More Homeowner Association Financial Audit Irregularities

More Homeowner Association Financial Audit Irregularities

April 27, 2007

Marina and Coto and other HOA residents may benefit from the GRF ooking at independent financial audits.

Following are excerpts of a letter sent April 25, 2007 to a committee formed by Golden Rain Foundation president George Porlock to look into alleged mis-use of credit cards by property managing company PCM employees:

“ We all may have aged but we are not stupid. ..

The Association of Certified Fraud Auditors found detecting fraud in homeowners association is less likely to be detected by audit. For example, Detection of 46 percent of fraud in small business was detected by accident or whistleblower than through an internal audit. The bad guys know the tricks and we must probe the community to come up with whistleblower evidence for conviction.

We have some very professional and dedicated people to help you in solving your credit card puzzle. We have contacted (Feb. 07) the Treasury Department Internal Investigation Department to investigate credit card embezzlement and the illegal sale of Leisure World property.

There is a reason we as a nonprofit corporation do not have to pay millions of dollars in taxes. PCM has put Leisure World in a position to lose our exempt status for some greedy PCM employees.

We cannot accept responsibility for PCM credit card charges it violates 501 ( c ) 3 Conflict of Interest corporate codes.

George Portlock says,” This what the other boards did in the past and I just followed the same procedure.” We estimate over one million dollars in credit card charges have been made. This arrogance and deceit is overwhelming. You honorable directors can bring back our trust in this community. Please be diligent and help us clean our house before we lose our exempt status.

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