We had that situation a few years ago, management company did not pay our total withholding taxes for 6 months +, our union dues, our RE taxes, etc - This eventually cost us at least $300,000+; Our former accountant and certain board members said they knew about the withholding taxes but did nothing about it - the Union dues not being paid was a secret and in minutes said it was because of not paying for the guards which was not true. All I know is that the management company had all our money and by contract was obligated to pay our bills, especially withholding taxes,
RE and union dues. I don't know if putting the money into escrow helps, it all depends who has access to that account. When management does not pay the bills and the building has the money where did that money go, but our coop would not sue the management company. I definitely believe that they should have been sued because we not only had to pay what was owed but interest and penalties and with 32BJ that is over 100% - I believe you have to go through the managements insurance company - but they definitely should be sued. Unfortunately there is no agency that will help in this situation; getting NYS to license management companies would be a big plus; now they are only licensed as RE brokers