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Md. HOA management company accused of taking $2.5M from associations.

Byline: Jason Whong

A Montgomery County property management companyand its owner have been accused by the attorney general's Consumer Protection Division of takingnearly $2.5 millionfrom homeowner and condominium associations.

Evergreen Management LLC of Silver Spring and Jason Barry Oseroff of Olney have been charged with violations of the Maryland Condominium and Maryland Homeowners Association Acts and the Consumer Protection Act, the attorney general's office announced Wednesday.

Evergreen and Oseroff are accused of improperly taking money from Arbor West Community Association, Brandywine Country HOA, Cedar Pointe Community Association, Charwood HOA, Glenn Station HOA, Largo Town Center Condominiums, Marlton Section 10 HOA, Watkins Park at Kettering HOA and Woodland Bowie Condominium.

"This company allegedly stole money, paid in good faith by home and condo owners to cover property services, and used it for their own personal benefit," said Maryland Attorney General Brian E. Frosh in a statement Wednesday announcing the charges.

A message left at a number listed for Oseroff was not immediately returned.

According to a statement of charges filed in April,Oseroff and his father, Ivan Oseroff, who died in 2017,took money from the associations' bank accounts for their own benefit instead of for providing the services for which Evergreen was hired. When associations were unable to pay bills, the Oseroffs transferred funds fromother associations' accounts, the charges say. They failedto provide copies of bank records to the membership of the organizations, despite repeated requests, and even provided falsefinancialrecords, according to the charges.

The $2,486,000 or more in losses the HOAs incurred, the charges say, break down as follows:at least $1.397 million in unauthorized payments to Evergreen; at least $486,000due to unauthorized liquidation ofcertificates of deposit belongingto the associations; at least $319,400 paid to or for Oseroff family members; at least $146,000 in unauthorized cash withdrawals; at least $72,000 in unauthorized payments by one condominium for the benefit of other associations; and at least $66,000 in payments to Jason Oseroff.

Generally, the associations fired Evergreen upon discovering the misuse of funds, according to the charges. Unlike the others, Brandywine Country HOA, revokedEvergreen's authority to sign on its bank accounts around 2013 but leftthem in charge ofcollecting assessments and making deposits. That didn't stop the fraud, the charges say: Homeowners' assessment checks were instead deposited into accounts belonging to the Oseroffs.

Brandywine fired Evergreen in 2018.

The Consumer Protection Division seeks an order forOseroff and Evergreen Management to stopengaging in unfair or deceptive trade practices, and to pay restitution, civil penalties and costs for the violations.

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Publication:Daily Record (Baltimore, MD)
Geographic Code:1U5MD
Date:May 1, 2019
Words:434
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