June 27, 2008 – Another hearing was held recently over a consumer fraud complaint filed by a west tower resident against Marina Towers Condominium Association.

The complaint was filed with the City of Chicago Department of Consumer Services on February 28 by Mindy Verson, who claims MTCA has not provided financial documents she requested in November 2007.

Just prior to an informal hearing on January 30, MTCA agreed to a schedule for allowing Verson to see financial records. Although she was allowed to see summaries from 2006 and 2007 – but not allowed to make copies – she wanted to see detailed records of attorney fees paid by the association.

According to an audit by an outside CPA firm, legal expenses incurred last year by MTCA were 149 percent over budget. General legal fees were budgeted at $15,000 but $37,322 was actually spent. Legal fees related to collections were $38,405, or 54 percent over budget, and offset by legal fee income of just $19,624.

Through its attorney, former state legislator Ellis Levin, MTCA denied the request, saying Verson had not given a “proper purpose” for the request. Levin says legal bills are subject to attorney-client privilege and not available to unit owners, and that copies of his invoices to MTCA are not included in the definition of “financial books and records” of the association.

A Chicago municipal code section requires a condominium association to allow unit owners to inspect its financial books and records within three days after a written request is made. MTCA could be subject to a fine by the City of Chicago of $300 per day.

Appearing at the June 25 hearing were Verson and her attorney, Leo G. Aubel. Representing MTCA were Levin and residential property manager David Gantt. A decision is expected from department director Barbara Gressel in about two weeks.

 March 10 MCO story: Lawyers square off in MTCA records dispute