every check. So we had to have 2 or more signatories at the bank. The book keeper signed and then 2 officers signed each check. There could be more than 2 officers on the list as sometimes had to cover if one was unable to sign at time of need.

Former HOA President
KerryL1
(California)

Posts:8620


09/07/2021 7:44 PM  
Along with Augustin's sound advice, read the financials to see--either in the disbursement report or on the list of invoices, or both WHAT the director was paid for.

How much $ are we talking about?
CathyA3
(Ohio)

Posts:2475


09/08/2021 5:16 AM  
Posted By MelissaP1 on 09/07/2021 7:28 PM
Are you sure the former HOA board member isn't still on the signature list at the bank? We had a 2 signature requirement on each and every check. So we had to have 2 or more signatories at the bank. The book keeper signed and then 2 officers signed each check. There could be more than 2 officers on the list as sometimes had to cover if one was unable to sign at time of need.



This is a likely explanation - it's a real nuisance to change signatures at the bank every time your officers changed, and newbie directors may not even know this needs to happen.
PatJ1
(North Carolina)

Posts:254


09/08/2021 5:39 AM  
The MC may be using an old signature that is saved in their system when printing checks. So many things are automatic now is hard to keep track, but they need to correct if this is the case.

The check issued to a current Board member may have been for a qualified reimbursement.

Please research carefully before calling it fraudulent.


Board members are volunteers. Many have no idea what they're doing. Educate them. Don't beat them up.
MaxB4


Posts:1394


09/08/2021 7:48 AM  
Our software also allows signatures for associations and those authorized signatures printed on the checks. As Pat suggested, it may not be fraudulent at all.
JohnC46
(South Carolina)

Posts:11539


09/08/2021 11:48 AM  
Posted By PatJ1 on 09/08/2021 5:39 AM
The MC may be using an old signature that is saved in their system when printing checks. So many things are automatic now is hard to keep track, but they need to correct if this is the case.

The check issued to a current Board member may have been for a qualified reimbursement.

Please research carefully before calling it fraudulent.





Wise advice. The OP should heed it.
BenA2
(Texas)

Posts:1040


09/08/2021 2:49 PM  
My guess is that the signature cards were not updated at the bank causing the old board member to have to sign the check. This happened to us for a short period because of COVID. The bank would not allow us to come in to update the cards.

It is generally not appropriate to have a former board member as a signatory but it does not necessarily mean anything nefarious is going on. Fraud, in general, requires some ill intent and profit at the expense of another (essentially a theft). The fact that a check was written to another board member means nothing on its face, as long as it was an appropriate expenditure and documented properly.

I do think you have valid concerns but I would start with asking the board or manager to explain what is going on. It is very likely they are breaking some rules or procedures but that is not the same as fraud.
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Forums > Homeowner Association > HOA Discussions > Property Management issuing check with old board member



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