Anybody who’s seen the ugly insides of the national HOA scam knows that Homeowners Associations are lawsuit machines. In most lawsuits and criminal actions Americans have access to the Due Process clause of the U.S. Constitution. In the typical Homeowners Association each member unknowingly contracts away that access. Bam! In Pennsylvania Dutch, “there goes the egg money!”
Throw away your access to Due Process and every lawyer within spitting distance knows there’s money to be had. Free money. Your money. Paint your door the wrong color and you get fined, liened, sued and you pay all the HOA’s legal expenses. Lawsuit machines. No other possible description.
In Arizona, a prominent HOA law firm is all upset by a court ruling that says lawyers can’t tack on extra legal fees they rack up trying to garnish the wages of a losing homeowner.
Rest assured, though, this law firm has a number of sneaky plans to hijack this decision. The lawyers win. The lawyers always win.
Well, prosecutors in San Mateo finally nailed a 64 year old HOA manager. She’s accused of embezzling 2.8 million dollars from the Woodlake Homeowners Association. She’s facing a growing heap of charges while police continue to investigate her partner.
Suspect Susan Marie Lambert
My question is, how the heck do you steal nearly three million dollars from a bunch of condo owners? Do you just assume that because they live in condos they must be stupid? Let me put that loss in actual numerals: $2,800,000.00! Where do you hide it? It can’t be in your pillowcase. It can’t even be under your bed. It would completely fill one of those condo units you supervise!
The big hoot in the story linked below is a quote from Chief Deputy D.A. Karen Guidotti, who says, “It’s obviously an enormous embezzlement. We certainly don’t see them of this magnitude very often.”
Well, Deputy Dawg. You’d better take off those rose-colored glasses and start looking across America. Denver, Colorado, Overland Park, Kansas, Las Vegas, Nevada, just about anywhere in Texas or Pennsylvania, Virginia or Florida. Really, 2.8 million dollars is just an average take in the HOA embezzlement business.
A few musings and ramblings on this watershed moment for millions of Americans.
A watershed moment is a point in time that changes everything; like the murder of President Kennedy, the crash of the Space Shuttle Challenger, the moment the towers fell. We all remember exactly where we were and what we were doing when we first saw the video of the attack on the World Trade Center. Since I customarily worked until two or three in the morning I was in bed when I got the phone call.
“Dad, are you watching TV?” my son asked.
“No,” I replied. “You woke me up.” I turned on the television just as the second plane hit.
“What does this mean?” he asked.
I simply told him, “It means we’re going to war.”
Watershed moment. There’s a place high in the mountains of Colorado that attracts many tourists. It’s a spot along the Continental Divide where you can theoretically drop a speck of water and the drop splits in half, with one half eventually ending up in the Atlantic Ocean and the other half ending up in the Pacific. One is the Atlantic Watershed, the other is the Pacific Watershed. A spot or an instant in time that changes everything. 9/11 did that for millions of us.
Today, I heard an NPR discussion about the fact that 25% of all Americans have absolutely no memory of that moment. They explained that kids under fifteen or sixteen were either not born yet or were too young to have any memories of that disaster. I was momentarily stunned to realize that so much time has passed yet the memory is so deeply burned into my mind. To kids 9/11 is just ancient history, not a real razor-like scar on the collective conscious.
A huge jury verdict in Nevada was just awarded to a homeowner against two HOA collection companies. Across the country many HOA boards assess minor fines and liens against homeowners and then turn the accounts over to their law firms for collection. It’s so tempting for an ambulance-chasing law firm to turn to the easy profits of debt collecting. It’s not unheard of for minor fines to turn into huge foreclosures. Law firms add so-called ‘collection costs’, legal fees, interest and other such nonsense onto nickel-and-dime fines. It’s enormously profitable for such lawyers to have a buddy down at the county offices when the properties are auctioned off for pennies on the dollar. A whole roomful of Las Vegas lawyers are in jail right now for similar racketeering convictions.
The law firm hired by the Arrowcreek Homeowners Association in Washoe County, Nevada was accused of violating federal and state regulations against racketeering and violations of the Fair Debt Collections Act. The jury agreed and awarded the homeowner more than $600 thousand.
The link below is to a press release by the homeowners legal team. Obviously, the press release is to attract business. But since this law firm has affiliates in many other states it could possibly strike some fear in the hearts of the HOA Lawn Nazis!
Yep, that’s the quotable quote emerging from an HOA scandal in Anne Arundel County, Maryland.
Residents of the Russett Community Association voted to throw out the top two board members who homeowners claimed were misusing HOA funds. True to form, the two board members voted that the recall elections weren’t valid because they weren’t approved by the board. Then they fought the recall election in court, and of course they spent neighborhood dues money to pay for their own defense. It happens in thousands of HOAs across the country!
In this case, though, a judge ordered that the two board bullies step down from their positions. They’re not going easily, though. They’ve squandered anywhere from 80 to 100,000 bucks and more in dues money to fight the homeowners in court.
Those of us ‘in the know’ just shake our heads in wonder.
