Did you know that shared ownership communities are prime targets for con artists and fraudsters? And that even the best association employee can be tempted to join those ranks?
Former Palm Beach Police Chief Michael Reiter tells host Donna DiMaggio Berger that the most effective way to “keep honest employees honest” while protecting an association’s financial resources is to put systems in place that require multiple approvals for expenditures and encourage regular questioning of itemized invoices.
Conversation highlights include:
- The telltale signs of fraudulent activity, and how to identify the ‘fraud triangle’;
- Recommended actions every association can take to guard against fraud, including how to protect the reserve fund;
- Which source documents can be the most helpful;
- How to handle vendors offering kickbacks and why associations should avoid accepting them;
- How to handle the threat of violence within a community association, including the right time to call local law enforcement;
- What can be done when the board and/or residents believe a sexual predator lives in the community;
- The role of leadership training in creating a strong board; and so much more.
BONUS: Unclear on who is responsible for finding fraud in a community association? Hear the surprising answer from man who led the original – and only successful – investigation of sexual predator Jeffrey Epstein.