New York's Cooperative and Condominium Community
We have eight Board members, five are friends and relatives and three are independent Shareholders for the betterment of our coop. We recently got a $1.00 per share assessment raising 98,000 this was after we took out half million dollar mortgage refinancing and had 244,000 in reserve for construction which didn't come nearly close to that figure. Now we have 177,000 in reserve (we think), and have shortfalls in our monthly financials. This $1.00 per share (98,000) was given without reason. Now these five want to install an intercom system requesting and threating for Shareholders and tenants to give them our private home telephone numbers to hook up to the intercom system. I refuse to give anyone my private, unlisted number to these people, that didn't get any other proposals nor did they disclose how much the system will cost the building. They did the same thing with the construction job, no bids or proposals, we could not trace how much they spent on the project because when the Shareholders did an audit at the Managing Agents office, we audited the operating account and saw that not one check was written out to the construction company that two Board members are associate with. We figured out that they attached a checking account to our reserve account which was not in the possession of the managing agent, nor could we trace the checks. Our problem is that the shareholders election is overdue and they refuse to wait to install the intercom after election. The only reason I alledge they are rushing this job is for the kick backs. Do we have to give these people our private telephone numbers which is unlisted? why can't they find a another system that does not require private telephone numbers. I believe that our constutional rights are being imposed upon, they are threatning that we will get fined if we don't give out our numbers.
Yes it is a shame and unfortunate that many people run for office to see what they can get and also management knowingly turn a blind eye as they do not want to loose the contract. Far too often you complain instead of putting your name forward for election. Same story, others complain all the time when they have the choice of running for election to make a change/difference but decide not too.
UES
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Since it is being said that attorney general's office is not interested in condo corruption - where there is evidence of kickbacks - might the IRS tax fraud dept. be interested?
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The problem with kick backs is the contractor raises his price on his contract and kicks back in cash. You cannot prove this, unfortunately.
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My question was "when there is evidence of kickbacks" would the IRS be interested.
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The IRS doesn't have the resources to go after what they call petty crime. They only go after the big bucks. I have already reported the super for doing illegal renovations in our building and getting cash for it. He bought three homes on a super salary. Nothing was done. Government agencies are a joke. They too have their hands in our pockets, when it comes to protecting coops they look the other way, they say they don't get involved in private Corporation business. As I see it Business is Business and crime is crime.
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This whole thing sounds like a nightmare, and I don't have the answer about the unlisted phone numbers, but it sounds like your coop has a lot on its plate. Just wanted to offer my support if not answers.
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Thank you for your support and understanding. Yes, it is a nightmare. I only hope that when we call this Shareholders election under default by the current Board, we will take over and finally build up our Coop financially, and to clean it up right now it has been neglected,it looks worse than a City housing development. This current board has only one interest, to get kick backs and support the super that does not live in our building, but only goes around collecting proxies for them or they don't get any service from the super. The super bought three homes for him and his family on our backs.
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Good luck DD -- it sounds like you're on the right track, and the main thing now is to persevere. You know you're doing the right thing so don't let anyone undo your hard work.
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Thank you for your vote of confidence. I shall presevere, I am determined to make a difference hopefully, for everyone that owns a coop, God knows we need the help all we can get. Unfortunately we are on our own.
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Hi DD, HabitatReporter here. Mark Hankin, of Hankin and Mazel, has some answers for you:
"You have an absolute right to privacy in your personal identifying data i.e. Social Security, name, number, etc. New York State has enacted many laws which prohibit release and require notification of a breach of personal identifying data. (See Information Security Breach & Notification Act and New York Social Security Protection Act). Generally, other than a governmental agency which requires the data in order to provide and confirm its policies, you are not required to provide this data i.e. IRS, Medicare, etc. On the other hand, if you provide it because private entities will not give you the service or goods you are seeking without it, they are then obligated to secure the data and notify you should there be a breach of the security."
Hope this helps!
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Thank you for the information. We would rather do without the service the reason being that these Board members that want to install our intercom with only our private telephone numbers cannot be trusted. They have already deceived Shareholders to collect proxies from them. They had their friend the Super going around the building under the pretense of doing repairs that their work orders have been unattended for 9 plus months. The super would have a clip board with him telling the shareholders to sign a release that the work was done, what he did was turn the page and make them sign a proxy for the the tyrant board in power. How do we know they won't get hold of a device and bug our telephones. How do we know this would not be another Watergate in a coop. These people are pirates and cannot be trusted with any private information, they are to desperate to remain in power they will stop at nothing. The President of the Board's son sells drugs in the building, the Vice president of the Boards daughter was caught forging and making up false graduate deplomas and selling it to school teachers. She herself applied for a teachers job without any credentials. The Treasurer and Secretary had their company do the major capital improvement on our building (conflict of interest). Another members brother in law ripped off our building for hundreds of thousands while he was Vice president and they are all protecting the super that does illegal renovations and causes muliple fines for doing these jobs without permits and endangering the lives of others by not having these permits, meanwhile the super is working on the coops clock double dipping. Would you trust these people with your private information?
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You do not need to give your telephone. However, your visitors may not be able to communicate with you from the building entry door. You may need to come down to open the door to your visitors as the intercom selected by your Board uses a telephone line to communicate your visitor with you through a local telephone call. In fact, telephone entry systems may be restricted to dial local area codes only to keep costs down. If you have a cell phone with an out of area number, you may be excluded from such a restricted intercom system.
Going back to your issues with the Board, I would seriously suspect a board that keeps segregated funds in reserve accounts and are not part of the financial reporting of your management company. These are easy accounts to raid by unscrupulous board members. Forget about kickbacks for a telephone system that today their costs are $5K to $12K depending on functions, etc. Talk about orphan reserves accounts, easily manipulated and poorly audited.
Good luck!
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You do not need to give your telephone. However, your visitors may not be able to communicate with you from the building entry door. You may need to come down to open the door to your visitors as the intercom they have selected uses the telephone number to communicate your visitor with you. In fact, telephone entry systems may be restricted to dial local area codes. If you have a cell phone with an out of area number, you may be excluded from such a restricted intercom system.
Going back to your issues with the Board, I would seriously suspect a board that keeps segregated funds and that they manipulate. Forget about kickbacks for a telephone system that today is only $5K to $12K. Talk about orphan reserves accounts, easily manipulated and poorly audited.
Good luck!
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Thank you for your feedback. Yes, any Board that does not reveal all payments made through the operating account and hides it with a non disclosed checking account in the reserve account is up to no good. According to GAAP all checks written from a corporation must be disclosed in the operating account and not taken out from the reserve which is owners equity. Reserve is only for emergency capital improvement.
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Unfortunately people go on boards because there is money to be made. Our building is almost destroyed because of kickbacks to management company and board. Until attorney general’s office takes an interest in this, condo and co-op owners will continue to be robbed.
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