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Unfortunately, community associations—regardless of how well they are run—can fall prey to embezzlement or purposeful misuse of funds or resources. Association managers and board members should be aware of common ways that fraud is perpetrated and how to prevent—or in the worst case scenario, deal with—this white-collar crime, which has the potential to happen on two levels: the management company or the board.

If you’ve noticed that your management staff employees’ productivity has gone down while their online activity unrelated to work has gone up, it’s probably related. And you need to get the problem under control as soon as possible. Take a two-step approach by first holding a meeting with staff members explaining what you’ve noticed and that you feel there is a connection between personal online activities and decreased productivity.

It’s not uncommon for a member who hasn’t paid assessments or other fees to claim that he's withholding funds because of a perceived problem. But the good news for associations is that the obligation to pay assessments isn’t absolved because of alleged bad behavior by the association or management company. In a recent Washington case, a trial court ruled—and an appeals court agreed—that allegedly fraudulent condo sales didn't excuse assessment nonpayment.

Unfortunately, community associations—regardless of how well they are run—can fall prey to embezzlement or purposeful misuse of funds or resources. Association managers and board members should be aware of common ways that fraud is perpetrated and how to prevent—or in the worst case scenario, deal with—this white-collar crime.

Facts: A planned community was developed in the 1990s. Prior to development, the developer recorded declarations and covenants that provided for the formation of a homeowners association. It stipulated that certain owners of multiple lots would be required to pay dues on only one lot. Several years later, a dispute arose concerning whether the association acted within its authority when it amended the declaration in 2012.

Sadly, a member in the planned community or condominium that you manage could die. If you and your staff have gotten to know the member or her family well, it could be especially upsetting. But as an association professional, you’ll have to handle the practical aspects involved when a home or condo is no longer occupied for this reason.

Q: An elevator repair person injured himself while working on one of the elevators in the common area of the condo building I manage. He’s threatening to sue our board of managers, as well as the company that previously owned the building before it was recorded as a condominium, and 200 individual unit owners. What are some factors that could determine which defendant is held liable for the accident?

Facts: A condominium unit owner was obligated to pay a percentage of the condominium common area expenses. The condominium association sued the owner, seeking collection of unpaid condominium assessments. The owner claimed the association did not have the legal authority to require him to pay the assessments. He alleged that the condominium developer and real estate agents made misrepresentations and errors of omission, and as a result, the initial sale of units was a fraud.

Facts: A homeowner in a planned community sued an association and some of its board members, claiming that they violated her constitutional rights by prompting the police to harass her. Specifically, the homeowner claimed that the board members reported that her son was involved in something illegal and encouraged the police to arrest him. As a result, eight police officers came to her house, drawing their guns and threatening to come inside. The association and board members asked a trial court to dismiss the claims.

Meeting by conference call is different from meeting in person, so when you must conduct association business that way, you need to think about certain practical issues before going forward. Use the following four tips when you hold board meetings by conference call. Also, ask your association’s attorney whether your state law requires your association to pass a bylaw amendment allowing board meetings to be held by conference call.