Rip-offs + VA

Co-ops are ‘gold mines’ for thieves, embezzlers and endless varieties of crooks.

VA (Valerie Arms) has cash flow of millions of dollars (approx. $3million). Besides mandated costs (utilities, taxes, water, etc.) we have many ‘flexible or variable’ expenses. This includes repairs, improvements and “urine wine and cheese parties”. Irregular or ‘special’ expenditures (above a limit) require a recordered BOD vote.

 

Co-ops are controlled by a BOD (Board of Directors) elected by Shareholders. The BOD authorizes all expenses and disbursements. Usually, two BOD members MUST sign every check. All checks are issued by the MC (Management Company).

Co-ops have money. Money + unscrupulous people = RIP-OFFS

Rip-offs include; ‘Kickback’s , ‘fees’, ‘finder fees’ and ‘commissions’, etc. paid to MCs, Board Members and Superintendants, etc.  All are illegal. They range from 2% of everything to 20% of contracts, goods and services.

Bottom line1: There are multiple ways to ‘rip-off’ VA Shareholders.

Q: Is it happening?

A: I have no evidence, but it ‘smells’ that way.

Q: How and why is it happening?

A: I find a lack of financial knowledge, insight and an almost total lack of interest of financial controls.

A: Multiple ‘conflicts of interest’.

A: A BOD that refuses to provide information.  

A: A BOD that gives ‘none of your business’ responses to Shareholder questions and has an attitude of apathetic ignorance. 
A: Shareholders apathy and apathy. (We are all guilty!)

 

MCs (Management Company) play a very important role for Co-ops. The BODs are not-paid volunteers. They can be teachers, clerks, lawyers,, firemen, housewives, retirees, etc. They usually have very little experience managing multi-family property. BOD usually rely on the expertise, experience, resources and most important, honesty of MCs.

Sadly, ( To the best of my knowledge. I asked. ) There is no City, State or Federal licensing or regulation of MCs. Many MCs (Management Companies) provide the expertise to ‘guide’ the BOD. Many Co-op attorneys, accountants, superintendants, etc. do a good job and don’t continually ‘rip-off’ and laugh at the BOD and Shareholders. 

Many don't!

VA has a ‘not good’ reputation. We are known to have ‘problems’. We now are included with other Vision Enterprises’ troubled Co-ops. VA apartment values and our reputation have been dropping.

Albert Einstein said, “Insanity is doing the same thing, over and over again, but expecting different results.”

Conclusion: The current BOD and associates MUST be replaced.

Vision Enterprises will soon be gone. We have to get our money back. Jill and the BOD refuse to identify or answer questions about the ‘new’ MC. Remember, “None of your business.” We must review.

Action: Do something. Get every neighbor to pay attention, be concerned, vote, etc.