From a post of: 11/20/10
MISC FYI:
The complaint regarding commingling of NCC funds with the Developers is being handled by the Division of Florida Condominiums. I have been advised that The Division sent an allegation letter to the Association on Nov. 5, 2010. Hopefully we will shortly find out if there were any serious irregularities with the handling of our funds. You will recall that after six weeks of repeated inquiries on the matter that Concord Management admitted that the funds were not appropriately handled and ‘some’ funds were deposited into the Developers account. I was told that a Concord auditor would look at the matter and misapplied funds were to be restored to our Association account. Commingling funds is considered a Major Code 2 violation.
When further details were not provided a complaint was initiated with the State of Florida to determine exactly how much money was involved and if the funds were credited back. It is unfortunate that Concord did not answer fully, the relevant questions about this problem and it was necessary to involve the DBPR’s Financial Examiners in the matter. You might recall that at the time this problem was ongoing the Community Association Manager of that time was abruptly fired by Concord Management and required to vacate the families apartment on the property. A copy of the complaint is found lower down on this blog site (See posts of Oct 25 and Oct 16th for details) .
When additional information is available they will be published on this blog site. It is quite likely that this was simply an administrative screw up, however, Concord Management's attitude in stonewalling then finally providing incomplete information was the cause of this filing with the State to find out what actually happened.
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61B-20.006 Enforcement Resolution and Civil Penalties.
(b)
Major Violations. The following violations shall be considered major due to their increased potential for consumer harm.
Commingle 718.111(14), F.S. Commingling association funds with non-association funds. A Category 2 violation with fines of $20-50 per unit.
From: 10/25/10
The DBPR will take a look:
As explained further down the blog, Concord Management has twice acknowledged that they have put association funds into the developers account. Both my 3rd and 4th quarter checks were stamped on the back for deposit into 2 different developer accounts, yours might have also been diverted.
In regard to the 4th quarter deposit I was told last week that while it was stamped for the developers account it really went into our Association account. I don't know if it did or did not get into our account. I do know that this is pretty sloppy work for a management firm that just got a sweetheart 3 year contract with us courtesy of the outgoing developer controlled Board of Directors.
From: 10/16/10
Time to ask the DBPR to look into where our money is going!
Three months ago I noticed something odd in the way our condo dues were being deposited. This was just after the CAM was abruptly fired. It took about six weeks to get Concord to acknowledge that 'some' funds were being deposited in the wrong account but would be put back into our association account.
Now I see that the quarterly dues are still going into a Developer account. Although I have again written asking about this, I am not prepared to wait another six weeks to get fobbed off again. Probably we are just dealing with some rather dumb people who are slow learners, but I think we need to know how long this has been going on and why it has not stopped. Thus the complaint to the DBPR who I was told before filing would have their financial branch look into this mixing of funds. It is entirely unacceptable both to us as well as being a violation of State regulations.
It will probably turn out to be nothing of importance but now the matter will get some attention. You might recall that only a few days ago our developer controlled BOD signed us up for a 3 year contract with these morons at Concord, that is 3 years at 20 hours a week and it has now been 3 1/2 months with no CAM in the office! Also keep in mind that the vote on the 2 issues (the contract and the Developer getting a free office until Hell freezes over) were passed 3-0, our own owner BOD member voted with the developer!
Click for larger image:
Note: P. 2 of this DBPR complaint has been deleted and the text substituted, this is due to the original copy showing the actual bank accounts of the Assn. and Developer. Also deleted from the blog were reproductions of the back of both of my checks which also showed the same info. The information was up unredacted from July to 12/22/10 with no apparant problems but it was called to my attention that there 'could be' a problem so the changes were made.
RE: Comingling of Condo Assn. Funds With Developers Funds
Nautilus Development Partners LLLP is the condo developer, 111 units of 168 have been sold, 57 remain unsold and the Developer rents them out using Concord Management LTD. Concord both rent out the developers unsold condos and is also the management firm for Nautilus Cove Condominium, Inc.
My $675 quarterly assessment (dues) was paid by me in a timely manner for the 3rd quarter 2010 and on my bank statement I noticed that this Wachovia Bank check #1318 was deposited on 7/13/10 to the Regions account 0077xxxxxx of Nautilus Development Partners LLLP (see attachment) and not into our Nautilus Cove Condo Inc account.
