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………………………..
Local realtor breaks down HOA scheme (CO)
The purpose of an HOA is to use homeowners’ fees to retain property value for those stakeholders, but nearly two dozen HOAs on the Western Slope fell victim to Debra Campbell an HOA manager they hired and trusted while getting robbed blind and the key to the crime was greed. HOA Manager for Bray Property Management, […]
Is fraud occurring in your HOA? Red flags to watch for and how to file a complaint (FL)
Do you suspect your homeowners association is misusing your money? People who live in an HOA community elect a governing body tasked with overseeing day-to-day responsibilities, such as maintenance of shared amenities, collecting fees and enforcing rules. Read the article………………………..
Case closed: HOA ripoff (CO)
On November 8, a U.S. District Court Judge, sentenced 66-year-old Debra Campbell of Grand Junction to more than three years in prison for wire fraud targeting home owner’s associations and their co-owners who trusted her to manage their finances, and that’s not all. Agent Benson says, “She also didn’t report the stolen ill-gotten gains as […]
Former, Current Hammocks HOA Board Members Arrested for Theft, Racketeering (FL)
Current and former members of the Hammocks Home Owners Association Board will be charged for theft of funds from the association, authorities said. Miami-Dade State Attorney Katherine Fernandez Rundle will announce the arrests at a Tuesday afternoon press conference. Five of the members were arrested Tuesday morning, NBC 6 has learned. Read the article………………………..
Jackson woman ordered to pay $77K to senior living condos in embezzlement case (MI)
Suspicion of the embezzlement was first brought to police attention on Sept. 9, 2021, after the incoming president of the condominium board noticed discrepancies in Brewer’s accounting, according to court documents. An investigation into Brewer’s activity as treasurer showed signs of several missing bank statements, according to records. Read the article………………………..
Grand Junction woman sentenced to prison for HOA fraud scheme (CO)
A Grand Junction woman has been sentenced to prison for wire fraud and filing false tax returns in a scheme to steal money from homeowners’ associations. On Tuesday, the United States Attorney’s Office for the District of Colorado announced that Debra Campbell, 66, was sentenced to 37 months in prison and ordered to pay $410,889 […]
Year Later: Sentencing date set for Lane in defrauding associations (MS)
Sentencing for David Luke Lane, who used his position as a property manager to defraud numerous homeowners’ associations in the metro area of more than $2 million, is set for Dec.14 at 1:30 p.m. in U.S. District Court in Jackson. Read the article………………………..
Man admits to embezzling nearly $30K from Washburn Lake Homeowners Association (MI)
An 84-year-old man has pleaded no contest to embezzling nearly $30,000 over 11 years from a St. Joseph County homeowners association. Allan Malesh pleaded no contest Monday to embezzlement from a nonprofit organization in St. Joseph County Circuit Court. Malesh’s attorney, Ed Hettinger, handed over a check for $20,547 to repay the remainder of the […]
Woman admits to bilking Fort Wayne homeowners associations, will pay back $180K (IN)
A woman who admitted to bilking several Fort Wayne homeowners associations out of more than $180,000 now must pay back the money she stole and will likely spend time in prison. Lisa Austin Downey pleaded guilty to three counts of wire fraud in U.S. District Court on Thursday as part of a plea deal she […]
Former Bayfield woman suspected of stealing more than $75,000 from HOA (CO)
A former Bayfield woman is suspected of stealing more than $75,000 from her homeowners association over the course of about 12 years, according to the Bayfield Marshal’s Office. Read the article………………………..
Woman charged with embezzling from HOA in Winston-Salem. She says she earned the money (NC)
The former president and treasurer of a homeowner’s association for a Winston-Salem 162-unit condominium has been charged with embezzling more than $13,000 in 2017, according to arrest warrants. Read the article………………………..
Woman Charged with Embezzling from Minneapolis-Based Company (MN)
According to court documents, Xiong worked as a financial manager for a Minneapolis company that provided financial services to homeowner’s associations in the Twins Cities. Records show her job included bookkeeping and allowed her access to the financials, bank accounts, vendor and contractor payments, and other sensitive bookkeeping information of the homeowner’s associations working with […]
Police investigate $300,000 theft from upscale Athens RV park for UGA sports fans (GA)
Bulldog RV Park in Athens is a facility oriented to providing University of Georgia sports fans with the “excitement of University of Georgia football gameday in a country club atmosphere.” But a message sent earlier this year notifying tenants that homeowner association rates were increasing apparently raised a different brand of excitement. Read the article………………………..
HOA Fraud: How Can The Board Protect Itself
Homeowners associations are not immune to fraudulent activity. In fact, because associations tend to deal with a lot of money, they are prime targets of HOA fraud. The sad part is that most instances of fraud are perpetrated by people working inside the HOA in the first place. Read the article………………………..
A Delray Beach man lied about being an HOA president during a city meeting, police say. He’s now been arrested.
