Burlingame HOA Bookkeeping Scandal: Embezzlement and Fallout

A significant scandal has emerged at the Burlingame Ranch I Condominiums homeowners association in Aspen, where the bookkeeper, Elizabeth Stewart, confessed to embezzling $183,000. The board has since severed ties with her and accepted a repayment of over $200,000, raising questions about financial oversight and accountability within the organization.

• Elizabeth Stewart confessed to embezzling $183,000 from the HOA.
• The board accepted a repayment of $201,503 and chose not to involve law enforcement initially.
• The scandal has prompted the HOA to implement stricter financial controls.

In a surprising turn of events, Elizabeth Stewart, who was contracted as the bookkeeper for the Burlingame Ranch I Condominiums, admitted to stealing funds from the homeowners association. On January 13, she provided a cashier’s check for $201,503 to the board, which included interest on the stolen amount. The check has since cleared, allowing the board to focus on restoring financial integrity.

Stewart’s resignation came after she acknowledged her wrongdoing, which reportedly began shortly after her hiring and continued throughout 2023 and into 2024. The board’s president, Steven Miller, stated that their primary concern was to uphold their fiduciary duty and ensure the association’s finances were made whole.

Interestingly, the board opted not to report the embezzlement to law enforcement, instead negotiating a repayment plan with Stewart. This decision has raised eyebrows among residents and financial experts alike, as it may set a concerning precedent for accountability in similar situations.

Prior to her confession, Stewart had publicly accused the HOA board and property manager Will Rutledge of incompetence and corruption. In October, she claimed that Rutledge was uncooperative and unable to account for financial records, which she later contradicted by admitting to her own theft.

The board’s email to residents addressed these accusations, stating that Stewart’s claims were unfounded and that they had regained access to their financial records after her resignation. The board emphasized that they would not tolerate such behavior in the future and would implement stricter financial oversight.

In light of the scandal, the Burlingame HOA is taking steps to prevent future incidents. The board has committed to enhancing financial controls and oversight, ensuring that all transactions are properly documented and approved. They are currently in the process of cleaning up the HOA’s financial records before onboarding a new bookkeeper.

The board’s message to residents highlighted their commitment to transparency and accountability, stating, "We will enact stricter financial controls and oversight for the HOA’s accounts and bookkeeping than was previously in place."

The Burlingame HOA scandal serves as a cautionary tale about the importance of financial oversight in homeowners associations. As the board works to restore trust and integrity within the community, residents are left to ponder the implications of this incident on their future governance and financial management.

• Burlingate: Bookkeeping scandal erupts at homeowners association | News, Aspen Daily News.