On November 9, 2011, following a two year investigation by the State of CT  Department of Consumer Protection (Docket No. 11-818, Case No. 2009-5477), Commissioner  William M. Rubenstein, imposed a penalty of $8,000 on Stephen Margolis, A/K/A Margolis Management & Realty of Hamden, CT, for failing to properly notify and disclose to The Meadow’s Association the inflated prices he, Mr. Margolis, was charging for “additional services other than Association Services for compensation, to an Association, The Meadows of Branford, to which he was also providing Community Association Manager Services.”

In 2009, Kevin Shea, an owner at The Meadows of Branford, became aware of inflated billing for contractors’ services to the condominium. “It was obvious that something was wrong, [anyone] could see that money was going out the back door.” Additional/multiple assessments had been levied for four years running for major maintenance items,  some of which were never completed.

Prior to 2009, The Meadows Board and their property manager were confronted by Association members [the owners] who petitioned for and scheduled a special meeting. Members requested that the assessment funds be accounted for and segregated from the regular operating budget. The Board, property manager and their attorneys refused.

Following an inspection of the Association records, Mr. Shea filed a complaint with the CT Department of Consumer Protection, which investigated the issue over a two year period. In November 2011, a settlement was made in Shea’s favor, with a penalty of $8,000 imposed on Stephen Margolis.

Margolis’ Assurance of Voluntary Compliance, in which he agreed to the penalty without admitting any violation, was accepted by the Commissioner with Margolis further agreeing to refrain from any business practices that can be construed as a violation of the CT Fair Business Practices Act. The Board did not pursue Margolis.

The Connecticut Condo Owners Coalition (CCOC), a grassroots organization, became aware of this case, which again confirms the need for a mediator to resolve issues between condo owners and their boards or management companies.  CCOC’s membership is comprised of hundreds of condo owners from 112 cities and towns statewide; it seeks a level playing field between condo owners and condo boards, and it petitions state legislators to improve and enforce existing condo laws.