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Members Get Burnt by Bad Board Members Using Association $500k for Themselves

Home BoardsMembers Get Burnt by Bad Board Members Using Association $500k for Themselves
Members Get Burnt by Bad Board Members Using Association $500k for Themselves

Members Get Burnt by Bad Board Members Using Association $500k for Themselves

Posted by Team Colbert Law Boards, Condo Coop HOA, Litigation, Real Estate

Board Members who misspend is one thing. This Palm Beach, Florida group of Board Members used their association’s money as their own personal piggy bank and now have to face the music in criminal court. The Whitehall Condominium’s owners now have to figure out how to make up the $500,000 plus that the Board Members dissipated.

It is alleged that an estimated $357,200 was spent by the Board Members on their own personal expenses. The members sat idle while the Board Members spent association money on themselves. Records weren’t kept so its hard for the owners to piece it all together. This happens a lot in community associations. A small group of owners run the Board and everyone else sits back and hopes that Board Members are doing the right thing. This association bet on a loser of a Board and now has to pay the price.

The condominium owners should have been demanding regular financial reports and reviewing association records that they are entitled to review under the bylaws and state law. They didn’t demand that the Board have official records which satisfy legal requirements and now they will all pay the price. An Office of the Board would have kept the Board Members honest or exposed their scheme and fraud long before $500,000 was spent and now long gone.

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About Team Colbert Law

With offices in New York and Connecticut, we are ready to handle your legal needs. We have been representing condo, coop and HOA boards, businesses and individual clients for over twenty five years.

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Latest Publications

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  • When Bankruptcy Won’t Stop Your Foreclosure Sale: What Condo Boards and Management Need to Know About Repeat Filers July 22, 2026
  • When Repetitive Filings Cross the Line: Lessons from Fulton v. Yameogo July 21, 2026
  • Condominium Boards: Why Being Aware of First Mortgage “Standing” Can Protect Your Community’s Bottom Line July 13, 2026

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Manhattan Office

  • 315 Madison Avenue, Suite 4032, New York, New York 10017
  • 646.880.3000
  • 646.880.3048

Westchester Office

  • 44 South Broadway, 21st Floor, White Plains, New York 10601
  • 646.880.3000
  • 646.880.3048

Connecticut Office

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OUR EXPERTISE

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