contents  chapter  previous  next

Owner of Aurora HOA management company allegedly diverted funds, state officials say
Denver Business Journal
Alexander Kalina
18 December 2015

The owner of an Aurora-based community association management company voluntarily surrendered his license after there were complaints he was diverting homeowner association funds for his personal benefit, the Colorado Division of Real Estate announced Friday.

David W. Martin is the owner and designated manager of PMG Enterprises Inc., a community association management company. The company’s license was also surrendered to Marcia Waters, director of the Division of Real Estate, which is part of the Department of Regulatory Agencies.

The division said in an announcement that it had received numerous complaints from consumers serving as board members of their homeowners association alleging Martin used HOA funds for his personal benefit.

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, the division said.

PMG Enterprises Inc. and Martin managed up to 13 HOAs. The division said an 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.

Then, he allegedly wrote unauthorized checks payable to PMG Enterprises or other payees, the division said.

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, the division said.

“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,” Waters said. “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.”

—†—

Division of Real Estate removes non-licensed HOA manager

Denver Business Journal
By: Monica Mendoza
23 December 2015

For the second time this month, a community association manager has been ordered by the state to stop doing business.

The Director of the Division of Real Estate ordered Ronald A. Valiga, owner of Homeowners Management, to immediately cease and desist from engaging in the business of community association management.

Homeowners Management Inc. also does business as Hallmark Management.
The Division of Real Estate, which is part of the Department of Regulatory Agencies, had received complaints alleging Valiga and his company were not licensed with the state but still had signed a contract in November to manage a homeowners association (HOA).

Valiga told the division he managed six HOAs, but had not taken the necessary steps to become licensed, which includes pre-licensing education, sitting for the state mandated test, and submitting a fingerprint-based criminal history background check to the Colorado Bureau of Investigations.

Lawmakers approved the Community Association Manager Practice Act in 2013. It went into affect in July 2015. Anyone who engages in certain defined activities of a “community association manager” relating to the management of a common interest community like an HOA is required to get a license issued by the Division of Real Estate.

The division began receiving complaints about management associations in July and began several investigations. Earlier this month, the owner of an Aurora-based community association management company voluntarily surrendered his license after there were complaints he was diverting homeowner association funds for his personal benefit, according to the Division of Real Estate.

“Today’s action shows the Community Association Manager Practice Act, which was the result of legislation passed by the Colorado General Assembly and signed into law by Governor Hickenlooper in 2013, is working for the benefit of the Colorado consumer,” said Marcia Waters, director of the Division of Real Estate. “If an HOA has a management agreement in place to pay a fee for services of an unlicensed community association manager, that management agreement is void and unenforceable for any period in which the manager does not have a valid license.”



top  contents  chapter  previous  next