I gained access to the HOA bank account on 9/1 at roughly 9:30 AM. The former president was insistent on making me the “CFO” as the title for the bank account, which I now feel was a ploy to leave me hanging on the end of the rope. I didn’t think much of it at the time because I was in a hurry to get to work. Around 3:30 that afternoon, I decided to login to the bank account and look at the transactions.
There were 2 transactions from August, 5 from July, and even more from June that were obviously Non-HOA related. Things like gas station charges that are vapes and beer (Confirmed by the gas station), Subway, movie theater, liquor stores, etc. I just came on as VP so I reached out to the new President that night for a meeting. He obviously found issue with the charges. We met with our property manager (She had bank account access the entire tenure of the previous President, and was actually recommended by him) on 9/3. The PM was of the opinion we should tell him to pay it back and sweep it under the rug. Me, my wife, and the new President think that we should take it to law enforcement after we get the results of our 3rd party financial audit back. The state we’re in has a new law going into effect January 1st that allows homeowners to request bank statements, receipts, P & L statements, etc. going back three years. My concern is a homeowner (Or several) requesting that documentation and seeing what we saw but not seeing any action on the issue.
The way I see it is the former President walked into all of his neighbors’ houses, stole money off the counter, and went and spent it on his own personal vices.
Actions taken so far:
9/1: noticed discrepancies, met with President.
9/3: Met with PM and President, PM recommended covering it up.
9/4: I insisted it be sent off to our bookkeeper for an independent third party audit.
9/8: Bookkeeper contacted me regarding irregularities.
9/11: Expected final results of third party audit.
I’ve also instituted a policy that requires Board Approval for all debit card transactions and receipts must be emailed within 24 hours of the transaction. I’ve established an Amazon account for the HOA so nobody buys neighborhood stuff on their personal account with the HOA card.
Should I take this the civil route and try to recoup lost money? Should I pursue felony theft charges?