Cy-Fair management company accused of failing to keep records, writing unauthorized checks

A Cy-Fair management company is being sued after a Richmond-area subdivision association says it wrote $50,000 in checks without proper authorization and failed to keep records in accordance with their agreement.

Pecan Lakes Community Association in Richmond filed a lawsuit on April 20 in the Harris County District Court against Tracy Graham, of Cy-Fair, and Graham Asset Management, doing business as Graham Management, citing breach of contract, breach of fiduciary duty and violations of the Deceptive Trade Practices Act.

The Pecan Lakes Subdivision, located in Richmond, hired the defendants to act as its agent, but terminated their agreement, with cause, effective Dec. 15, 2010. In response, the defendants left the Association’s blank checks, unsecured, in the hallway of its office and refused to accept mail that contained the assessment payments from association members, according to the brief.

The Subdivision further alleges that the defendants wrote $50,000 in checks without the board’s authorization and failed to keep operational files containing insurance information, legal status reports and financial information, as contracted.

Pecan Lakes is seeking actual, consequential and exemplary damages, attorney’s fees and court costs. It is being represented in the case by Houston Paul Pilibosian.

Harris County District Court Case No. 2011-24136.

This is a report on a civil lawsuit filed at the Harris County Courthouse. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story.