Board members received $7085 without authorization

Joe Smith and Enver Masud visited CMS Services on August 21 and obtained documents that show the following:

- August 17, 2006: Julie Handley received from CMS a Southampton check number 1711 in the amount of $3000—with neither an invoice to Southampton, nor authorization by the Board.

- November 6, 2006: Brian J. Moran, P.C. submitted an invoice for "Professional Services" to Julie Handley and Lynn Thompson in the amount of $7085.

- November 16, 2006: Julie Handley received from CMS a Southampton check number 1771 in the amount of $4085—with neither an invoice to Southampton, nor authorization by the Board.

- January 16, 2007: Stephen R. Pickard, P.C. submitted an invoice for "Expungements" to Julie Handley and Lynn Thompson in the amount of $1800.

- January 25, 2007: Julie Handley received from CMS a Southampton check number 1818 in the amount of $1800—after a three minute Executive Session in which the Board “resolved to satisfy the request for reimbursement of legal fees.”

A June 30, 2006 letter from Rachel C. Plzak, Bond Claim Representative, St Paul Travelers, states: "based on the information provided to date, there is a question as to whether the conduct complained of stems from their capacity as members of the Board of Directors. To the extent that the complained of conduct stems from actions taken outside the scope of Ms. Thompson's and Ms. Handley's capacity as members of the Board of Directors, coverage would be disclaimed."

On July 18, 2007, after we began inquiries, the Association's attorney, David S. Mercer, wrote to St. Paul Travelers seeking reimbursement of $8085 (actual amount paid was $8885) for payments to Ms. Thompson and Ms. Handley.