Several Chicago condominium associations are taking action against Regent Realty Group Inc., alleging that the company suddenly closed late last week, leaving the buildings’ reserve funds depleted of hundreds of thousands of dollars.
At least two condo associations that were managed by Chicago-based Regent filed theft reports last week with the Chicago Police Department, with one group alleging that more than $400,000 in reserve and operating accounts is missing. A third association filed a lawsuit Jan. 14 alleging fraud over its missing reserve fund.
“We’re just in shock,” says Paul Kolenda, treasurer of the condo association for his 63-unit building at 1934 N. Washtenaw Ave., one of the associations that filed a police report last week.
Mr. Kolenda says Regent managed the association’s affairs for several years without incident until last year, when payments to lenders were being delayed and some association checks were bouncing. When he pressed Regent for detailed bank records late last year, he was rebuffed until this month — when he found that the association had just $43 in its accounts when there should have been more than $400,000.
Calls to Regent’s office at 2130 W. Belmont Ave. weren’t returned. Nor were calls to the firm’s two principals: Jay Strauss and Donald Doerring.
Mr. Strauss has engaged attorney Camille Conway, a partner with Barnes & Thornburg LLP. Mr. Conway, reached Monday afternoon, said he was planning to meet with Mr. Strauss later in the day, and that he hadn’t yet seen the police reports and declined to comment.
The Washtenaw condo association’s attorney in the matter, Vincent Lavieri, says his client is missing the most money. For some, Regent oversaw several thousand dollars; all the money was commingled in one large account, Mr. Lavieri says.
“I believe the downfall, if you will, came because my clients had demanded the return of their money. And, as best as I can determine, there weren’t sufficient funds to cover my client, and that put financial pressure on them and the whole house of cards came falling down,” says Mr. Lavieri, who estimates that more than 40 buildings could be affected.
A Chicago police detective in the financial crimes division referred calls to the media relations office, which didn’t return calls. A spokesman for the Cook County State’s Attorney’s office said no charges had been filed and declined to comment.
The condo association for Ravenswood on the Park at 3200-3210 W. Carmen Ave. alleges in the Jan. 14 suit that its reserve fund is missing more than $14,000. The association’s lawyer, Timothy Lampinen, says Regent’s office on Friday had a sign in the window saying the office was temporarily closed. - Source: By Chicago Bubble Blog
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