What Should You Do If You Suspect The HOA Board Is Fraudulent?

Fraudulent management is not only unethical but it’s also a concerning issue that has the potential to cripple your standard of living.  According to the community website, fraud involves falsifying documents or other deceptive practices in which a personal or financial gain occurs.

 

It can be extremely challenging to detect and avoid fraud; however, several methods can be utilized if you suspect an HOA board is fraudulent.  The following steps are a great guide to those who think their board may be guilty of deceitful acts and want to confirm their suspicion.

 

Contact the authorities immediately if you have direct evidence of your HOA board committing fraud.  They will usually be alerted by the number of complaints that have been filed and conduct an investigation.  However, this is a situation where you must collect as much evidence as possible, such as documents and recordings, to assist with the investigation.  It is also advisable to take notes every time you have a conversation with board members as questions may be asked regarding their actions.

 

If you suspect there may be fraudulent activity, you can request that permission be granted to review all documents, especially financial documents like financial statements, budgets, and reserves.  On the community website, it claims you can access the association’s records through the Civil Code section even if you may not be one of the HOA board members.

 

Consult With An Attorney

Obviously, situations like this could require some legal action to be taken so make sure you consult with an attorney beforehand so you know all your options.  If you suspect your HOA is in violation of a state law that is unable to be resolved through the use of these methods, reach out to an attorney.  At the end of the day, the HOA board is protected by a set of governing documents so remember these steps when deciding on what you should do.