As four former Hammocks board members await trial over claims they defrauded the residential community from $2 million, civil lawsuits are taking aim at attorneys for allowing and aiding the alleged grift. Read the article………………………..
California Woman Sentenced to Prison for Embezzling More Than $1 Million from Employer
California woman was sentenced to 66 months in prison, two years of supervised release, and ordered to pay $1,791,334.81 in restitution for embezzling more than $1 million from her employer, announced United States Attorney Andrew M. Luger. Read the article………………………..
Lakeshore Gardens senior community targeted in apparent scam (CA)
Seniors at Lakeshore Gardens have reported a rash of scams involving two men allegedly posing as employees of the Carlsbad Lexus and Toyota dealerships and convincing unsuspecting residents to pay for subpar or non-existent vehicle services. Read the article………………………..
Owner of property management company accused of stealing nearly $600K from Seminole County HOA (FL)
The owner of a property management company for a large HOA community in Winter Springs has been arrested on embezzlement charges. Investigators said Tammi Morrison stole nearly $600,000 of the HOA’s money in the short time she was in charge. Read the article………………………..
Ex-Marco councilor Victor Rios gets two years probation in condo election fraud case (FL)
Former Marco Island City Councilor Victor Rios was sentenced to two years of probation on Wednesday for committing personal information fraud while allegedly rigging a 2019 condo board election. Read the article………………………..
Former CFO Pleads Guilty to Embezzling More Than $3 Million from Employer (MN)
According to court documents, David Efrem Katz, 56, was the former Chief Financial Officer (CFO) of Durand and Associates (“D&A”), a property management company that specialized in servicing homeowner associations (“HOAs”). Between 2012 and 2017, Katz embezzled over $3 million from D&A and its client HOAs. Read the article………………………..
Ex-Dedham official admits to defrauding RI condo association to finance trips to Plainridge in Plainville (RI)
A now former Dedham town official admitted in federal court Monday to defrauding a Woonsocket condominium association out of almost $50,000 to fund her personal expenses and gambling trips at Plainridge Park Casino in Plainville. Read the article………………………..
Investigation at luxury Key Biscayne condo widens (FL)
Widening the scope of a criminal probe at the posh EmeraldBay condominium, the State Attorney’s Office confirmed this week it is now involved in a “misappropriation of funds” case that is now in its seventh week. Read the article………………………..
Judge rules Sammie Sias, ex-commissioner, will not get a new trial (GA)
During the trial last summer, FBI agents testified that Sias deleted 7,000 files in minutes after receiving a grand jury subpoena for bank records. The subpoena came as part of an investigation into the spending of tax dollars at the Jamestown Community Center. Sias served as president of a homeowner’s association which received the $150,000 […]
Gillette woman’s prison sentence commuted (WY)
The prison sentence of a Gillette woman convicted of embezzling hundreds of thousands of dollars from a homeowners association in the early 2000s has been reduced to time served, making her eligible for release. Read the article………………………..
Criminal investigation at EmeraldBay condo into reported “misappropriation of funds” (FL)
A criminal investigation is in progress at the EmeraldBay condominium in Key Colony into a misappropriation of funds, police said. It is just the latest turmoil inside the vast luxury complex that is home to one-fourth of the island’s residents. Read the article………………………..
Hammocks receiver sues former HOA leaders over allowing alleged $3M fraud (FL)
Less than a year after four ex-board members of the Hammocks homeowners association were charged with massive fraud, a new lawsuit takes aim at other former HOA leaders who allegedly did nothing to stop the scheme that siphoned millions of dollars from residents. Read the article………………………..
Woman faces up to 20 years in prison after pleading guilty to scamming HOA company, officials say (TX)
A Houston woman faces up to 20 years in prison after pleading guilty to scamming an HOA company, according to U.S. Attorney Alamdar S. Hamdani. Read the article………………………..
