Officials said that Slothower devised a scheme to misappropriate more than $1 million from clients and prospects. While operating Battery Private, Slothower solicited business from a couple from California whose money he had managed at another financial services firm where he was previously employed. Slothower promised the victims he could beat any rate of return […]
Government Issues Scam Alert for Corporate Transparency Act
The U.S. Department of Treasury’s Financial Crimes Enforcement Network, also known as FinCEN, recently issued an alert warning individuals and businesses that scammers are using the Corporate Transparency Act to fraudulently solicit information from individuals and businesses who may be subject to reporting requirements under the Corporate Transparency Act. Read the article…………………………….
Sarasota business owner sent to prison for real estate fraud (FL)
Even with his federal trial being over in Virginia, charges remain pending against Santiago at home in Sarasota. In 2022, Santiago was president of the Beneva Ridge Condominiums homeowners association when its new treasurer — Esther Quiles, wife of Sarasota County Commissioner Mark Smith — became “wary that HOA funds are being misappropriated by the […]
Former Colorado real estate agent must repay more than $1 million stolen from investors
A Berthoud man was sentenced last month in Weld County after taking more than a million dollars in investors’ money meant for a new condominium complex and spending it on his own overseas vacation and sporting events. Bret Lamperes, 54, was ordered by a Weld County judge to repay $1,062,500 he transferred to his own […]
Italy: Former Condominium Manager’s Assets Seized for Embezzlement
Assets worth about 300,000 euros have been seized by the Financial Police of Naples from a former condominium administrator who, according to investigations by the North Naples Prosecutor’s Office, from 2014 to 2023 repeatedly appropriated sums of money by withdrawing them from the bank account of a condominium complex in Casoria. The condominium residents noticed […]
Berks woman admits to $375,000 theft from Montgomery County condo association (PA)
A Berks County woman admitted that she embezzled more than $375,000 while working as the bookkeeper for the Gwynedd Office Condominium Association in Upper Gwynedd Township. Judith E. Butt, 74, of the 700 block of Hopewell Street, Union Township, pleaded guilty in Montgomery County Court to felony charges of dealing in proceeds of unlawful activity […]
Guarding your Association’s Finances: Best Practices to Combat Payment Fraud
Community Association Management companies are under siege from high-tech conmen determined to rip them off. From check fraud and Business Email Compromise (BEC) attacks to account takeovers and vendor impersonation, fraudsters have become more brazen and more sophisticated. Mailbox keys purchased on the Dark Web or stolen from postal carriers have made it easy for […]
Condo manager has licence revoked over cryptocurrency buy (ON)
A property manager who transferred $500,000 in condominium reserve funds to an alleged cryptocurrency investment company known as Pink Piggy (NOTE: This article is behind a subscriber paywall. I will try to find another article ASAP, but here is the original link to the Globe and Mail: Read the article…………………………….)
Banks fail to get Villas West lawsuit dismissed (AZ)
A U.S. District Court judge says a lawsuit brought by Villas West Condominium Association against two banks following the loss of hundreds of thousands of dollars can move forward despite attempts by the banks to have it dismissed. According to U.S. District Court records, the condo association filed a lawsuit in Pima County Superior Court […]
Santa Monica luxury towers, HOA fees, alleged theft: Where did the millions go? (CA)
Residents didn’t grasp the scale of the alleged problems until last year — when a Los Angeles County grand jury handed down a 119-count indictment accusing both Spahis, now-former Ocean Towers Housing Corp. President Joseph Orlando and his wife, Dorothy, of grand theft, identity theft and money laundering. Read the article…………………………….
