Legal Question in Criminal Law in California

Are we required to report a crime?

We have proof that the past president and his domestic partner (wife?) of our homeowners association have embezzeled funds and misappropriated fund from our homeowners association. The wife is currently on felony probation for embezzeling a past employer. Our board is considering ''just asking them to make good on the amounts missing, with interest'' and not reporting this to any law official. Our questions are as follow:

1. Do they have the right to dictate to the entire association that we not press charges (as a group or individually) and

2. Are we not required, by law, to report this crime since she is on probation?

Please understand that several thousand dollars have gone missing and we have reciepts which indicate that funds have been used for everything from their groceries to remodeling their kitchen. We need guidance. Thank you.


Asked on 10/14/01, 3:35 pm

2 Answers from Attorneys
Larry Rothman Larry Rothman & Associates

Re: Are we required to report a crime?

You should report a crime. You have a great case if the facts you indicate to me are correct. Please note our web-site www.larryrothman.com. We will provide free consultation at 714 363-0220. The Assocation may be able to file an action against the Board and their surety bond or e & o coverage may cover the loss. Our law firm handles cases throughout California. You can fax me at 714 363-0229, or e-mail me at [email protected] any further information that you may have. I also take cases such as this on a contingency in some cases.

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Answered on 12/09/01, 3:19 pm
Victor Hobbs Victor E. Hobbs

Re: Are we required to report a crime?

You are not required to report a crime. However it is against the law (a crime) to tell someone that you will not report their crime if they pay you money, or pay a debt.

And you do not have the right to bind the individual members of the association, nor any of the elected board members as individuals.

You may indicate to the two that if necessary to recover the money you will take whatever measures are available to you. The Board Members are in fiduciary positions as to the association's money. Which means you have a standard of care of the associations's money greater than the individual members.

So inform the two parties that you want your money back and will take whatever legal remedies are available to you. The wife being convicted of a prior felony may be on probation or parol. On either she will not have the rights of a criminal being charged on a new crime on the violation. They can violate her probation or parol, and send her to prison or back to prison with very little due process. Same for sentencing her to county jail which is at the option of the judge. And then she faces the possiblity of being sentenced on a new conviction. And sent to county jail, or prison on that new conviction. In summary she can be prosecuted on the stolen or misappropriated money, and violated on the same set of facts. She'll be given plenty of due process on the new crime, but very little due process on the new crime as violating her probation or parol. They both need to resign or immediately set a recall election, or whatever your CC & R's or the corporate code sets forth to remove an officer of the association.

If you have any additional questions please give me a call or send me an E-mail.

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Answered on 11/23/01, 8:48 pm


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