The Brittany Chase Condominium Association (BCCA) filed a fraud lawsuit in Passaic County Court against former BCCA board members, the current property management company serving BCCA and a Wayne contractor, claiming that over a three-year period, the Defendants conspired to defraud the BCCA of over $2,000,000 through a scheme to replace roofs on several buildings […]
Court: Former nonprofit director plans to plead guilty to theft charges (GA)
Just days before a preliminary hearing, the state’s attorney has filed an information plea with the court that the former executive director for the Dothan-Houston County Substance Abuse Partnership plans to enter a guilty plea in a theft case related to her role as a treasurer of a local homeowners association. Read the article………………….
Property manager says ‘cooperating fully’ in Greenville Sheriff’s HOA funds investigation (SC)
Doors were locked and the lights were out on Wednesday afternoon at the offices to the property management company that is under investigation by the Greenville County Sheriff’s Office amid allegations of mishandled HOA funds. Notes labeled for “Nick” were posted to the door. One of them, in all capital letters with a thick, black […]
Money missing from Simpsonville neighborhoods, HOA president says (SC)
The president of a Simpsonville homeowners association tells 7News that three subdivisions are missing money after the property management company that previously managed them resigned last week. Read the article…………………….
Preventing mismanaged finances on condo boards (ON)
With more people than ever living in condominiums, mismanaged condo boards are becoming ever more prevalent. Is this a symbiotic relationship? Whether by corruption or incompetence, condo boards that mismanage their multi-million dollar budgets and reserve funds are a recurring problem. Legislation has now been enacted in an effort to rectify some of the problems […]
Accusations of possible financial abuse by former Chula Vista HOA manager (CA)
A Chula Vista homeowner’s association (HOA) is dealing with claims of embezzlement, corrupted financial records and a police investigation. Team 10 investigative reporter Jennifer Kastner tracked down the former HOA manager who’s at the center of the accusations, who says he did nothing wrong. Read the article…………………………
What Management Companies Can Do About Check Fraud (CO)
A local banking institution recently issued a warning that thieves have been targeting landscaping companies in the Front Range, stealing checks from their mailboxes. The checks are then deposited with forged signatures and/or the checks are reprinted for additional fraudulent transactions. Once the account number on the check has been compromised, the account must be […]
Robert Polich pleads guilty in Hamilton Creek embezzlement case (CO)
Robert Polich, a man accused of embezzling more than a half-million dollars from the Hamilton Creek Metropolitan District, pleaded guilty to charges of theft and embezzlement of public property during a hearing at the Summit County Justice Center on Tuesday morning. Polich, 66, served as the system administrator between 1995 and 2015 at the Hamilton […]
Woman charged for allegedly embezzling over $10,000 from Gilbert HOA (AZ)
A Gilbert woman has been charged for allegedly taking cash funds from a Home Owner’s Association (HOA) and running up about $2,200 in debit card charges, according to court documents. Read the article………………………..
Dothan non-profit director under investigation for alleged theft of $16K in HOA funds (AL)
The executive director for the Dothan-Houston County Substance Abuse Partnership has been arrested on a first-degree theft of property charge. Dothan police arrested Susan Trawick for allegedly stealing $16,829 while serving as a treasurer of the Hidden Lake homeowners association. Read the article……………………….
Safeguarding finances: 9 steps to prevent fraud and embezzlement in your HOA
Community associations fall victim to theft and embezzlement too frequently. Board members should know the warning signs and institute preventive measures before the community is left with a difficult recovery. Combining these safeguards should help to keep your association and homeowners from being victimized. Read the article……………………….
Woman who stole from Carlisle Barracks ordered to prison for more thefts in West Virginia (PA/WV)
A woman who is on federal probation for stealing from Carlisle Barracks has now been sentenced to prison in West Virginia for embezzling more than $7,000 from a homeowner’s association. Read the article………………………….
