Tag Archives: HOA Embezzlement

HOA Scam Lawyer Dies In Prison

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Barry Levinson, a disbarred attorney who was one of the top figures in the massive Las Vegas HOA scam, has died while in federal custody. Now his lawyer is planning to sue the prison system for medical negligence.

The federal HOA investigation was the first of its kind in the country. Forty-two people were convicted, but most were given very light sentences. Officially, about 20 million dollars was stolen from residents in Las Vegas HOAs. But because of the collapse in value of all Las Vegas real estate the impact of the HOA scam rises well above 100 million in losses.

(link to Las Vegas Review Journal story on Levinson’s death)

By the way, reporter Jeff German deserves every journalism award in the book for his ongoing and thorough reporting of the Vegas HOA scam.

 

 

Tiny Gains in Arizona

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It’s one step at a time, but every milometer of achievements is worth its weight in gold.

In Arizona, one lawyer is trying to get Homeowner Associations to work with homeowners to end the nightmare of lawn Nazis and bully boards. The link below should be an easy way to spend a couple of minutes.

(link to HOA arbitration story on KPHO-TV)

 

 

The American Flag is Offensive!

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We’ve seen this over and over again. But keep in mind that when patriotism is banned we’ve reached the beginning of the end. Please, please, don’t think I’m exaggerating.

In North Carolina, a Homeowners Association (a trailer home association) has banned the flying of American flags. They want to ban all flags, which is probably understandable. But the American flag has special protections enacted by Congress and by many state legislatures. Banning American flags is on a par with banning any celebration of the 4th of July.

Multi-culturalism? I get it.

Diversity? I get it.

But any ‘government’ (and believe it, Homeowners Associations are governments) that begins banning displays of patriotism is on the road to destruction. Go back and look at dictators who killed millions and millions of people, Hitler, Stalin, Lenin, Idi Amin, Pol Pot, Chairman Mao: They all began by burning books, outlawing freedom of expression, and banning displays of religion and patriotism.

Our Constitution is an extremely thin thread that holds our country out of the hands of such monsters.

Our Constitution was written and enacted by some of the greatest heroes in history. If we allow the collapse of our Constitution, we will ultimately be regarded as the greatest cowards in history. When your HOA nibbles away at your Constitutional rights, stand up and show your testosterone! Use it or lose it.

(link to story on banning the American flag)

(link to a list of the 25 most murderous dictators in history)

 

Hiring an HOA Management Company

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guest blog by Jill Schweitzer

As a Realtor in Arizona, I recently went to a class presented by an HOA property management company. The topic was the various ins and outs of HOAs hiring a management company. But as the class progressed, I thought it really would be better taught by an attorney and not somebody within the HOA industry.

Here are my conclusions after going through this class:

1. Absolutely, have an attorney review and make changes to the contract! Have the attorney tell you what items to add in to the contract items that are missing in the laws to protect the both the HOA and the individual homeowners…thereby holding the management accountable and responsible for any misfeasance or malfeasance. Also have the attorney remove the indemnification clause! Why pay to defend a management company for its bad actions?

2. Check court records online and in person to examine lawsuits the company may have been involved in.

3. Recommend that boards either eliminate or lower transfer and disclosure fees!

4. Recommend the board get a website independent of the management company. This would ensure that the HOA’s connection with homeowners survives any future change in management.

5. When hiring a management company, HOA boards should be careful of all the extra junk fees; printing, copies, coupon books, violation letters, etc.

6. Finally, mandate that any management company hired by an HOA certify that it has insurance against all misfeasance and malfeasance by management company owners, executives or employees.

 

Embezzlement, Texas Style

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guest blog by Deborah Goonan

East Texas, Big Woods Springs HOA is a relatively small community of 85 homes, with low assessment payments of $35 per month. They need the money to maintain their road, a small bridge, and a dam for their lake. Homeowners have just been “blindsided” by the theft of $31,000 from their HOA.

The theft allegedly occurred over a 26-month period, by their neighbor and former Treasurer, Letha Anna Thomas. Owners became suspicious when their repeated requests to see financial statements were ignored.

The new Board members vow to operate with transparency, and intend to conduct background checks on all future Board candidates.

Note that $31,000 represents about a year’s worth of assessment payments for the Association. Most of the residents are on fixed incomes.

Just because the community is small and assessments are low, don’t assume that the HOA cannot be a target for embezzlement.

7 on your side: HOA theft victims say, “We’ve been kept in the dark for years.”

(link to KLTV-TV story on latest embezzlement)