WRONGDOING #5
Association Fund was used to pay the Developer?’s Expenses


Circle C Homeowners?’ Association Management Structure

The old Board said, ?“?…?… Circle C Homeowners Association has no overall single management company for services provided to the Circle C Ranch community. The CCHoA Board of Directors directly supervises the operations of the CCHoA and the following four divisions: With the exception of the swim center manager and lifeguards, the CCHoA has no employees. All other services are contract services?…..?”


OFFICE SUPPLIES & EQUIPMENT LEASE

In the past six years, Circle C homeowners have been charged the following amount for the office equipment lease and office supplies.

2004 - $5,320 (see below Miscellaneous Expenses)
2003 - $9,445
2002 - $6,015
2001 - $7,954
2000 - $7,143
1999 - $7,835

The above amounts did not include newsletter printing and postage.

If the Association?’s services are contract services, how could we incur the above expenses?

For example: When you visit your doctor, you are charged a doctor?’s visit fee. Would you be billed for your doctor?’s medical supplies and medical equipment lease? Of course not.



HERE IS MY CONCLUSION:
Circle C homeowners have been paying office equipment lease and office supplies for the Developer?’s office for all these years. The equipment is being used at Bradley?’s Development located at 1111 West 11th Street, Austin, TX 78703



MISCELLANEOUS EXPENSES

Q: What is the best way to conceal illegitimate expenses?
A: Bury them in the Miscellaneous Expenses section.

Look! Last year?’s Miscellaneous Expense was 227% larger than the previous year and 2,474% larger than Year 2002. I have to wonder what kind of expenses are being incurred and hidden in our Miscellaneous Expenses.

2004 - $31,196
2003 - $ 9,534
2002 - $ 1,212
2001 - $ 3,128

WRONGDOING #5 continued


CIRCLE C INFORMATION CENTER & WEB SITE

Circle C Information Center was located near the entrance of the Circle C Ranch Subdivision for all these years. It was demolished about one year ago when the land was used for new development.

Circle C Information Center has been extremely important to the home builders and to the Developer because it was there for the potential home buyers. However, this information center was not important to the Circle C homeowners at all. When a homeowner purchased his/her house, he/she would receive a new homeowner package. At that time he/she should be directed to contact the Association?’s office at 5919 La Crosse Avenue for any homeowner related questions. If a homeowner called or walked into the Information Center after he/she moved in, the employee at the Information Center should direct the new homeowner to contact the Association?’s office. Therefore, the expense we paid for the Information Center staff was a completely overlapped expense, which was designed intentionally by our former Directors to help cut down the expenses for the Developer at the homeowners?’ expense.

Homeowners were being told by our old Board that the Homebuilder?’s Marketing Fund and the Association would share the information personnel cost equally. I found out that this was not the case. Alien, Inc., a company owned by the Developer, profited an extra 10% on our share of the personnel cost. So, we, homeowners, ended up paying 60% of the information staff cost for the services we don?’t need at all.

Also, 95% of the Circle C Ranch?’s Web site at http://www.circlecranch.com is being used for promoting and selling the houses, but Circle C homeowners were being charged 60% of the total cost (50% share + 10% profit to Alien, Inc.)

Even though the Association has its own Bookkeeper, 60% - 70% of the Accounts Payable was handled by Alien, Inc. This was arranged by our old Board in order to let the Developer make an extra 10% profit. That 10% profit was labeled as ?“Administrator Fee.?”



HOW TO ASSESS DAMAGES IN THE LAWSUIT

STEP #1 Office Equipment Lease & Office Supplies

I will ask my lawyer to subpoena and inspect all the invoices of the office equipment lease and office supplies for the last four years. We should be able to recover the fraudulent expenses as the law allows.



STEP #2 Miscellaneous Expenses

I will ask my lawyer to subpoena and inspect all the invoices of the miscellaneous expenses for the last four years. We should be able to recover the illegitimate and fraudulent expenses as the law allows.


STEP #3 Information Center & Web site Expenses

I will ask my lawyer to audit Alien, Inc.?’s books and inspect the $1,920 per month billings. We should be able to recover those illegitimate expenses for the last four years as the law allows.

In addition to the above, we, plaintiffs, could also recover Exemplary Damages.