Article Courtesy of The Charlotte Sun
By STEVE REILLY
Published April 21, 2009
PORT CHARLOTTE -- Charlotte Square condominium residents still don't know where they stand, but it looks like close to a $1 million may be missing from their various associations' accounts.
The money was discovered missing more than eight months ago. Police are investigating a former Star Hospitality manager of possibly inappropriately co-mingling individual associations' funds, cashing, writing and depositing checks for the associations that make up the condominium complex.
No charges have been filed.
Star Hospitality remains Charlotte Square's condominium management company. A Star Hospitality employee at Charlotte Square did not want to comment Monday
Still investigating
According to a sheriff's incident report, dated Sept. 10, 2008, Chelsea House association representatives told Charlotte County Sheriff's detectives that its June and August bank statements weren't balancing.
Charlotte County Sheriff's Public Information Officer Bob Carpenter described the investigation as becoming "huge," highly technical and complex since the original complaint was filed.
"It's one of the (Economic Crime Unit's) most complicated cases," Carpenter said Monday. "They've had (a full-time investigator) on this since the beginning."
Charlotte Square is made up of nine individual buildings -- which are called houses. Each of its houses has its own association, but the residents also have a master executive association governing board, made up of representatives of each house.
Prior to the discovery of the missing funds, the associations boards elected not to have annual independent audits.
Since the beginning, residents, most of whom are in their 80s, have been advised not to talk to the press or make any other public statements -- first by the associations' insurance company, Great American Insurance Company, in an e-mail to the executive board and then by their association attorneys.
"A lot of the people are elderly and we don't want them to say anything defamatory," said Michael R. Whitt, the Becker & Poliakoff attorney representing Charlotte Square. "We need to make sure there is one voice in the press."
Residents paid a special $95 assessment for a forensic audit and other legal expenses. Whitt said that audit of a year's worth of records is nearly completed. While he hesitated to quote any exact losses, Whitt did say close to $1 million may be missing from associations' coffers. The amounts vary from house to house.
"We will be getting that information to law enforcement," Whitt said.
By the end of this month or next month, Becker & Poliakoff may be ready to file civil suits.
Call for concern
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