WRONGDOING #6
Bookkeeping-Terri Giles Rips Us Off

Terri Giles has been the Association?’s Bookkeeper for many years. In the past five years, Circle C homeowners have been charged the following amounts for the bookkeeping services provided by Terri Giles.

2004 ?– $78,505
2003 ?– $66,515
2002 ?– $58,779
2001 ?– $51,423
2000 ?– $45,443

Other association management companies charge bookkeeping fees based on the number of the homes in the associations, but Terri Giles charged the bookkeeping fees based not only on the number of the homes in the CCHoA, but also on the number of the builders?’ lots where the houses were just under the contracts for construction and/or were still under construction. Terri Giles has practiced this for all these years with the full knowledge and approval of Steve Bartlett, the Vice President of the Association.


Steve Bartlett is a ?‘Financial Genius?’

In order to maximize the association assessment (association fees), Steve Bartlett made the builders pay association fees on the lots which were either just under contract and/or on the lots where the houses were still under construction. In other words, homeowners were charged homeowner association fees way before they even became homeowners. Homeowners would only become homeowners at the time when the ownership of the house was transferred from the builder to the homeowner at the close of the escrow.

Remember this: In order to be able to build houses in the subdivision, builders let the Developer and/or the Association charge whatever they asked for. And of course, the builders would add the expenses, whether they are legitimate or outrageous, to the cost of the houses. So, who are the real victims? YOU and ME ?– the homeowners!

Because CCHoA charges association fees on both the homeowners and the builders?’ lots, Steve Bartlett believes that it is justified for Terri Giles to charge bookkeeping fees on the builders?’ lots as well.

I don?’t know exactly why Steve Bartlett did this to maximize Terri Giles?’s compensation, and I also don?’t know what their relationship is. But I strongly suspect that the Developer and Steve Bartlett have probably received something from Terri Giles in return either in the form of cash or services. For example: Maybe the Developer and Steve Bartlett?’s companies have received ?“free?” bookkeeping services at the expense of Circle C homeowners.

I also suspect that there is another reason why Terri Giles was being rewarded by Steve Bartlett. Remember that ?“overcharged homeowners?’ association fees by deception?” I had discovered in February 2001? Since Terri Giles was the one handling all these assessments, she was being rewarded for her collaboration.

Even though Terri Giles is CCHoA?’s Bookkeeper and her compensation is higher than a full-time accountant, our 60-70% Accounts Payable was handled and funneled through Alien, Inc., a Developer?’s company, which cost the homeowners an extra 10% - a profit to the Developer designed by Steve Bartlett who was the President of that company.


HOW TO ASSESS DAMAGES IN THE LAWSUIT:

It is illegal for Terri Giles to charge bookkeeping fees on the builders?’ lots, and therefore, we should be able to recover the bookkeeping fees that Terri Giles has fraudulently charged on those lots for the last four years as the law allows.

Homeowners should also be able to recover that 10% ill-profit from Alien, Inc.

In addition to the above, we, the plaintiffs, could also recover Exemplary Damages.

Some Final Words



In early 2001, I discovered that the Association had been overcharging on the association fees by deception. That triggered my investigation of the Association?’s financial scandal later that year. Time flies; it has been exactly four years.

Even up to this day, I am still convinced without any doubt that the Association did overcharge the association fees intentionally; nevertheless I decided not to pursue this item in the lawsuit.

Based on my calculation in 2001, 70% of the homes in Circle C Subdivision had been overcharged the association fees. However, during last four years, the property value of the houses has been appreciated quite a bit. And also because of the Association?’s assessment cap, I believe the number of the houses being overcharged association fees has dropped below 10% or less. Therefore, it is not feasible to divert the time and resources to pursue this item any more.

I hope this class action lawsuit will root out corruption in the Circle C Homeowners Association once and for all and give the Association a healthy, fresh start.