Baldwin County woman accused of stealing $12,000 from HOA (AL)
A Baldwin County woman has been charged after allegedly stealing from her homeowners association in Daphne. Rachelle Hawks, 41, handed herself in to authorities Aug. 7 after fellow HOA members reported that $12,000 was missing from the association’s bank account, according to court records. Hawks was the treasurer of the association during the time of […]
Condo worker defrauds condo association for over $17,000 (FL)
Joseph Maselli for 18 months double-billed the Palm Beach condo association where he worked as a maintenance man, defrauding them out of over $17,000, police say Read the article………………………
Combatting Kickbacks Spotting and Stopping Fraud in Your Community (NY)
Running a community association can be – and often is – stressful enough without the added issue of people in a position of power in the community using that position for personal gain in the form of kickbacks. Whether the offender is a superintendent, manager or board member, skirting the rules around bidding out projects, […]
Preventing Fraud and Embezzlement in Your HOA
Associations fall victim to theft and embezzlement too frequently. Know the warning signs and institute preventive measures before your community is left with a difficult recovery. HOA boards should consider implementing the following practices and procedures to safeguard association funds. Read the article……………………………..
Police: Man took $20,000 from homeowners association (IN)
The former president of a Center Grove-area homeowners association is facing six criminal charges, including multiple felonies, after taking more than $21,000 from the association, police said. Read the article………………………….
Man charged with forging more than $40,000 in checks (PA)
A Williamsport man received several charges of theft and forgery after he allegedly forged checks and stole more than $40,000 from a homeowners association between 2017 and 2019. According to the affidavit, members of the Homewood Oaks Townhouse Association (HOTA) discovered high monthly fees and returned checks earlier this year on their bank account. Read the […]
Pa. prothonotary clerk put on unpaid leave after charges of stealing from homeowners association (PA)
A clerk in the Lycoming County prothonotary’s office has been put on unpaid administrative leave after being charged with stealing $41,000 from a homeowners association. The county took the action Tuesday against Ryan A. Workman, 28, a day after state police charged him with theft, forgery, receiving stolen property and tampering with records. He was […]
Facing Financial Mismanagement: When Boards or Managers Are at Fault (NY)
The board of a building or community association has a fiduciary duty to uphold its community’s governing documents, act in good faith, and advance the interests of the community at large. Occasionally, boards fail to carry out this duty – sometimes through mismanagement and poor decision making, and sometimes through willful disregard for the association’s […]
Deerfield woman must repay money (MA)
A fiduciary embezzlement charge against a South Deerfield woman will be dismissed if she pays back nearly $11,000 to the Stillwater Condominium Association within one year. Read the article…………………..
South Hampton HOA treasurer pleads guilty to embezzlement charge (MD)
Just days before his trial was set to begin, South Hampton Homeowners’ Association treasurer Benedicto Afroilan pleaded guilty to a single misdemeanor charge of fraudulent misappropriation, likely bringing an end to court proceedings against Afroilan and his four co-defendants in the case. (link requires a subscription)
Co-op Board Members Charged With Taking $874,000 in Bribes (NY)
Two co-op board members and an office manager at the affordable Luna Park Houses on Coney Island have been indicted for accepting $874,000 in cash bribes to get ineligible applicants into apartments, NBC News reports. Read the article……………………….
Maryland property management company accused of misusing nearly $2.5 million in HOA, condo fees
A property management company is in trouble with the state over how it spent homeowner and condo fees. The Maryland Attorney General Consumer Protection Division filed charges against Evergreen Management, LLC for misappropriating consumers’ fees paid to their homeowner associations and condominium associations. The owners of Evergreen, Jason Barry Oseroff and his late father Ivan […]
Charleston property manager gets prison for defrauding communities of more than $700K (SC)
A former property manager has been sentenced to federal prison for defrauding numerous homeowner associations in the Charleston area of more than $700,000. Karen Colie, 46, who owned Marshland Communities on Johns Island, was sentenced Tuesday to 2½ years in prison after she pleaded guilty last fall to one count of wire fraud. Read the […]
Police investigating after $60k vanishes from Colonial Heights HOA (VA)
The Conjurer’s Neck neighborhood is known as one of the nicest and wealthiest neighborhoods in Colonial Heights. “It’s a great neighborhood, quiet, its why we moved down here,” said resident Ricky Williams. “Very peaceful, quiet, people tend to keep to themselves,” resident Eric Cavey added. That’s a common theme for those who live in the […]
Alleged LOW embezzler pleads not guilty (VA)
Former Lake of the Woods Association financial manager Roy C. Mayberry remains in jail as he awaits a weeklong jury trial set for October. Last Friday, Mayberry pleaded not guilty to 15 charges—including money laundering and embezzlement—after officials said he stole more than $450,000 during his tenure with the east Orange County homeowners association. Read […]
Woman who stole more than $1K at Carlisle Barracks hit with new embezzlement charge in West Virginia
A woman who pleaded guilty last year to stealing $1,053 from the Root Hall Café at Carlisle Barracks is now accused of embezzling even more money from a homeowner’s association where she was the treasurer. Read the article……………………
HOA president pleads to misdemeanor in embezzlement case (MD)
South Hampton Homeowners’ Association president Ulysee Davis pleaded to one misdemeanor charge of fraudulent misappropriation Tuesday, the first legal outcome arising from charges brought against Davis and four others for allegedly stealing over $100,000 from the South Hampton Homeowners Association over the course of at least five years. Read the article…………………….
