Section 10 newsletter mailed April 5, 2006
LeslieGate
April 2006 Newsletter: As fellow residents know from previous newsletters, I have been conducting a much needed investigation into the past embezzlement of funds from our association. While Al Morin has been taking credit for a vast investigation into this theft, the facts from the Montgomery County Sheriff’s report reveal that we should really characterize his effort as “half vast” in my opinion.
As a member in good standing, I asked the board for permission to scrutinize all details about the embezzlement. My attorney friend agreed to help me free of charge. In a display of outright paranoia, the board tried to block him from assisting me with some amateurish argument. When I proved that to be incorrect, they backed down. My gut feeling is that they do not want anybody with reasonable intelligence looking at anything they have done for fear they would have to answer for their incompetence. I wonder what else is lurking in the depths of our association records. Secrecy is their protection.
Al Morin says we were able to detect and recover all of the missing funds, but a review of the facts leave serious doubts about that. He claims he knows all about the embezzlement and the recovery of our money, but he did not have enough nerve to come to a Mar 14, 2006 meeting that was set up to answer my questions about the crime. Instead of him facing the inquiry like a man, some ringer named Bob Murphy showed up along with Helen Norris. While both were professional and courteous, my questions were generally answered with, “I don’t know.” This was not an open exchange of information as a concerned resident might expect, but an obvious attempt to keep me from finding out the simple truth about this embezzlement. In my opinion the only words that describe these actions are, cover up.
The inner circle that dominates our board has even refused to provide any details about this embezzlement to fellow board members. Here’s a statement from one member who is not afraid to speak truthfully:
I do not recall Al Morin ever saying anything to the Board other than there had been an embezzlement. He told me and the Board that he was taking care of it and that we were not to talk about it until Leslie was indicted. It was always strange to me that there was never anyone (a third party) checking the books. MANY times I told Al that he did not need to be doing this, that he needed to bring in third party auditors. His response was "I'll take care of it----we don't need anybody else taking care of it".
After the March 14th meeting, I wrote to the board asking them to reopen the investigation based on the facts I uncovered and the unanswered questions that still exist. As is their usual secretive style, they ignored my request. Anticipating their inaction, I also requested more information like copies of checks and bank statements, but they have ignored that too. Their silence and unwillingness to fully explain anything about the embezzlement to the community is a disturbing red flag. How could this theft be going on for 9 months and nobody knew it, especially in view of the financial controls they put in? They won’t explain who was putting money into the account to cover forged checks for $70,000. Amazing isn’t it! The full text of my Mar 16, 2006 message to the board is available on the blog at
http://pointaquariusblog.blogspot.com.
Here are some of the important facts from the Sheriff’s report about the embezzlement:
1. Leslie Marie Holbert pleaded guilty to MISAPPLICATION FIDUCIARY PROPERTY and that said defendant committed said offense in Montgomery County, Texas on June 30, 2003 as charged in the indictment. Exactly what she did on June 30, 2003 has never been explained, but the first forgery was allegedly check #9480 on Sep 19, 2003 for $2,000.00. She kept writing checks throughout 2003 and into May 2004. The last check cleared our bank on May 1, 2004 and the total had increased to almost $70,000. The gap between the date of the crime on Jun 30, 2003 and the date of the first forgery on Sep 19, 2003 still needs to be explained. What else did she steal? Are there more forged checks? Don’t ask Al Morin. He won’t tell you.
2. Unbelievably, no one apparently noticed the money was missing. Let me quote Al Morin from his section 10 letter dated Feb 6, 2006. “In 2002 the auditors found numerous coding errors and areas in which improvements should be made to our financial records. The board adapted these recommendations along with several other internal controls to protect the security of community funds.” Think about it! The board added these internal controls in 2002 per Al Morin, but we still got ripped off in 2003 and 2004 by a high school drop out (per Sheriff’s report) without raising any red flags. Holy Cow! Doesn’t everyone feel relieved that we have all this oversight? Who is Al Morin trying to fool?
3. When I asked Bob Murphy how all these checks could have cleared the account, I got the usual reply, “I don’t know.”
4. I asked who could have made deposits to this account to facilitate the clearing of these forged checks. Bob Murphy didn’t know that either. Statements showing the average balance of the account during the cycle of thievery were mysteriously not available. Now isn’t that interesting!
