Thursday, June 13, 2013

Controller For Community Association Mgt. Company Admits Guilt For Diverting $950K+ In HOA Funds For His Own Personal Use; Defendant Agrees To Forfeit Residence After Using Some Fraudulently-Obtained Proceeds To Pay Down Home Mortgage

From the Office of the U.S. Attorney (Sacramento, California):

  • Chris Barna, 35, of Manteca, pleaded guilty [] to one count of bank fraud for his role in embezzling more than $950,000 from his employer M & C Association Management Services Inc., United States Attorney Benjamin B. Wagner announced.
  • According to court documents, Barna was the controller for M & C, a company that provides community association management and developer services to numerous community associations in in Northern California.

    From April 2007 through May 2011, Barna misappropriated approximately 300 checks payable to M & C from third parties, 40 checks payable to third parties from M & C as well as two checks payable to the parent company of M & C. Barna forged the endorsements on the checks or wrote “deposit only.” He had the checks deposited into various bank accounts he controlled at Wells Fargo Bank. Barna then manipulated financial accounting records at M & C as part of an effort to conceal the fraud.

    As part of the plea agreement, Barna agreed to pay full restitution to M & C and to forfeit his residence in Manteca. He had used some of the proceeds of the fraud to pay down the mortgage of the house.
For the U.S. Attorney press release, see Stockton Corporation Controller Pleads Guilty To Embezzling More Than $950,000.

Thanks to Cynthia Stephens for the heads-up on this story.

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