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.
- Purchase insurance that includes coverage for theft from the reserve fund.