Keith Loria Jul. 28, 2010, 2:27am
CHICAGO (Legal Newsline) - Illinois Attorney General Lisa Madigan announced on Wednesday that she has brought a lawsuit against a Chicago-area property management company for allegedly defrauding condo associations in the area out of more than $140,000.
Van Witz Management Corp., Van Witz Real Estate Services, Inc., and realtor Pamela Van Witzenburg allegedly bilked condo associations out of over $140,000 for management services that were never performed.
Among the services they were allegedly contracted for but failed to provide were the payment of utility bills and insurance premiums on several properties. The defendants allegedly kept funds that collected from associations to pay creditors for their personal use.
"Instead of keeping these properties safe and secure for the people who live there, the defendants did little more than enrich themselves with the residents' fees," Madigan said.
"The defendants not only violated their trust, they broke the law and they must be held accountable."
The lawsuit also alleges that the defendants allowed liability and casualty insurance on several properties to lapse, failed to inform the condo associations that coverage had been discontinued and failed to keep proper records to keep order among the funds.
Madigan is seeking to have the defendants permanently enjoined from continuing in the condominium property management business. She is also seeking restitution for consumers, a $50,000 civil penalty per defendant and other penalties of $50,000 for each act committed with the intent to defraud. Madigan also seeks an additional $10,000 for each act committed against a senior citizen.