Homeowners’ Association missing over $30,000 from bank accounts (OH)
The treasurer for the Landerwood Glen Homeowners’ Association reported April 9 that unauthorized and fraudulent withdrawals were made from at least two accounts: over $15,000 from checking as well as an associate money market account where more than $15,500 was removed between March 28 and April 1. The Key Bank fraud department is opening an […]
Lawyer goes on rant, client goes to jail for embezzling from Omaha neighborhood association (NE)
A locomotive called prison time was barreling toward the former treasurer of a west Omaha neighborhood association Tuesday. In a Douglas County courtroom, a prosecutor had mentioned that former Omaha resident David Campagna’s full restitution payments didn’t erase the fact that he wrote himself dozens of checks over several years — costing the Armbrust Acres […]
Arrest made in Orange HOA embezzlement case (CA)
A former official with the Lake of the Woods Association stole more than $450,000 from the organization over four years, according to the Orange County Sheriff’s Office. Read the article…………………….
Neighbor who embezzled thousands faces consequences in court (NE)
There was tension in an Omaha courtroom on Tuesday as a confessed embezzler sought probation. During eight years as treasurer of the Armbrust Homeowners Associated, David Campagna embezzled $174,000 his neighbors paid in dues. “The books were bogus. Records were missing and falsified financial information was created,” neighbor Les Robbins said. Read the article…………………..
Property Management Firm Accused Of Repeatedly Overbilling Condo Associations (IL)
One of the biggest complaints among condo owners is the monthly assessments. Ever wonder why you’re always being asked to pay more? CBS 2 Investigator Dorothy Tucker uncovers one condo association’s budget battle with a management company, leaving them penniless. The Drexel Condo Association at 41st and Drexel is facing several major repairs – including […]
Former Galloway condo club manager must pay back $200K, judge says (NJ)
An Egg Harbor Township man was sentenced to 90 days of house arrest and is required to pay $227,620 in restitution after pleading guilty to taking money from The Club at Galloway Condominium Association. Ira Binder, 62, was also sentenced to five years of probation for the second-degree theft by unlawful taking charge on Feb. […]
3 Sentenced for Defrauding Phoenix Homeowner Associations (AZ)
A California woman and her ex-husband have been sentenced to more than a year in federal prison for defrauding Phoenix-area homeowner associations while an Arizona resident will serve probation. Read the article…………………………
Similar Reports of Association Theft in Both Coasts on Same Day Send Message to Boards of Directors Everywhere
Reports of association theft, fraud and embezzlement are no surprise to the South Florida community association attorneys at our firm, but two similar reports on the same day from communities on both the east and west coasts of the country drew our attention. The media reports of the incidents, which both ran on Thursday, Jan. […]
How to Prevent HOA Fraud, Theft, & Embezzlement
A homeowner association (HOA) is often made up of trusted friends and neighbors. However, that doesn’t make your community immune to fraudulent behavior. With over 40 million households in the United States belonging to an HOA, there is a lot of money at stake and safeguards should be put into place. Start protecting your community […]
Phoenix HOA manager imprisoned for taking $1.3M from homeowners associations, officials say (AZ)
The former head of a Phoenix-based property management company was sent to prison for taking almost $1.3 million from several Valley homeowners associations, officials said. Harlow White, 77, of Gilbert, was sentenced Friday to 15 months in prison for stealing the money, which was used, in part, to cover approximately $300,000 in personal charges on […]
AB 2912 Fraud and Embezzlement//Fidelity Bonds & Financial Review (CA)
It is no secret that community associations are often targets for embezzlement. But they are not alone. Newspaper articles tell us that it happens to various types of businesses and organizations, even attorneys and lawyer/bar organizations. Fraud and embezzlement seems more likely to occur when no one is watching those that control the checkbooks. And […]
EHT man pleads guilty in $352K theft (NJ)
An Egg Harbor Township man has pleaded guilty to stealing more than $350,000 while he was office manager for a Galloway Township condominium association. Ira Binder, 61, originally thought he would be paying back the money, attorney Steve Scheffler explained after the plea Thursday. Read the article……………………….
