Maryland Property Manager Ordered to Repay Homeowners for Illegal Fees and Unauthorized Withdrawals

Maryland Attorney General Anthony G. Brown announced a final order against Professional Community Management, Inc. (ProCom), its principal Michael Finley, and employee Scott Davis, for unlawfully charging homeowners in managed common-ownership communities. The order mandates ProCom to reimburse consumers for overcharged late fees on assessments and to return funds improperly withdrawn from an association’s bank account. Additionally, ProCom faces substantial civil penalties and costs.

The Consumer Protection Division of the Attorney General’s office found that ProCom illegally assessed late fees to homeowners in condominiums and homeowners associations they managed. Under Maryland law, these fees are strictly regulated. They must be authorized by the community’s governing documents and cannot exceed the limits set by the Maryland Homeowners Association Act and the Maryland Condominium Act. Homeowners who have been overcharged are set to receive restitution as part of this final order.

Beyond the illegal late fees, the order also addresses a significant financial impropriety. Michael Finley is specifically cited for withdrawing over $25,000 from an association’s bank account without the necessary authorization. This misappropriated sum must also be returned to the affected association. To underscore the seriousness of these violations and to deter future misconduct, ProCom has been ordered to pay more than $1.3 million in civil penalties and an additional $179,000 in legal costs. The order also explicitly prohibits ProCom from continuing to impose illegal late fees on delinquent assessment payments.

ProCom had sought to challenge the final order and requested the Circuit Court of Anne Arundel County to put the order on hold while an appeal was considered. However, the court declined to stay the provisions of the order that require payment and injunctive relief, meaning ProCom must comply with the restitution and prohibitory measures while the appeal process continues. Homeowners who believe they may have been affected by ProCom’s practices and have questions are encouraged to contact the Consumer Protection Division’s hotline at (410) 528-8662.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office

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