5. In what may be the most astonishing part of the investigation by Al Morin of a $70,000 theft, there is no written documentation what so ever. No itemization of which facts were checked and what was verified. Although I asked to see all documentary reports from the POA related to this crime, I was shown only one sheet of paper which was a list of the forged checks prepared the day before our meeting by Helen Norris. That’s it! Nothing else!
6. Since the forged check numbers were generally in ascending order, I asked to see the 4 checks whose numbers were missing from the list of forged checks. Same answer, they were not available either! Are these checks more of the forged variety that were overlooked?
7. The career of Leslie ended with our POA in May 2004, but Bob Murphy did not know the exact date. Whether she quit or got fired could not be explained. Maybe she just ran out of blank checks and decided to move on to greener pastures. The Sheriff’s report says that, “Leslie’s employment was mutually terminated as she was not happy with her job and Point Aquarius was not pleased with her performance.” An interview with Leslie is in the works.
8. At long last, about 9 months after it started, somebody discovered 9 of the checks were forgeries. A report was made by Al Morin and Steve Durham of Investment Management Co on Jun 4, 2004 to the Montgomery County Sheriff’s Office concerning these 9 checks totaling $30,820.85. The affidavits were signed by Al Morin on Jun 14, 2004, but there is nothing in the Sheriff’s file to indicate that Brenda Mitchell, whose name was apparently forged as well, took part in any of the reporting of the crime. Now isn’t that unusual? Al Morin subsequently contacted the investigator, T. L. Overstreet, at the Sheriff’s Office on Jun 17, 2003 to advise that an additional 10 forged checks had also been uncovered bringing the new total to $69,505.60. There is no explanation of why the second batch of checks was not found earlier. Are there more forged checks that were not found? Does any of this sound like a thorough investigation was conducted? A follow up interview with Det. Overstreet is also in the works.
It is also very interesting that my copies of the Sheriff’s file contain much more detail than the association’s copy that I was shown at our meeting on Mar 14. 2006. A suspicious person would probably conclude that what I was shown was an edited version with incrementing evidence removed. I suggested to the board that they get the complete file through a “Request for Public Information” as I did
In my opinion, the entire investigation into the embezzlement was sloppy and incomplete at best. It is unbelievable that a crime totaling $70,000 (and maybe more) does not have one shred of written documentation by the one who investigated it. Although I was allowed to read the audit for 2004, the year in which the embezzlement was discovered, it did not mention the embezzlement at all, not even in a footnote. Was that covered up too? I wrote to the auditing firm that handled it, but they have not replied either. Are they in on this cover up? My next step will be to file a complaint with the Texas State Board of Public Accountancy. I will let everyone know what happens with that action in next month’s newsletter.
This entire mess is an embarrassment to our community and should be a much bigger embarrassment to the board. Instead, they do not seem concerned at all. They just let Al Morin run the show and everyone else seems to follow along like little sheep. I have heard hearsay evidence that our books were a mess when Investment Management took over in June 2003. But, according to Al Morin, “the financial records of our community have been audited each year beginning with 2002 by a local independent auditing firm.” Just what is the truth? Why are they afraid to explain it fully to everyone?
I believe all residents of Point Aquarius want the board to act responsibly for the benefit of our community. We don’t want cover ups. Nobody likes half the story. The board should realize that in the governing of a small subdivision like ours, there is nothing wrong with telling the truth. Why does Al Morin refuse to tell us exactly what happened? In my opinion, it is to cover up complete incompetence and there is plenty of evidence of that to go around.
Fortunately for residents in 3 other sections, there is an election coming up. I truly hope some new candidates run against this inner circle that has hijacked our community. We have had enough of these power hungry zealots who have taken away our rights and pursued their own interests while excluding the residents. The new board can put in real financial safeguards.
Sadly, section 10 isn’t voting this year. Of all the sections we definitely need a change to restore trust in our leadership. Rather than receiving a full explanation of the embezzlement of our money from Al Morin or the board, we have to do the digging ourselves. To me, that is a telltale sign that he and his inner circle friends are probably guilty of more than we know about.
I renew my call for Al Morin to resign.