South Africa: Woman sentenced to five years in prison
According to a statement by the Directorate for Priority Crimes (Hawks) Holtzhauzen was employed as a financial administration manager at Zandspruit Homeowners Association NPC situated in Hoedspruit. “Some of her responsibilities as a manager, include paying service providers for services rendered. Instead of paying the service providers, the accused created fictitious claims and transferred the […]
Shadow Creek Ranch manager pleads guilty to wire fraud, scamming HOA company (TX)
A 63-year-old Houston resident has pleaded guilty to wire fraud, U.S. Attorney Alamdar S. Hamdani announced Friday. Maria Denise Southall-Shaw, a former manager of Shadow Creek Ranch in Pearland, admitted to defrauding FirstService Residential, a company which managed Shadow Creek Ranch’s homeowner associations and had employed Southall-Shaw, according to a release. Read the article………………………..
Serial scammer took over $60k from Virginia neighborhood, school division
“She was putting her personal account number in there, and people were paying her,” she said. And once they began uncovering her lies, more were revealed. Around the same time Sims took over the HOA, she was charged with embezzlement in Prince William County. Read the article………………………..
Stolen condo association funds recovered with minimum loss, but cyber criminals once more prove the need for diligence (FL)
Sophisticated cyber criminals managed to steal $3,300 from a Key Biscayne condo association, but it could have been much worse. “We made a careless mistake, but we got lucky,” said Botanica condo president Matt Bramson. “It’s regrettable, and nobody’s happy about it, but in the big scheme of things, getting back the big chunk of […]
Man accused of stealing thousands from Indiana homeowners association
A southern Indiana man accused of stealing from his homeowner’s association is now facing multiple theft charges. Darren Gerlach is accused of stealing $166,000 from the Hawthorn Glen Homeowners Association over a five-year period — dating back to 2017 — according to court documents. Read the article………………………..
South Africa: Woman to spend five years in jail for stealing more than R1.6 million from her employer
“Between January 28, 2019 and October 24, 2019, the accused was employed as a financial administration manager at Zandspruit Homeowners Association NPC situated in Hoedspruit. Some of her responsibilities as a manager were to pay the service providers for services rendered for the company,” Maluleke said. Read the article………………………..
Ask the HOA Expert: How Susceptible Are HOAs To Embezzlement?
Question: How susceptible are HOAs to embezzlement? What are common safeguards and how effective they are? Read the Q&A……………………………….
Police recover $101,000 in Key Biscayne condo email fraud case (FL)
Key Biscayne Deputy Chief Jason Younes said the department worked with state and federal authorities to recover the money but are still trying to determine who was responsible for a deceptive series of emails that tricked condominium employees into making a payment to a new and deceptive bank account. Read the article………………………..
How You Can Safeguard Your Community Association’s Finances Against Fraud
Payment fraud is nothing new. Even in the Stone Age, someone likely tried to pass off a cheap stone ax for a nicer one. Fraudsters evolve as quickly as advances in payments methods and technologies — but new fraud-prevention tools can help protect your community association against deception and theft. Read the article………………………..
Woman stole $175K from N.J. senior community, prosecutors allege
Alicia K. Campbell, 35, of Mays Landing, faces charges of theft, financial facilitation, forgery, falsifying records and credit card fraud, as a result of an investigation into her alleged activities while serving as the Lifestyle Director of Greenbriar Oceanaire Community & Golf Course in Waretown, officials said Read the article………………………..
