Tag Archives: corruption

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!”

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.”

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

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.

BAM! The First Las Vegas HOA Corruption Indictment

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.

Embezzlements from Homeowner Associations Routine

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It’s incredible, really, how common embezzlements are from Homeowners Associations. With 320,000 HOAs across the country, you’d think there would be a major push to clean out the corruption that seems endemic in such HOAs as the latest one in the link below.

There are many fundamental problems with the structure of the modern HOA.  As private non-profit corporations, the HOA is typically beyond the law. Restrictions against government, the protections we’ve grown accustomed to in the U.S. Constitution, don’t apply to the average HOA. As such, dictatorial edicts against such things as freedom of speech, protection against unreasonable search and seizure, and due process happen all the time.