L.M. from Broward County, Florida writes:
Dear Mister Condo,
The president of the association was arrested recently for providing a fraudulent insurance policy to a bank that he was trying to get to loan from. Can he continue to be in charge? No one knows of this and I’m debating what to do.
Mister Condo replies:
L.M., arrest of an association president for fraud is certainly cause for concern. Of course, I am assuming he hasn’t been convicted yet and there is always the chance that the fraud charge is a misunderstanding. Even though you are the only one who seems to know of this, there really isn’t too much you can do without putting yourself at risk of a slander or libel lawsuit, especially if the charges are dropped or no conviction is made. My advice is to keep a close eye on the situation. If there are public records on the matter, you may be able to share those with other Board Members and suggest the President step down or resign. Your association also has the power to recall any Board member, including the President, but you must follow the rules for doing so. If the association has been harmed by the President’s actions, that is another matter altogether. If association funds are missing or if the fraud was against the association, your governing documents likely give the Board the ability to remove the President. As of right now, you haven’t indicated that the association has been harmed. In other words, this is a private matter. Best to keep it that way until/unless it affects the association. Good luck!