After arrests and 300% fee hikes, Florida’s largest homeowners association gets new board (FL)
The last time the Hammocks held an election for board members, it was a debacle that further alienated homeowners from a tyrannical board of directors that had seized control of the West Kendall subdivision. Hundreds of residents waiting in line were not allowed to vote because of a bomb threat, which police later said was […]
Board Members, and Owners, have to Watch Each Other
A condo owner who served 15 years on the board was arrested and accused of stealing millions of dollars of monthly maintenance fees and diverting them for personal use. The accused served as President for some years, and even President and Treasurer during other years. At one point, he was the only signer on the […]
Man faces fraud charges from SL condo association (MI)
A Grand Rapids man is facing two felony fraud charges after allegedly stealing from a Spring Lake condo association. William Amey IV, of Grand Rapids, is facing the charges of larceny by conversion, $20,000 or more, of property from Bayou Meadows II Condominium Association in Spring Lake; and false pretense, with an intent to defraud […]
Fort Lauderdale contractor’s victims ‘have been left with pool-sized holes,’ cops say
A contractor against whom a condominium association president had a year-long restraining order is accused of leaving a trail of fraud victims and under-construction-work around Broward County. Police think the trail could be longer. Read the article………………………..
Fraud in B.C.: Developer twice convicted in U.S. leaves condo chaos in Langley
Former Langley real estate developer Mark Chandler sits in Terminal Island, a low-security federal prison in San Pedro, Calif., serving a six-year sentence for a multi-million dollar fraud scheme. It’s his second conviction in the United States. Read the article………………………..
Former Bayfield HOA board member pleads guilty to theft (CO)
A former Bayfield resident suspected of stealing tens of thousands of dollars from her homeowners association between 2010 and 2022 pleaded guilty Thursday in 6th Judicial District Court. Read the article………………………..
Miami-Dade HOA president arrested in alleged theft, misappropriation of association funds, police say (FL)
The longtime president of a Miami-Dade homeowners association is facing charges after being accused of stealing money from the HOA that was supposed to have been used for upkeep and maintenance of residences, authorities said Wednesday. Read the article………………………..
Is Your Community Association at Risk for Fraud?
Condominium, homeowner (HOA), and townhome community associations are not immune from fraud. Recently in the news, multiple members of a homeowner’s association were arrested for suspected theft, money-laundering, and other charges. Investigators believe millions of dollars were stolen from the community’s budget through questionable expenses, personal purchases, and diversion of association funds. Read the article………………………..
Hawley woman facing felony theft charge for allegedly stealing over $29K (CO)
A Hawley woman was arrested Friday and charged for allegedly stealing from the Milestone Estates POA while serving as its treasurer. Read the article………………………..
California Woman Pleads Guilty to Embezzling More Than $1 Million from Her Employer (MN)
A California woman has pleaded guilty to wire fraud, aggravated identity theft, and filing a false tax return after embezzling more than $1 million from her employer. According to the guilty plea and court documents, Mai Houa Xiong, 47, of Fresno, California, was employed as a financial manager for a Minneapolis-based property management company that […]
American Property Management Services, accused of seven-figure fraud, has history of legal trouble (FL)
The Naples property management company accused of embezzling millions of dollars from Collier and Lee county community associations has a years-long history of legal trouble, a Naples Daily News / The News-Press investigation has found. Read the article………………………..
Naples property manager accused of misusing client money was sued. Then he bought a private jet (FL)
Some businessmen, when accused of embezzling their clients’ money, might try to lay low. Not Orlando Miserandino Ortiz. He bought a private jet. Thirty-three Collier and Lee county condo and homeowner associations have now accused Ortiz’ company American Property Management Services of financial misconduct, with the associations’ lawyer estimating losses totaling tens of millions of […]
Netherlands: Man suspected of defrauding dozens of homeowners associations for over €100,000
A 48-year-old man from Alphen aan den Rijn is suspected of defrauding about a hundred homeowners associations (VvEs). The suspect is suspected of likely embezzling a total of more than 100,000 euros, although the exact total has not been fully determined, the police said. Read the article………………………..
Woman receives 30 months in prison for stealing funds from Fort Wayne neighborhoods (IN)
A federal judge sentenced a woman to 30 months in prison Wednesday after pleading guilty to wire fraud, said U.S. Attorney Clifford D. Johnson. According to court documents, 50-year-old Lisa A. Downey owned and operated a homeowners association management business and used her position to perpetrate a scheme which involved the “theft of funds” from […]
HOA Financial Fraud Prevention: Protecting Your Community’s Assets (CA)
It’s 2023, and Homeowner Association (HOA) fraud is on the rise. With more and more HOAs formed each year, it’s becoming increasingly crucial for HOA boards to take proactive measures to protect their financial assets from potential fraudsters. Read the article………………………..
