$8885 unlawfully withdrawn from Association funds

Checks totaling $8885 were secretly issued to former Board member Julie Handley. More specifically:

1 - Julie Handley was issued three checks: #1711 on 8/17/06 for $3000 signed by Tom Patti and Casper; #1771 on 11/16/06 for $4085 signed by Tom Patti and Casper; #1818 on 1/25/07 for $1800 signed by Tom Patti and Casper.
2 - There is no invoice from Handley to the Association.
3 - There is no claim or justification for reimbursement filed by Handley with the Association.
4 - The minutes do not show that these disbursements were authorized by the Board—pursuant to § 55-79.75.C.

At the Annual Meeting, Association Counsel agreed that a new vote may be needed. He stated that the Board could vote at the meeting—they had the sole authority to settle claims against the Associaition.

Doing nothing is not an option—it leaves the current Board liable for the unlawful actions of others. The options open to the Board are:

1 - Vote to retroactively authorize these disbursements (upon receipt of an invoice and written claim).
2 - Recover the funds disbursed from Tom Patti / CMS Services.

A related issue is the recovery of the additional amount spent for the services of Association Counsel on behalf of Julie Handley and Lynn Thompson. The bottom line is that under Southampton Bylaws, Article VII, Section 1 the Association is not liable for Handley and Thompson's "individual willful misconduct or bad faith.”