How To Prevent Fraud by Richard Thompson Fraud is a criminal deception. Embezzlement is the act of diverting money fraudulently for one's own use. And when it does, large sums are usually involved.
Embezzlement is a violation of trust by people often regarded as friends and confidants.
When it happens, it's often swept under the carpet due to embarrassment by those that should have been watching more closely. Most states have laws that impose significant responsibility on the association account holder or property manager for preventing and detecting fraud. By not acting prudently and quickly, legal options may be limited. Separate Responsibility Maintaining adequate checks and balances is essential in protecting your association from embezzlers. Always store blank and canceled checks and bank statements in a secure location.