People in Kansas and Missouri Homeowner Associations must have wondered why they weren’t being hit by embezzlers. Were they just more honest, maybe luckier? Maybe people in the Midwest just respect each other a little more?
But then, maybe not. The feds in Las Vegas have learned how the corrupt HOA system is bleeding dollars away from homeowners across the nation. Now U.S. Attorney Beth Phillips theft has released info that should shock a lot more homeowners.
She has arrested the owner of a Kansas City business for stealing more than 750,000 dollars of money from his neighbors. And he has pleaded guilty. Dozens of homeowners associations were hit while 53 year old Dale Palmar of Kansas City, Missouri just raked it in.
Shawn Marie Bianco, of 109 Georgetowne Court was arrested by the Sheriff for embezzling from three organizations in Virginia. Two were Parent-Teacher Organizations. One was the Georgetown Court Homeowners Association.
She said she needed the money for several things, including braces for the kids’ teeth.
She asked her friends not to mention her name anywhere.
Millions of people move into Homeowner Associations, thinking they’re protecting the value of their home. They sign covenants promising to abide by a byzantine set of covenants that amount to a surrender of all Constitutional rights. They reason, “At least I’m protecting my investment.”
But in a massive number of Homeowner Associations, someone on the inside is embezzling staggering sums of money, all of which have to repaid by the homeowners. If the crook is caught, the judge generally orders restitution, but that’s just pro forma. It rarely happens. When homeowners are forced to make up for the stolen money, for all intents and purposes it’s a direct devaluation of every home in the neighborhood.
A staggering number of communities across the nation have Homeowner $B!G (Bs Associations. Twenty percent of all American homes are in HOAs. But that belies the read figure. Almost 100% of all NEW homes are in Homeowners Associations. That’s because developers cannot get permits to build unless they agree to create restrictive covenants that subsume some of the traditional duties of government. It’s a form of tax-shifting. Instead of additional taxes, you pay neighborhood ‘dues’. It doesn’t feel like taxes, and it doesn’t create some of the legal complications involved in raising taxes.