Former Cove official gives up documents
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ELKHORN — The chief financial officer for the former management company of Cove Condominiums remains under a contempt of court order while surrendered documents are examined.
"It's not fair to say they complied, and it's not fair to say they didn't comply, yet. We're still going through the documents," said Robert Procter, one of the lawyers representing the Cove Condominium Association.
The Cove is in the midst of a civil case after its financial collapse last year. Unpaid bills and mortgage payments, including a $1.9 million defaulted loan from PNC Bank, led Walworth County Judge John Race to place the Cove in receivership on Sept. 27.
Race also granted a motion to appoint Madison-based Inn Development Management to operate the Cove, a 223-unit condo located in the city's downtown adjacent to Geneva Lake.
Race had found Chandra Webster, chief financial officer for Geneva Management, in contempt of court Jan. 18. He stayed Webster's six-month jail sentence and gave her until 4 p.m. Jan. 25 to turn over funds and records to an appointed receiver.
In a letter sent to the court Tuesday, Michael Polsky, the Milwaukee attorney acting as the receiver, indicates Webster turned over to him on Friday electronic and paper financial documents for Cove Condominiums.
"I am not requesting that the court order the incarceration of Ms. Webster … at this time, but reserve all rights to make that request once we review the information which has been delivered and have attempted to obtain any missing information," Polsky wrote to the court.
Race on Monday signed a contempt order detailing his verbal orders made during the Jan. 18 hearing. The order indicates Webster should serve six months in jail if she does not turn over the required financial documents.
The order does not repeat Race's verbal order from the Jan. 18 hearing that Webster also turn over funds. A partner in the firm now managing the Cove testified Jan. 18 that $634,604.80 could not be accounted for.
Procter said Tuesday that he was not aware that Webster had turned over any money Friday.
Gazette staff contributed to this report.
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