By Deborah Goonan, Independent American Communities
Another report of alleged embezzlement in a condominium association. Nicanor F. Bada, Jr., 42, admitted to taking more than $95,000 in 2007, and using the money for gambling. The missing money was discovered in 2012.
At the time, the Board handled the theft as a civil matter, because Bada agreed to repay the funds, making a $25,000 initial payment and monthly payments for the remaining balance.
After a few months, the monthly payments stopped, so the board decided to pursue criminal charges.
The most shocking part of the story, as reported by the Lowell Sun – Bada was serving as both Condo Manager and Board Treasurer at the same time.
Not the best idea. When it comes to financial management of any organization, always, always maintain at least two individuals to approve and regularly review expenditures. (See some great tips about how to keep your Association’s money safe, in this article.)
Treasurer charged with theft from condo group
And one more point to consider. Note that, as long as a homeowner, condo, or cooperative association chooses not to file criminal charges – preferring a private civil arrangement for repayment – the public does not get to know about the alleged theft.
These public reports of embezzlement that I pass along to you may just be the tip of the iceberg, and nowhere near as “isolated” as the HOA industry would like you to believe.