Or another thousand dollars. A couple of Homeowners Associations in Southern California are still trying to figure out how much was stolen from them. Fortunately, at least one of them had insurance but it’ll be a while before they find another insurance company. HOAs are getting a stinky reputation in the insurance industry because embezzling is so rampant. The seemingly massive theft linked below is just another average day of looting the HOA treasury.
The link below is from the Las Vegas Sun newspaper and the column is a so-so explanation of Homeowners Associations. For the completely ignorant it may have a couple of bits of knowledge. The major reason I’m linking it is not because of the column. It’s the comment by a reader about something happening in his own HOA. That single comment is more informative than a dozen Las Vegas Sun columns.
Yes, welcome to your new condo. You’re going to love living here. The neighbors all get along and we don’t seem to suffer the kinds of problems felt in many other Homeowners Associations. You’re buying into a little bit of Heaven, your own private home. Welcome, welcome, welcome!
Oh, we’re sorry we couldn’t give you copies of the covenants, the budget and insurance papers in time for your real estate closing. At the time you requested them, the paperwork was tied up in some minor snafu. But it’ll all get worked out soon.
Ah yes, and ignore the story in the newspapers today. Those crooked reporters always make up their facts and get the story wrong. Everybody knows how warped and dishonest the media are. Just sit back and enjoy your new life!
Investigative reporters just LOVE websites like ScamBusters and Snopes. It saves us a lot of research time. Those sites are not always right and are subject to mistakes like most of the rest of us. But what a resource! Another of my favorite ones was CSICOP (Committee for Scientific Investigation of Claims of the Paranormal.) But that last one is a little esoteric.
I’ve just learned from one of my frequent email contacts that ScamBusters actually has a blog post about Homeowners Associations. It’s not perfect but it shows how suspicions about HOAs is going mainstream.
I love the FBI. I love the many federal agents I have known. But my pet peeve is that the FBI, which keeps track of annual crime statistics, does not keep track of the number of Homeowners Associations which have been hit by an embezzlement by board members or property managers. Thus, it’s my belief that embezzlement from HOAs is the largest unreported crime in America. Nobody keeps track!
A couple of years ago a multi-million dollar embezzlement impacted a number of HOAs in Denver. Just about every major city has suffered some kind of massive HOA theft. Good grief, Las Vegas lost more than 60 million dollars when a ring of HOA swindlers decided that HOAs were too stupid and weak to stop embezzling. Some of the crooks were among the highest and finest of society. The FBI is credited with sending 43 HOA officials, lawyers, cops and property managers to prison. But I fault the feds for not going further. This same kind of corruption infests HOAs across the country. The corruption is being fed by massive legal fees going from homeowners into the pockets of complicit attorneys. And Legislatures across America know exactly what’s going on, but they refuse to reign in the corruption. It’s all about the money. Never, ever think that money doesn’t play a huge part in keeping a corrupt system alive.
