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Chapter 13 - The maintenance myth

Meridian hired independent engineer Dr. Stephen Ward to assess the property.

Findings:

Roof had seven to ten years remaining except one repaired section.

Drainage required $24,000 in work.

Pool equipment needed $18,000 over next year.

Electrical panel upgrade advisable:

$31,000.

Tree work:

$9,500.

Driveway:

Cosmetic deterioration.

No structural emergency.

Two-year reasonable maintenance plan:

$118,000–$146,000.

Not the:

$417,000 urgent stabilization

Carla had projected.

Then insurance.

Carla claimed carrier might refuse renewal.

Carrier said:

No.

Premium would rise modestly.

Some tree trimming required.

That was all.

Then Carla’s invoices.

Priya Shah found:

$63,000 duplicate or unsupported.

$38,000 excessive management markups beyond contract.

$22,000 work charged to trust but performed at Judith and Harold’s vacation condo.

That last category was clear.

Invoices listed Mercer residence.

Contractor photographs showed condo.

Harold said:

“Accounting mistake.”

Could be.

Three separate invoices made mistake less plausible.

Then:

$18,500 in landscaping materials purchased but delivered to Carla’s own property-management storage yard.

Some later used at Mercer house.

Inventory records unclear.

Not every dollar proven stolen.

Accounting separated categories.

The trustee sought:

$98,000 provisional reimbursement/surcharge against Bennett Residential.

Carla disputed.

Good.

Civil process.

Then Harold’s role.

He had approved many invoices electronically.

Did he knowingly approve inflated bills?

He said:

“I trusted Carla.”

That mirrored my own mistake.

May you like

But unlike me, he had also invested in the buyer.

That conflict made his approvals harder to excuse.

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