Category Archives: Fraud

Here Come the HOA Lawsuits

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As predicted in this blog, the Homeowner’s Association Movement is going to die a long painful death, taking down with it the fortunes, the home equities, the retirement savings of a whole lot of innocent people. On second thought, perhaps the word “innocent” is being too innocently thrown around, here, because most people living in HOAs know that they’ve allowed board officers to become little nazis as they patrol the neighborhood for violations. If you know about a problem, and you allow it to grow, lawyers are going to be digging deep… into your deep pockets.

There was never any question that Trayvon Martin’s family was going to sue George Zimmerman AND his HOA for permitting Zimmerman to patrol his neighborhood with a gun.

Now, there’s word of another gun incident: a 65 year HOA president in the upscale John’s Cove community in Orange County. “Upscale,” by the way means “soon to be downscale” as soon as the lawsuits are filed.

This HOA president is Michael Hudzik, who yells and curses at people as they drive to fast out of the gated community. Yelling and cursing wasn’t enough for one dad and his son who were planning on going jet skiing. This time Hudzik pulled a gun and ordered the dad and his son out of their car.

Neighbors won’t talk to the media. They fear retaliation from Hudzik. Well, neighbors, you elected this guy. Now, you may as well get out your checkbooks because your negligence is going to cost you a bundle.

While we’re on the subject of negligence, how about The Ole at Lely Resort in East Naples, Florida? Their bylaws they say that children under 18 are not allowed to play outside! Really! Isn’t there a federal law against that? And wouldn’t you think lawyers are now patrolling the streets looking for potential clients?

Finally, there’s the taxpaying veteran in the Sweetwater HOA in Jacksonville, Florida. His HOA has been fining him daily for displaying an American flag outside his door…exactly the kind of behavior that someone named “Bush” signed into law not too long ago. There’s a legal settlement in the wind. But somebody’s going to have his pound of flesh from that HOA.

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association

The Lawsuits Against Homeowners Associations Begin

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The daughter of a California woman who was stabbed to death has filed a wrongful death lawsuit against the Glenoaks Townhomes Association. Her mother was a member of the HOA. Her husband is the alleged suspect.

The lawsuit claims the HOA and its security company knew that she had a restraining order against her husband when she moved into the gated community, and her neighbors had an obligation to protect her.

California juries are known for awarding outrageous amounts in outrageous lawsuits. This one will bear watching. Lawsuits are going to spell the death of the HOA as we know it.

http://encino.patch.com/articles/man-shot-in-gang-related-attack-homicide-victim-s-family-sues-homeowner-s-association

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association

Nevada State Senator Upset at Blogger Coverage Of “Suicides”

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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!)

He does note that out of the first ten suspects named in the massive federal investigation of Las Vegas HOA corruption, four committed suicide. One of the suicides was committed by lawyer David Amesbury. Investigators say he hanged himself from a rafter in his brother’s barn. This was after he was severely beaten and his knees crushed on a street inside a gated Nevada HOA. His suicide seems horribly suspicious. His family doesn’t believe it. This blogger doesn’t believe it. In fact, this blogger is predicting more “suicides” among the increasing number of indicted suspects, especially those who work out plea bargains with prosecutors.

The “suicide” of lawyer Nancy Quon is another weird one. Her whole story is weird. Anyone just reading a few facts about Quon’s story could easily appreciate a new Clancy novel about the case. It’s great fiction, just great fiction.
But Senator Schneider says this kind of publicity is bad for Las Vegas because people think “the Mob” is back in the city killing witnesses. He thinks a new law against HOA corruption would improve the city’s image. He decries the fact that rigged HOA elections are egregious and that they amount to a legalized shakedown of insurance companies.

Senator Schneider is right about one thing. There absolutely have to be some legislative changes to fight this kind of corruption. But he doesn’t take into consideration is that Las Vegas HOAs are not unique. The same kind of corruption is endemic in HOAs across America. The very structure of Homeowners Associations puts them in a position where corruption by board members, managers and attorneys is almost encouraged. There are no double-checks, there are no controls, there’s nothing to stop corruption in most of these gated neighborhoods.

