Category Archives: racketeering

Another Delicious HOA Indictment

I suppose it’s bad manners to dance on someone else’s grave, but if I had good manners I would never have started this website. But this one is too good not to note.

Another woman has been indicted in the federal racketeering case against a dozen Nevada Homeowners Associations. There’ve been about forty federal indictments already, with most of the suspects pleading guilty in exchange for their testimony in court. Stephanie Liane Markham has the honor of being the latest to be indicted for perjury and obstruction of justice. Seems she’s accused of lying to the feds about the fact she only had a one percent interest in a condo at the time she ran for a seat on the board.

A number of other suspects in the federal case were planted onto boards so defect mitigation money could be siphoned away from homeowners into the pockets of crooked lawyers, police officials, politicians and businessmen. And I’ll never let a story like this slip by without noting that a prominent attorney and three other suspects in this investigation committed ‘suicide.’ At least two of them were highly suspicious deaths, Las Vegas style.

The federal HOA case is going to trial in February. It’s long been my contention that a nearly identical criminal investigation could be launched in 49 other states.

(link to Stephanie story in Las Vegas Review Journal)

 

HOA Booting Anger in Albuquerque

What gives an HOA the right to boot cars on public streets? Nothing. But that didn’t stop the HOA Nazis in an Albuquerque HOA from booting a work trailer in the middle of a resident’s work day. And these over-the-top idiots were busy booting cars parked in the residents’ own driveways.

Why do they think they can flout the law? Because homeowners are afraid to protest.

But one activist in Ventana Ranch HOA is making some waves. And the City Council is thinking about passing some laws to reign in abusive Homeowners Associations.

(link to New Mexico TV story on booting controversy)

http://krqe.com/2014/12/10/homeowners-association-boots-residents-on-city-streets/

Illegally booting cars in a neighborhood has an amazing capacity for massive damage suits. If someone had an emergency and needed to race a child to the hospital but discovered his vehicle improperly booted? The emotional damage factor alone could result in multi-million dollar verdicts. The sad thing is that the costs of paying such a judgment would be passed off to innocent homeowners. Management companies just seem to be above the law….and that’s a problem.

“That’s One for You, Ten for Me, One for You and Ten for Me.”

The number of embezzlements by HOA officers is almost laughable. I’d say unbelievable but that’s not the right word. Greed is part of the human condition and has been around since Cain and Able.

Still, you’d think that some embezzlers would feel a little bit guilty.

Enter Elizabeth Mills Wilson, treasurer of the Manor at Harmon Lake Homeowners Association in Forsyth County. Now I’m not saying she’s guilty. That’ll be determined by a jury, or by a guilty plea. Her Sheriff’s booking photo makes her look a little bit arrogant. 

But then, you’d have to be a little arrogant to steal $40,000 from your neighbors. A judge will give her a suspended sentence and maybe a tongue lashing. What this country really needs is some real lashings!

 

In A Million Years, Never Thought I’d See This Happen

Colorado is a ‘cool’ state. The University of Colorado was named by Newsweek Magazine as the nation’s ultimate party school. People are healthy, alcohol abuse is low, but this is the first state that legalized recreational marijuana. There are hundreds of ‘maryjane’ stores all over the state.

In Colorado politics, as you can imagine, the heavy population centers are solid blue, the agricultural areas are red. And about the only thing that causes riots and tear gas battles is when crowds of young people are celebrating an end-of-season victory by the Broncos, the Nuggets or the Avalanche. On those nights, damage to store windows and police cars can run into the millions. A ‘cool’ state with an edge.

Our early history had an ugly side, it was the second home of the reconstituted KKK back when the Klan promised it was no longer opposed to the presence of the Negro race. Our history is checkered with 156 lynchings. Interestingly, the Klan only lasted about five or six years here before being run out of the state in the late 20s. And most of the lynchings were of white gold miners who’d gotten involved in fatal confrontations over bar girls, or the ownership of gold claims.

These days, Colorado is racially diverse and probably more tolerant than most other states. Here, we really recognize only two races, those who ski and those who don’t.

