Community Association Manager surrenders license
Staff with the Division of Real Estate received numerous complaints from consumers serving as board members of their homeowners association (“HOA”) alleging Martin diverted HOA funds not belonging to him for his personal benefit. Furthermore, the complainants alleged Martin attempted to cover-up the theft by providing board members with bank and financial statements that had been altered to conceal the missing money.
PMG Enterprises, Inc. and Martin managed up to 13 HOAs at any given time. The investigation found that after Martin executed a management agreement with an HOA, he would allegedly add his name as a signor on the signature card of the HOA’s operating account without the knowledge of the HOA. Martin would then write unauthorized checks payable to PMG Enterprises or other payees. In the case of one HOA, Martin allegedly wrote 62 unauthorized checks, of which 33 checks were payable to PMG Enterprises in the amount of $55,500 dollars.
“We take all complaints that we receive seriously, but the ones alleging the mismanagement or theft of someone else’s money are among the most serious complaints,” says Marcia Waters, Director of the Division of Real Estate. “Our goal is to ensure that community association managers are properly licensed and competent to safeguard the moneys of Colorado consumers choosing to live in a neighborhood governed by a homeowners association.”
As of July 1, 2015, anyone who engages in certain defined activities of a “Community Association Manager” relating to the management of a common interest community is required to obtain a license issued by the Division of Real Estate.
Only individuals holding a pre-licensing credential, successfully passing the state mandated test, completing a fingerprint-based criminal history background check and meeting the insurance requirements of having in effect both errors and omissions and crime fidelity insurance policies will be issued a license. Additionally, licensed CAMs will be required to obtain continuing professional education before renewing their license.