I made six weeks of inquiries about this matter, asking if a mistake had been made in depositing this into an incorrect account. I phoned, e-mailed and eventually wrote via Certified Mail. I asked via certified Mail and copied via e-mail to the BOD & Concord, the following:
1) Has Concord Management misapplied the incoming checks intended for our nonprofit Nautilus Cove Condominium Association and put them into the Developers Nautilus Development Partners LLLP checking account?
2) if so, then how many checks were deposited in error to the Developers account and what is the total amount of said misapplied funds?
3) If errors were made in such deposits, has this situation now been corrected and if so have any misapplied funds now been put into the correct account?
I subsequently received an incoming e-mail dated Fri, 3 Sept 2010 from Theresa Eastwood Davis, Regional Manager for Concord Management Ltd (Tel: 407 741-8600) who said in paragraph 4 of 5 paragraphs: "During the week of the 13th, a clerical error was made during the banking that resulted in some of the HOA dues being deposited to the developer account. We are in the process of auditing the accounts and the property accountant should have the funds transferred to the HOA account no later than Monday."
I did not receive all the information I requested, but let the matter drop, thinking that it had been taken care of. However, it also came to my notice that my 4th quarter dues payment of $675 was deposited on 10-12-2010 to Nautilus Development Partners LLLP, Account 006361xxxxx.
On 10/14/2010 I wrote to Melissa Melvin a District Manager for Concord Management Ltd via email with a copy to BOD member l. DiGiacomo asking about the matter, forwarding copies of the check showing the deposit information.
Since this commingling of funds continues and may have gone on for months before I noticed, I ask that the DBPR open an investigation into the continued misapplication of our Nautilus Cove Condo Assn funds and
1) insure that all funds have been returned to the correct account and
2) make sure that both Concord and the Developer cease this inappropriate accounting practice
3) apply financial sanctions to both as applicable
61B-20.006 Enforcement Resolution and Civil Penalties.
(b) Major Violations. The following violations shall be considered major due to their increased potential for consumer harm.
Commingle 718.111(14), F.S. Commingling association funds with non-association funds. A Category 2 violation with fines of $20-50 per unit.
From: 10/14/10
Where are our quarterly dues payments going?
3 months ago quarterly dues payments went to the Developers account instead of to our account. Is this still happening? Here is my inquiry on this latest deposit. Where did your checks go???
Note: The original copy of this email was removed for the reasons stated about, the text of the email is provided below FYI:
Subject: Deposit of quarterly dues checks
Date: 10/14/2010 10:14:35 A.M. Eastern Standard Time
From:
NautilusCove2010@aol.com
Reply To:
To:
melissa.melvin@concordrents.com
CC:
BCC:
ljdpcb@gmail.com ,
Hrr330@aol.com
Sent on:
Sent from the Internet (Details)
"During the week of the 13th, a clerical error was made during the banking that resulted in some of the HOA dues being deposited to the developer account. We are in the process of auditing the accounts and the property accountant should have the funds transferred to the HOA account no later than Monday."
================================================
October 14, 2010
Melissa Melvin
Nautilus Cove Condo
Concord Management Ltd
District Manager
You might recall that I had brought to the attention of Concord and the BOD my inquiry as to the deposit of funds in what appeared to be an account of the Developer rather than an account of our Condo Assn. Your earlier reply confirms that some funds were incorrectly deposited into account 0077xxxxxx of Nautilus Development Partners.
I never did hear back on other aspects of my inquiry (How many checks were deposited in error, What is the total amount of misapplied funds, also the result of the audit) I now see that my most recent $675 payment for quarterly dues was deposited to another Nautilus Development Partners account #0063xxxxxx.
I would like to know if this is the correct account for depositing of owners quarterly dues payments? From the title of the account it seems it is not. I believe our account for such deposits is: Nautilus Cove Condo Association, Inc.
I am concerned that these funds are being incorrectly deposited again and would like someone to explain why funds are not going into a Nautilus Cove Condo account for our Non-Profit association rather than being deposited to an account of the condo Developer, a for profit LLLP.
My inquiries of three months ago took about 6 weeks to be answered and I would ask that this inquiry be replied to promptly and without having to make a formal inquiry to the DBPR.
Bill Harris
708
Endorsements on back of quarterly checks:
(Deleted as per above)
TOP: 3 months ago
BOTTOM: This months deposit