Ralph Splawski – Concerned Resident in Section 10
ikswalps@gmail.com
April 2006 Newsletter: As fellow residents know from previous newsletters, I have been conducting a much needed investigation into the past embezzlement of funds from our association. While Al Morin has been taking credit for a vast investigation into this theft, the facts from the Montgomery County Sheriff’s report reveal that we should really characterize his effort as “half vast” in my opinion.
As a member in good standing, I asked the board for permission to scrutinize all details about the embezzlement. My attorney friend agreed to help me free of charge. In a display of outright paranoia, the board tried to block him from assisting me with some amateurish argument. When I proved that to be incorrect, they backed down. My gut feeling is that they do not want anybody with reasonable intelligence looking at anything they have done for fear they would have to answer for their incompetence. I wonder what else is lurking in the depths of our association records. Secrecy is their protection.
Al Morin says we were able to detect and recover all of the missing funds, but a review of the facts leave serious doubts about that. He claims he knows all about the embezzlement and the recovery of our money, but he did not have enough nerve to come to a Mar 14, 2006 meeting that was set up to answer my questions about the crime. Instead of him facing the inquiry like a man, some ringer named Bob Murphy showed up along with Helen Norris. While both were professional and courteous, my questions were generally answered with, “I don’t know.” This was not an open exchange of information as a concerned resident might expect, but an obvious attempt to keep me from finding out the simple truth about this embezzlement. In my opinion the only words that describe these actions are, cover up.
The inner circle that dominates our board has even refused to provide any details about this embezzlement to fellow board members. Here’s a statement from one member who is not afraid to speak truthfully:
I do not recall Al Morin ever saying anything to the Board other than there had been an embezzlement. He told me and the Board that he was taking care of it and that we were not to talk about it until Leslie was indicted. It was always strange to me that there was never anyone (a third party) checking the books. MANY times I told Al that he did not need to be doing this, that he needed to bring in third party auditors. His response was "I'll take care of it----we don't need anybody else taking care of it".
After the March 14th meeting, I wrote to the board asking them to reopen the investigation based on the facts I uncovered and the unanswered questions that still exist. As is their usual secretive style, they ignored my request. Anticipating their inaction, I also requested more information like copies of checks and bank statements, but they have ignored that too. Their silence and unwillingness to fully explain anything about the embezzlement to the community is a disturbing red flag. How could this theft be going on for 9 months and nobody knew it, especially in view of the financial controls they put in? They won’t explain who was putting money into the account to cover forged checks for $70,000. Amazing isn’t it! The full text of my Mar 16, 2006 message to the board is available on the blog at
http://pointaquariusblog.blogspot.com.
Here are some of the important facts from the Sheriff’s report about the embezzlement:
1. Leslie Marie Holbert pleaded guilty to MISAPPLICATION FIDUCIARY PROPERTY and that said defendant committed said offense in Montgomery County, Texas on June 30, 2003 as charged in the indictment. Exactly what she did on June 30, 2003 has never been explained, but the first forgery was allegedly check #9480 on Sep 19, 2003 for $2,000.00. She kept writing checks throughout 2003 and into May 2004. The last check cleared our bank on May 1, 2004 and the total had increased to almost $70,000. The gap between the date of the crime on Jun 30, 2003 and the date of the first forgery on Sep 19, 2003 still needs to be explained. What else did she steal? Are there more forged checks? Don’t ask Al Morin. He won’t tell you.
2. Unbelievably, no one apparently noticed the money was missing. Let me quote Al Morin from his section 10 letter dated Feb 6, 2006. “In 2002 the auditors found numerous coding errors and areas in which improvements should be made to our financial records. The board adapted these recommendations along with several other internal controls to protect the security of community funds.” Think about it! The board added these internal controls in 2002 per Al Morin, but we still got ripped off in 2003 and 2004 by a high school drop out (per Sheriff’s report) without raising any red flags. Holy Cow! Doesn’t everyone feel relieved that we have all this oversight? Who is Al Morin trying to fool?
3. When I asked Bob Murphy how all these checks could have cleared the account, I got the usual reply, “I don’t know.”
4. I asked who could have made deposits to this account to facilitate the clearing of these forged checks. Bob Murphy didn’t know that either. Statements showing the average balance of the account during the cycle of thievery were mysteriously not available. Now isn’t that interesting!
