More Than $500,000 Disappeared From At Least Two Ct Condo Associations

Another lesson on why condo owners should keep a close eye on how their finances are being handled by their property managers as Westport, Ct. police investigate the disappearance from at least two condo associations.

The Connecticut Post is reporting today that that “Two clients of Consolidated Management Group Inc., of Westport, have estimated total losses of $530,000 in a financial mess that could touch several more associations in the region.”

“Because of the ongoing investigation, I have been advised not to comment at this time,”  Olaf Nelson, president of CMG told the Post. “Approximately $300,000 was deserted from our funds,” said Robert Meyer, treasurer of Strathmore Lane Condominium Association, a 64-unit community in Westport. “We reported it to local police.”

Meyer he and other residents had been looking into suspicious financial activities for month after CMG’s controller left the company.

The Post identified the second victim complex as  Whitney Glen Condominium Association, a 62-unit community for seniors and another CMG client. The newspapers said that the association filed a lawsuit against former CMG Controller David Liptak, of Milford claiming it was missing $230,000.

The Westport News had the following information:

While CMG was the first to report the problem to several of its clients, Meyer said he and another resident of Strathmore had already uncovered what they considered suspicious activity before management’s notification.

Meyer, an accountant, said he and another member of the community grew suspicious after a longtime controller at CMG was suddenly no longer with the company. What they found was troubling.

Meyer described a tangle of finances, with money being washed in and out of his association’s and other CMG clients’ accounts.

“(It’s) a very complicated process. A lot of wires coming out, and a lot of wires going in,” he said.

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5 Responses to More Than $500,000 Disappeared From At Least Two Ct Condo Associations

  1. angel says:

    ,,They need to be put in jail the way criminals are they commit a crime.

  2. Sandi Martinik says:

    This is not so good news…I have a lot of respect for Olaf Nelson…I hope, as Attorney Sandler puts it; this will be resolved admirably.

    I don’t know if controllers are background checked and are required for certifications as a property manager will be required in the State of CT effective Oct 1, 2012.

  3. angel says:

    Put them in jail they will start talking where the money is and hopefully get it back to the condo association where it belongs…

  4. Richard Litzinger says:

    I am in Hills Of Monroe. I hope our funds have not been affected, especially since we do not have large reserves. Hopefully everything will be traced and any missing funds will go back to the proper owners. Let’s presume innocence until proved otherwise.

  5. Hi,

    Does anyone know whether this has been resolved? I am a Realtor with a client interested in purchasing one of the Strathmore unit but is concerned about the issue in the above article. If you know what happened, please respond. Thanks, Linda 203-912-4440

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