A former president of The Wellington condominium in White Plains is suing the board of managers and its management company for nearly $1.5 million over alleged financial irregularities.
Joseph Silva accused the current board and White Management Ltd., Eastchester, of fraud, in a complaint filed Aug. 17 in Westchester Supreme Court.
“Defendants have gone on a campaign of financial decisions,” the complaint states, “that have left The Wellington in financial ruin.”
“Our clients vehemently deny any wrongdoing,” Manhattan attorney Mark A. Beckman stated in a brief telephone interview on behalf of board members Anil Ferris, Steven Galla, Diana Ortiz, and Sase Sham, as well as John White of the management company. “They are adamant that they have not done anything wrong.”
He said that many of the alleged actions occurred before the current board came in, and that the board has taken extraordinary steps trying to, and fixing, certain things that happened.
“Their actions have been taken in good faith and for the benefit of the property,” he said.
Silva was board president from 2012 to 2018. After he resigned, White Management was hired to run the condominium at 312 Main St. in downtown White Plains.
At the end of his tenure, Silva says, The Wellington had $227,859 in reserves and no outstanding debt. As of this past April, the reserves had dwindled to $22,183 and the condominium had $361,272 in debt.
On June 1, the condo fees were increased by 46%.
Silva states in an affidavit that the last annual meeting of the condo owners was held in 2019, and that the current board was not duly elected by the owners.
He also claims that White Management has failed to catch “suspicious activity and charges.”
He says it is unclear whether the building superintendent is employed part-time or full-time, or whether he is paid separately for work that should be part of his regular duties. From 2019 to 2023, for example, the superintendent was allegedly paid $116,000 for work for which inadequate invoices and receipts were submitted.
Silva also claims that White Management opened a bank account in The Wellington’s name that was not disclosed to the board of managers and does not include the appropriate signatories.
He accused board treasurer Sase Sham of a potential conflict of interest for not disclosing that his wife works for White Management.
The complaint charges breaches of fiduciary duty, fraud, conspiracy to commit fraud, and unjust enrichment.
It demands damages ranging from $100,000 to $1 million for alleged wrongdoings; an accounting of the condominium’s records; and a court order compelling an election of a new board and barring payment of bills greater than $25,000 without approval of the condo owners.
Silva was joined in the complaint by condo owners Jeancarlo Chirinos and White Plains Equities. They are represented by Yonkers attorney Ndukwe D. Agwu.
