Priority Notice to our Membership Regarding Audit: Updated 10/12/18

8/31/2018

Notice from 8/31/18
Lake of the Woods Association would like to inform our members of a situation of some importance. The matter at hand and all appropriate actions taken are explained further in the letter linked here. We would like our membership to know that this is an ongoing situation and the authorities involved have asked us to delay our release of this information until a time that they deemed it appropriate.
 
If you have questions or comments regarding this matter, please contact board@LOWA.org

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Update 10/05/18
Excerpt from Lake Currrents (Oct. 5, Page 2)- President's Letter by Clifton D. Wilks 

"I had hoped that this year would be one where we could all take a deep breath, relax and come together in our shared love of this community and the people in it. After the financial business is squared away, perhaps that will occur. Please be advised that we are moving forward and securing the services of a forensic investigative firm shortly. We are striving to have them on site by the time this article is published. In any event, I look forward to working with my fellow Board and community members striving to enhance and maintain our amenities."
Update 10/12/18

Letter from the President
On Aug. 31, we informed our members of a personnel and legal matter involving financial irregularities that were brought to light during our audit process. As a result of this incident we have engaged the services of the Forensus Group, a forensic investigation firm based in Richmond. Managing and Senior Directors Chris Haney and Kevin Mikolashek began their work on Oct. 5, and it will continue until completion. They have been onsite several times and we are cooperating fully with the investigation. We will get a report of all fraudulent activity that may be discovered along with identification of deficient financial controls.
Chris Haney, CPA, CFE, is the Founder and a Managing Director of the Forensus Group specializing in financial investigations, forensic accounting, and healthcare disputes. He has been admitted as an expert witness in federal court and he regularly provides advice to clients regarding financial damages and statistical analysis. Previously, Chris was a member of the FBI’s Forensic Accounting Unit specializing in complex white collar and healthcare violations. Chris has led extensive financial investigations with experience spanning criminal, civil and internal corporate matters.
Kevin Mikolashek JD, MBA, served for over ten years with the U. S. Department of Justice, where he led investigations into allegations of fraud. A substantial part of Kevin’s practice involved leading teams that included federal law enforcement officers and other subject matter experts. Kevin served for eight years as an Army officer, where he was a prosecutor and legal advisor to combat commanders. For more information about Chris and the Forensus Group, go to their website www.forensus.com.
This firm was selected after review and consideration of five potential firms to perform the investigation. I particularly thank a Finance Committee member, himself a member of the Association of Certified Fraud Examiners, in providing advice on offers provided by the two final potential firms.
When the opportunity arises, we will provide more detailed information about the results of their investigation; for now, the investigation is ongoing. This third-party firm is engaged by the Board of Directors and should members contact them, Forensus will redirect such inquiries to the Board.
On a positive note, Director Pete Brown and I hosted a Coffee and Conversation with 14 or so members on Sept. 29. There were general questions about the Flat Run forebay, how to seek answers to questions about what to do on one's property, and what the rates might be for the new fitness center. Members questioned the referendum for ECC and whether such charges, if eventually levied, would be appealable to the LCC and then to the Board. Members were inquisitive, cordial and thanked the board for its service. One member, toward the end, asked what they could do as a member to help make the community better. This is an excellent and positive question, and the short answer is that members should continue to maintain their properties and to get involved in clubs and committees.