Hollywood Beach Resort residents sue KW Property Management

The management firm allegedly used association funds to illegally open business

Miami /
Jan.January 16, 2018 02:30 PM

Hollywood Beach Resort (Credit: Wikimedia Commons)

UPDATED: Sept. 25, 2018 4 p.m.: This lawsuit was settled and dismissed by the two Hollywood Beach Resort associations, after KW Property Management and Consulting’s attorney Frank Simone filed a motion to dismiss and a motion for sanctions against both the associations and their attorney. KW did not pay any money and agreed not to pursue the sanctions, Simone said in a statement.

Two Hollywood Beach Resort associations are suing a former property management company for allegedly failing in its financial duties to the groups.

The Hollywood Beach Resort Condominium Association and the Hollywood Beach Hotels Owners Association allege that KW Property Management and Consulting failed its contractual obligations, which included managing association activities, preparing financial records, and helping budgeting money, according to the Daily Business Review.

KW Property illegally signed a lease for an off-site property to run a bar, restaurant, and hotel business on behalf of the associations, the suit claims. When that business began to fail, the board members funneled association funds to keep it open, while KW Property allegedly issued checks and cooked balance sheets to cover the expenses, according to the suit.

The associations hired KW Property in 2011, terminated the contract in 2016, then rehired it, but then the company quit later in 2016, according to the complaint. KW Property claims it was never fired, but quit in late 2016.

KW found itself in legal hot water in mid-2017 when an employee burglarized units at a Venetian Islands co-op in Miami Beach and stole tens of thousands of dollars worth of luxury goods and electronics. KW’s lawyer claimed that the company was not responsible for an employee’s actions when they only benefit the employee. [DBR] — Dennis Lynch


Related Articles

arrow_forward_ios
Todd Jones and Albert Banalloun, with a rendering of the project (Credit: Fisher Architects)

Hollywood Publix with boat dock advances

Hollywood Publix with boat dock advances
Josh Zegen of Madison Realty Capital and 777 North Ocean Drive, Hollywood (Google Maps)

Madison Realty closes on Costa Hollywood Beach condos for $43M

Madison Realty closes on Costa Hollywood Beach condos for $43M
Jorge Perez and Apogee Beach

Jorge Pérez lists Apogee Beach penthouse for $7.6M

Jorge Pérez lists Apogee Beach penthouse for $7.6M
Hollywood East and Vivian Dimond

Former H3 Hollywood rental tower lands $58M refi ahead of completion

Former H3 Hollywood rental tower lands $58M refi ahead of completion
The Hollywood waterfront home

Hollywood waterfront home sale sets new record for the city

Hollywood waterfront home sale sets new record for the city
Related Group Senior VP of Development Bill Shewalter and a site plan of the project (Related Group)

Related plans low-rise multifamily project in Hollywood

Related plans low-rise multifamily project in Hollywood
777 North Ocean Drive, Hollywood (Credit: Google Maps)

Bankruptcy judge approves Madison Realty’s purchase of Costa Hollywood Beach condos

Bankruptcy judge approves Madison Realty’s purchase of Costa Hollywood Beach condos
From left: Developer Jesus Quintero, Chad Carroll, and the Quint Collection

Chad Carroll takes over sales of waterfront Hollywood townhomes

Chad Carroll takes over sales of waterfront Hollywood townhomes
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...