Wally Siggers : " I did stay at JRC four times without paying."
March 31, 2014
March 31, 2014
(While serving as president of our association)
Operational Investigation in Regards to Potential Illicit Activity by Walter Siggers and George Dirner.
Compiled by Hanson Akerman
CAM#41648
Abstract
The discovery of a file folder in the Jupiter Reef Club Condominium Owners Association office raised questions of misconduct and/or illegal activity that required myself, Hanson Akerman, to investigate on the basis of my fiduciary duty prescribed to me via my licensure as a community association manager in the State of Florida.
After a cursory investigation, it became clear that more thorough fact finding would be required. The potential for items such as misappropriation of association property, collusion with staff, unlicensed activity, and material lack of disclosure required that I seek guidance from a higher authority.
I have compiled the following facts in good faith, and to the best of my knowledge and belief, all are presented fairly and in accordance with supporting documentation.
After a cursory investigation, it became clear that more thorough fact finding would be required. The potential for items such as misappropriation of association property, collusion with staff, unlicensed activity, and material lack of disclosure required that I seek guidance from a higher authority.
I have compiled the following facts in good faith, and to the best of my knowledge and belief, all are presented fairly and in accordance with supporting documentation.
Table of Contents
I. Circumstances
II. Relevant Policies
III. Material Damages
IV. Material Lack of Disclosure and Potential for Collusion
V. Ownership and Rights-of-Use
VI. Closing Statement
Circumstances
On March 25th, 2014 a file folder was discovered in the Jupiter Reef Club Condominium office. This particular file folder contained several documents detailing two stays in units at the condominium by Walter Siggers. Once in unit D-12 week 31, 2010 and once in D11 week 44, 2011. Mr. George Dirner accompanied Mr. Siggers in unit D-12 week 31 2010. No monies were received in connection with these stays.
The exact producer of the file folder is not certain, but clearly it was compiled by someone with administrative access to the condominium’s records, and had some level of dealings with the condominium’s rental inventory. Included with these papers was a report generated for the purpose of detailing stays of Board members at the Reef Club.
Both Walter Siggers and George Dirner were serving on the Board at the time of the stays. Walter Siggers was serving as president during both stays.
The exact producer of the file folder is not certain, but clearly it was compiled by someone with administrative access to the condominium’s records, and had some level of dealings with the condominium’s rental inventory. Included with these papers was a report generated for the purpose of detailing stays of Board members at the Reef Club.
Both Walter Siggers and George Dirner were serving on the Board at the time of the stays. Walter Siggers was serving as president during both stays.
Relevant Policies
There is no standing policy at the Jupiter Reef Club allowing for the use of any unit by the Board of Directors without compensation. Clarification can be found in the minutes of the February 5th, 2013 meeting and the February 15th, 2012 meeting. During both meetings, it was stated that the compensation for out of town Directors is “two nights in a hotel at a maximum of $150/night per meeting”. George Dirner and Walter Siggers were present at both these meetings.
Material Damages
The record indicates that D-12 week 31 has a flawless record of being rented consistently for at least a decade. The second unit D-11 week 44, only involving Mr. Siggers, had not been delinquent long enough to establish a clear rental history. Unit D-11 week 44 was sold recently, and all arrears were charged to bad debt. Rental monies received would have been applied to the account of the unit owner and would have been direct and immediate income to the association.
The fiduciary responsibility of every Board member is mandated by state law. The willful breach of this responsibility or any regulation, rule, or law can cause irreparable harm to the association including its reputation, well-being, and culture.
The fiduciary responsibility of every Board member is mandated by state law. The willful breach of this responsibility or any regulation, rule, or law can cause irreparable harm to the association including its reputation, well-being, and culture.
Material Lack of Disclosure and Potential for Collusion
An e-mail by a Board member on September 4, 2012 indicates a clear line of questioning into unit stays for Board members. Facts indicate that, although information was compiled by administrative staff for the October 27th, 2012 Board meeting in this regard, such facts as they should have been made available were not disclosed.
The fact that the report was never made public and the fact that hand-written notes on the official record indicate attempts by staff to obscure records of the stay in unit D-11 week 44 lead to the potential for collusion.
The potential for material lack of disclosure and collusion is compounded by the fact that multiple Board members at the time, week 44 2011, stayed on the property legitimately: either through RCI exchanging, renting, or owning. One very particular point of concern is that Mr. Vincent Augello, a Board member at the time, was required to pay rental fees for a “lockout” rental, while Mr. Siggers and Mr. Dirner were not. Mr. Vincent Augello is an out of town Board member who travels from Cape Coral to attend meetings. Cape Coral is 150 miles from Jupiter.
The fact that the report was never made public and the fact that hand-written notes on the official record indicate attempts by staff to obscure records of the stay in unit D-11 week 44 lead to the potential for collusion.
The potential for material lack of disclosure and collusion is compounded by the fact that multiple Board members at the time, week 44 2011, stayed on the property legitimately: either through RCI exchanging, renting, or owning. One very particular point of concern is that Mr. Vincent Augello, a Board member at the time, was required to pay rental fees for a “lockout” rental, while Mr. Siggers and Mr. Dirner were not. Mr. Vincent Augello is an out of town Board member who travels from Cape Coral to attend meetings. Cape Coral is 150 miles from Jupiter.
Ownership and Rights-of-Use
It was the case in both stays that the units in question were available as “lockout” rentals pursuant to Florida State Statute 721.13(6). The association holds no ownership in the units. The intent of this statute is to allow for the rental of an owner’s timeshare interest due to delinquent assessments. It is a statutorily permitted means by which to recover the association’s bad debt. State Statutes 721.13(5) and provisions of 721.13(6) define the requirements of transferring or renting such inventory of a timeshare. Respectively they require that no member of the association, management, or any agents thereof may misappropriate property or funds of the association, and that a commensurate rental rate must reasonably be sought by the management entity for such inventory.
During the time at which both these stays occurred, no Licensed Community Association Manager (CAM) was employed by the Jupiter Reef Club. Florida State Statute 721.13(1) details the requirements of timeshare management entities. A CAM license is required by any employee controlling the funds or property of an association, or one whom has the authority to do so. There were no authorized personnel to handle these affairs besides the Board of Directors.
During the time at which both these stays occurred, no Licensed Community Association Manager (CAM) was employed by the Jupiter Reef Club. Florida State Statute 721.13(1) details the requirements of timeshare management entities. A CAM license is required by any employee controlling the funds or property of an association, or one whom has the authority to do so. There were no authorized personnel to handle these affairs besides the Board of Directors.
Closing Statement
I am required to investigate any potential of fraud or theft at the association, and subsequently disclose my findings to the appropriate authorities. The facts, as presented, sustain a strong and reasonable suspicion that wrong-doing occurred. My fiduciary duty requires me to take whatever action is necessary to protect the Jupiter Reef Club and the best interests of the owners. It is not up to me to determine whether criminal or civil charges are filed.
