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Judge Orders Cory Lake Developer To Turn Over Records

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By KENNETH KNIGHT

The Tampa Tribune

Published: September 4, 2008

CORY LAKE ISLES - A judge has ordered a developer to turn over all his financial records regarding Cory Lake Isles to a group of homeowners.

Circuit Judge Martha Cook ruled Thursday that the residents should have access to all official documents related to the operation and maintenance of the community that are in the possession of Cory Lakes Limited. She said the company has 20 days to hand over the records.

Homeowners in the courtroom applauded when Cook made her ruling.

Mark Basurto, attorney for seven Cory Lake homeowners who filed suit against their property owners association, said his clients are eager for Cory Lakes Limited to comply.

"We want to know what happened to our money," Basurto said.

Philip Friedman, attorney for the property owners association, said his client is also hoping for an amicable resolution.

"The property owners association looks forward to a resolution of all these issues so the community can enjoy the peace and tranquility that comes from living in a beautiful community such as Cory Lake Isles," Friedman said.

The decision marks the second time the homeowners have sought access to the financial records. They originally sued in October, seeking permission to see how community developer Gene Thomason had been spending homeowner assessments.

Thomason owns Cory Lakes Limited, which provided landscaping, security and management for the 1,000-home gated community. As the developer, Thomason also controlled appointments to the property owners association board.

In March, Thomason's lawyers turned over six boxes containing 15,000 documents for his company dating to 2002.

Some homeowners have accused Thomason of diverting funds for his personal use.

Basurto said in court Thursday that his clients had not been given access to all of the financial records. He said the boxes of documents did not include bank statements, itemized records of receipts and expenditures, audited financial statements, ledgers, balance sheets, copies of contracts, income tax returns or copies of bids for the past year.

Basurto said he wrote a letter in January asking the property owners association to comply but did not get a response.

"I want to make it clear to the court that my clients are frustrated with the process," Basurto said.

Friedman told the court that the Cory Lake Isles residents never attempted to arbitrate their differences with the property owners association.

He asked the judge to dismiss the lawsuit because the residents did not seek arbitration as is required by the statutes of their deed-restricted neighborhood. Cook disagreed and denied the request.

"The records being sought … and the monies they alleged were accessed are not property owner association assessments," Friedman said in an interview.

The neighborhood covenants gave the association exclusive authority to assess residents for maintenance and operations of the community, but homeowners were billed by Cory Lakes Limited.

"We look forward to their understanding of the monies the developer has spent on the community was over and above what was collected by the developer," Friedman said.

Reporter Kenneth Knight can be reached at (813) 865-4842 or kknight@tampatrib.com.

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