5. In what may be the most astonishing part of the investigation by Al Morin of a $70,000 theft, there is no written documentation what so ever. No itemization of which facts were checked and what was verified. Although I asked to see all documentary reports from the POA related to this crime, I was shown only one sheet of paper which was a list of the forged checks prepared the day before our meeting by Helen Norris. That’s it! Nothing else!
6. Since the forged check numbers were generally in ascending order, I asked to see the 4 checks whose numbers were missing from the list of forged checks. Same answer, they were not available either! Are these checks more of the forged variety that were overlooked?
7. The career of Leslie ended with our POA in May 2004, but Bob Murphy did not know the exact date. Whether she quit or got fired could not be explained. Maybe she just ran out of blank checks and decided to move on to greener pastures. The Sheriff’s report says that, “Leslie’s employment was mutually terminated as she was not happy with her job and Point Aquarius was not pleased with her performance.” An interview with Leslie is in the works.
8. At long last, about 9 months after it started, somebody discovered 9 of the checks were forgeries. A report was made by Al Morin and Steve Durham of Investment Management Co on Jun 4, 2004 to the Montgomery County Sheriff’s Office concerning these 9 checks totaling $30,820.85. The affidavits were signed by Al Morin on Jun 14, 2004, but there is nothing in the Sheriff’s file to indicate that Brenda Mitchell, whose name was apparently forged as well, took part in any of the reporting of the crime. Now isn’t that unusual? Al Morin subsequently contacted the investigator, T. L. Overstreet, at the Sheriff’s Office on Jun 17, 2003 to advise that an additional 10 forged checks had also been uncovered bringing the new total to $69,505.60. There is no explanation of why the second batch of checks was not found earlier. Are there more forged checks that were not found? Does any of this sound like a thorough investigation was conducted? A follow up interview with Det. Overstreet is also in the works.
It is also very interesting that my copies of the Sheriff’s file contain much more detail than the association’s copy that I was shown at our meeting on Mar 14. 2006. A suspicious person would probably conclude that what I was shown was an edited version with incrementing evidence removed. I suggested to the board that they get the complete file through a “Request for Public Information” as I did
In my opinion, the entire investigation into the embezzlement was sloppy and incomplete at best. It is unbelievable that a crime totaling $70,000 (and maybe more) does not have one shred of written documentation by the one who investigated it. Although I was allowed to read the audit for 2004, the year in which the embezzlement was discovered, it did not mention the embezzlement at all, not even in a footnote. Was that covered up too? I wrote to the auditing firm that handled it, but they have not replied either. Are they in on this cover up? My next step will be to file a complaint with the Texas State Board of Public Accountancy. I will let everyone know what happens with that action in next month’s newsletter.
This entire mess is an embarrassment to our community and should be a much bigger embarrassment to the board. Instead, they do not seem concerned at all. They just let Al Morin run the show and everyone else seems to follow along like little sheep. I have heard hearsay evidence that our books were a mess when Investment Management took over in June 2003. But, according to Al Morin, “the financial records of our community have been audited each year beginning with 2002 by a local independent auditing firm.” Just what is the truth? Why are they afraid to explain it fully to everyone?
I believe all residents of Point Aquarius want the board to act responsibly for the benefit of our community. We don’t want cover ups. Nobody likes half the story. The board should realize that in the governing of a small subdivision like ours, there is nothing wrong with telling the truth. Why does Al Morin refuse to tell us exactly what happened? In my opinion, it is to cover up complete incompetence and there is plenty of evidence of that to go around.
Fortunately for residents in 3 other sections, there is an election coming up. I truly hope some new candidates run against this inner circle that has hijacked our community. We have had enough of these power hungry zealots who have taken away our rights and pursued their own interests while excluding the residents. The new board can put in real financial safeguards.
Sadly, section 10 isn’t voting this year. Of all the sections we definitely need a change to restore trust in our leadership. Rather than receiving a full explanation of the embezzlement of our money from Al Morin or the board, we have to do the digging ourselves. To me, that is a telltale sign that he and his inner circle friends are probably guilty of more than we know about.
I renew my call for Al Morin to resign.
Ralph Splawski – Concerned Resident in Section 10
ikswalps@gmail.com
posted by Ralph Splawski at 11:56 AM
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