President’s Message: The Ceasar Larrach Case is Over

Kim Fuller
President

Hello Residents:

The Ceasar Larrach Embezzlement Case is now over. Associa/DRM and the HOA have signed final Settlement Agreements ending the last 14 months of investigation and negotiations.

On November 13, 2018, we will host two Town Hall Meetings to explain how the fraud took place, over what period of time, and what has been done to improve the process for the future. First meeting will start at 9 am, and the second meeting will begin at 1:30 pm. These meetings will be the same and will be recorded in case you are not available to attend. We will also discuss the budget; future dues increase for 2019 to be $265, and to answer questions.

The meetings will go into detail about the case, but here are the highlights of the case:

Embezzlement Amount                                                          $123,062
Funds recovered from Ceasar Larrach in Restitution             $125,000

HOA Embezzlement Costs:
Attorney Costs- EG&H         $ 12,337
RGL Forensics                     $ 21,190
Insurance Attorney               $   2,499
Staff Time                             $   3,660
Total                                      $39,686
Total known Losses and Expenses         $162,748

Settlement Agreement with Associa-DRM:
One-time payment             $65,000     Paid immediately.
Payments over one year    $25,000    12 monthly payments of $2083.33
Total within one year         $90,000
Total Guaranteed recovery within one year:   $215,000

Service Fee reduction by DRM over 3 years       $75,000
$25,000 per year reduction for 3 years if we continue with DRM.
No Increase in Management Fee for 3 years.

Total Potential recoveries:                                 $290,000
(plus, savings resulting from Management Fees frozen at 2018 contract levels)

Total Potential recoveries:                                  $290,000

Less Known Losses and Expenses:                   $162,748

Net Additional Potential Recovery by HOA:      $127,252