Is he in jail right now or was he released?

So what is the difference between him paying $50,000 to "Department of Revenues account for disbursement to his victims" and paying back Greenmeadow itself. If he really want to pay back the association why not do it as part of bail?

how and why does a neighborhood association have so much money?

The neighborhood association doesn't have that much money. The theft was mostly in the form of charges to a credit card that was meant for transactions that require a credit card. As you might know, credit is different from money. In paying the fraudulent bills, the association had that much money embezzled from it, which resulted in a lack of money.

I believe embezzling is taxable income. The IRS and Franchise Tax Board will be in line ahead of the neighborhood association for any restitution. Whenever I look at bankruptcy filings, the IRS is always the largest creditor and that debt never goes away by itself. Where's an unemployed transient going to come up with $65,000 plus taxes anytime soon? He'll never get a legitimate job anywhere near money with a criminal record of felony embezzlement. My condolences to Greenmeadow. All part of becoming financially educated. Unfortunately now I am beginning to have suspicions about all the organizations which have been getting donations from me through the years. Be careful out there.

>>I believe embezzling is taxable income.

Maybe he can get a good accountant to write off the BMW and hair transplant as a 'business expense'.

I'm I missing something here? How can he plead not guilty when he said he did it.

My family grew up in Greenmeadow, the community is a wonderful place to raise a family. Who was the person responsible for hiring this person, and why was he able to gain access to credit cards? In the future, the association should only allow Board members to use the credit card, and the charges should be reviewed by the Board monthly. Mr. Allen belongs in jail, until he pays the association back the 64K. He still should get some jail time, what would he get if he went into a bank used a gun and walked out the door with $64,000 dollars.

His attorney said bail should be reduced because "Allen admitted the crimes and was remorseful", yet at the same appearance he pleads "not guilty".

A Bimmer and hair transplant. Dude is livin' the Palo Alto lifestyle.

Several members of the Greenmeadow Association indicated that Mr. Hamilton, a former resident of Greenmeadow aplogized during last months meeting. Why was a former resident allowed to speak at the association meeting? I assume, though I don't have any proof, that Mr. Hamilton had something to do with hiring this person. I recognize you can't personally hold Mr. Hamilton responsible, he should be doing something to help the association regain the lost revenue. At this point, the association will probably get little if any money returned. He will need the money for legal representation.

If he really is remorseful, he should plead guilty. Use the money he would spend on a lawyer to pay restitution instead.

Most general business insurance policies have a small portion of coverage set aside for theft and fraud. I would assume that the GM association probably have some level of this sort of coverage.

The issue wasn't the person that hired him though. He performed his job well for a year and a half before the first fraudulent purchase. The fraudulent purchases started small and then accelerated only once he realized no one was looking. The problem was in the lack of procedures for auditing what he claimed to have purchased.

Problem wasn't the "lack of procedures for auditing what he claimed to have purchased." That's blaming the vicitm. Problem was an employee that embezzeled funds. Period, no excuses.

>>Problem wasn't the "lack of procedures for auditing what he
>>claimed to have purchased." That's blaming the vicitm. Problem
>>was an employee that embezzeled funds. Period, no excuses.

Of course he embezzled funds - "period no excuses" - but proper over-sight would have limited or even prevented the theft. He leased a BMW off the association credit card! Someone looking at the "raw" credit card report could have seen that after only a month. This wasn't a loophole he slipped through; it was a failure of proper auditing at it's most basic and fundamental level. Accounting 101.

Mr. Allen admitted to the crime. Prosecute him and put him away for as long as possible.

Please consider joining Greenmeadow. We are hurting for members, really need the money and could use some good hardy souls to teach us better controls.

I grew up in Greenmeadow. People can easily complain about the Board, the person who was responsible for hiring the indiviual, and the accounting policies. Since this never happened before, the community wasn't aware that someone like Mr. Allen could easily take advantage of the situation. Passing blame around is simple, the solutions are important so this will never happen again.