It’s sad, but any new state law against Homeowner Association corruption is simply not going to work. There are already statutes against organized crime. That’s what’s allowing the U.S. Attorney to bring these HOA indictments in the first place. The only new law that would have any kind of impact is a federal law that gives homeowners back their access to the Constitution’s Bill of Rights. The Constitution created all sorts of double checks on government excesses. But people who buy HOA homes sign away their access to the Bill of Rights. Give those rights back, take away the power of HOA boards to arbitrarily fine, sue and foreclose on homes for minor violations and you might actually see some real change.
BTW, credit is due reporter Nathan Baca of KLAS-TV 8 News in Las Vegas for interviewing Senator Schneider and getting this story out to the public.

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association

Whew! Some Crooks do it Right!

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We get word from Chicago that an Arizona man has been sent to prison for stealing 2 million dollars from three condo associations. Jay Strauss, of Scottsdale, Arizona, had been mixing the money from the three associations for at least the past three years. Then he’d siphon off money to pay for his own real estate investments. He might never have been caught except that his own company went broke, and suddenly the condo associations discovered their own accounts had been depleted.

But what a way to go! Always let the U.S. Attorney prosecute your case! Strauss pleaded guilty and got three years in prison. Well, that’s kind of an exaggeration. His first 18 months will be spent at a hospital. Seems the poor fellow is suffering health problems and is in a wheelchair. Restitution has been ordered, but if you believe that’ll ever be paid then you still believe in tooth fairies and Easter bunnies.

A special note to potential thieves: don’t ever rob a bank or a 7/11. The take is too small. Rob a Homeowners Association. Most of them are too dumb to know they’ve even been robbed, and your prison sentence will be miniscule.

Finally, a special note to all Homeowner Associations: do a forensic audit of your HOA books. The chances are extraordinarily high that you’ve already been robbed. It’s too easy, it’s too untraceable, and it’s too difficult to prosecute. And mind the old wisdom that half of all people will steal if they don’t think they’ll get caught. If you’re honest, your board member is not. 50/50. Tragic, but true.

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association

Free Speech in an HOA? Forget About It

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A fundamental right most Americans think they have is Free Speech. It’s a bedrock of the U.S. Constitution. The First Amendment is so ingrained in the minds of Americans that most would swear that their freedom of speech and religion cannot be compromised.

Welcome to the world of the HOA, where Free Speech and Freedom of Religion is trashed every day. There are high court decisions which are often quoted as giving the typical HOA the right to deny your First Amendment freedoms. Google “Twin Rivers decision” to find a significant State Supreme Court decision which essentially says you don’t have the right to inform your neighbors about your political beliefs.

Or Google “HOA Mezuzah” to find out what many HOAs think of Jews.

I could go a hundred directions with this. But the bottom line is that when you join an HOA, you are essentially sacrificing a number of your Constitutional rights in favor of “the collective.”

The HOA collective has the right to restrict your expression of religion, your political beliefs, your right to assembly, your right to due process, your right to bear arms. And that’s the nail point upon which many homeowners have crucified themselves, their families and their personal wealth.

Do you have the right to “be black and live in a white HOA?” Not necessarily, especially if there’s no federally backed mortgage involved in a home purchase.

Unbelievable? Google “HOA discrimination” to see a sample of cases where being black, disabled, gay, or a single mom have been targeted, stigmatized, sued and foreclosed upon.

There’ve been a few cases here and there where HOAs have been fined because of discriminatory practices. But those cases are rare. It’s much more common to see homeowners lose their homes when they happen to be black, gay, single, disabled or have young children.

Still don’t believe it? There’s a book coming out this summer which might open your eyes.

Ward Lucas
Author of
Neighbors At War: The Creepy Case Against Your Homeowners Association

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