VA Blog Update AUG 21 2012

Question: Does anyone care?

Shareholders elect a BOD. The BOD is supposed to act for and protect Shareholders. When ‘bad’ things happen, Shareholders must act. If Shareholders don’t act, they are fools. 

Bad things are happening at VA. Our financial circumstances are not clear at best. The recent Annual Statement is a joke. It appears money is missing. The BOD and/or Vision refuse to provide information and answer our questions. Or perhaps they don’t know and don’t care. 

We are paying for ‘legal fees’ that seem to be personal costs and to protect Vision Enterprises (Peter Mesos.) We are paying other costs and expenses without requested explanation and/or authorization or consent. 

Not all Shareholders pay the same amount.
What?      Some pay less???        Yes! 

RE Taxes, utilities, water, union, union pension, etc. costs are increasing sharply. I am told we need roof repair/replacement. We face huge expenses to comply with local law #11. Our financial condition is disastrous (my opinion). Assessment, surcharges, etc. only partially disguise the problems we face. There are other outrageous fees, surcharges, expenditures, rules, regulations, etc. Attempts to get information about what is happening to our money were met with, “None of your business”. (A more polite way of saying,”GFY”.)

From Shareholders: There is no outcry for action.  Most Shareholders don’t appear to care or have any interest. Most Shareholders seem to be placid and ‘sheep like’. (Ideal victims.) 

*Note: The prior payments were made by instruction of the BOD and Vision Enterprises. Current payments are paid (?) by the current Management Company. The lawyer, BOD and both management companies are ‘bound’ by ‘fiduciary responsibilities’. The problem is the BOD hires the employees (Lawyers, Management, etc.).

The blog is to provide a forum, information center, Shareholder newsletter and act as an advocate for Shareholders. The Shareholders committee (VASC) should review what Management, the BOD, employees, etc. are doing.  

Economic crime involving Co-ops now exceeds one billion in NYS. And it is growing rapidly because Co-op Shareholders are ideal victims. The Queens DA Office informed me economic crimes involving Co-op/Condo Property Managers, Lawyers, service providers, vendors, etc. will be ‘handled’ and coordinated by the NYS Attorney General.  

“If you see or suspect something wrong, report it.”  The refusal of the BOD to provide requested information makes many believe very ‘bad stuff’ is happening.There are laws to protect Shareholders. Sadly, there are no laws against Shareholder stupidity.  

Attached is a letter to request information. Please write a similar letter and e-mail requests for information. We need records. If we suspect ‘wrongdoing’ or attempts to hide ‘bad stuff’, the NYSAG needs records. 

Attn: Jill Schachter                                 August 13, 2012

54-44 Little Neck Pkwy Little Neck, NY 11362

To: President and Members of the Board of Directors, Valerie Arms.

I am a Shareholder. I wish to see and review the following;

The Minutes of Board of Directors Meetings for the past 14 months (JUN 2011-AUG 2012).

Contracts and agreements currently in force.

 Invoices, bills and disbursements relating to Assessment #2 and/or Adam Bailey (aka Super Lawyer).

Invoices, bills and disbursement relating to use or payments to others for ‘professional services’.

To MGRE ... It will be appropriate and professional if all the requested documents and records are digitally recorded and can be delivered via e-mail. 

My name and contact info. A copy was sent to Scott Soifer (MGRE). 

Do something! Vasc11362@aol.com

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

VA Annual Meeting Observations

The new Management Company (MGRE) introduced themselves.

 They seem OK, so far. Go to their website: www.mgre.com . 

 Question: They proudly proclaim the NYARM has awarded MGRE the 2011 “Management Company of the year … again”. Who is the NYARM?  Go to: http://nyarm.com . You will discover you can join for $700+ and be eligible for awards and other stuff. Why did MGRE do this? 

The new accountants (WMK&G) told us stuff that didn’t make sense to me. Did they read what they wrote?  They clearly and repeatedly implied the information and data they received is questionable, the Annual Report may not be reliable, but not their fault. They ended by implying VA’s finances are OK or maybe not. I believe our condition is confused at best and possibly nearing KAPUT!

WMK&G’s website is:  http://www.weisbergmole.com  WMK&G does not claim to be Super or Best or Award Winners or anything. It makes them more believable. (Questions were not allowed)  

Adam Leitman Bailey (The Super Lawyer) ran the meeting. He began with a totally inappropriate speech making allegations against Shareholders and pushing for the election of the people who pay him.  More about Bailey’s tirade to come. 

