Category Archives: Fraud

The Lawn Nazis Grab Another Home

Each story I read disgusts me more: A Homeowners Association in the Colorado Springs area has foreclosed and auctioned off a 350,000 dollar home for about 11,000 dollars. And the homeowner never saw it coming.

Christopher Wright lived in the Woodmen Hills Filing Number 11 HOA. He thought he was fighting a fine for leaving the kids’ bicycles outside, but he discovered that the home was really taken because he hadn’t been paying his annual dues. His $900 nonpayment had turned into more than $10,000 worth of late fees, collection fees and attorneys’ fees. But non-payment of annual dues in most HOAs is a more serious crime than rape, armed robbery or burglary. Overstatement? No, rape and armed robbery usually net a less serious sentence than the confiscation of one’s home.

The management company is owned by Associa, which in turn is owned by an ethically-challenged Texas State Senator who has long faced criticism for his shifty dealings. Senator John Carona is a billionaire who owns or controls more than 8000 Homeowners Associations across the country, many of which are required to use insurance companies he owns, banks he owns, the list goes on and on. Media criticism of Carona’s ethics goes back years.

But none of that really impacts Christopher Wright’s case. He lost his house. And he’s dazed and confused about the Constitutional rights he thought he had.

Was Christopher Wright just stupid? Some would say so. But others would look with awe at the record of the Woodmen Hills Filing Number 11 HOA.

853 homes.

225 liens filed.

126 lawsuits filed.

4 foreclosures.

About his sky-high fees, the Woodmen’s HOA attorney, Hal Kyles, of the law firm Orten, Cavanagh and Holmes says, “I’m not cheap.”

No, you’re not cheap, lawyer Kyles. You’re not. But you are arrogant.

Shame on you for your arrogance.

(click here for KOAA-TV news story)

http://www.koaa.com/news/news-5-investigates-hoa-forecloses-on-home/

 

Powerful and Courageous!

Whether you are for or against the protections of the Second Amendment, this short video of a former soldier and current police officer defending the Second Amendment is unbelievably powerful.

Wait! Before you view this link below, substitute the First Amendment, the Fourth, the Fifth or any of our other Constitutional Freedoms. Our Constitution and the Bill of Rights were created to protect us from government. As we American homeowners keep up our nightmarish slide into ‘government-by-corporation’ we are quickly losing access to any of our Constitutional protections.

Speech? Homeowners Associations constantly restrict it. Religion? In many places HOAs restrict it. Freedom of Assembly? Restricted time after time. Due Process? It doesn’t exist in Homeowners Associations. Restrictions based on against race or disability? The current core of this kind of illegal discrimination is in the heart of the American Homeowners Association Movement.

Of course, the ‘right to contract’ is also embedded into the Constitution. But there are limits to the right to contract. You have, for example, no right to sell yourself or your children into slavery. You have no right to ‘contract’ for a criminal act to be performed.

When it comes to your home and your fundamental privacy, should you really be allowed to contract away the very rights our founders tried to establish?
Do yourself a favor and watch the powerful speech linked below.

http://www.youtube.com/watch?v=44zW84FKd50

 

HOA Embezzler Gets Prison

One of the most bald-faced embezzlers in the country has been told he’ll be spending a little time in prison.

I wrote previously about Chris Barna, who swiped almost a million dollars from the California company where he worked as controller. His firm handles the finances of a number of Homeowners Associations in California. The parent company is Associa, the HOA management firm run by Texas State Senator John Carona.

Earlier this year Barna pleaded guilty to embezzling 980,000 dollars that came out of the accounts of California Homeowners Associations

This week, Barna was sentenced in Federal Court to three years and five months in prison and more than a million dollars in restitution. Judging from past white collar crime cases, though, he’ll only spend part of that time behind bars. And it’s highly doubtful that restitution will ever be made.

But that’s justice in America.

(click here for Justice Department press release)

 

What Were They Thinking?!?

Las Vegas is the nation’s home for Organized Crime posing as Homeowners Associations, with more than two dozen felony guilty pleas and nearly a dozen federal criminal trials pending. Las Vegas may have more Homeowners Associations than any other metropolitan city. Las Vegas has so many HOA horror stories that writing a blog like this is almost effortless. Home buyers everywhere are beginning to tell their Realtors, “Don’t show me anything in an HOA!”

Now, here comes a major real estate company saying it’s going into the HOA management business! Hard to believe, but Shelter Realty, Inc. says it’s ‘pleased’ to announce that it’s creating a sister company which will provide management services for Homeowners Associations.

Realtors make their living by being respectable. Realtors live or die on their reputations and client referrals. Of course there are plenty of people living in Nevada Homeowners Associations. But HOA management is a stenchy business with neck-deep corruption. For a realty company to suddenly say it’s going to clean up HOA mismanagement and corruption is beyond laughable.

I’ll have to say it again.

What were they thinking?

(click here for Digital Journal story)

http://www.digitaljournal.com/pr/1638433

 

Due Process? Screw Process!

One of my angriest complaints against the HOA movement is the almost complete void of the recognition of this fundamental principle in the documents of a typical Homeowners Association. Due Process isn’t some newfangled thing invented by our nation’s founders. No, the concept of Due Process has it’s roots in the Magna Carta, a document developed by freedom minded revolutionaries who were trying to bring a tyrannical British monarch under control.

