* This could never happen with Liberty, because you know where your money is at all times through the 24 hour, 7 days a week accessible website portal.*
BY SANDY SEMANS | SENTINEL STAFF
The Sandpiper Cay Condominium Owners Association Inc. has filed a civil suit against its former president, property manager and management company – Douglas Seay, Susan Seay and Sandpiper Management Co., respectively.
According to the suit filed on behalf of the association by attorney John Leidy of the firm Hornthal, Riley, Ellis & Maland of Elizabeth City, Douglas Seay served on the association’s board of directors from 1991 until he resigned in 2007. From 1991 to 1994, he served as secretary; after that, he served as president until his departure.
The suit alleges that Douglas Seay diverted a portion of hurricane insurance proceeds to his own accounts between 1999 and 2004. The complaint states that hurricane damage was repaired by unqualified contractors without warranties and the remainder of the proceeds was taken by Douglas Seay without authority or knowledge of the board. The complaints estimates that $100,000 was diverted to his use.
The court document also claims that Douglas Seay failed to keep accurate books and records and did not arrange for an independent audit of the association’s financial records. And, states the complaint, he failed to assess adequate association dues and to maintain a capital reserve account.
Susan Seay, Douglas Seay’s former wife, and her management company, Sandpiper Management Co., the complaint claims, was contracted in 1993 to serve as the exclusive managing agent and the chief executive officer of the association “with broad authority to manage the operations and affiars of plaintiff.”
Incorporation documents for the company filed with the North Carolina Secretary of State show that both of the Seays were officers in the corporation before the company entered into the contract with the association and two years before the couple married in 1995.
According to the complaint, Susan Seay failed to perform her duties, which included hiring and paying contracts, maintaining proper record-keeping, collect and properly record assessments, furnish monthly financial statements, arrange for annual independent audits, and schedule maintenance work.
The plaintiffs also allege that Susan Seay paid herself $13,479 more than she was owed under the contract terms.
In addition, the complaint alleges she allowed Douglas Seay to breach his fiduciary duties to the plaintiffs and did not report such to the board.
According to the complaint, both of the Seays converted property owned by the association to their own use and took the items with them when they were terminated.
The complaint asks that the court order the repayment of funds, court costs, and the cost of reconstructing the association’s books, as well as pay other damages.
Attempts to reach the Seays were unsuccessful.