Bailey’s website is: http://www.alblawfirm.com .
 Bailey is ranked in Chambers USA. Chambers USA website:  http://www.chambersandpartners.com/USA . He is also a “Super Lawyer’. Super Lawyers: http://www.superlawyers.com
(*Super Lawyer, Chambers ranking and endless designations, awards, etc. are available for dollars. You can become ‘titled’ and ‘landed’ nobles in England or Scotland for under $50. )

Bailey refused to allow questions from Shareholders. When Shareholders nosily objected and didn’t follow his orders, he became very agitated. He hopped around, repeatedly squawked and screamed and threatened to, ‘Call Security, Call the Police, etc.’ Some Shareholders were outraged, many disappointed and some amused.

Most of the Shareholders seemed like an assortment of ‘nice’ middle-class people, typical average Shareolders, voters, etc. The candidates spoke. The comments of the current Beard Members (BM) seemed similar, orchestrated and rehearsed. When current BMs mention they gave money for ‘free’ food the Shareholders grunted approval. Some mooed. It was dangerous to be near the ‘refreshment’ table to get stuff. 

At that point (approximately 8:40 PM) I 'had it' and left.

Marc reported; Election results; Jill Maggie Barry Alicia Adam

I keep repeating myself. Repeat again:  Albert Einstein – “ Insanity: doing the same thing over and over again and expecting different results”

Re: Comment from Shareholder (nal888)
“ On another subject - Joel we do not need a shareholder committee, we need a dedicated board. That is the shareholders' committee. And no, it should not consist of investors who do not live in the building or shareholders who own multiple apartments. It should consist of those who think of the Valerie as their home, period.”

I agree we need a “dedicated board.” Sadly, our BOD has a sad track record and questionable goals. Question: Why do they refuse to answer our questions? Answer: There are things they want to hide and don't want Shareholders to know.
If you belive what they report to you, you are as gullible and foolish as they think.

We need a Shareholders Committee to keep the BOD, Management, and Staff ‘honest’. We need Shareholders to report problems, make suggestions, etc. We need a Blog, controlled by Shareholders, to provide Shareholders a ‘platform’.  If I misspoke, apologies.

nal888, Thanks for input. I keep asking for help. I need help. Will you help?

More to come ….

Election results: Jill Maggie Barry Alicia Adam

"The people have spoken".

VA 6/19/12 VOTE

It appears the current BOD wants to be elected. The signs posted indicate they are running as a group or clump or something. The silence of Alicia Spiegel, Barry Nelson and Fran Rothkin lead me to believe they agree with and endorse Jill Schachter’s words, actions and behavior. Maggie Warford pleaded for Schachter’s forgiveness and acceptance. So, I assume she stands with the others.

Adam Grynberg, Jasmine Melendez and Mike Ciotta sent us their resumes and outlined some of their intentions. They want to ‘fix’ things.

Jill and Maggie seem to believe the solution for our problems is blame Marc Ullman for everything, call Shareholders names and have parties. (Marc may be responsible for the economic crisis in Greece, wildfires in Colorado and Chernobyl) Marc stated he is not a candidate. 

We have major financial and management problems. Hopefully, the new management company will help. We also need a new and better BOD. Blaming others and being nasty is no solution.

*Personal note: I like ‘fix’ and nice better than blame, nasty and angry. 

Repeat: Einstein: 'Insanity is doing the same thing, over and over again, but expecting different results.' 

Problems: Our financial condition is a ‘mystery’. We are spending more money than we take in. We face huge expenses in the near future and have no plan. We are wasting money on ‘nonsense’ and giving away Shareholder money. We refuse to keep Shareholders informed. (What are they hiding?)

And ... Why do we OVERPAY for everything?

A major problem and source of our problems is you and me. We, Shareholders, are failing to do our job.  A co-op/Democracy works only if Shareholders/citizens do our job. We are failing. We are lazy, ‘sheep-like’, misguided, misled, and stupid and/or a combination of all.  We must be involved.

We need improvement! 

I thank all the Board Members, past, present and future for your time and efforts and all the good things you did, are doing and will do. I admonish you for all the nasty, petty, stupid and bad things you did, are doing and will do.

We need improvement! 

Vote wisely.