‘Fraud never pays’: Utah woman sentenced after stealing over $230K from HOA (UT)
A Utah woman was sentenced to home detention and probation on Monday after stealing from the HOA and putting the money in her own pockets. Sharon Lee Ann Gordon, 66, of Hurricane, was sentenced Monday, April 8, to 12 months and one day of home detention, and three years’ probation after pleading guilty to stealing […]
Legislature Adds Teeth to Florida’s Community Association Fraud Laws
The article focuses on two bills to strengthen criminal penalties for association fraud and malfeasance that have been passed by the Florida Legislature with unanimous votes in both chambers. Both bills impose the exact same strict criminal penalties for a number of violations. They make it a first-degree misdemeanor to intentionally deface and destroy accounting […]
Hudson County Property Manager Admits Role in $470K Condominium Fraud Scheme (NJ)
The scheme was facilitated through the submission of falsified invoices that significantly overcharged the services rendered by Obedos’s company, leading to the condominium complex overpaying by $500,000. Investigations revealed that the complex paid over $1 million for services that were, in reality, worth half that amount. The inflated funds were then distributed as kickbacks, with […]
Legislature Adds Teeth to Florida’s Community Association Fraud Laws
The article focuses on two bills to strengthen criminal penalties for association fraud and malfeasance that have been passed by the Florida Legislature with unanimous votes in both chambers. . . . Both bills impose the exact same strict criminal penalties for a number of violations. They make it a first-degree misdemeanor to intentionally deface […]
Former Homer Glen District 33C Board member charged with stealing money from HOA (IL)
The former treasurer of a Homer Glen homeowners association, also a former Home Glen District 33C Board member, was charged last month for allegedly writing checks to herself, according to court records. Jennifer Rudolph, 43, of the 15400 block of Sharon Drive, was charged March 18 with continuing a financial crime enterprise, two counts of […]
Security firm paying $230K to settle wage-theft case at Chelsea condo (NY)
New York Attorney General Letitia James and city Comptroller Brad Lander on Monday announced a nearly $230,000 settlement with the managers of a Manhattan condo building and a private security firm for underpaying its workers. A joint city and state investigation found that Allied Universal Security Services had for years been underpaying its security guards […]
Fraud Is Out There: Helpful Tips to Guard Against Today’s HOA Scams
Fraud is an unfortunate reality. The good news is that by staying vigilant, we can protect our communities more effectively. One common HOA scam is phishing, which involves fraudulent communications designed to trick people into divulging personal or business financial information. Read the article…………………………….
Former Galveston condo manager charged in $188,000 theft (TX)
A former island property manager is behind bars after being charged with felony theft in connection to embezzlement of about $190,000 from a condominium complex over about seven years, according to court documents. Read the article…………………………….
Employee accused of stealing over $200,000 from HOA in Anderson Co. (SC)
An employee is accused of stealing over $200,000 from a homeowners association in Anderson County. According to the Anderson County Sheriff’s Office, detectives met with the Overlook Homeowners Association President after he noticed a large amount of money was missing from the association’s account. Read the article…………………………….
Former Seminole County HOA manager accused of stealing $437K from HOA
Tammi Morrison, a former President of the Ashford Park Homeowners Association, was arrested by the Seminole County Sheriff’s Office after investigators say she stole $437,000 from the community association when her business managed the neighborhood. Read the article…………………………….
Review or Audit the Books – always do one of these………
…..because if money disappears while you’re on the board, you might as well move, as your neighbors will blame you just as much as the crook. Over the last month or so, we’ve seen another boost in cases of fraud and embezzlements in HOA’s and condo’s. I imagine this occurs after the beginning of the […]
Navigating the Shadows: HOA Fraud and Community Safety (CA)
Homeowners Associations (HOAs) play a pivotal role in maintaining harmony and order in the fabric of community living. However, this structured environment is not immune to fraud and misconduct risks. HOA fraud casts a shadow over community trust and safety, raising concerns and demanding vigilance. This blog explores the intricacies of HOA fraud, offering insights […]
Scottsdale HOA says manager stole $1.6M (AZ)
Scottsdale House board members wish they had been more attentive a few years ago. After failing to do a background check on a twice-sued manager who ran the HOA for years, the board started discovering money was disappearing from funds targeted for repairs and upgrades. The deeper into the books they dug, board members found […]
Texas sues Colony Ridge development for fraudulent real estate practices
Texas Attorney General Ken Paxton sued the Houston-area developers of Colony Ridge on Thursday, accusing them of deceptive sales, marketing and lending practices that allowed their sprawling housing development to flourish.Residents of Colony Ridge filed dozens of complaints for years about the development to state agencies, but Texas had little to show for addressing those […]
Collier, Lee condo fraud: Owners of management company indicted on federal fraud charges (FL)
The owners of American Property Management Services, who allegedly stole millions from dozens of Southwest Florida community associations, have been indicted by a federal grand jury. The 17-count indictment, filed in January, charges Orlando Miserando Ortiz and his wife Lina Munoz Posada with wire fraud, conspiracy to commit money laundering and failure to file income […]
Corona Woman Sentenced In Federal Embezzlement Case (CA)
A Corona woman was sentenced Friday to four years and nine months in federal prison for embezzling nearly $1 million from her employer. Jenev Boyd, 60, was sentenced by U.S. District Judge Sunshine S. Sykes, who also ordered her to pay $780,810 in restitution. Boyd was a long-time employee and director of accounting for Corona-based […]
Homeowners Association Manager Embezzled Nearly $25K: Pinellas Sheriff (FL)
A former homeowners association manager faces charges after embezzling nearly $25,000 from the association, according to a Pinellas County Sheriff’s Office news release. Read the article…………………………….
