Author Archives: Beanie

NEVADA – Four found guilty in massive Las Vegas HOA fraud case

Las Vegas Review-Journal:  Four found guilty in massive Las Vegas HOA fraud case
By JEFF GERMAN
LAS VEGAS REVIEW-JOURNAL
March 17, 2015

Nearing an end to one of the longest and widest-ranging criminal cases in Las Vegas history, a federal jury Tuesday convicted four defendants charged in the massive scheme to take over and defraud homeowners associations.

The jury deliberated several hours before reaching its verdict on the heels of a three-week trial in the courtroom of U.S. District Judge James Mahan.

Prosecutors contended the multimillion-dollar scheme was carried out between 2003 and 2009 by former construction company boss Leon Benzer and the late construction defects lawyer Nancy Quon. Benzer has since pleaded guilty. Quon committed suicide in 2012 under the weight of the high-profile investigation.

The four defendants, including former Benzer attorney Keith Gregory, were convicted of conspiracy and wire fraud charges. Also found guilty were Benzer’s half-sister Edith Gillespie, who recruited straw homebuyers; Salvatore Ruvolo, a Benzer-controlled HOA board member at Park Avenue and Chateau Nouveau; and David Ball, whom Benzer placed on the Chateau Nouveau HOA board.

The long-running investigation, spearheaded by the Justice Department’s fraud section in Washington, is considered the largest public corruption case federal authorities have brought here. The investigation became public in September 2008 with FBI-led raids across the valley.

The defendants, who were indicted with Benzer in January 2013, showed little emotion in court as the clerk read the verdicts. Lawyers for some of the defendants said afterward they plan to appeal.  Read more:

CALIFORNIA – Homeowners say HOA crossing the line selfie stick

10News.com:  Homeowners say HOA crossing the line selfie stick
… California Civil Code 4925 prevents HOA boards from blocking homeowners from attending regular meetings.
By Cristin Severance
March 16, 2015
SAN DIEGO – UPDATE (March 17, 2015): Mira Mesa homeowners were furious after the doors to their HOA meeting were locked and only certain people were allowed in on Monday night.

A man who said he was hired by the board only let people in one at a time but they had to be on a list and have scheduled hearings. After the hearings, the man announced it was time for open session.

Team 10 tried to ask the HOA board president, attorney or board member to step outside to talk but the security guard ran and blocked both entrances.

Many homeowners told Team 10 they will fight to change the rules or the board members. Read more:

NATIONAL – The unconstitutional delegation of implied rulemaking powers to HOAs

George K. Staropoli: The unconstitutional delegation of implied rulemaking powers to HOAs
In regard to the delegation of legislative powers to private entities, a review of the fuzzy case history of the Non-delegation doctrine indicates a constitutional requirement for governmental control or oversight
March 10, 2015

Here I present evidence of the explicit and implicit delegation of rulemaking powers to HOAs, which, if not unconstitutional, would alone establish HOAs as state actors.

In an earlier Commentary[1] I discussed the implied delegation of legislative functions to HOA private governments. Putting the issue in simple terms, I quoted Stephen Wermiel’s comments on a constitutional delegation case before the US Supreme Court,

The dispute before the [Supreme] Court . . . [involves] the even less well-known principle that Congress may not delegate legislative authority to private entities. . . .   Read more:

NATIONAL – THE BOTTOM LINE: HOMEOWNERS ASSOCIATIONS IN AMERICA

Professor Gary Solomon: THE BOTTOM LINE: HOMEOWNERS ASSOCIATIONS IN AMERICA
January 14, 2015
                      History dictates: Not knowing the truth is a road to social disaster.
Introduction
Many readers are familiar with my academic work related to Homeowners Associations(HOAs): HOA: Crisis in America, HOA Academy and HOA Syndrome the science behind stress related disorders in HOAs.
After six years of research the following memorializes my results; a bare bones outline identifying the actual reason for HOAs and the solution to the HOA Crisis.
Why Do HOA’s Exist?  Read more:

NATIONAL – HOA Embezzlement Hits All, From High & Mighty to Small & Weak

NEIGHBORSATWAR.com: HOA Embezzlement Hits All, From High & Mighty to Small & Weak
By Deborah Goonan
March 15, 2015

Some readers may be under the impression that embezzlement of HOA funds only happens to Homeowners’ Associations (HOAs) with hundreds or thousands of units and elaborate amenities that translate to big operating budgets. I’ve talked to some people that think these cases are limited to certain parts of the country such as the Sunbelt states or major cities.

Nothing could be further from the truth. Even modest HOA communities in small towns are at risk for theft of funds by rogue Board members, community managers, or Developers.

Take Skyview Estates, for example. Skyview is a relatively small townhouse community of a few dozen homes located in Richland, PA, a town with a population of less than 1600. The nearest city is Johnstown, PA, with a population of about 20,000. There are no amenities such as a pool, and houses are located on one street named after the company that developed the community.  Read more:

FLORIDA – Prisoners in their own homes: Elevator fire strands Pinellas senior citizens

WFLA.com:  Prisoners in their own homes: Elevator fire strands Pinellas senior citizens
By Mark Douglas
March 13, 2015
Senior citizens who live on the two upper floors of building 71 at On Top of the World condominiums in Pinellas County say they are prisoners in their own homes.

That’s because the building’s only elevator caught fire March 3, and repairs haven’t even started. The condos are located at 2228 Swedish Dr.

“I can’t see the steps so I’ve got to go very slowly,” blind resident Dennis Babini said.”I’ve fallen down a couple times already.”

