Diane Carr
Secretary
Department of Business and Professional Regulations
Division of Land Sales and Condominiums
1940 North Monroe Street
Tallahassee, Florida 32399-1027

RE: Case No. 20021230CC30027

Dear Ms. Diane Carr:

What role does the DBPR serve in Condominium Association criminal matters? 

Your Division has completed numerous investigations revealing over 26 individual counts of Florida Statute violations and investigators have written numerous violation letters over the past year.  Now where do retired and financially challenged residents of Florida like myself turn to for help after abusive association members leave them without money? 
How can these sort of crimes go unpunished?  What is wrong with our system?  I am writing to find out what department handles a criminal investigation of a Condo 
Association responsible of a repeated large number of state statute violations.  Board members from my association have made over $300,000 disappear.  All financial information for the past seven (7) years has also disappeared, along with the invoices, checks, and associated documentation. 

From a report delivered to us last month, the Association bank accounts reflected a negative value, the reserve funds are at zero, meanwhile there are checks for over $70,000 issued out to board members, their friends and their relatives.  With Hurricane season approaching and no money for reserves or to pay the insurance, families of 282 units at Grand Vista Condo in Hialeah Gardens, FL may be left homeless.

Your Division has been aware of the violations at our Association since July, 2001, as several unit owners have sent their complaints.  This has been the most obvious case of abuse of power and blatant disregard of the Condominium Act, according to investigators at your division.  Investigators for the DBPR have requested to inspect records, obtain copies of checks and annual financial reports but according to what has been explained to me, there is nothing more that can be done.  This seems rather ridiculous that the DBPR requests the information and is told by the Association that they lost it all and that's it!  Nobody gets in trouble!  Nothing more gets done! 

Well then WHO HAS THE PROPER JURISDICTION TO INVESTIGATE THIS CRIME? 
I have already been to the Mayor's office, the city police, the county police, the State Attorneys office, the Insurance Commissioner's office, and FDLE. 

They have all passed the buck and failed to take down a report for criminal investigation.  Where do I go now?

Thank you for your assistance.
Eddie Hernandez
Hialeah Gardens, FL 

In case number 20021230CC30027, the Division documented that the Association is alleged to have:

1.) violated 718.115(1)(a), F.S. by using funds for other than common expenses.  Numerous checks were issued to board members, their friends and relatives.  The DBPR requested copies but the Association has not complied with production of this information.

2.) violated 718.111(12)(a)11.a., F.S. by failing to maintain financial records.  The Association lost all the records for the past seven years.

3.) violated 718.111(12)(a)12., F.S., by failing to maintain documents for the 2002 election.  They claim to have obtained twice the number of votes than any previous year in the total seven year history, yet upon request to show proof, the election documents have mostly disappeared.  The violation noted that in-eligible ballots were counted but the Association could not demonstrate proof otherwise and has refused to hold alternate elections.

4.) violated 718.111(12)(a)(6.), F.S., by failing to maintain the minutes of all meetings for the past seven years.

5.) violated 718.111(11)(a), F.S., by failing to maintain proper insurance for all units.

6.) violated 718.111(11)(d), F.S., by failing to maintain fidelity bonding insurance.

7.) violated 718.112(2)(e), F.S., failing to adopt an annual budget for the past two years.

8.) violated 718.112(2)(f)2., F.S., failing to include a reserve schedule.  All reserve funds appear to have disappeared without proper approval of the unit owners.

9.) violated 718.112(2)(f)2., F.S., failing to properly fund reserves for emergency needs.  The Association collected the reserve funds but failed to properly fund the bank accounts.

10.) violated 718.112(2)(f)3., F.S., failing to obtain unit owner approval prior to using the reserve funds for other purposes.  Over $300,000 is missing.

11.) violated 718.116(10)., F.S., by using special assessment funds of $70,500 to pay for non-approved items.

12.) violated 718.111(12)(b)(c)., F.S., by failing to grant access to records within five days after receipt of a written request.

13.) violated 718.111(13) by failing to prepare a reviewed annual financial report for the past two years.

14.) violated 718.112(2)(e), F.S., by failing to mail or deliver a notice of budget meeting and a proposed budget for 2003.

15.) violated 61B-22.003(1)(b), F.A.C. by failing to disclose the period of the proposed budget for 2002.

16.) violated 61B-22.003(1)(c), F.A.C. by failing to disclose the periodic assessments due from each unit for the budget for 2002.

17.) violated 718.112(2)(a)2., F.S., by failing to respond to unit owner 
inquiry letters.

In case number 20030113CC30047, the Association is alleged to have:

1.) violated 718.111(12)(b)., F.S., by failing to maintain unit owner payment account records then later threatening unit owners with collection and liens without providing proof that there was any amount owed.

2.) violated 718.112(2)(a)2., F.S., by failing to respond to unit owner inquiry letters sent in response to collection threats and notices of liens.

In case number 20020920CC30944, the Association is alleged to have:

1.) violated 61B-23.0021(8) F.A.C. by counting ballots not cast in inner and outer envelopes.

2.) violated 61B-23.0021(10)(a) F.A.C. by counting ineligible ballots.

3.) violated 61B-23.0021(10)(b) F.A.C. by not having an impartial committee to verify the signatures and count the ballot envelopes.

In case number 20020711CC30715, the Association is alleged to have:

1.) violated 718.116(10) F.S. by failing to mail or deliver to each unit owner notice of a special assessment meeting.

2.) violated 718.111(12)(c) F.S. by failing to permit unit owners the opportunity to inspect the condominium records.

3.) violated 718.112(2)(d)1. F.S. by failing to schedule the annual meeting and election which should have taken place May 1, 2002 and did not take place until September 9, 2002.  This year they have failed to hold the election on time also.  They hold elections at whim or when prompted to do so by the DBPR.