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 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  

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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