A week before the fire, Babini told 8 On Your Side he was trapped inside for about 20 minutes when the door wouldn’t open. Babini said the person who answered the elevator’s emergency phone told him to sit on the floor and wait for help.

Marjorie Meyer struggles with a heart problem.”I went down yesterday and when I came back I had to lay down for half an hour. I couldn’t breathe,” Meyer said. “I was almost ready to call the paramedics.”

“I have reported that elevator having trouble for the last five years,” said Gary Ordway, a resident who was going to get a stint installed the day after speaking to 8 On Your Side. He has a 90 percent blockage in his artery. Read more:

SOUTH CAROLINA – S.C. grapples with HOA complaints

BlufftonToday.com:  S.C. grapples with HOA complaints
By Sarita Chourey
March 12, 2015

COLUMBIA — Neighborhood Nazi. Condo Commando. Bullies. The dictatorship.

Those were some of the terms property owners and officials used to describe bad actors in South Carolina’s thousands of community associations on Thursday, as lawmakers debate how to regulate them. “It has become my worst nightmare,” said Nadine Zacharie of Edgefield County’s Lake Trenton. She used to live in Augusta’s historic Hill section, but has spent the last 10 years in Lake Trenton, calling it “10 years of roughshod bullying.” Some problems come down to fairness, she said, arguing that she shouldn’t have to pay the same fees for her single lot as residents who own several lots. Other issues involve the community’s bizarre bylaws, she said, pointing to a fight between neighbors overfeeding birds that resulted in an amendment prohibiting it. “We’ve had people trespassing onto other people’s property to take pictures of them feeding a bird, and end up with a misdemeanor,” said Zacharie.

Communities on the coast have their problems, too. Maraide Sullivan, who owns a condominium on Johns Island with her husband, testified Thursday that homeowners need greater protections. She serves on her community association board, but said others refuse to follow the bylaws, Robert’s Rules of Order and basic transparency practices. A few years ago, the community received a $5 million settlement to repair construction defects, but Sullivan said certain actions “didn’t pass the smell test.”  Read more:

GEORGIA – HOA cuts water to disabled resident for unpaid fines

WSB-TV2:  HOA cuts water to disabled resident for unpaid fines

The homeowner’s daughter says her mother is up to date with the monthly homeowner association assessment, but cannot afford to pay all the fines

By Tom Regan
March 12, 2015

ATLANTA — The family of a woman recovering from multiple surgeries, including a tracheotomy, is outraged a property management has cut off her water for unpaid fines, including parking violations accessed against nurses who came to provide care.

“I have never seen anything like this before. They shut her water off for frivolous fines. For parking, for a dog violation,” said daughter Tammy Kadar.

The homeowner, Rosetta Turner, lives in a town home community in College Park called Providence Place. While most residents own their homes, a private company manages the property and has authority to cut off utilities for unpaid fees, assessments and fines.

Turner showed Channel 2’s Tom Regan a two page summary of fees, totaling more than $1,000. They include a “Pet Violation” charge of $300, but the statement does not provide any specifics. Turner owns a small dog.

“Apparently, that was a time he was out there without a leash. They assessed fines for that,” said Kadar.

The bill also includes a “Nuisance Violation” charge of $100, without explaining the nature of the nuisance. An attorney for the family says the fees are arbitrary, absurd and in the case of Rosetta Turner, a health risk.

“I think it’s unjustified, but what’s most upsetting, is you have someone coming out of the hospital, having spent weeks in intensive care, having serious health issues and in need of sanitary conditions,” said attorney Kevin Ross.  Read more:

NEW JERSEY – N.J. men accused of stealing more than $75K from condominium

NJ.com:  N.J. men accused of stealing more than $75K from condominium
By Kathryn Brenzel
March 11, 2015
JERSEY CITY – Three men allegedly stole at least $75,000 from a Jersey City condominium, pocketing money intended for repairs, loan repayments and other costs.Raymond Gonzalez and Raul Miranda, of Hackensack-based property management company, RPM Group, and Jose Astuto, owner of Queen Remodeling Corp., in North Bergen, have been charged with conspiring to steal between $75,000 and $500,000 from the Berkeley Carteret Condominium Association, according to an indictment provided on Wednesday by the Hudson County Prosecutor’s Office. They allegedly stole money from residents of the Jersey City community–located at 53 Duncan Ave.–intended for general property maintenance, loan repayment and other purposes.

Representatives for the condominium could not immediately be reached for comment.  Read more:

ARIZONA – DiCiccio: ‘Ugly politics’ and the ABM HOA election

Ahwatukee Foothills News: DiCiccio: ‘Ugly politics’ and the ABM election

 Late last year, after it increased its budget by 5 percent and raised our assessment, ABM hired a political operative … — our HOA hired a political consultant
March 12, 2015
Commentary by Sal DiCiccio Special to AFN
Many of you remember the very caustic campaign that the unions ran against me. The worst part was when they went after my family.

The Ahwatukee Board of Management, using our HOA monies, hired the very same political consultant to run a campaign against the Save The Lakes volunteers.

To add insult to injury, some on the board then raised our HOA dues

I don’t usually involve myself in homeowner association business; my work on the Phoenix City Council keeps me focused on the city. But I can’t let slide an item for which the board leadership of the Ahwatukee Board of Management HOA needs to answer, especially as homeowners start casting ballots by mail or bring them to the ABM annual meeting April 1. The item: Late last year, after it increased its budget by 5 percent and raised our assessment, ABM hired a political operative. You read that right — our HOA hired a political consultant who has a reputation as a political hit man. Read more: