annual meeting, FDIC limits exceeded for multiple years, self dealing by president # 3

i proved at the 2011 annual meeting that the board president and managing agent both lied last year when i asked the direct question concerning page 9 of the auditors report of the financials. In the report it stated that the deposits of the co-op exceeded the 250,000 FDIC limits from time to time. I asked about this in 2010 and they both said that our deposits did not and never exceeded the FDIC limits. This year (2011) the same boilerplate on exceeding the FDIC limits was again on page 9. The Managing agent refused to discuss it and I called the auditor, the auditor confirmed that the co-op has exceeded the limits with amounts of up to $310,000. I believe that is the number that he stated, it was over 300k, that stuck in my brain. It was fiduciary irresponsible for the board to not correct this at the first instance. which may have been 5 years ago. The managing agent and the whole board would not perform their due diligance and fidicuary responsibilities to the co op by making a phone call to the auditor. The statement has been on page 9 of the auditors report for the last couple years. THe full page is dedicated to the exceeding of FDIC insured funds. The board president and managing agent, even after I questioned them on this, never followed up and made sure their statements they made at the annual meeting were correct. Their answer as in most if not all of my dealings with them have been fraudulent. I use the word fraudulent since they are contrary to the written proprietary lease and by-laws. However in the very volatile economy, with banks closing every week, any money over the limit we lose. This has been stated on page 9 of the auditors report for years, yet the managing company and the board have done nothing to correct it, putting the co-op in jeopardy of losing 10k to 60k dollars at any time. We as shareholders lose the money.
The managing company and board president, refuse to provide me with the list of shareholders and to look at the financials reports as is specified in the proprietary lease and by-laws. They also refuse to provide me with the contact information of the board of directors, some including the president, do not live here and one has never lived here and should never have been sold two apartments. The shareholders do nothing and they wonder why they can’t sell. I spoke to one of the recent buyers and she told me that she was told the building was 90% owner occupied, reality is it is about 50% and slipping.
The board president and managing agent fight transparency at every turn, the board of directors do not open their mouths and have never performed due diligence, fiduciary responsibility to the building, nor have attempted to stop multiple self dealings by the board of directors president. One of the new BOD members was under the impression that the BOD indemnity insurance protected them from the above, it does not protect against the self dealing,lack of due diligence , fiduciary irresponsibility against the co-op . i have recently found out that having the building at 50% owner occupied is a fiduciary irresponsible to the shareholders.

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president of Board state that he does not know what self dealing is, BOD remains silent, did not correct him,nor licensed MA

a couple of years ago i wrote a fax that highlighted self dealing,inside dealing by the president and vice president of the board of directors. The case in point was another long time shareholder, one of the few honest pre conversion share holders that fights fir what is right and in the written garage rulkes , whic were being blatemnly viloated my the presidet son and vice presdient drandson. the son had no claim on a indoor parking spot period. His grandmother and father gave ij a upstairs spot, bypqssinf sharehoolders who has been waiting fir 10 yeqs to move upstairs. The really appalling thing was that another long term shareholder who had also been on the board traded her spot with the son, which gave her a better spot. It just goes to show that some people have zero ability to say this is wrong.
myself and my other BOD member that pointed out the self dealing, we paid at least $8000 each out of our pocket, so that we would not be self dealing or inside dealing, in any shape or form.

new york times answer concerning board member absolute right to know and good comment


new york times real estate section, questions and answer concerning co-ops.
this section is great for gaining knowledge on co-op laws and is easily searched using keywords.

Real Estate
Real Estate Q&A: Gaining Access to Proxy Votes

permalink:
http://realestateqa.blogs.nytimes.com/2010/03/26/gaining-access-to-proxy-votes/
By By JAY ROMANO
Published: March 26, 2010
I am on the board of my Queens co-op. The president of the board always seems to know how everyone voted by proxies at the annual meeting. I’ve asked to see the proxies, and have been told that no one is allowed to see them. What is the law on this?
folllow the link for the whole question and answer,
here is the comment posted

escapefromyonkers
westchester,ny
March 31st, 2010
11:48 am
which is a reason to strip the board power to assign the parking spaces in indoor parking premium areas. They have the inside knowledge of who a shareholder voted for, and if you didnt vote their lines you will be skipped forever on the waiting list,
in my co-op at least three board members have been self dealing parking spaces to their non-shareholder children/grandchildren, skipping disabled shareholders and other shareholders on the waiting list for 10 years.
i even wrote the board and called them on it, i have my space,but will not let a board self deal. As usual they disregard the written garage rules, and no longer provide them to residents. They make believe they no longer exists.
There should be fines and economic sanctions that they are personally responsible for if caught self dealing.