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i had read in a couple recent coop publications where the embezzlement of the coops funds by the managing agent would not hurt the coop since the coops insurance will make it whole. Are there stipulations that the coop has to meet, such as some involvement in the finances, or is it open ended?.
Also the president or manging agent has been informing the other BOD that there IS insurance coverage to make the coop whole if a board member embezzles. I have been telling them the opposite and trying to get them to perform some due diligence, fiduciary duties.
I thought that NY state insurance laws prohibited coverage of BOD thefts of coops shareholders monies.> This would be a perfect point of law to bring up with the AG , stating that every coop shareholder that wants access to the electronic banking records of the coop, should have real time access to them.No copies of forged deposit slips or any forged paper documents that the same person who has been fighting transparency , would use to state that they met the requirements of the financial disclosure
I also had informed a new board member and a board member that was moving, to physically check,no photocopies,on the insurance for their D&O insurance, one type covers acting BOD members, the other covers the ex-BOD even when they had moved away.
We had two management companies that with the help of certain board members and accountant embezzled massive funds from our coop - Nothing was done by the board to collect since most of them were part of it etc - We had another management company that possibly embezzled and the matter was put to the insurance company which did pay, however in this instance the management company has already been convicted of this by many coops -
What I believe you are talking about is fiduciary insurance. We had it when our managing agent embezzled funds from our corporation. Ours was for a certain amount and did not cover the complete loss, only about half the amount. We've since upped the amount but you pay "x" amount of dollars for "x" amount of coverage and I believe there was a deductible.
How long do you think the insurance company is going to keep paying; they will raise our fees and at the end we pay for it. In my coop the management company was a company of the sponsor (remember the landlord who converted his building to coop to avoid NYC rent regulations of the 70's). One day, we manage to removed the president for life, and when the new president questioned why some checks were being paid from our coop accounts, the management company cancel our contract immediately (but only for the shareholders, they are still here managing the renting business of the sponsor who still own more than 50% of our coop). We are Americans without home rights. A home is a human right. Yes we need to keep fighting to get our freedom but we can only do it together. NO WE ARE NOT THE SAME PEOPLE. That is what politicians try to tell us "you are an isolated incident". Why don't you take a look of our website COOPABUSE.COM so you can see by yourself. As a matter of fact every time I post something I get a few emails from abused shareholders who join our cause. As a matter of fact we are looking for a lawyer to take our class action case against the estate and maybe attorney general because we are the only American who has no right to protect our home in bankruptcy court, housing court and they failed to act no matter how much we complained. Maybe they will listen to us in court. Any lawyer or anybody who wants to know more about us email me at ROSA.NAZAR@GMAIL.COM
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You can be certain that boards pay top dollar for insurance to protect themselves especially knowing that they take kickbacks and are destroying their building. I wonder if you go directly to ins. company with evidence - would they prosecute??
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