Two arrested in multi-million dollar fraud scheme at Hallandale Beach condominium
The Sun Sentinel
By Joe Kollin
24 May 2007
Two people were arrested Wednesday and two others were being sought in
connection with an alleged kickback scheme at a Hallandale Beach condo
that may have cost apartment owners up to $4 million in unnecessary
assessments, police and condo officials said.
The warrants charging the four with fraud should serve as a warning
that those caught with their hands in associations' treasuries face
arrest and criminal prosecution, state and city officials said.
"I hope we're sending a clear message," said state Rep. Joseph Gibbons, D-Hallandale Beach.
if they are willing to do a little digging,
police will stop brushing off their allegations as civil matters and
start investigating them as crimes
The case also should show condo owners that if they think their
directors are misspending their money and if they are willing to do a
little digging, police will stop brushing off their allegations as
civil matters and start investigating them as crimes, said state Rep.
Julio Robaina, R-Miami.
Surrendering Wednesday were Ira Silver, 62, of Fort Lauderdale, a
plumbing contractor; and Robert M. Hittner, 58, of Cooper City, a
veteran state-certified community association manager. Hittner worked
for the Condominium Association of Parker Plaza Estates, a 520-unit
high-rise in the 2000 block of South Ocean Drive.
The two were charged with organized fraud and released on $25,000
bonds. The charge carries a maximum sentence of 30 years and a $10,000
fine.
Hallandale Beach Police Detective Eric Williams said two unidentified
suspects are being sought. Warrants against additional suspects are
possible later, he said.
The alleged scheme involved association representatives requiring
contractors to kick back a portion of what the condo paid them for
various services. Those amounts were added to the cost of the work.
The catalyst for the two-year investigation was a previous board's
attempt to assess owners $14.3 million to replace windows with impact
glass, according to Robert Fisher, former president of the Parker Plaza
association, and current president Donald Pinkus. Several upset owners
began digging and found discrepancies in the books.
When the original board wouldn't respond to complaints, the owners recalled it.
A $14.3 million job was done for $5.5 million
The next board, with Fisher as president, "started uncovering more
improprieties and that led to today," Pinkus said. It replaced the
windows for $5.5 million, he said.
By the time all the problems are uncovered, Pinkus said, the total amount misspent could reach $4 million.
"I was a Hallandale Beach commissioner when [newly elected] association
people came to me," Gibbons said. "They were very frustrated because
these kind of cases are difficult to prosecute, they require lots of
documentation and proof."
"Police said they get complaints all the time but considered them
mistakes made by [volunteer] directors," he said. "I said no, some of
these are valid, that they are white-collar crimes."
Robaina this year persuaded Miami-Dade State Attorney Katherine
Fernandez Rundle to set up a pilot program to teach police and
prosecutors that complaints from unit owners may be crimes.
Detectives from 11 Miami-Dade police departments, along with some Broward agencies, attended a Jan. 10 training session.
One result was a checklist that detectives could give unit owners, Robaina said.
"Detectives in Broward County and Palm Beach County have been calling
us because they know we're pushing this and we're helping them in any
way, shape or form we can," he said. "We're all working with each
other."
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