Important! The Valerie Arms Shareholder Committee and Blog can be valuable. We need finance communication, house rules and other committees to monitor what is happening, etc. I am a non-resident Shareholder. I need you help with the Blog. I will help. It is easy and can be fun. Please contact me.    Joel

Update JUNE 18 Election 2 DAYS

Update JUNE 18 Election 2 DAYS 

We finally received the Annual Financial Statement (months late) from WMK&G. WMK&G notes they rely upon information from previous accountants and the Management Co. Translation is they are not responsible for faulty/false information they were given. The missing money, missing information, unauthorized spending, etc. is not their fault. The jump in ‘Professional fees’ from $20,403 to $97,900 is not explained and needs explanation.

Who recommended WMK&G? How much are we paying them? How many other firms did we interview? Did we negotiate? Are we fools or simply naive?

VA has been Managed (I believe) since inception by VE (Vision Enterprises). That means Mesos and associates. VE has influenced and controlled the BOD (Board of Directors). VE and the BOD is riddled with conflicts of interest, self-serving decisions. VE (Mesos, etc.) control a bunch of shares and continues to control people on the BOD. I assume he (they) have very good reasons for starting to ‘walk away’. Hmmm!

The BOD obviously needs a lot of improvement.  

The job of the BOD is to act for the benefit of all Shareholders. They hire Management, Staff, authorize expenditures, sign checks, etc. Most important; they must be skeptical and suspicious.

The job of the BOD is to take full responsibility for their actions and inactions. Perusing personal vendettas, ‘wacko’ ideas, soliciting ‘kickbacks’ or personal advantage and/or agendas, etc. is 100% wrong. Being on the BOD is not a place for therapy, emotional or social gratification.  

The new BOD must stop giving away our money. Shareholders must be informed and our questions answered. The new assessment for ‘legal stuff’ is outrageous. Sublet/investor surcharges (24% of maintenance) are outrageous. Insulting, threatening and telling Shareholders, “None of your business”, Is bad, wrong, not acceptable and not healthy. We need much better.  

A good Management company will advise and guide the BOD. A good Management Company will supervise VA’s employees professional staff, porters, handymen, super, contractors, etc. They all work for Shareholders. We don’t work for them. Pandering to employees is silly and counterproductive.

Do you know much a 32BJ employee costs VA each year? (More than the income of some Shareholders). 

Like Greece, Spain and other ‘basket cases’, we apparently spend a lot more money than we take in. The EU, US Treasury or any bank with a ‘brain’ will not lend to us. At some point, we will be ‘kaput’. We must reduce spending. We must become financially responsible. I have been informed (I hate rumors) some ‘insiders’ (BOD members and ‘concerned Shareholders) are trying to sell their apartments. Mesos is not a ‘dummy’.  The BOD will be left ‘holding the bag’.

Hopefully, our new Management Company will do a good job and help produce a better BOD.

Who should you vote for?

Albert Einstein: 'Insanity is doing the same thing, over and over again, but expecting different results.'

Obviously we need improvement. 

Shareholders Committee and BLOG.

VA needs a Shareholder’s Committee to monitor what is happening, inform and protect Shareholders and to analyze, audit and monitor the BOD and Management.

The same people will maintain vasc11362@aol.com and our BLOG.

I will help, but I need help. Please contact me. Joel 

Important! Re-read past comments (Shareholder input).

Repeat: Shareholders Committee and BLOG.

VA needs a Shareholder’s Committee to monitor what is happening, inform and protect Shareholders and to analyze, audit and monitor the BOD and Management.

The same people will maintain vasc11362@aol.com and our BLOG.

I will help, but I need help. Please contact me. Joel

Please help save our homes and investments. Please help make Valerie Arms a better place.

Annual report I 6/15/12

(From a person or Marc who is NOT running for the BOD but is trying to save Valerie and correct a lot of very bad stuff.) (Minor editing.)
We received our 2011/2012 financial reports. They were supposed to be for 2011. Headings say 2011. Footnotes reveal VE (Vision Enterprises) included data through May 29, 2012. And .. Is the information truthful or accurate? Obviously the data/information is corrupted, faulty and suspect. These are auditors chosen by Jill Schachter. ???

Bottom line: We need Jill to explain. Sadly, the answer will probably be the usual “NONE OF YOUR BUSINESS”.