Aman says he’s an HOA president at a public meeting, talks about everyone being “in favor” of a controversial plan for an apartment building — then winds up in jail because police say he wasn’t who he claimed to be. Read the article………………………..
Woman pleads no contest to embezzling thousands from Jackson condos (MI)
A Jackson woman pleaded no contest Friday to embezzling more than $60,000 from a senior-centric condominium. Regina Brewer, 52, offered her plea Sept. 2 to a charge of embezzlement of more than $50,000 from Fayette Arms Condominiums in Jackson, were she serves as treasurer. Read the article………………………..
Man Sentenced For Henry Mill Home Owners Association Theft (MD)
A Berlin man will spend a month in jail after pleading guilty to a theft scheme involving a local homeowners association. At a hearing Tuesday, Berlin resident Andrew Charles Riley was sentenced to six months in jail with all but one month suspended. The sentence comes after Riley pleaded guilty in July to a theft […]
Nearly $30K Vanished From the HOA’s Account. The State Can’t Investigate the Management Company.
Community association managers run most of Colorado’s 10,000 homeowners associations, but state regulators no longer have the authority to look into complaints about unexplained price hikes, shadowy elections or fraud. Homeowners pay the price. Read the article………………………..
Shelby County woman sentenced for stealing from HOAs, employer (AL)
A Shelby County woman was sentenced for embezzling from her employer and the homeowners’ associations they managed, according to U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp Jr. United States District Judge Karon O. Bowdre sentenced Aimee Louise Statham, 47, of Chelsea, to 40 months in prison for wire fraud. […]
Condo Smarts: Strata must be vigilant to avoid fraud (BC)
Large amounts of special levy funds, reserve fund management, investments, special projects and operating funds are often targets of unscrupulous individuals. Read the Q&A……………………………….
Steps to Take If You Suspect Fraudulent Activity Within the HOA Board
Groups that are run by volunteers that handle money are particularly vulnerable to fraud, embezzlement, illegal activities, and scams. HOA boards are no exception. Access to funds is a temptation that some cannot resist. Read the article………………………..
President of Oakland Forest Homeowner Association arrested, charged with grand theft (FL)
Homeowners associations are known for collecting cash, but a president at one community is accused of cashing in on a condo crime. Harry Murphy didn’t show his face while appearing in court Thursday morning. The 76-year-old is accused of stealing more than $44,000 from the Oakland Forest Homeowner Association, where he is president. Read the […]
Cayman Islands: Condo maintenance manager charged with stealing $35k
Fernando Mota Mendes (55) briefly appeared in Grand Court on Friday but did not answer the more than dozen charges against him, including theft and obtaining property by deception Read the article………………………..
Attorneys investigating fraud in Miami condo collapse settlement (FL)
The attorneys handling a $1.1 billion settlement for victims in the deadly collapse of a Miami condo say the settlement fund is inundated with fraudulent victims. Read the article………………………..
Woman accused of embezzling from St. Tammany homeowner group gets suspended sentence (LA)
A Slidell area woman accused of stealing money from her former employer, the Belair Homeowners Association, pleaded guilty last week to one count of theft over $1,500, nine years after authorities said the thefts occurred and five years after she was indicted. Read the article………………………..
Berlin Man Pleads Guilty To Theft (MD)
A Berlin man awaits s Read the article………………..entencing after pleading guilty to a theft scheme involving a local homeowners association.Berlin resident Andrew Charles Riley, 60, faced multiple charges related to the theft of close to $16,000 from the Henry Mill Home Owners Association. Riley accepted a plea offer from the state and pleaded guilty to […]
Police warn of scam involving Toronto’s most notorious sketchy condo complex (ON)
Another day, another scam involving Toronto’s infamous ICE Condominiums. Toronto Police are warning the public of yet another shady rental scheme where potential tenants are believed to be signing a lease for a unit at the complex. Read the article……………………………
Residents up in arms after treasurer reportedly admits to stealing $153K from Hurricane HOA (FL)
A former treasurer of a homeowner’s association in Hurricane reportedly admitted to stealing more than $153,000 from the community’s main account — but a recent audit revealed the losses were significantly higher. Read the article……………………………….
HOA Treasurer confesses to embezzling more than $150K thanks to persistent homeowner (UT)
After years of questioning and independent research from a persistent homeowner, the former treasurer of the Lava Bluff HOA in Hurricane confessed to embezzling more than $150,000. Read the article………………………
Florida woman stole $228K from HOAs, spent some money on Bucs tickets: deputies (FL)
A Pinellas County woman is accused of ripping off three HOAs to the tune of nearly $230,000 and using some of that money to buy Buccaneers game tickets. Read the entire article……………………………….
Woman scammed Fort Wayne homeowners associations out of $180,000 (IN)
A woman whose business handled funds for several homeowners associations is now accused of bilking three of those out of more than $180,000, according to U.S. District Court documents. Read the entire article……………………………….
