Tag Archives: corruption

Do HOA Embezzlement Stories Bore You?

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The Good Lord knows I don’t want to bore readers of my blog posts! But my feeling is that there are so many HOAs being victimized by embezzlers, that the name of every HOA crook ought to be publicized far and wide. These crooks are not only rotten people for stealing, but they’re stealing from neighbors who put them into positions of incredible trust. In many cases, they’re stealing from elderly retired people who just can’t afford to pay special assessments to cover the HOA’s losses.

Well, bore you or not, the latest embezzler to be sentenced to prison is 63 year old Nancy Walker. She managed the treasury of the Ballenger Creek Meadows HOA in Frederick County, Maryland. She stole more than 137,000 bucks. She claims she gave the money to an internet acquaintance she’d never met; a man who alternately claimed he was in a South African hospital, and later in a South African jail. It’s a great sob-story, but it doesn’t change the fact that Walker stole from neighbors who had trusted her.

She got a sentence of 18 months in prison and restitution. Why HOA thieves never get more than 18 months is a mystery to this blogger. But the restitution is no mystery. She’ll never pay it.

Another Day, Another HOA Embezzlement

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A Pensacola Homeowners Association is juggling its debts, after discovering their treasurer swiped more than $90,000. Escambia County Sheriff’s deputies agree and they’ve charged Hedi Dyer with fraud and larceny.

They say the treasurer of the Lillian Woods HOA wrote checks to herself and her husband over a five year period. Now the neighborhood is struggling to keep its bills paid.

Like thousands of other HOAs around the country, the Lillian Woods HOA had no way to make sure their treasurer was being honest with the neighborhood’s funds. It now joins thousands of other HOAs which are whining, “We got swindled!”

http://www.weartv.com/newsroom/top_stories/videos/wear_treasurer-steals-90000-local-homeowners-association-25741.shtml

Tiny Mice Gang Up On Big Rats in California

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Homeowners usually get the raw end of the deal when they try to fight the “Bigs” in the HOA industry. Some Homeowners in California are trying to turn that trend around. An HOA in Riverside County has sued three former property managers for “fraud, conspiracy to defraud, breach of contract, and breach of fiduciary duty.” They had employed the management companies for eight years.

Canyon Lake Association then sued its own law firm, Fiore, Racobs & Powers, accusing them of “fraud and malpractice.” They say a lengthy investigation found “no cash management, no separation of accounting duties, credit card abuse by employees, employee salary increases that were not approved by the board.”

The lawsuit further claims that three HOA managers “created and concealed a secret, systemic pattern of conversion and theft of (HOA) assets and funds…and made representations to the board that were not true and were a cover up designed..to delay discovery of the cover-up.”

One final thought comes to mind here. We haven’t heard much from the federal investigators in Las Vegas. We hope the widespread corruption they found in the Vegas HOA industry hasn’t depressed them to the point that they want to throw in the towel. Actually, we hope the opposite is true. We hope they take a look around the country and discover that the legal scams in Las Vegas are as identical and numerous as the legal scams in Riverside County, and Modesto, and Weld County, Colorado. and Dallas and Houston and Miami, and North Carolina.

If you don’t think it’s happening in your own community, you are either naive or dumber than a box of rocks. When we signed those CC&Rs, we stepped into an entirely new form of government with no checks and no balances. We essentially told law firms and property managers, “It’s OK to steal from us.” And then we whine when they steal from us. What gives?

Ward Lucas, author of Neighbors At War! The Creepy Case Against Your Homeowners Association

“Texas, Our Texas, All Hail the Mighty State…”

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Ah yes, how I remember singing the Texas State Anthem when I was eight or nine years old and studying the Blue Book. Do Texas kids still study the Blue Book, or is that an antique of the 1950’s? “Remember the Alamo, remember San Jacinto!”

Since life in Texas, I migrated to Washington DC, and Germany, and Seattle, before finally settling in Colorado.

But after learning about the national HOA movement, I began thinking that Texans were wimpy little pea-brains who’d passively turned their life savings over to the trial lawyers by moving into covenant-protected neighborhoods. Texas homeowners were being raped by the tort system and weren’t even fighting back.

Then I started hearing names like Beany Adolph and Michael Clauer, Harvella Jones, Frank Larison and Becky Oliver. It seems some Texans do have guts after all. They’ve even marched on the State Legislature to demand some changes in the law to prevent gestapo-run HOAs from getting their hands into every cookie jar that wasn’t cemented down.

Yes, the Legislature did pass some OK legislation in the last session. Admittedly, it was a little weak, a little weasel-worded. But still, Texas is now ahead of all other states in trying to protect at least a few of the Constitutional rights Americans have always thought they possessed. At least Texas HOAs can no longer toss out Jews, or Christians, or patriots who want to fly the flag.

God bless Texas.

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association

BAM! The First Las Vegas HOA Corruption Indictment

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It could be the first of many; but the first actual indictment for corruption in the Las Vegas Homeowners Association investigation was handed down Friday, December 9th.

Dax Lee Louderman, a former employee of a construction company, was charged with stealing more than a half million dollars in a construction defect case. Louderman was charged with 13 counts of theft from the Stone Canyon HOA.

Louderman was charged in state court rather than in federal. But it appears to be a spinoff from the massive federal investigation of fraud and corruption in more than a dozen Las Vegas Homeowners Associations. In recent weeks, ten targets of the federal investigation have pleaded guilty to theft and corruption, and the stacking of HOA boards with officers who would direct construction and legal expenses to certain lawyers and construction companies. Presumably, those ten suspects will now testify against other targets in the case.

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association

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