New larceny charges involving a Lynn condominium complex have been filed against a Lynnfield property manager charged last year with embezzling more than $15,000 from a Danvers condo association. The development scuttled plans for a hearing Thursday where Frank Carucchio was expected to offer restitution to the Edmunds Cove Condominium Trust to settle the case. […]
Condo Smarts: Preventing fraud in a strata
Q: An unusual situation occurred in our strata last month. A tenant, who had been on council for three years with the approval of the owners, and who appeared to be a valuable member of our community, abruptly ended their tenancy with a late-night move-out. Read the Q&A……………………………….
Defrauded HOAs See Bank Accounts – 23 Were Closed (FL)
Nearly two dozen bank accounts belonging to Collier and Lee community associations suing their property manager for fraud have been closed, which means the manager emptied those accounts, the associations’ lawyer said. Wells Fargo Bank filed the account balances in a court-ordered document last week showing funds as of March 14 in 67 accounts. Read […]
Is your HOA broke because of alleged fraud, embezzlement by APMS? Here’s what to do to find out more (FL)
Officials from the 35 communities suing a Naples property management company are getting access to their bank account information to gauge just how much money is missing from their accounts. Read the entire article……………………………….
Tucson woman accused of gambling away $5M in embezzled funds (AZ)
ATucson bookkeeper has been indicted for allegedly embezzling $5.3M from two local construction companies and from an HOA in Mexico Read the entire article……………………………….
Jessup man sentenced for theft scheme of more than $100,000 (MD)
A Jessup man was sentenced for a series of thefts over an 18-month span. Wharton, who was the treasurer of the Ridgely’s Run Community Association from January 2017 to December 2018, misused funds from the association’s account and made unauthorized payments to his company and himself, submitted fraudulent rent payments for his residence in Jessup and […]
Property Management Firm Had History of Problems (FL)
The Naples property management company accused of embezzling millions of dollars from Collier and Lee counties’ community associations has a years-long history of legal trouble, a Naples Daily News/The News-Press investigation has found. Read the entire article……………………………….
Shelby County woman accused of stealing from HOAs, employer (AL)
Federal prosecutors charged a Shelby County woman for wire fraud 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. Read the entire article……………………………….
Judge’s Decision Disappoints Fla. Condo Owners
A Collier County judge’s decision in a case involving the alleged embezzlement of possibly millions from nearly three dozen Collier and Lee county communities didn’t go far enough for some in those communities. A hearing Friday before Collier County Court Judge Lauren Brodie dealt with an emergency motion by 35 homeowner and condo association communities […]
National Bank Fraud Affecting Local Residents (NC)
Pinewild Homeowner Association president Leighton Smith said that he believes that up to 25 people in the gated community have received checks from accounts started in their names. The association this week worked to get the proper information in the hands of the homeowners to protect their current accounts and their credit score. Read the […]
Feds: Dedham official bilked R.I. condo association out of $46,500 to go to Plainville casino (MA/RI)
A Dedham town official allegedly defrauded a Woonsocket condominium association out of $46,500 to fund her personal expenses and gambling at Plainridge Park Casino in Plainville, prosecutors said Monday. Read the entire article……………………………….
Malaysia: Cops probe case of ‘missing’ condo management staff
Police are investigating the case of a former housing management corporation employee who is alleged to have absconded with more than RM500,000 from the company. Read the entire article……………………………….
Fraud Alert: Mortgagee Questionnaire Scams
In response to the tragedy at the Surfside condominium in Florida, Federal mortgagees are starting to update their questionnaires that are required to be completed in conjunction with the financing of a condominium unit sale. These changes include questions about the current status and condition of the property that are difficult to answer, along with […]
What can condo, homeowner associations do to prevent possible fraud activities? (FL)
With potentially millions of dollars at risk, Collier and Lee counties community associations have a very vested interest in monitoring their property management companies. At least 30 condo associations in Collier County are deep into forensic audits after news that their management company, American Property Management Services of Naples, is facing a $100,000 civil suit […]
Collier community files suit, claims fraud, embezzlement by property management company (FL)
A Naples property management company that oversees more than two dozen communities in Collier County is shuttered and its owners have apparently left the country. Meanwhile, the associations have filed a restraining order and are trying to recoup hundreds of thousands of dollars entrusted to the company. Read the entire article……………………………….
