Stout was engaged to review and analyze financial information following allegations by board members of a large homeowners’ association that the property manager, employed by an outsourced management company, had misappropriated assets.
Stout personnel identified multiple methods through which the property manager personally benefited from over $600,000 in association assets. These included depositing checks payable to association vendors into the property manager’s personal bank account, incurring personal charges on association credit cards, personally benefiting from debit card transactions and ATM withdrawals linked to the association’s bank accounts, and receiving direct disbursements from an association bank account.
Stout documented its findings in the form of a written report, which the outsourced management company utilized in making a claim against its insurance policy.