Woman stole over $200K from Clearwater condominium complex, police say (FL)
A St. Petersburg woman was arrested Friday after police say she stole over $216,000 from a Clearwater condominium complex while she worked there as a property manager. Read the article…………………………….
Mother-daughter-boyfriend trio accused of defrauding West Kendall HOA; 2 arrested (FL)
Thirty-eight-year-old Yasnely Pedroso had once been fired from the Westwind Lakes Garden Homes Condominium Association, Inc. for destroying records, among other things, according to police. Enter her mother, Idoris Pedroso. According to Miami-Dade police, when the 63-year-old became board president, she rehired her daughter as an assistant. Read the article…………………………….
Inside the battle for the Hammocks HOA’s future leadership (FL)
Over a year after five people were charged with running a massive fraud at the Hammocks, the homeowners association is again embroiled in contention. Court-appointed receiver David Gersten has been overseeing the HOA since the November 2022 arrests of four ex-board members and a fifth person. Read the article…………………………….
Essex County Man Pleads Guilty in $470,000 Condo Complex Fraud Scheme (NJ)
Federal officials said Smith, alongside his conspirators Nathaniel Obedos and Ranaldo Bennett, orchestrated a kickback scheme targeting the condominium complex where Bennett served as the lead property manager, and Smith held the position of superintendent. The trio manipulated repair and maintenance operations to benefit Obedos’s company, through which they executed their fraudulent activities. Read the […]
Oldsmar woman accused of using $25K in HOA funds to pay her own bills (FL)
An Oldsmar woman is accused of using nearly $25,000 in funds from the HOA where she was a manager to pay her own bills, according to the Pinellas County Sheriff’s Office. Read the article…………………………….
Former NYC Condo Empire Executive Arrested for Larceny, Tax Fraud
A former New York executive facing lawsuits over the collapse of real estate empire HFZ Capital Group has been arrested in Miami, charged with grand larceny and tax fraud. Read the article…………………………….
Dozens of swanky Florida country clubs and HOA’s are being sued for $29 million in alleged PPP fraud. One is in Key Biscayne (FL)
A lawsuit unsealed in federal court last month alleges dozens of South Florida’s most luxurious country clubs and homeowners associations – including one in Key Biscayne – improperly got as much as $29 million in federal pandemic or “PPP” loans and should be ordered to pay up to triple damages. Read the article………………………….
Hilton Head POA ex-treasurer arrested for fraud. Over $150K missing from accounts (SC)
Ex-treasurer Patricia Butville embezzled nearly $200,000 from the POA of Broad Pointe, a private gated community located off Marshland Road in central Hilton Head. Read the article………………………………
Ex-Laurelwood HOA President Charged with Embezzlement (MS)
Flowood Police arrested former Laurelwood HOA President Emary Walker for embezzlement and possession of a controlled substances. The police report states a “local attorney” notified the police of possible embezzlement of Laurelwood HOA funds. The report accuses Walker of using HOA funds to purchase personal items from Amazon. Read the article……………………………..