Fraud, Mismanagement, And Broken Rules – Who Do You Call? (FL)
In most instances, the board or management team of a condo or HOA is equipped to handle the wide variety of issues that arise day-to-day, from a leaky roof to dealing with municipal bureaucracy. There are other, bigger issues—things like embezzlement and fraud, for example—that require experienced outside professionals to resolve. Read the entire article……………………………….
Ex-president of local condo board charged with fraud (ON)
A Guelph male faces charges in connection with more than $80,000 in fraudulent transactions. Earlier this year, the male was removed from his position as president of a local condominium board and turned over records to his successor. Read the entire article……………………………….
WVTM 13 Investigates: Rouland Management accused of mismanaging HOA money (AL)
Four neighborhoods in Shelby and Jefferson Counties have filed suit against Rouland Management, a local subdivision management company, after residents say the company misplaced at least $200,000 of their funds. Watch the news report……………………………
‘I thought it was legit,’ says Burnaby victim of fake strata company scam (BC)
Terry is one of those people and so she wasn’t surprised to get an email about strata issues. This email said the strata had hired a new company to manage the building and that residents needed to sign up through the email by clicking a link. Read the entire article……………………………….
‘That’s a bit negligent’: Management company hired convict to manage finances for Rock Hill HOA. Now she’s facing new embezzlement charges (SC)
The former CFO of a development company in Rock Hill has pleaded guilty to embezzling hundreds of thousands of dollars from the company. Residents in one community have reason to believe that money came from their HOA fees and assessments and they’re asking the developer why a CFO with a history of embezzlement was hired […]
Property Manager Pleads Guilty in Homeowner Association Fraud Case (MS)
According to court documents, David Luke Lane used his position as a property manager to defraud several Homeowners Associations (HOAs) and Community Bank of Mississippi. Lane entered into contracts with the various HOAs to manage their properties and money in return for a fee. Lane’s duties included keeping the funds of each HOA in designated […]
Money missing from Austin HOAs, says attorney (TX)
But on that December night Weems explained that the contractor shared something else. “He’s like, ‘Hey, I don’t know if you know, but I haven’t been paid and some of the other vendors haven’t been paid,’” Weems said. “After that, like my whole life changed.” $7.75 left in HOA account Weems said that he learned from […]
Condo manager faces fraud charges (ON)
A condominium manager in the Kitchener-Waterloo area is facing fraud charges in connection with alleged financial losses over $500,000, of which several condo corporations suffered from. The case emphasizes how seriously the Condominium Management Regulatory Authority of Ontario (CMRAO) deals with complaints against its licensees and the action that follows. Read the entire article……………………………….
SCAM ALERT: Greenville police warn about Homeowner’s Association scam (SC)
Greenville police says they’ve received several reports about people receiving calls from someone who claims they are with the local Homeowner’s Association. The caller is demanding money for work that supposedly needs to be done on the person’s property to comply with HOA standards Read the entire article……………………………….
FBI Busts $31 Million Trip-and-Fall Insurance Scam (NY)
Two doctors and two lawyers have been indicted on charges that they ran a sophisticated $31 million fraud scheme that recruited more than 400 homeless people and drug addicts to stage trip-and-fall accidents, then undergo unnecessary surgical procedures. Personal-injury lawsuits and falsified insurance claims were then filed against the owners of the targeted properties, possibly […]
Community Association Best Practices – Finances (CO)
I like to say that the best practices are born out of the trials and tribulations of the worst practices. If you are a board member or community manager of homeowners associations and condominium communities, the way to learn these best practices without suffering yourself is to learn from the mistakes of others. Over the […]
Grandmother, granddaughter sentenced in theft of more than $120K from HOAs (TN)
A Williamson County grandmother and granddaughter were recently convicted of crimes related to the theft of more than $120,500 dollars from three homeowners associations. The pair also faced charges in relation to a fraudulent GoFundMe campaign started under the guise of paying for cancer treatments. Read the entire article……………………………….
