OMG We just Bought The Bridge!
See Our Refutation of David Israels' Remarks
Links to all of the Scandals Series
This original series of Century Village SCANDALS was intended to be a five part expose of the past and present goings on that needed to be presented to all owners. Because of subject matter that is continuing to expand there will be more than five parts to this series. I will consecutively number all SCANDAL reporting until I feel that a respite is needed. This is part 7.
Some of the SCANDALS require substantial research and as such, when printed, may become lengthy in order to detail what you need to know. I ask for your indulgence and I welcome any and all comments that you may have with respect to this subject matter.
SCANDAL …. Brought on by a very poorly run government, namely, the President of UCO, David Israel and Treasurer at the time, Ed Black.
An engineering company was brought in to evaluate and report on the condition of the roadways and walkways. The report basically stated that the roadways were in such a condition that we could perhaps get another 2, 3 or 4 more years out of them before a resurfacing would be necessary in certain areas. Refer to Scandal 1 for specific details involving the entire paving operation. The money SCANDAL began.
In a plot to intermingle monies from all UCO sources, the Treasurer, Black, came up with a "Do you want to buy a bridge scheme". He was blocked in being able to take all the monies from various accounts and putting it into one pot. If all of the monies were in one pot, it would be nearly impossible to determine what monies were coming from each account to pay for paving.
UCO had, in Roadway Reserves, a little less than $3,500,000 at that time and was well on the way to having enough money to do all of the paving based upon what the engineers report had stated. Previously, the general thoughts at UCO had been to have the total amount of money in hand in the Roadway Reserve account before doing any paving work. Black convinced Israel to make the decision to do the paving now. Mr. Israel’s decision was very wrong, but he didn’t care, because he wanted to be the President remembered for doing the "great" paving job. As it turns out, the paving job is horrendous. Again, refer to Scandal 1 for specific details.
Israel backed Black’s plan to convince the Executive Board that if you didn't continue with the paving at this time, it’s going to cost UCO about a million dollars more because of re-mobilization costs and, in addition, the cost of petroleum products used for paving was going up in price. That statement was a bare-faced lie. Black’s fingerprints are all over it. The Executive Board bought that story…..incredible! Again, President Israel backed this plan. He sanctioned an erroneous statement.
In order to have sufficient funds, Black wanted to take out a line of credit from a bank in the amount of $1,000,000, but he didn’t tell everyone what that ultimate cost would be, -- like, -- if you wanted to borrow $100,000 of that money, you had to put up $100,000 collateral . . . . a dog chasing its’ own tail. That deal was absolute craziness. You should know also that there was an application and processing fee for this line of credit – several thousands of dollars that Black never explained to anyone.
Delegates, who are supposed to be intelligent, were conned and they didn’t even know it! They were buying a bridge to nowhere.
So, in order to have enough money to do the paving work, Black, with sanctions by Israel, raids and takes money from every account that UCO has leaving them nearly empty.
Cable ----------------------------------$ 438,384
General (Dues) -----------------------$ 103,772
Irrigation------------------------------ $ 218,000
Security------------------------------- $ 70,000
Ambulance ----------------------------$ 976
Reporter -------------------------------$ 32,000 **
TOTAL--------- ---------------------- $1,070,632
Then, the Pied Piper gets all of these loons to follow him to the edge of the cliff. NOBODY CARED! Nobody, except the incoming new Treasurer, Dorothy Tetro, who found that UCO was dangerously close to a bankruptcy condition. After Israel and Black raped the accounts, there was a TOTAL of $21,000 left in the reserve accounts. That sum was like one grain of rice in a Chinese meal.
All kinds of documentation from UCO files based upon the illegal shifting of money is missing … GONE!
The first section of paving, quoted at over $2,000,000, had NO DELEGATE APPROVAL. You need to follow the money trail to get to the bottom of this SCANDAL.
To fully understand this SCANDAL and how it worked, you need to know the comment of a CPA who stated that what Israel and Black schemed was to "permanently borrow" funds from UCO accounts in which case they could be accused of "Unauthorized tampering of Corporation Funds", in that the Delegates never approved using more than $1,000,000 from other accounts to perform paving work.
A law enforcement officer is reported to have stated that trusted officers have a fiduciary responsibility to guard against misuse of corporation funds, and in this case, grand larceny and embezzlement issues need to be looked into to be sure that the using of UCO funds without approval was not done with criminal intent.
There was a Letter of Agreement as to how the paving contractor was to be paid, and there are invoices. You should know that David Israel, the UCO President, signed the checks using the monies from the nearly depleted accounts. Israel is a part of this money scheme orchestrated by Black. Because of what Israel and Black conjured up, which was nothing but a sophisticated shell game, there came a time when after all the UCO bills had been paid, the balances were dangerously low. The alarms went off. This is when Dorothy Tetro beat Black in an election for the Treasurer’s job and he left her to figure out how to make payments. Her tireless efforts paid off – she was able to solve the problems.
It is beyond the comprehension of the average person as to how two trusted UCO officers could bring such a SCANDAL to our front door. Can we learn a good lesson from all of this? . . . of course we can, but realize that there are crooks out there … watch out for SCANDALS!
There may be more to this SCANDAL that needs to be exposed. This information is being researched, and if the data can be supported, this SCANDAL, Part 7, will have an addendum. When the new Treasurer, returned from vacation she found that certain payments were made in her absence and there seems to be a discrepancy in the figures. Part 7 may continue.