Management Company Defrauds Condo Owners


Where do unit owners monthly common expense payments go? Usually to pay the operating costs of the condominium corporation. Not so in Chicago where a two individuals represented themselves as Chairman and President of a management company, collected monthly fees from 250 unit owners in 40 condominium associations from 2005 to 2008 and used approximately $2 million dollars of those monthly fees to pay a personal debt of theirs on a development project.

These two men created false monthly financial statements for the condominium associations - one of the reasons this had gone on undetected for close to 3 years. Needless to say, this management company is no longer in business.

This has left several condominium associations with depleted reserve funds and unpaid operating expenses.

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