Edgewater Isle Master Association Justifies Fraud
An Illustration of How the Master Association and North Association Hate Each Other
The "Board of Directors" of Edgewater Isle Master Association sent all homeowners a letter admitting they frequently deposit checks made payable to others. Really? Sounds like there should be a criminal investigation.
Nick Pargett sent a letter to all homeowners explaining why Master Association has deposited checks that were payable to others. IT CONTAINS SPIN. Sit down before reading. This is the same type of financial shenanigans that had the Master and North associations suing each other a few years back. Does anyone care? It only costs homeowners money to pay for the petty antics of the board members and their property managers, one of which seems to be overly involved in the associations.
LYING BY OMISSION: This letter omits that the association's treasurer resigned over this. BONUS: A (former) board member with integrity.
This letter contains so much horseshit that we couldn't hold alluntil the end.
EDGEWATER ISLE MASTER ASSOCIATION
P.O. BOX 871
BELMONT, CA 94002
April 25, 2008
A letter was recently distributed by a homeowner to members regarding the matter of two checks totaling $16,000 sent from the North Association to the Master Association. Much of the information is not accurately represented and we would like to clarify this matter with the members.
For several years, a recurrent pattern has existed regarding the North Association issuance of checks to the Master Association for assessments and onsite maintenance services. Often, checks the Master Association receives from the North Association are made payable to an incorrect payee.
Pargett Association Management worked for several years to try to resolve the problem with the North's management company, but the issue kept recurring, so it became normal practice to deposit checks from Edgewater Isle North that were erroneously made payable to an incorrect payee. This was considered necessary to expedite receivables to the Master Association in order to pay bills in a timely manner.
To illustrate this issue and to address the specific $16,000 instance mentioned by the homeowner, Edgewater Isle Master Association received 4 checks in January 2008 from Edgewater Isle North Association, as follows:
Check 1810, Payable to "Edgewater Isle North" in the amount of $596.16
Check 1819, Payable to "Edgewater Isle Master Assoc" in the amount of $596.16
Check 1823, Payable to "Edgewater Isle North" in the amount of $14,000.00
Check 1824, Payable to "Edgewater Isle North" in the amount of $2,000.00
Checks, 1810 & 1819, in the amount of $596.16 each were applied against Edgewater Isle Master Association invoices for the North Association's share of MXXXXX's onsite maintenance services.
Checks, 1823 & 1824, in the amount totaling $16,000 were applied against an outstanding invoice in the amount of $16,548 for costs incurred by Edgewater Isle Master Association to uncover 17 of the North Associations sewer cleanouts so that routine maintenance of those cleanouts could be performed by the Master Association.
Enclosed are copies of these checks. The signatures and account number have been redacted for security purposes.
Several weeks later (3/14/2008), Nick Pargett received a call from the North's management company informing him that check numbers 1823 and 1824 were mailed to the Master Association in error and that they were supposed to be payments to the North Association's reserve account. Unfortunately, there was nothing on the checks that clearly indicated this.
Upon receipt of this information, Nick Pargett contacted members of both the Edgewater Isle Master Association Board as well as the Edgewater Isle North Association Board. He attended a meeting of the North Association Board stating that the funds could be returned upon receipt of a written statement of the error and demand for payment, as is consistent with good business and accounting practices.
After a short delay, a letter was received from the North Association's attorney and the issue was resolved with all parties working together to correct this error as expeditiously as possible.
The Board would like to thank homeowners for their concern in protecting their homes and investments.
The Board of Directors
Edgewater Isle Master Association
[ Names not on original letter, but added here: Barbara Finnegan, Jim Newell, and May Nichols ]
EDITORIAL COMMENT: Nonsense.
You defend the practice of depositing checks where you're not the payee? Is that even legal?
AND: How about SIGNING YOUR NAMES to this letter? Or at least listing your names? Hiding behind the "Board of Directors" moniker is absurd. Boards used to accept responsibility and SIGN THEIR NAMES to letters.
This "board of directors" is a bunch of cowards, hiding their misdeeds and not having their names associated with it.