Shareholders: Please read the financial report very carefully. It appears the auditors are burying info. in the footnotes to escape notice and hide discrepancies/errors.

Two footnotes are noteworthy (red flags).

1. Footnote 8 states that "Management discovered" that it had failed to collect $15,000 in parking fees and $10,000 in gym fees. These funds have been included in the 2011 income. They were never collected. LIE! (Management says they hope to collect.) ????

a. "Management discovered" the missing money. BAD JOKE. I (Marc Ullman) discovered that Management was not paying us the money we were entitled to for the parking lot. This was brought this to the Board's attention in March of 2011. This started the questions about what Vision and Peter Mesos were doing with our money. Jill Schachter has been fighting to cover this up for almost a year -- and spending incredible amounts of our money to support the cover-up.

b. Gym Memberships are $150 a year. Did Management ever bother to bill anyone for the gym or is the $10,000 number made up just to hide how bad the problem is with the parking lot?

c. IF VISION WILL ADMIT TO SCREWING US OUT OF $25,000, HOW MUCH MONEY ARE WE REALLY MISSING? Cockroach Theory - You see one there are many many more.

2. The last item on footnote 1 says that "Management" included some items on the financial reports through May 29, 2012. We don't know exactly what items these were or how "Management" decided what to include, but a couple of things are obvious:

a. The "professional fees" of $97,000 certainly seem to be inflated by including bills from Super Lawyer Adam Bailey for 2012. This does several things including (i) making it look like we spent an insane amount of money on lawyers in 2011; (ii) justifying the never-ending assessment No. 2 that is used to feed the Super Lawyer’s insatiable appetite for legal fees ; and (iii) reducing whatever the real 2012 number is when we get our next financial statement because those expenses have already been charged to 2011.

b. Our income is inflated because it includes $25,000 that "management discovered" it didn't bother collecting on the parking lot and the gym.

Other information that the BOD does not want you to have: we paid our old lawyers, Schechter & Brucker $20,000 in 2011 before they were fired for asking questions about what Peter Mesos was doing with our money. We paid our former auditors Marin & Montanye $12,000 before they were fired when they wouldn’t let the Super Lawyer tell them how to audit our books – so we paid them $12,000 to do nothing because it was the only way to get them to stop asking questions. That leaves $65,000 for Jill to explain.

The election for the Board is only a few days away. We did not get the 2011 Financial Statement until June 13 for a reason – you are not supposed to have time to read and understand it. The only way we can protect ourselves as shareholders is to take the time and review this document to the best of our abilities, ask questions and demand answers on June 19. We’ve had enough

4 DAYS TILL ELECTONS - ASK A BOARD MEMBER

 "FOUR DAYS TILL ELECTION DAY - ASK A BOARD MEMBER THESE QUESTIONS"

The questions that need to be addressed at the meeting are as follows:

1. How was the Co-Mingling of Funds STOPPED? What actions were taken to discover and correct the Co-Mingling of Funds? Was the money replaced into our bank accounts and where did the money come from? Is this money being held in a separate escrow account?

2. Where are the funds of $ 40,000 coming from for the repair of the pool, since the Board minutes clearly stated that funds were not available in the Year 2012 to repair the pool?

3. What is the current percentage/ratio of sublets versus owner occupied apartments? Have we reached to maximum sublet amount in order to be able to re-finance our mortgage in two/three years? Is this a real issue or contrived to justify extraordinary sublet fees?

4. What is the five year plan for our buildings? Is there a plan?

5. When will Assessment #1 for the hallway renovation stop?

6. What is the projected ending date of assessment # 2 and how much money needs to be collected in total for assessment # 2 known as Legal Fee Assessment? Is there a separate bank account for assessment # 2? Why are Shareholders paying BOD expenses?

7. How much in Legal Fees have been spent since July 1, 2011 thru June 15, 2012?

8. Was the new Management Company though roughly vetted? How much is their yearly contract for to manage our buildings? What experience do they have?

9. Why did the Board fire CPA - Marin & Montanye? How much retainer fees were given to them for no services provided?

10. The Board states they hired a new accountant and a forensic accountant. Note: Any reputable CPA firm is able to conduct AUDITS, REVIEWS and COMPILATIONS according to GAAP (Generally Accepted Accounting Principles). Why do we need a new accountant to audit the books and then a forensic accountant to review audits? This is double work and money being thrown away.