The HOA world is buzzing about a multimillion dollar lawsuit filed against the Henderson, Nevada Police Department. It’s a lawsuit that could throw a massive punch in the face of the American HOA movement, especially those which use coersive tactics to intimidate HOA critics.
This really is a wild case. Two elderly residents of Sun City Anthem HOA in Nevada, tried to warn other homeowners that the board was illegally stashing millions of dollars of excess dues instead of returning them to residents. Any organization that doesn’t report such excess collections can face heavy IRS fines.
The board refused to pay attention to the complainants, so the two ‘agitators’ reported the apparent tax fraud to the Henderson Police Department. Keep in mind that a Federal Grand Jury was already prosecuting massive fraud among Nevada Homeowners Associations.
According to the mens’ lawsuit, the Sun City Anthem HOA filed a complaint with Henderson P.D. accusing the two men of filing a false police report. The cops then busted the two men, stripped them, handcuffed the two men to a vertical bar in the city jail, and left them for four hours. The men, one of them a retired Air Force officer, were appropriately outraged.
Their outrage grew as the IRS agreed that the HOA was indeed operating illegally and levied some heavy fines.
Now Col. Robert Frank (ret’d) and Tim Stebbins are suing the City of Henderson for false arrest, false imprisonment and a number of other allegations. The reverberations from this lawsuit could be massive; and massively fun to watch.
Can’t you feel the squirming among HOA board members everywhere?