Page 12 - The NY Cooperator August 2019

INSURANCE/BOARD TRAINING R unning a community association and/or managing agents are likely ap- can be – and oft en is – stressful proached and asked for their ‘support’ enough without the added issue of when it comes time to vote for the selec- people in a position of power in the com- munity using that position for personal illegal scheme may start with the vendor gain in the form of kickbacks. Whether the asking, ‘What will it take to be awarded off ender is a superintendent, manager or a contract?’ The assumption being, of board member, skirting the rules around course, that the board or agent will not bidding out projects, hiring vendors and go with the vendor with the lowest price service providers, or purchasing supplies in or the best qualifications, but rather with order to receive money or favors is rarely, the vendor that provides ‘extras’ – be that if ever, worth the risk for the perpetrator. cash, tickets, travel, free restoration work, In the end, it can cause serious harm to a or another benefit in exchange for them community and those who live there. Un- derstanding what kickbacks are and know- ing what to look for can help ethical board the size of the contract and whether or members and managers recognize and pre- vent them from infecting their building or HOA. Plotting and Scheming In order to snuff out a kickback racket, that kickbacks in the industry are both it’s important to know how it develops in real and very serious. “I have had con- the first place, and why. “Kickback or bribery schemes often mediately turned them away and notified arise when a contractor or other ser- vice provider wants to gain access to or clear,” Buttafucco says. “To me, when it maintain a relationship with a building comes to receiving kickbacks, the ones or community association,” says attorney you need to look out for most are the Michael T. Reilly of Norris McLaughlin boards. The boards hold the power to P.A., in New York City. “Board members approve or reject proposals or quotes, tion of a vendor at a board meeting. The being selected. The frequency of provid- ing these ‘extras’ may vary depending on not it’s a recurring service.” Sebastian Buttafucco, a property man- ager with Kaled Management, which has offices throughout New York, laments tractors offer me kickbacks, and have im- my colleagues so that they too can steer Combatting Kickbacks Spotting and Stopping Fraud in Your Community BY MIKE ODENTHAL 12 THE COOPERATOR —AUGUST 2019 COOPERATOR.COM TENANT STORAGE SOLUTIONS Serving The New York Area For Over 20 Years. WireCrafters.com | 800-808-1860 | info@WireCrafters.com CONTACT YOUR NEW YORK OFFICE 800-808-1860 Welded Wire Lockers The Bike Stackerhe Bike Stacker T ® The Wall Riderhe Wall Rider • Single or double tier • Industrial grade construction • Installation service available • Solid 16 GA sheet metal lockers also available • Staggered, formed bike trays hold any style bike upright • Tear drop tire slot (pat. pending) • Made of 1/8” steel angle and 14 GA steel formed channel • Heavy-duty 11 GA steel-duty 11 GA steel • Vinyl sleeve protects wheel rim • Installs easily...with two 1/2” round holes for wall mounting • Includes security cable T • Heavy ® MACKOUL RISK SOLUTIONS ADDRESSING NYS MANDATED SEXUAL HARASSMENT PREVENTion TRAINING MACKOUL RISK SOLUTIONS PROVIDES A LOW COST SOLUTION TO EDUCATE YOUR EMPLOYEES ON NYS SEXUAL HARASSMENT PREVENTION LAW. All New York State employers are required to institute annual anti-harassment training for all employees. This includes all employers with one or more employees , whether Full Time, Part Time, Seasonal or Temporary. First year training must be completed before October 9, 2019. www.mackoul.com www.mackoul.com | Rebecca Scandaliato | Direct: 516-279-1215 | rscandaliato@mackoul.com We provide training for the employees and also board members who have direct interaction with those employees. For more information and to avoid costly fines for non-compliance contact Mackoul Risk Solutions today. Our Mandated training suite on Preventing Discrimination and Sexual Harassment is offered as an essential tool to Property Management Firms and all private sector businesses. ISTOCKPHOTO.COM