Geneva Hospitality is the former management company of the Cove
By Bob Peryea
CORRESPONDENT
Late Friday, Judge John Race issued a warrant for the arrest of Chandra Webster, one of the principals of Geneva Hospitality, the former management company for the Cove, 111 Center St. As of press time, Webster had not been arrested.
Webster was found guilty with contempt of court for removing all the records and computers from the Cove after she found out her company was to be removed from managing the hotel. She was sentenced to six months in the county jail. According to testimony from an eyewitness, the records and computers were removed over the weekend of Nov.9-12, 2012.
Race also ordered Geneva Hospitality turn over all the records and computers by the close of business on Friday, Jan. 25, or both Webster and co-manager, Sal Sardina, would be held in contempt of court .The court’s order includes the return of some $600,000 by the close of business on Jan. 25.
The courtroom was standing room only with owners and spectators packing the small room. Viewers spilled out of the gallery into the jury box, the witnesses’ chairs and a viewing room. The room exploded in cheering as Race issued his verdict. He chastised the audience to respect the court.
Webster was not arrested at the court, she and her co-defendant, Sal Sardina, were seen to slip quietly into an elevator minutes before the doors opened according to witnesses. No explanation was given as to why they chose not to appear in court or testify on their own behalf.
According to testimony given by two witnesses, Webster directed the removal of not only the computers and financial records in November 2012, but the toilet paper, cleaning products and key cards. According to Operations Manager Paula Holmes, Webster said, “We bought it. We’re taking it.”
When Holmes asked her, “Can’t we see if the new management company wants to buy it?” Webster replied, “Just pack it.”
Nothing to be removed
As early as July of 2012, records indicate Race ordered that nothing be removed, liquidated or destroyed.
“When we arrived there were no records from the accounting system,” said Sean Skellie, who works for In Development Management, a Madison company hired to manage the Cove after Nov. 15, in his testimony.
Skellie said that there are traditionally two accounting systems in hotels. One is used to check guests in and out. A second accounting system, sometimes called the “back of house” system, is used to maintain the bills and overall finances of the hotel. It was the back of house system that was entirely missing.
“In the server room, there is a space where there are just wires hanging there,” Skellie said. “Someone definitely removed a computer from there.”
Paula Holmes, the Operations Manager under Geneva Hospitality, testified she used QuickBooks accounting software on four computers that were used in the offices.
“When I came in Monday, the computers were gone,” she said.
Both Skellie and Holmes testified that there was no significant paper records left behind.
“There were a couple of past due bills sitting on a desk,” Skellie said.
Sardina was implicated in the removal of items from the hotel during the period in question.
According to court records, Abraham’s On-Site Shredding Service of Twin Lakes submitted a bill for shredding about 4,000 pounds of documents in August.
Missing funds
Skellie detailed funds that appear to be missing, according to the existing computer system, which is designed to maintain exclusively the guest reservation, room rentals and advance deposits.
According to Skellie, there is a total of $634,604.80 owed by Geneva Hospitality to the Cove Condo Association and the individual condominium owner. This sum represents room charges, advance deposits, prepaid monies from a promotion, payroll and reimbursement of bounced payroll checks that had been issued by Geneva Hospitality. It is this amount the court ordered repaid by Friday.
Webster and Sardina’s attorney offered no positive defense to the accusation of the removal of records. He repeatedly referred to a letter the he wrote in November that indicated Webster’s willingness to assist with financial matters. Neither witness had contacted Webster for assistance.
This case was a continuation of PNC Bank’s attempt to recover loans for $1.65 million that were made to the Cove Condominium Association several years ago. Geneva Hospitality became involved when they did not forward money that was sent to the Association to pay the debt. To date, with more than six years of payments due, there is still about $1.2 million owed.
According to owners and testimony from earlier cases, owners have made $800,000 in payments against the loan.
