Friday, April 20, 2007

Laguna Woods Residents Outraged by Use of Credit Cards Issued to Property Manager Employees!

Woods Residents Outraged by Use of Credit Cards Issued to Property Manager Employees!

Concerned Residents Speak Up About Fiscal Mismanagement

April 20, 2007

A group of concerned Laguna Woods residents got together April 5, 2007 at the clubhouse to discuss a number of issues including mis-information, intimidation and fiscal mismanagement. There was even talk of the Orange County District Attorney convening a grand jury and the possibility of a class action law suit.

There were over 200 residents in attendance, including a number of various volunteers working on “discovery’ – a research group dedicated to the compilation of factual evidence to support the volunteer's case.

Prominent was the charge that credit cards issued to employees of Managing Agent Professional Management (PCM) employees strictly for emergency use, were being mis-used regularly. Examples include the use of credit cards to purchase $1,316 for candy from the Sees Candies and $981.00 meal at the Claim Jumper. The data presented included a number of outstanding questions as well as recommendations such as:

Who authorized the credit cards/charges issued to PCM staff?

Can the board of directors be held accountable for misuse of credit cards?

Given the reported irregularities, it was suggested residents insist that the board of directors initiate a forensic audit.

A press release dated April 11, 2007, issued by the Residents Voice, a community activist group, follows up on the substantive matter covered during the meeting and indicates that use of the credit cards is a breach of fiduciary responsibility.

Repeated calls to PCM General Manager Milt Johns and PCM CEO Jeffrey Olsen to comment on the allegations were ignored. We did get a call back from a board representative stating that the credit card charges themselves were known to the board for quite a while, and that the board was working on a press release of their own - no time was given for the release of such information.


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