So when our founders were establishing the kind of republic that had never existed on this Earth, a republic guaranteeing the maximum amount of freedom to the maximum number of people, they sought to interweave the concept of Due Process into our founding documents. They even wrote into our Constitution ways of correcting errors of Due Process, although it took a Civil War and a half million lives to bring that about.

But here comes the HOA movement, a movement dedicated to fleecing unwitting homeowners out of their life savings. One of the first things they had to do was generate corporate ‘agreements’ where American home buyers unwittingly signed away their rights to Constitutional Due Process. And 62 million homeowners did exactly that, leading to a fifty billion dollar industry that routinely fleeces homeowners.

Enough of my blabbing. Here comes a Homeowners Rights advocate in Nevada who gets himself appointed to a state commission overseeing Homeowners Associations. Fighting a majority of committee members who are actually part of this fifty billion dollar a year industry, he makes some crazy recommendations, like…. well, like restoring Due Process to all Nevada Homeowners.

He could never get such a thing passed, could he? Well don’t ever underestimate the power of a single man who stands up against the mob. Commissioner Jonathan Friedrich, long my hero, and long the hero of millions of Nevadans actually got a Due Process pledge passed by his seven member commission.

Certainly, Friedrich has miles to go before he sleeps, and his Due Process resolution has a ways to go before it becomes law. It’s not perfect, even he would admit that. But who knew such a resolution could come out of a State committee which is basically bought and paid for by the HOA industry? Still, it’s a privilege to reprint the words of the new resolution here, for everyone to read:       

                                              PROPOSED REGULATION OF

               THE COMMISSION FOR COMMON-INTEREST COMMUNITIES

                                               AND CONDOMINIUM HOTELS

                                                      November 15, 2013 Draft

                                                     Unassigned File #116-31085

 EXPLANATION – Matter in italics is proposed new language; matter in brackets [omitted material] is material to be omitted.

 AUTHORITY: NRS 116.615

 Create a new section or amend NAC 116.31085 to add the following language:

 Section 1.

Timing of notice of hearing: In accordance with NRS 116.31031(4)(a), a notice of a hearing setting forth the date, time, and location for the hearing and a telephone number and mailing address that the recipient may contact to request an continuance or change of hearing time or date must be sent to the record owner at the last known postal mailing address of that record owner or, if none, to the postal address to which the annual assessment notice is mailed and any other party in interest to that party’s last known postal mailing address by certified mail return receipt requested not less than 30 days prior to the date of the hearing. The 30 days shall be counted starting the next business day after mailing and ending the day before the proposed  hearing. Notice shall be considered sufficient whether or not the certified mailing has been  claimed by the addressee, provided that the sender has the stub from the United States Postal Service showing the certified mailing number, name and address of the addressee, and payment of the required fees to the Postal Service.

Personal service is not required but is an acceptable alternative to mailing as set forth herein if made within the time frame specified 

 Section 2.

Contents of Notice: Notice delivered pursuant to Section 2 shall, in addition to the date, time and location of the proposed hearing, include a specific detailed description of the alleged violation in plain language, including but not limited to a recital of the number and language of the specific section of the governing documents alleged to have been violated and including a legible photograph of any property condition alleged to constitute the violation. The Notice must also set out the  fine for this violation then in effect in accordance with the governing documents and a reasonable time within which to cure the violation, the reasonableness of the cure time being commensurate to the magnitude and seriousness of the alleged violation. The Notice must also advise the addressee of the addressee’s rights set out in Section 3 and list the members of the hearing panel with their names. and addresses.

 Section 3.

Rights of alleged violator:

1.The property owner alleged to have violated the governing documents shall be entitled to one continuance of the proposed hearing of not more than 30 days for any reason whatsoever and any additional continuances to which all the parties agree.

2. At any hearing, the alleged violator may be represented by legal counsel or by any other person of his or her choosing or by any person acting as officer, managing partner or trustee of the entity owning the property. 

 3. The alleged violator must be given written notice that they can request in writing that within 5 days the hearing be held in open session rather than in closed session within.

4. The parties may present witnesses and all witnesses shall be subject to cross-examination by the opposing party and may not without the consent of all the parties be present when other witnesses are testifying except for the alleged violator who may be present for the entire hearing and may testify if he or she so chooses.

5. Any party may make an audio and/or video recording of the hearing at that party’s own cost and expense.

 6. A transcript of the hearing shall be paid for by the party requesting same or shared by the parties if both sides so request a copy.

7. Any party needing a language interpreter or sign language presenter may bring such interpreter and/or sign language presenter to the hearing at that party’s own cost and expense. 

8. All documentary evidence to be presented at the hearing by any party must be delivered to the opposing party not less than 5 days prior to the hearing along with a list of all proposed witnesses except that the alleged violator(s) may testify without being included on a witness list.

9. An alleged violator may challenge any member of the proposed hearing panel for bias or conflict of interest or for any disqualification permitted under NRS 116. 

10. The alleged violator may make a rebuttal at the end of the presentation of all evidence and all parties shall have the opportunity to address the hearing panel with a summation at the end of the presentation of all evidence. 

11. The hearing panel, by majority decision thereof, must render its decision within 10 days .

12. The decision of the hearing panel must be mailed in writing to all parties by regular mail within  10 days of its rendering along with an explanation as to a party’s right to appeal and setting out the applicable appeal procedure.

13. A unit owner shall be entitled to appeal a decision of the Board under the Real Estate Division’s Mediation Program as per NRS 38.300-360.

 14. No additional fines shall accrue while the decision is under appeal through the Mediation Program.

15. Each side shall be responsible for their own fees and costs.