Tag Archives: embezzlement

9 Steps to avoid HOA Embezzlement

How to Recognize HOA Embezzlement–and 9 Steps to Minimize Your Risk

“Creative accounting” or “cooking the books” has been on the rise in HOAs the past few years. Headlines are unfortunately full of cautionary tales. Consider these two recent cases:

  • A former treasurer of the Woodbridge Townhomes Homeowners Association in Nevada City, Calif., recently entered a guilty plea to embezzling more than $100,000 from the association.
  • HOAs that contracted with Kroger Management Group claim the Fairfax, Virg., firm stole more than $2 million from client associations.

Embezzlement is also perennially under-reported. Many cases are simply settled quietly because the victims—the HOAs—don’t want to face the bad publicity of announcing the theft.

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