Email fraud costs Key Biscayne’s Botanica condo $105,000 (FL)
A “phishing” email fraud that tricked an employee into making an incorrect bank transfer cost the Botanica condominium in Key Biscayne $105,000, according to a police report. The president of the condominium fired a top manager Friday and called a meeting to discuss whether the building’s 293 unit owners will have to cover the loss. […]
Clayton Co. Board of Commissioners employee arrested on Athens embezzlement charges (GA)
She allegedly stole a total of $300,00 over several years from Bulldog RV Park, owned by a homeowners association for which she served as treasurer, according to Athens Clarke County police Lt. Jody Thompson. Read the article………………………..
After the arrests: What’s next for Hammocks HOA? (FL)
In the weeks following the arrests of five people accused of running a massive fraud at the Hammocks, a court-appointed receiver is working to make South Florida’s biggest residential community whole. Read the article………………………..
Borrowing More Than a Cup of Sugar: Current and Former Board Members Charged with Siphoning Millions from Florida HOA
A past president of the Board of Directors of Hammock Community Association in West Kendall, Florida, along with her husband and three others, were arrested and charged with crimes ranging from grand theft, racketeering, fraud, and money laundering related to a years-long scheme to siphon money intended for community maintenance and upkeep into their own […]
More arrests expected in Hammocks Association case (FL)
A new development in the case of the Hammocks Association Board, which was dissolved by a judge after several board members were arrested for allegedly stealing millions from homeowners. Read the article………………………..
Ex-property manager sentenced to 4.5 years after pleading guilty to embezzling HOA money (MS)
A Mississippi property manager has been sentenced to 51 months in prison, about a year after he pleaded guilty to embezzlement charges. Prosecutors say David Luke Lane, 78, used his position to defraud homeowners’ associations and the Community Bank of Mississippi. Read the article………………………..
Investigating Suspicious Financial Activity in Your HOA
Today, a homeowner’s association’s (HOA) board of directors depends on technology to store contracts, banking information, and other confidential documents. Unfortunately, while digitization increases efficiency, it also intensifies the potential for fraud and theft of community funds. Even with checks and balances, like collective oversight of a community’s financials from board members and community managers, […]
Fraud In Your HOA: What to Watch Out For
Every so often a community makes the news and becomes infamous. In November 2022, that happened to Hammocks Homeowners Association, a large master community in Miami-Dade County. It all started when homeowners noticed that their annual dues increased by 400%. Instead of paying, the owners filed a lawsuit. Investigators found that current and past members […]
HOA president, treasurer need to review expenses (NV)
Q: We had a community manager who was embezzling from the homeowners association with the HOA debit card she was issued. She “lost” many of the receipts and whited-out descriptions of the personal items she purchased for herself (cigarettes, toothpaste, cash-back purchases and ATM withdrawals without accounting where the money went, etc.). Read the Q&A……………………………….
Does Your Condo or HOA Need Crime Insurance?
Unfortunately, financial crime has been on the rise in condos and HOAs. Over the past year, there have been numerous reports from around the country of directors, officers, and property managers of community associations embezzling funds. Examples of alleged financial crimes against homeowners associations that have recently been reported in 2022 are as follows: Read […]
LOCAL NEWS Hammocks Association receiver discloses findings to Miami-Dade circuit judge (FL)
The court-appointed receiver assigned to handle the Hammocks Association in West Kendall’s alleged corruption disclosed his findings after two weeks of work. Read the article………………………..
Criminal probe into board of Florida’s largest HOA widens as prosecutors seize records (FL)
For years, the board of the troubled Hammocks Community Association in West Kendall has blocked state investigators from getting a trove of financial records that may detail the theft of resident funds. Read the article………………………..