Clearwood Association Alleges Former Bookkeeper Embezzled Nearly $300K (WA)
The Clearwood Community Association filed a civil complaint in Thurston County Superior Court Nov. 30 alleging its former bookkeeper embezzled nearly $300,000 and that the amount could in fact be more. The lawsuit against Dolanna K Burnett, her husband and their businesses, claims the bookkeeper wrote multiple checks to herself and covered it up in […]
HOA embezzler to get three years, four months prison (CA)
More than five years after a scheme to embezzle some $2.8 million from the San Mateo Woodlake Condominium Association between 2007 and 2013 came to light, the HOA’s former manager learned she will be sentenced to three years, four months in state prison Thursday, according to the San Mateo County District Attorney’s Office. Read the […]
Association’s treasurer accused of embezzlement (VA)
Elizabeth Joan Boyd, 48, was recently charged on six felony counts of embezzlement stemming from her time as the Lake Front Royal Property Owner’s Association’s treasurer. Warren County Sheriff’s Office Sgt. Daniel Maxfield said over the phone that the office began an investigation into the matter after receiving a complaint from the association’s board regarding […]
Ruling for insurance producer in licensing case affirmed (IN)
A trial court order lifting a regulator’s nonrenewal of an insurance producer’s license stemming from his unauthorized use of funds from his homeowner’s association was affirmed by the Indiana Court of Appeals on Monday. The appellate panel agreed that the man’s actions in this case did not warrant such a severe sanction. Read the article……………….
Grand jury adds embezzlement charges to HOA case (MD)
A Charles County grand jury has handed down indictments against five people accused of stealing money from the South Hampton Homeowners’ Association, including embezzlement charges for the two HOA officers who were allegedly involved in the scheme. The indictments, filed on Dec. 14, charged South Hampton Homeowners’ Association president….. (requires subscription to read the […]
Board Members must Watch their Treasurers (NY)
We’ve seen it time and time again. Association treasurer steals from organization. It happened again in Ohio where a condo treasurer made 48 withdrawals from the association’s account into his personal account from 2016 to 2017. It was not until this year that the board members realized what was going on. Here’s more. Read the […]
Suspected embezzlement at Orange homeowners association rises to $400K (VA)
The Orange County Sheriff’s Office says nearly a half-million dollars may have been embezzled from the Lake of the Woods Association. Sheriff Mark Amos said the total funds suspected to have been embezzled now appears to be more than $400,000, up from the $94,000 estimated in August. Read the article………………….
HOA Homefront: Tighter protection of HOA funds in 2019 (CA)
The most important new legislation changing how HOAs operate is Assembly Bill 2912. AB 2912 began with its purpose “to take important steps to protect [HOA members] from fraudulent activity by those entrusted with the management of the association’s finances.” Sponsored by the Community Associations Institute and the California Association of Community Managers, the bill […]
AB 2912: New Protections Against the Misuse of HOA Funds (CA)
Assembly Bill 2912 (“AB 2912”) was recently enacted by the California Legislature. Its changes to the law, which take effect January 1, 2019, are intended “to protect owners in a [HOA] from fraudulent activity by those entrusted with the management of the [HOA’s] finances.” To that end, AB 2912 (a) significantly increases the financial review […]