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.”
Nebraska Senator Mike Schneider is asking the governor to call a special session of the legislature to pass new laws against Homeowner Association fraud. He says he’s been reading a blog on the Las Vegas scandal and he doesn’t like the kind of comments being made about suicides committed by suspects indicted in the HOA scandal. (Hmmm, I wonder which blog he’s talking about!)
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Nevada State Senator Upset at Blogger Coverage Of “Suicides”
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Nancy Quon, the attorney at the center of a Homeowner Association scandal in Las Vegas, has been found dead in her bathtub. Quon had been accused in an HOA construction defect litigation scandal that took in more than a hundred million dollars from insurance companies that represented Homeowner Associations in Nevada.
The FBI has been investigating up to a hundred Homeowner Associations in the Las Vegas area, and has staged several raids on the offices of HOAs and HOA management companies. The scandal has been in the hands of at least three federal grand juries over the past three years. At least ten prominent figures in the investigation have pleaded guilty to a variety of charges over the past five months.
There’s no way to explain how significant the Homeowners Association corruption scandal in Las Vegas really is. It’s huge, of course, for Nevadans. More than any other state, HOA members there have seen their home values plummet, sometimes up to 80 percent.
In the Las Vegas disgrace, a fifth person, Angela Esparza, 24, has now pleaded guilty to helping rig HOA board elections with phony ballots and proxies. She’ll get off easy, though. It’s sad to see that she’ll get a light sentence, but at least she’ll be snitching on some of the other major suspects in this stenchy scandal.