Homeowner & Condo Association Fraud Investigations
When something doesn’t add up in your association’s finances, you need facts — not more speculation.
Board meetings, dues increases, a special assessment nobody expected, a vendor nobody remembers approving — when the numbers don’t make sense, homeowners and boards are often told to “just trust the treasurer” or “wait for the annual audit.” That’s not good enough when hundreds of thousands of dollars in reserve funds are at stake.
CJA Forensic Accounting investigates suspected fraud, embezzlement, and financial mismanagement within homeowner and condo associations — led by a CPA who is also a Certified Fraud Examiner and certified in financial forensics, not a general bookkeeper or a routine auditor.
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What an HOA Forensic Investigation Actually Involves
A routine annual audit checks whether the books are internally consistent. A forensic investigation asks a different question: did the money go where it was supposed to go, and can we prove it?
My process typically includes:
- Scoping the concern. I start with a short call to understand what’s raised the red flag — a board member, a homeowner, an attorney — and define which accounts, vendors, and time periods need review.
- Document collection. Bank statements, vendor contracts and invoices, board meeting minutes, reserve studies, and prior audit reports. I work 100% remotely and can work from digital records in most cases.
- Transaction-level review. I trace payments against approved budgets and board authorizations, looking for unapproved expenditures, missing agreements, duplicate or round-dollar payments, and undisclosed relationships between vendors and board members or management.
- Findings and recommendations. A clear, documented report of what I found — and, just as important, what I can and can’t establish from the records available — along with recommendations to close the gaps that allowed it to happen.
A Real Example
I was engaged by a Northern Virginia condo association to review suspicious payments to specific vendors and their possible relationships to board members. Over a five-year review of contracts, invoices, and payments, the investigation found more than $380,000 in expenditures made without board approval, a lack of signed agreements or estimates for major projects, no clear process for approving proposals, and a lack of financial oversight by the board treasurer.
(Details generalized to protect client confidentiality.)
Who Can Request an Investigation?
- Board members who suspect a fellow board member, property manager, or vendor of misconduct
- Attorneys representing an association, a board, or a group of homeowners
- Property management companies wanting an independent review before problems escalate
- Homeowners with documented concerns who have been unable to get answers through normal channels
If you’re not sure whether what you’re seeing rises to the level of an investigation, that’s exactly what the initial call is for.
What It Costs
Every engagement starts with a signed engagement letter and a retainer, with all time billed hourly — there’s no flat “investigation fee” because the scope depends on how many accounts, vendors, and years of records are involved. I’ll walk you through a realistic estimate on our call, and any unused retainer is returned.
Frequently Asked Questions
Is a forensic investigation the same as an audit? No. An audit checks whether financial statements are fairly presented. A forensic investigation is built to answer a specific question — usually, “did fraud or misappropriation occur, and what’s the evidence?” — and the findings can be used in litigation, board action, or a report to law enforcement.
Can a homeowner force the board to allow an investigation? It depends on your state’s laws and your association’s governing documents, but in most states, homeowners have a right to request financial records and, with enough support, to call a special meeting to demand an audit or investigation. An attorney familiar with your state’s community association law can advise on the specific mechanism available to you.
What happens if the investigation finds fraud? You’ll have a documented report you can bring to the board, to legal counsel, to your insurance carrier (many associations carry fidelity/crime coverage), or to law enforcement. I’m not an attorney and don’t provide legal advice, but I regularly work alongside counsel through that next step.
Do you work with associations outside Florida? Yes. I’m a licensed CPA in Florida, Maryland, and the District of Columbia, with mobility to work in numerous other states, and engagements are conducted remotely.
Not sure yet whether this is what you need?
Download our free guide: HOA Fraud Warning Signs Checklist →