CONDO ARCHIVES

How NOT to Lose $400,000

April 2016

Did you hear about the condo corporation defrauded of $400,000? It was comprised of 15 units.

The corporation employed a property management company and provided them with signing authority on accounts. The management company would provide signed blank cheques with a forged signature.

Tips to prevent this from happening to your condo corporation:

  • Employ a reputable condo management corporation with ACMO 2000 certification.
  • Require two signatures on each cheque. At least one signature should be from a director. Never provide blank cheques to anyone.
  • Review the bank account each month to ensure its balance is as expected.
  • ┬áPurchase insurance that includes coverage for theft from the reserve fund.