Woman steals nearly $500K from metro Atlanta HOA to go on vacation, GBI says (GA)
The Georgia Bureau of Investigation has arrested an Alabama woman they say stole hundreds of thousands of dollars from a Georgia homeowners association. The GBI says that 66-year-old Shirley Brown, of Calhoun County, Alabama, has been the property manager for the Mirror Lakes Homeowners Association in Villa Rica, Georgia. Read the entire article……………………………….
How to Investigate Suspicious Financial Activity in Your HOA
Today, a homeowners’ association’s (HOA’s) board of directors depends on technology to store contracts, banking information, and other confidential documents. While digitization increases efficiency, it also intensifies the potential for fraud and theft of community funds. Even with checks and balances in place, like collective oversight of a community’s financials from board members and community […]
State insurance commission investigates Gwinnett HOA over roof plan (GA)
Within a serene community tucked away among the pines in northern Gwinnett, a conflict has simmered for months that now pits dozens of residents against their homeowner’s association and has drawn the attention of investigators with the state insurance commissioner’s office. Read the entire article……………………………….
How to Avoid HOA Fraud? Fla. Attorney Explains
Many community associations leveling fraud charges had a single person receiving and paying bills. To stay safe, a system of checks-and-balances should be a fundamental part of day-to-day operations Read the entire article……………………………….
No choice in pursuing financial inconsistency
Q: I am a member of the board of directors of our condominium association. At our last meeting, we discovered some inconsistencies in our bank account and suspect our former treasurer has embezzled some of our money. What can we do? What should we do? It’s not a great deal of money ($2,500), so considering […]
Money Laundering – What to Watch For
In 2020 the Foundation for Community Association Research discovered that community associations in the U.S. handle $96 billion dollars in assessments, and California communities alone manage more than $12 billion in association housing services (operations, physical asset management, reserves, capital improvements, conservation & environment). With so much money at play, associations need to be aware […]
Brittany Chase Fraud Lawsuit Ends in $1.1 Million Settlement (NJ)
More than two-and-a-half years after a fraud lawsuit was filed on behalf of the Brittany Chase Condominium Association (BCCA) against their property management company, a construction company who replaced roofs and former BCCA board members, a settlement has been reached for $1.1 million. Read the entire article……………………………….
Calhoun Co. woman accused of stealing from PCB homeowners association (FL)
A Calhoun County woman is facing charges for allegedly stealing thousands from a Panama City Beach condominium homeowner’s association. Bay County Sheriff’s investigators charged 42-year-old Lucinda ‘Cindy” Carey this week with one count of on-going scheme to defraud. Read the entire article……………………………….
Former president accused of stealing from HOA (FL)
A former homeowners association president is accused of stealing nearly $3,000 from the HOA by making multiple ATM withdrawals with the association’s debit card after he resigned. Read the entire article……………………………….
Jury finds Triangle firm committed ‘bid rigging’ (NC)
The Estates is a membership organization that lists low-dollar HOA foreclosures in states like North Carolina. Members interested in a foreclosure submit bids through the website. A bidding LLC is set up to buy the house – with the winner of the internal bid becoming the bid at the foreclosure sale. Read the entire article……………………………….
Park City landowner accused of spending $3.7M of HOA funds on personal chef, nanny (UT)
A prominent Park City landowner and landlord renting out commercial and residential space on historic Main Street is facing criminal charges after prosecutors say he misappropriated millions of dollars on “significant commercial and personal expenses” including a personal chef and nanny. The charges stem from Abdalla’s business dealings and management of the Sky Lodge condominiums and […]
Scammers allegedly pilfered $500,000 from The Landings Yacht, Golf and Tennis Club (FL)
A residential development in Fort Myers, Florida, lost half a million dollars in the second alleged fraud scheme to surface among Southwest Florida community associations this year. A scammer gained access to The Landings Yacht, Golf and Tennis Club’s money through its payroll services company Paychex, according to the community’s attorney, documents from its board […]
Another big HOA fraud case in SW Florida: Scammers allegedly pilfer $500,000 from The Landings (FL)
Fraudsters gained access to the Fort Myers HOA’s money through its payroll services company Paychex, according to a sheriff deputy’s report. (Link is to a subscription only news item) Subscribers to the News Press only)………………………….
Bayfield Marshal’s Office investigates possible theft of thousands of dollars from Clover Meadows HOA (CO)
The Bayfield Marshal’s Office is investigating an alleged theft of what could be thousands of dollars from an account for the Clover Meadows subdivision homeowners association. At an emergency HOA meeting Monday night, HOA members voted to remove all members of the board, replacing them with seven new members. Members approved opening a new bank […]
Florida property firm allegedly stole $8M from dozens of communities
Dozens of community associations are suing Naples-based American Property Management Services, saying the firm hijacked their bank accounts and took at least $8 million — some of which could have been saved if regulators had acted earlier (article subscription only)