On November 9, 2011, following a two year investigation by the State of CT Department of Consumer Protection (Docket No. 11-818, Case No. 2009-5477), Commissioner William M. Rubenstein, imposed a penalty of $8,000 on Stephen Margolis, A/K/A Margolis Management & Realty of Hamden, CT, for failing to properly notify and disclose to The Meadow’s Association the inflated prices he, Mr. Margolis, was charging for “additional services other than Association Services for compensation, to an Association, The Meadows of Branford, to which he was also providing Community Association Manager Services.”
In 2009, Kevin Shea, an owner at The Meadows of Branford, became aware of inflated billing for contractors’ services to the condominium. “It was obvious that something was wrong, [anyone] could see that money was going out the back door.” Additional/multiple assessments had been levied for four years running for major maintenance items, some of which were never completed.
Prior to 2009, The Meadows Board and their property manager were confronted by Association members [the owners] who petitioned for and scheduled a special meeting. Members requested that the assessment funds be accounted for and segregated from the regular operating budget. The Board, property manager and their attorneys refused.
Following an inspection of the Association records, Mr. Shea filed a complaint with the CT Department of Consumer Protection, which investigated the issue over a two year period. In November 2011, a settlement was made in Shea’s favor, with a penalty of $8,000 imposed on Stephen Margolis.
Margolis’ Assurance of Voluntary Compliance, in which he agreed to the penalty without admitting any violation, was accepted by the Commissioner with Margolis further agreeing to refrain from any business practices that can be construed as a violation of the CT Fair Business Practices Act. The Board did not pursue Margolis.
The Connecticut Condo Owners Coalition (CCOC), a grassroots organization, became aware of this case, which again confirms the need for a mediator to resolve issues between condo owners and their boards or management companies. CCOC’s membership is comprised of hundreds of condo owners from 112 cities and towns statewide; it seeks a level playing field between condo owners and condo boards, and it petitions state legislators to improve and enforce existing condo laws. To join CCOC, or for more information, please email ctcondoowners@yahoo.com
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Much credit goes to the condo owner who took the time and energy to research and uncover what was going on in his community.
Condo owners:
Join the Connecticut Condo Owners Coalition and help us protect condo owner rights and interests, and to petition for enforceable condo laws. Visit us at http://www.wix.com.ctcondoowners/ccoc or email ctcondoowners@yahoo.com.
State Legislators:
Take positive action this year to better protect condo owners and provide a means to enforce condo laws in Connecticut.
If you read this Kevin pleasse leave me a contact email or phone number. I would like to respond, but would need to chat with you first. The editor may forward my email to Kevin Shea.
condoman
If it ain’t broke don’t fix it. The last thing we need is more costly government in CT. Clearly from the content of the post the issue was resolved through a complaint to existing government the department of consumer protection. What value would another costly oversight committee have been?
What wasn’t part of the CCOC recruiting portion of this post is the legislation the CCOC proposed last year would have been an additional 1 million dollar tax burden to condominium owners in our state. Fortunately our legislators had the good sense to recognize the costs far outweighed the benefits of the ccoc proposed mediator office legislation.
When I was on the Board of Directors at the Meadows with Steve as our Manager, I suspected he was doing something illegal but I couldn’t prove it. What three of us on that Board did accomplish was to vote not to renew his contract. He had been our Manager for 10 years. After I left the Board having served for five years, a new Board consisting of his friends asked him to come back to manage and that’s when Kevin Shea who is a lot more knowledgeable in these matters than I, did find the proof that Steve was taking money from us. Of course the Board gave Kevin a very hard time but he persisted and finally Steve Margolis has been exposed and penalized. Unfortunately he is still managing condominiums.
It is broke and s broken badly. An ombudsman is severely needed. There are over 250,000 owners in CT.
The estimated 1ML for oversight would cost each owner $4 per YR a pitence compared to the millions that are being taken every year by preditorial parasites operating behind recently passed pro-preditor condo legislation. Shame on the Condo Industry Trade Organizations and their ill-advised Boards for lobying for the new condo rules that promote and harbour un-transparent deceptive, unregulated, business practices that are costing unsuspecting condo owners multi-millions regularly.
Please–no more Government interference. There are already laws governing behavior of associations (condo boards) and unit owners. Unit owners should begin to attend the condo board meetings (new law: a schedule must be posted)and ask questions–participate–do something besides complain. Some condo boards are very responsible and responsive–others are not so great. There are laws now to address the “not so great boards>” However, please don’t “throw the baby out with the bath water,” so to speak. It’s all about communication, dialogue and willingness to listen–on both sides. The solution to this problem will not be found in the legislature. It is between the unit owners and the boards.
anonymous on January 30, 2012 at 11:43 am
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I believe he is still doing that. I just recieved the budget plan for 2012-2013 and the dollars do not add up.
Most of the owners in Oakwood are absentee owners or are afraid to get involved with his Oakwood president / Ruby Lawrence -”crooked business”. It has enabled more and more crime. While jacking the association prices with so call regular assessment fees. Many of the the owner have limited rights with made up penalties.
Many have given up because the law has been on the side of white collar crooks. Steve Margolis , Attorney Bender of Hamden, Ruby Lawrence. I will get fined for making statements heard. At this point I don’t care.
The cops are at are building daily . The most recent incident was a hi-jacking in our lot. It was on the news and local newspaper.
I could write a book on this place and how these players operated.
The other issue is mold and the lack of prevention.
This building should be condemmed.
I now have asthma, allergies and breathing problems.
Now that is another story for another time.
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Too many typo’s on the above reply. Though the bottom line is crime does pay and has paid for many years.
I hate to be negative. Yet so much damages has been done and continues.
I seen so much dirty business beyond belief.