It’s tragic, but some members of the news media are finally discovering and reporting on the power of an HOA. Details on my website, NeighborsAtWar.com
Tag Archives: HOA Nightmare Stories
Oh yes, embezzling is endemic in American Homewers Associations. Just Google “homeowner association and embezzle.” Then stand back and watch the numbers.
The latest one is Dale Palmer, a Kansas City man who managed HOAs in Kansas, Missouri, Illinois and Wisconsin. This creep thought he could get away with embezzling more than 750,000 dollars. He’s going to prison for 46 months, but that’s a laugh. He’ll get off about two years for good behavior.
And the $825,000 restitution?
Don’t count on it, folks.
This is hilarious! A Homeowners Association in Debary, Florida, refuses to let homeowners post political signs in their front yards. As we all know by now, the right to free speech in the Constitution’s Bill of Rights is not recognized by the American Homeowners Association movement.
Now, homeowners throughout the neighborhood are placing empty chairs in their yards where they could have placed their political signs. It’s an obvious reference to Clint Eastwood’s empty chair speech at the Republican National Convention.
Presumably, Republicans and Democrats in Debary ought to be concerned about their lack of access to free speech rights.
Homeowners in the South Seas Condominium on Marco Island, Florida, may soon have to pay a hefty special assessment because of a particularly boneheaded decision by their HOA.
The Feds have consistently said that service dogs are covered under the ADA. An HOA doesn’t get to claim they are pets, if the dog is actually performing services for a disabled person. But this particular HOA obviously doesn’t ‘get it.’ They will.
The South Seas Condominium has been harassing 56 year old resident Larry McKay over his 80-pound boxer. In 2008, McKay contracted MRSA, a mostly fatal staph infection that’s hit a number of people in the Southeast. McKay is confined to a wheelchair, and he says the service dog does a number of things for him, such as turning on the lights, and helping him get out of bed.
McKay’s dog helps him with other activities like getting on and off airplanes. The airlines recognize it’s a service dog. This HOA board is apparently too stupid to do the same.
In other parts of the country, such as California, Homeower Associations have been hit with huge fines by the ADA because they insist that all service dogs are merely ‘pets,’ prohibited by the HOA.
McKay has lots of supporters in his condominium. Doesn’t matter. When the FDA slams this condo with a massive fine, each and every condo owner is going to have to fork up some bucks to pay for the idiotic decisions by their HOA board.
A dumb waste of other peoples’ money. But it’s typical. So typical.
By Ward Lucas, author of Neigbors At War! The Creepy Case Against Your Homeowners Association
Homeowners usually get the raw end of the deal when they try to fight the “Bigs” in the HOA industry. Some Homeowners in California are trying to turn that trend around. An HOA in Riverside County has sued three former property managers for “fraud, conspiracy to defraud, breach of contract, and breach of fiduciary duty.” They had employed the management companies for eight years.
Canyon Lake Association then sued its own law firm, Fiore, Racobs & Powers, accusing them of “fraud and malpractice.” They say a lengthy investigation found “no cash management, no separation of accounting duties, credit card abuse by employees, employee salary increases that were not approved by the board.”
The lawsuit further claims that three HOA managers “created and concealed a secret, systemic pattern of conversion and theft of (HOA) assets and funds…and made representations to the board that were not true and were a cover up designed..to delay discovery of the cover-up.”
By the way, this information comes to us from the CCHAL organization in California. It’s dedicated to helping out the “tiny mice” in the HOA movement, and it’s an outstanding organization that every homeowner should join.
One final thought comes to mind here. We haven’t heard much from the federal investigators in Las Vegas. We hope the widespread corruption they found in the Vegas HOA industry hasn’t depressed them to the point that they want to throw in the towel. Actually, we hope the opposite is true. We hope they take a look around the country and discover that the legal scams in Las Vegas are as identical and numerous as the legal scams in Riverside County, and Modesto, and Weld County, Colorado. and Dallas and Houston and Miami, and North Carolina.
If you don’t think it’s happening in your own community, you are either naive or dumber than a box of rocks. When we signed those CC&Rs, we stepped into an entirely new form of government with no checks and no balances. We essentially told law firms and property managers, “It’s OK to steal from us.” And then we whine when they steal from us. What gives?
Ward Lucas, author of Neighbors At War! The Creepy Case Against Your Homeowners Association
How could I live if I didn’t occasionally run across these stories and have the ability to mock them?
But God is good, and He sends me lots of links.
The Massapequa Park Village Board has decided that unmowed lawns are more of a safety hazard than letting child rapists roam the streets.
That’s right, folks. Let your grass grow an inch longer than your neighbors, and you could soon be slapped with a 10,000 dollar fine. Let’s spell that out, so there’s no mistake about the zeroes: A TEN THOUSAND DOLLAR FINE.
Sex offenders usually get off with a far lesser sentence than that.
But in the hoity toity village of Massaqua Park, New York the ten thousand dollar law apparently passes muster.
Massaqua Park. A new reason not to live there. Stick with my Colorado double-wide. Be grateful.
