17 JUL BLOG VASC

VA = Valerie Arms. BOD = Board of Directors. PMC = Property Management Company.
In prior blogs, I asked for help. No response. I am a non-resident Shareholder. This blog should be controlled and written by resident Shareholders. Help wanted/needed!

Do we need a VA Shareholders Committee?
You are Shareholders. If Shareholders (you) don't know what is happening and don't get involved, BAD things will happen. Bad things are happening.

We are a Co-op. We vote for a BOD. The BOD is supposed to be non-paid volunteers who act for the benefit of all Shareholders. If they make wise informed decisions, that is good. If they make stupid uninformed decisions, that is very bad. You suffer. The BOD must be watched.

The BOD (in many Co-ops) hires a PMC. The PMC does what is necessary to ‘operate’ and advise a Co-op. That includes guiding the BOD, collecting maintenance, fees, paying bills, handling infrastructure problems, supervising employees, etc. The PMC is also expected to be knowledgeable, competent, and honest, not solicit kickbacks’ and not do the ‘evil’ things some PMCs do.

The allegiance and goal of the PMC should be for the benefit of all Shareholders.

Unfortunately, PMCs are hired by the BOD. This creates an obvious ‘conflict-of-interest’. This is one of the many reasons why an interested, active and skeptical Shareholders Committee is important.

The Annual Financial Statement prepared by WMK&G ‘appears’ to show we have a huge shortfall. We are losing money. We got big problems. And as WMK&G (Accounting firm) imply, the Financial Statement may not be reliable because of questionable data. In addition the financial Statement is not adequate or and not ‘passable’. I assume the BOD voted to ‘accept’ the report which is a reflection of their lack of competence.

We waste money and spend too much on needless expenses. We have ‘significant’ revenue ‘shortfalls’ disguised by ‘assessments’, ‘surcharges’, ‘fees’, etc. We still don’t know about the ‘misplaced’ and/or ‘missing’ money. NYC RE and Water Taxes just went up. The 32BJ pension plan has a giant ‘shortfall’. All our costs will continue to increase.

Non-resident Shareholders surcharges are over 32% of maintenance. That is terrible! Current per share maintenance is $1.38. The surcharge is $.45. According to major PMCs, most co-ops have no charges. The ones that have surcharges range from $5-20 or 5% maximum. (According to one PMC, the amount charged by VA may violated NYS Law) This MUST be changed.
It is wrong!
You are probably aware that the price of co-ops has dropped. It is estimated that VA's outraegous surcharges have reduce VA's marketabilty and dropped the prices by probably an additional 10%.

The BOD is supposed to review and scrutinize the activities of the PMC. This includes reviewing monthly financial statements, bills, disbursements, contracts, etc. Sadly, there is overwhelming evidence that VA’s BOD failed to do their job in the past.

VA’s BOD refuses to answer Shareholder questions, explain and give evidence of ‘expenses’. The BOD is apparently spending Shareholder money for personal whims, expenses, vendettas, ‘memorials’, ‘shrines,’ employee ‘goodies’, etc. (As evidenced by BOD letters, etc.)

Shareholders are paying an ‘assessment (#2) for what may or may not be outrageous ‘legal’ fees. Most Co-ops. (Including VA) have O+D insurance.

See http://en.wikipedia.org/wiki/Directors_and_officers_liability_insurance

And see http://www.insurepro.net/html/directors_and_officers_explained.asp

Jill and the BOD refuse to give us information, present ‘bills’, invoices, etc. It ‘appears’ the lawyer was hired without Shareholder authorization, discussion or knowledge. It ‘appears’ the lawyer was hired for ‘personal’ matters and to promote the election of Jill and the existing BOD.

A ‘remarkable’ and 'inappropriate' letter was sent to Shareholders by the lawyer, dated June 14, 2012. Copies are available. The letter was an attempt to influence the upcoming Annual Elections and to support the person most responsible for hiring and continuing to pay the lawyer.

We want the assessment stopped. We want a complete explanation and disclosure of all payments made. We want all money returned to Shareholders.

The owner of Vision Enterprises is VA’s biggest shareholder. We assume he maintains great influence and control on Ms. Schachter and the BOD who seem to do as they are told.

If you see something ‘wrong’ and/or encounter problems who do you complain to? Got an idea? Who do you tell? Is something wrong? What do you do? We need a Shareholders Committee.

The value of a Shareholder’s Blog is to provide a forum, bring matters to Shareholder’s attention, provide information and provide communication for the BOD and PMC and Shareholders.

I am a non-resident Shareholder. I have repeatedly asked for help to maintain this Blog and keep the VASC alive. Residents should know what is happening and what affects your homes. I don't know what you know. Please help!

Bottom line: I need help. We all have a responsibility. If you do nothing, every bad thing that has happened and will happen is your fault.

Please contact me. The blog and Shareholders Committee needs help to continue.


joel                  vasc11362@aol.com