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KICKBACKS
– BLATANTLY OFFERED TO CAMs
By
Jan Bergemann
Published
October 10, 2014
We
have always been talking about kickbacks being a common issue in
Florida’s community associations. But recent events have shown that
certain vendors are openly offering kickbacks to community
association managers.
With postal mailings and e-mails they are targeting licensed
CAMs, obviously using address lists from the DBPR to make these
offers – in the mailings politely referred to as “referral
fees.”
No
matter what these “bribes” are called – no matter what
name you use – in reality they are still kickbacks – and the
CAMs accepting them are definitely violating provisions of FS
468.431 - 438 -- Part VIII –
the Florida statutes regulating the profession of community
association managers.
These
offers – according to the mailings – are valid only for CAMs
(see my Op-Ed: CAMs
and KICKBACKS -- ONLY ALL TOO COMMON!). These offers all contain the clear statement: “Must be an active
LCAM with FL DBPR to participate.”
Make
no mistake, these are just the little bribes. The real money for
CAMs is being made with “referral fees” for bank loans and
construction contracts. That’s where the real money – not
just a few hundred bucks – is being made.
A
CAM is being hired and paid for by the association and is
required to discharge duties performed on
behalf of the association loyally, skillfully, and
diligently; dealing honestly and fairly; in good faith; with
care and full disclosure to the community association
(see FS
468.4334 Professional
practice standards).
A
CAM
taking bribes from vendors to direct business to these vendors
is definitely not “dealing
honestly and fairly.”
BRIBES are BRIBES – no matter
what you call them. Even if they are politely called “referral
fees” – they are still illegal kickbacks. And association
boards should make sure that vendors (or banks or construction
contractors) hired by the association are not paying kickbacks
to their
CAM
.
And if you find out that your
CAM is accepting such kickbacks you should quickly fire the
CAM
and file a complaint against the license with CAM Licensing (DBPR).
Make no mistake: This typical
Florida
“business practice” is costing associations millions and
millions of dollar each year – paid for by the owners living
in Florida's community associations.
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Jan Bergemann is president of Cyber Citizens For Justice,
Florida
's largest state-wide property owners' advocacy group.
CCFJ works on legislation to help owners living in
community
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associations. He moved to
Florida
in 1995 - hoping to retire. He moved into a HOA, where the
developer cheated the homeowners and used the association dues
for his own purposes. End of retirement!
CCFJ was born in the year 2000, when some owners met in
Tallahassee
- finding out that power is only in numbers. Bergemann was a
member of Governor Jeb Bush's HOA Task force in 2003/2004.
The organization has two websites to inform interested
Florida
homeowners and condo owners:
News Website: http://www.ccfj.net/.
Educational Website: http://www.ccfjfoundation.net/.
We think that only owners can really represent owners, since all
service providers surely have a different interest! We are
trying to create owner-friendly laws, but the best laws are
useless without enforcement. And enforcement is totally lacking
in
Florida
!
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