New arrest made in $2 million fraud scheme at Florida’s largest HOA, Miami-Dade authorities say
More than a year after leaders of Florida’s largest homeowners association, which is located in Kendall, were charged in a money-laundering scheme, another arrest was announced Friday in the ongoing fraud saga. Read the article…………………………….
Condominium Associates and Precedent Hospitality Join Movement to Shine a Spotlight on Fraud
Fraud costs organizations worldwide an estimated 5 percent of their annual revenues, according to a study conducted by the Association of Certified Fraud Examiners (ACFE). “Occupational Fraud 2022: A Report to the Nations” analyzed 2,110 occupational fraud cases that caused a total loss of more than $3.6 billion. Read the press release……………………………
HOA treasurer accused of taking money meant for condo fire victims turns himself in (GA)
A homeowner association treasurer accused of stealing money meant for fire victims at a troubled condo complex has turned himself in. South Fulton police issued arrest warrants for Lyndon Baldwin, Sr., earlier this month on charges of theft by taking and theft by conversion. Records show that Baldwin surrendered at the Fulton County Jail on […]
HOA president turns herself in; leaders host ‘Forum at Camelot’ to discuss solutions for victims (GA)
According to authorities, Ligon and Baldwin are accused of receiving nearly $2 million in insurance money after two dozen units were damaged in a fire in 2020. Instead of cutting checks to fire victims, police say they kept the money. Read the article…………………………….
Craft Farms Property Owners Association manager charged with theft of property first degree (AL)
Fifty-four-year-old female arrested for embezzling thousands of dollars. According to Gulf Shores Police, on March 24, 2023, the department received a report of embezzlement and misuse of funds involving the Craft Farms Property Owners Association. Read the article………………………………
Former Utah HOA treasurer pleads guilty to embezzling $232,000
Federal prosecutors say a southern Utah woman pleaded guilty to abusing her former position as a homeowners association (HOA) treasurer to embezzle about $232,000. Read the article……………………………….
Neronha (AG) opens criminal probe of condemned condos’ management company (RI)
The R.I. Attorney General’s office has launched a criminal investigation into the North Providence property management company that has recently come under fire for allowing poor living conditions that led to the city condemning a 56-unit condominium complex and the 24-hour eviction notice sent to its residents. Read the article………………………………..
“So screwed up”: Senior condo complex in Miami-Dade is an alleged hotbed for grift, hefty assessments (FL)
In lawsuits filed against the association and in interviews with The Real Deal, unit owners claim association leadership illegally imposed $3 million in special assessments, but failed to make promised and required repairs. Unit owners suspect some former and current association leaders of a self-enrichment scheme, as many of the 17 buildings remain in poor […]
This Waianae Condo Development Has Lost Hundreds Of Thousands Of Dollars To Embezzlement (HI)
Condo association officials won’t say who might have stolen the money, which appears to have disappeared over time and through phony invoices for work that was never performed. Read the article……………………………..
Ex-Dedham official gets probation for Plainridge Casino jaunts funded by fraud (RI)
A former Dedham tax official has been sentenced to three years’ probation for defrauding a Woonsocket condominium association out of almost $50,000 to pay for personal expenses and gambling trips to Plainridge Park Casino in Plainville. Read the article…………………………………
Hammocks wins $2M settlement in suit claiming ex-HOA leaders allowed massive fraud (FL)
The Hammocks won a $2 million settlement in a case accusing former board members of turning a blind eye to an alleged massive fraud that plundered millions of dollars from association coffers. Read the article………………………..
Former condo association president accused of getting $33,000 kickback (FL)
According to the Miami-Dade police arrest report, Dvir is accused of getting a nearly $33,000 kickback from a vendor doing work in the building. Read the article………………………..
Attorney: Former Key Biscayne condo manager will plead not guilty in alleged fee theft (FL)
The former EmeraldBay condominium manager Maria Ferrer Rodriguez plans to plead not guilty and go to trial on charges of stealing maintenance fees from a unit owner, her attorney said in court Monday. Read the article………………………..
Pinellas accounting manager stole over $700,000 from HOAs, deputies say (FL)
A Tarpon Springs woman is back behind bars after she was accused of stealing hundreds of thousands of dollars from homeowners associations in the Tampa Bay area. Read the article………………………..