Woman charged with theft in Parke County (IN)
A Portland Mills area woman faces four counts of theft in connection funds missing from the Indian Rocks Home Owners Association. Jodella Green, 58, of rural Greencastle, turned herself in Tuesday at the Parke County Jail on a warrant for two felony and two misdemeanor counts of theft. Read the entire article……………………………….
Man gets probation in Leominster condo theft case (MA)
The son of a Leominster condo association treasurer received three years of probation Monday after admitting to stealing thousands from its owners. Raymond R. Remy Jr., 60, pleaded guilty to six counts of receiving stolen property over $250 and six counts of larceny over $250. Read the entire article……………………………….
Safeguarding HOA/Condominium Association Money: Investment considerations and pitfalls (NC)
We are often asked by our association clients whether they should invest assessment or reserve funds into the stock market, bonds, money market accounts, CDs, etc. Let me start by stating that I am neither a financial planner nor an accountant, so my take on investment of association funds will center on the Board’s duties […]
Former manager of Penticton condo strata ordered to pay back $75k in mishandled funds (BC)
The former strata manager of the Tiki Shores condo complex in Penticton will finally have to pay for mishandling the strata’s finances. In a judgement released on June 15, Darone Davis and his company Deri Holdings will have to pay back $74,257.56 after almost 14 years of legal battling. Read the entire article……………………………….
Man with ties to condo management company charged with fraud in Waterloo Region
Police have charged a man in an alleged fraud involving the loss of more than $500,000. “The investigation … involved allegations of fraud that dated back to 2017, involving a local property management corporation,” Waterloo Regional Police said in a news release on Monday. Read the entire article……………………………….
Condo manager charged with embezzling from Danvers complex (MA)
The owner of a Lynnfield property management company has been charged with embezzling more than $15,000 from a Danvers condominium complex, and police are also investigating him in connection with thefts from other condo owners in Lynn. Read the entire article……………………………….
Protecting The HOA’s Funds From Embezzlement
An excerpt from a recent news story read: “Bridgett Freeman of Sheboygan stole more than $11,000 from the Westridge Homeowner’s Association in West Bend. Thursday, she was sentenced to six months in jail and three years probation, and was ordered to pay back $11,617.41. She said she was sorry.” Read the entire article……………………………….
Former head of Lighthouse Properties in Campbell County pleads guilty to wire fraud (VA)
On Wednesday in federal court, Tim Penick, the former head of Lighthouse Properties in Campbell County, pleaded guilty to wire fraud. Penick admitted, as part of a plea deal, that he stole money from an area homeowners’ association which was just one client among many that Penick is accused of stealing from through Lighthouse Properties […]
Hammocks Community Association President Accused Of Diverting Over $100K For Personal Use (FL)
Miami-Dade State Attorney Katherine Fernandez Rundle announced Thursday the arrest of Hammocks Community Association (HCA) President and former Treasurer Marglli Gallego after a three-year investigation revealed that she diverted over $100,000 for her personal use. Read the entire article……………………………….
Danger! Warning Signs of Embezzlement (AZ)
One of a board of director’s primary responsibilities is to preserve and maintain the association’s assets. I agree, this doesn’t sound good and it is my opinion that the rest of your board needs to take swift action. First, all board members should have full access to all of the association’s books and records, including […]
HOA Protected from Fraud and Embezzlement (CA)
Communities are assigned a board of directors to oversee the everyday operations, needs, and concerns of the community. However, this does not protect your community from fraudulent activity. The more informed you are about common HOA scams and fraud types, the more effectively you can take preventative measures to protect your HOA. Read the entire article……………………………….