Yep, I know that’s an insect, an annoying little insect. Wikipedia says katydids disguise themselves brilliantly as dead rotting leaves complete with holes in them.
I do strain for metaphors once in a while, but an HOA manager in Katy, Texas, disguised himself as a worthless piece of dead, rotting debris when he decided to steal a million dollars from his neighbors. 34 year old Taggert Mayfield pleaded guilty to money laundering, scoffing at his fiduciary dutues, and bald-faced theft from homeowners who profoundly trusted him.
Many of those homeowners were elderly and had saved all their lives to buy their retirement homes. Mayfield, who owned Arrow Management Company did lots of business in Fort Bend andHarris Counties. An Assistant D.A. says Mayfield was really “living the dream,” as a parasite sucking the life blood out of his neighbors’ financial dreams. He devestated a number of helpless homeowners, who will never again see the American HOA movement the way they once did.
Don’t think for a second, though, that Mayfield is alone. And don’t think that Las Vegas homeowners are alone as they struggle to recuperate from a hundred million dollar swindle the feds are still investigating in Nevada. No, folks, this kind of raw theft is going on in cities across the country. When an HOA demands total trust but refuses to install any safety checks, the HOA board officers are absolutely as guilty as the embezzlers. When lawyers are hired to suppress any protests by suffering homeowners, there’s something evil going on beneath the surface.
Just check it out.
You don’t hear many stories about HOA nightmares in Oregon and Washington. Well, folks, that’s changing.
Here’s a story that claims 31 Homeowners Associations in Oregon were ripped off by their management company. Homeowners are facing huge special assessments to make up for the loss. The management company employee embezzled up to two million dollars. HOAs from Portland to Forest Grove are struggling under the weight of the financial disaster.
Stunned homeowners were heard saying, “Gosh, you just don’t hear about this kind of thing happening.” To which our only comment should be “HA HA HA HA HA HA HA!”
But heck, lets unload some more comments. The victim HOAs in Oregon are the rule, NOT the exception. HOA embezzlement by board officers and management companies may be the most underreported financial crime in America. One problem is that embezzlements embarrass Homeowner Associations. They do everything in their power to cover them up. It’s hard to sell homes in a neighborhood that has a track record for ripping off the homeowners.
Second, if you’re an HOA president or treasurer there are amazing ways of stealing from your neighbors so they never actually know they’ve been robbed. Hmmm, if there’s enough interest, I might even create a list of 101 ways to steal HOA funds and not get caught. I’d hate to further educate the bad guys, but it might provide some important information for future victims.
Last, it’s my belief, based on some pretty good evidence, that the vast majority of Homeowner Associations in America have already lost money to HOA corruption. That’s what the FBI is discovering in the massive federal investigation of HOAs in Las Vegas.
Although life in some HOAs is rather pleasant, each homeowner may as well have a huge bull’s eye tattooed on his or her backside. To quote a famous Gary Larson “Far Side” cartoon character, “Bummer of a birthmark, Hal.”
BTW, the link below contains the whole story on the Oregon theft, along with the 31 HOAs that got ripped off. Good reporting by Mara Stine and Jim Clark of the Gresham Outlook. Now, if they’d just expand their investigation to the rest of the Pacific Northwest!
35 years in the slammer! That’s what a judge handed out to Taggert Mayfield, a property manager who stole about two million dollars from a number of HOAs he managed. Rarely, kind readers, rarely will you ever see this kind of a sentence given to someone who steals from his neighbors. More often, it’s a wrist slap and a restitution order that never gets paid.
But 35 years! Homeowners in Houston ought to be out in the streets celebrating!
The term “Homeowner Association” is almost synonymous with embezzlement. If you spent a month of Sundays on Google you could never track down all the stories of HOA embezzlement. The American HOA system rewards them, its lawyers cavort in the shower of dollars, the property managers take vacations to places most of us will never see. While homeowners pay higher and higher dues, while front entrances decay, and neighborhood swimming pools turn a bilious green, the word “embezzlement” is sort of like an employee benefit. “Help wanted. Property Management Company needs another manager. Free soda, medical marijuana, and all you can skim from the homeowners. People with ethics need not apply.”
35 years! These neighbors, of course, are going to have to pass millions of dollars worth of special assessments which could cost a lot of people their homes. The elderly and the disabled will suffer enormously. It’ll be tough for them to celebrate this judgment. Still, it might be a slight warning to other HOA embezzlers across the country.
Harvella Jones, a real champion in the struggle for homeowners’ rights, has a new website. It’s at:
Second, independent film maker Rodney Gray is working on a documentary, The HOAx. This kind of project is extremely expensive to produce, but we’d like to help him as much as we can A film like this can be an incredible catalyst for a movement that depends on mass education. On this site you can see his trailer, and help him raise the needed funds. If everyone in the fight would link to his website, his fund raising will be almost self-working.
We are growing. You can tell that from the attacks by HOA industry insiders who refer to us as “whiners.” No, we’re not whiners. We’re awakened.