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Statement Regarding Notice of Reprimand from ACMO

April 07, 2022
message from the president and ceo Larry Holmes

Recently, ACMO published in its weekly newsletter the recent Notice of Reprimand to Larlyn Property Management Ltd. and the suspension of our ACMO 2000 Certified status pending the results of a full certification audit to be completed before July 1, 2022. With less than 7 days to provide a written submission to this Notice from ACMO, we believe a comment on the matter is appropriate.

ACMO provided this notice to Larlyn on March 22, 2022, following the ACMO Membership Standards Committee review on March 17, 2022, of the Decisions and Orders of the Discipline Committee issued by the CMRAO on October 28, 2021, and December 9, 2021, regarding cases investigating two Statements of Allegations.

It started with complaints submitted to the CMRAO

The initial allegations submitted to CMRAO involved the complaints of two separate condominium corporations about the transfer of records, transfer of funds, competence, and responsiveness.

The agreed statement of facts in the CMRAO proceedings was entered into as a compromise to avoid a protracted hearing. The complaints in both case files relate to circumstances that were time-limited to January 2020.

In both cases, Larlyn admitted only to:

  • a failure to turn over documents in a timely manner – they were required to turn over documents by January 15, 2020. They provided documents on January 2, 2020, which were deemed to be incomplete. Subsequent documents were provided in March 2020 to the satisfaction of the condo.
  • a failure to the timely remittance of funds from its bank accounts – less than a month after it was required to. Funds were returned to the satisfaction of the condo.
  • On the narrow issue of whether Larlyn held one or more accounts in Larlyn’s name for the benefit of the condo, Larlyn entered into a voluntary Acknowledgment and Undertaking.

At both hearings, the discipline panel heard extensive submissions from counsel for the CMRAO, who advised that the CMRAO was withdrawing all allegations that Larlyn failed to adhere to its section 8 obligation to be financially responsible in providing management services. The CMRAO also withdrew all allegations under section 11 that Larlyn engaged in any act or omission that can be regarded as disgraceful, dishonourable, and unbecoming of a licensee. The CMRAO also withdrew any allegation that Larlyn failed, under section 13 to promote and protect the best interests of the licensee’s clients.

The CMRAO, by entering into the agreed statements of fact and withdrawing the substantial allegations, viewed these issues as minor and was satisfied that Larlyn had taken the appropriate measures to ensure the public has been protected.

Our disappointment with ACMO’s reaction

Regarding the Notice of Reprimand, Larlyn does not oppose the audit which it will voluntarily submit to. However, publishing an interim suspension is clearly punitive, disproportionate, and unreasonable. The suggestion that the integrity of the association, the members, and the entirety of the ACMO Certification program is or will be impugned if the allegations of a breach are not published publicly were, respectfully, arbitrary and appear unreasonably targeted to impact our business.

As long-time certified members of not only ACMO 2000 but ISO 9001 and the IREM, we understand the importance of consequences as part of corrective and preventative action. But the disciplinary action must be fair and consistent. Larlyn accepted the consequences from CMRAO after a thorough investigation and the opportunity to appeal during the hearing process.

Internally, our own investigation determined the root cause and corrective measures were taken including termination of non-compliant team members and changes to improve procedures as preventative measures. We continue to test our systems, adjust, and improve.

However, publicly announcing a suspension of our ACMO 2000 Certification status because of two incidents over 2 years ago due to the actions of a terminated employee does not reflect accurately on Larlyn’s many licensed Property Managers who diligently adhere to the requirements and actively participate in our efforts to continually improve so we can provide stellar service to our many cherished clients across the province.

Larlyn commends the CMRAO and remains committed to continuous improvement.

I commend the CMRAO for taking complaints against its licensees seriously. They contribute to building an honourable and trustworthy industry that we can be proud to be a part of. I thank our dedicated team for their commitment to customer service excellence, learning from mistakes and continually improving what we offer to our clients.

In closing, I do hope the condominium corporations who are currently part of the Larlyn Community, and those who may choose to partner with us in the future, who read ACMO’s publication on April 6, 2022, can be assured we take the allegations addressed by the CMRAO seriously, accept responsibility and have implemented positive change for the future.