Former Bainbridge home association treasurer pleads guilty to grand theft (OH)
Joseph Kolenic, 83, the former treasurer of the Bainbridge Pilgrim Village Homeowners Association, recently pleaded guilty to one count of grand theft, a fourth-degree felony, in Geauga County Common Pleas Court. (Need subscription to read entire article)………………………
Vancouver condo developer sentenced to six years in U.S. prison for real estate fraud (BC)
Vancouver condo developer Mark John Chandler is “a financial predator,” a U.S. Federal Court judge said Monday while handing down a six-year sentence for a real estate investment fraud. Chandler swindled 12 U.S. investors out of $1.7 million more than a decade ago, taking their money for a purported Los Angeles condo project that never […]
Additional lawsuit emerges alleging fraud in Windsor condo development (CO)
A third lawsuit was filed this week against the developers of the Grasslands Park complex in Windsor, alleging that the developers had taken funds from the project to pay off personal loans and purchase a home. Read the article………………………………..
Trump commutes 40-year sentence of Clearwater Ponzi scheme operator (FL)
“I’m more disappointed for the investor victims and the dedicated public servants across the Securities and Exchange Commission and Department of Justice who put their hearts and souls into this prosecution and had the rug pulled out from under them,” said Bruce Barnes, a Safety Harbor attorney who filed a lawsuit in 2016 on behalf […]
Multimillion-dollar embezzlement scandal: Where the Ridgway Lane lawsuit stands a year later (MS)
In the last year, attorneys for 12 metro Jackson homeowners associations have gained traction on recouping millions in missing funds from Ridgway Lane & Associates. So far, the court has ruled to liquidate the assets of the company’s former president, David L. Lane, including his home, properties across the state and what’s left of his […]
Recent Arrests for Community Association Theft Illustrate Laws Working, Associations Must Do Their Part (FL)
In Kissimmee, Florida, the second arrest of a former HOA property manager was covered as part of a series of investigative reports by WFTV (Channel 9, ABC). The reports chronicle how Sherry Raposo, who had previously been arrested on charges related to having her ex-cop-turned-felon boyfriend patrol the Turnberry Reserve community and using the HOA’s […]
Woman admits to spending thousands of HOA funds to pay her own bills, police say (FL)
A woman in Orange County is charged with grand theft after police said she took money from a Lake County homeowners’ association to pay her own bills. Police said Joan-Marie Baskett was elected secretary of the Ranch Club Homeowner’s Association, which is based at Eagle Run in Groveland. Read the article………………………………..
CONDO WORLD: Keeping your money safe (NH)
Very few associations suffer the devastating effect of having someone (e.g. a board member, officer or a manager) steal the association’s money. But it happens. One property manager in New Hampshire was sentenced to 18 months in federal prison and ordered to pay back over $900,000 stolen from 27 condo associations she was managing. Read […]
Former Shady Oak Pines Homeowner Association President Arrested for Stealing $21,000 Over 3-Year Period (FL)
According to Titusville police spokesperson Amy Matthews, Rowen is suspected of stealing more than $21,000 from the Shady Oak Pines Homeowners Association over the span of three years, during which he was the association’s president. Read the article…………………………..
Another community raises similar allegations of theft against former Turnberry Reserve property manager (FL)
9 Investigates uncovered similar allegations of theft from a different community against a former property manager now facing fraud charges. Channel 9 investigative reporter Karla Ray has taken you every step of the way through the turmoil at Turnberry Reserve in Kissimmee that led to property manager Sherry Raposo being arrested for allegedly stealing HOA […]
HOA president accused of using community funds to bail out boyfriend (FL)
An HOA president and manager used community funds to bail her boyfriend out of jail in North Carolina, according to the Osceola County Sheriff’s Office. Deputies said they arrested Sherry Maycumber Raposo, 42, on Thursday after financial crimes unit detectives discovered that she used money from the Turnberry Reserve HOA fund to post her boyfriend’s […]
Former Turnberry Reserve property manager arrested on fraud-related charges (FL)
The former property manager of a troubled homeowners association was arrested for the second time on Thursday following a series of 9 Investigates reports. Sherry Raposo was arrested earlier this year on charges related to running an unlicensed security firm and hiring her ex-cop-turned-felon boyfriend to patrol the Turnberry Reserve community. Read the article……………………………..