Karen Cottingham: Felony embezzlement charges filed against former condo manager
By Peggy Kelly
Santa Paula News
Published: February 21, 2003
The former Santa Paula condominium manager who was the focus of a lawsuit filed more than a year ago alleging she embezzled over $200,000 was arrested this week on felony charges, according to the Ventura County District Attorney’s Office.
By Peggy Kelly
Santa Paula Times
The former Santa Paula condominium manager who was the focus of a lawsuit filed more than a year ago alleging she embezzled over $200,000 was arrested this week on felony charges, according to the Ventura County District Attorney’s Office.
Karen Denise Cottingham, 43, a former resident of Santa Paula, was arrested on Feb. 12th on felony embezzlement and check forgery charges, according to District Attorney Greg Totten.
The filing of charges against Cottingham followed an investigation by the Santa Paula Police Department and the District Attorney’s office into allegations that Cottingham embezzled about $200,000 from the Summerset Village Homeowners’ Association between late 1996 and 2000.
Cottingham lived at Summerset from the late 1980s to October 2000 and was employed as the resident manager and bookkeeper of the 84-unit complex.
Cottingham allegedly pocketed hundreds of thousands of dollars while claiming they were paid to vendors and contractors for work completed although the complex was falling into disrepair.
Cottingham voluntarily resigned her position with Summerset in January 2001.
The outside management firm hired to replace Cottingham discovered the fund shortfalls and account discrepancies, prompting the Santa Paula Police investigation that began in June 2001.
While acting as the complex manager and bookkeeper, Cottingham was responsible for keeping association business records, hiring workers and contractors for complex maintenance and repair while reporting expenses and work completion to the association board of directors.
Cottingham is accused of altering records relating to costs and presenting false work reports to the board.
Cottingham worked for the association for about 20 years and losses could be higher than the $200,000 she is charged with embezzling, but the law limits such losses to a four-year period.
After her arrest Cottingham posted $30,000 bail and arraignment is set for March 14. If convicted, Cottingham could be imprisoned for up to five years and ordered to pay a fine of up to twice the amount of the embezzled funds.
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