Oh, I should tell you there’s lots of population growth and private homes are being built by the hundreds of thousands. For many years, all new development has been in mandatory Homeowners Associations. As a result, we are the de facto “Homeowner Association Central” for the Western Plains. And HOA abuses here are legendary. Everything you see happening in Florida, Arizona, Nevada and Texas is happening right here in Colorado. Some of the largest embezzlements from HOAs in history were right here in the Denver area. In fact, it was here that I first started to write my book, Neighbors At War!

Since our gun laws are pretty loose, and since HOA neighborhoods are so angry, we keep waiting for the first gun violence to break out during the annual HOA meeting. It hasn’t happened yet. With our cowboy mentality, it’s only a matter of time, I suppose.

Meanwhile, I was really stunned to see a new group arise which is trying to get some common sense laws past a legislature that can sometimes do some pretty stupid things. A press release on a proposed HOA law is linked below. The proposal makes so much sense that I predict another eruption from the folks at CAI (Community Associations Institute). The CAI knows our state well, and in the past they’ve screwed up some pretty good proposed legislation.

But see if you don’t think this proposal is based on common sense.

(link to HOA proposal in Colorado)

 

Get Ready for the Housing Crash!

In the past I’ve shared with my friends my fears about the coming tsunami of world economic collapse and a housing bubble unlike any this country has ever seen. My degree is in Political Science and not Economics but I am a successful investor and money manager. I also do a lot of reading about economic issues.

So, what’s my concern today? A new CNBC report talks about coming interest rate increases and how that will cause ‘massive volatility’ in the markets. The interest rates that are coming will crush the mortgage and housing industry.

After years of moderating and running this blog and years of writing and researching my book, “Neighbors At War,” I firmly believe that people in Homeowners Associations are going to be the first ones slammed by the coming mortgage crisis. I’ll list the reasons why HOA properties are Bull’s Eye Number One.

1. Potential home buyers are getting a whole lot wiser about the dangers of HOA living. The HOA industry has done no favors to homeowners by earning such names as ‘the lawn Nazis,’ ‘HOA Nazis,’ ‘the HOA Mafia.’ People aren’t stupid. They read these stories of the bullying of people in Homeowners Associations, the assessing of ludicrous fines, the abusive (if not illegal) practice of artificially running up legal fees in an effort to get homeowners to try to stand their ground against bullying. The more a homeowner tries to assert his property rights in a dispute, the bigger his financial fall when the HOA wins. This kind of knowledge in the hands of homeowners and home buyers means HOA property values can only go down.

2. A massive wave of foreclosures hurts HOAs more than non-HOA property. An HOA which has 15 to 25 percent foreclosures is pretty close to bankruptcy. Lose 25 percent of your dues, you have to savage the remaining owners for dues increases. If not, the community swimming pool turns green, the lawns don’t get cut, and the roads don’t get plowed. A potential buyer won’t make an HOA investment when he sees the neighborhood falling apart. On the other hand, non-HOA property owners have no problem surviving when a large number of foreclosures hits a neighborhood. Those properties are quickly bought up, especially in neighborhoods where homeowners have voluntarily worked to keep their properties looking good.

3. HOAs which restrict the percentage of rental property do themselves no favor. Being able to rent your condo or house in an emergency is a great escape valve for a homeowner. It saves his equity and he doesn’t have to turn the property over to foreclosure. HOAs with ‘no rentals’ regulations will be the first to suffer catastrophic collapse.

4. Idiotic court decisions like the recent one in Nevada, in which a super priority lien (HOA fine) can extinguish a first deed of trust (the bank’s mortgage) create a lose/lose situation for mortgage companies. Why would they invest in such a state? Why would mortgage companies not demand massive down payments and arbitrary monthly dues to handle an HOA’s excesses. Such new mortgage requirements will crash property values, and the coming financial tsnami will ensure those neighborhoods crash first.
Readers of this blog will have many more reasons why the approaching economic collapse will hit HOAs first, and I encourage you to leave those reasons on our comments page.

(link to CNBC article on coming collapse)