HOA Theft, Fraud, and Embezzlement Roundup (Sept 2016, Part 2)

By Deborah Goonan, Independent American Communities

I decided to split up my HOA corruption “roundup” list this month. Part 1 was published last week. Here’s part 2.

HOA Problem Solutions Scam surfaces in Jacksonville as well as Tampa

Attorney General Pam Bondi is investigating Jimmy and Michael Chauncey and their business operations. The pair convince distressed homeowners, with homes in foreclosure, to “quit claim” property deeds to HOA Problem Solutions. Then the Chaunceys lease the homes to unsuspecting tenants, and pocket the money. The foreclosing bank does not get the rent money, and the HOA does not get its assessments paid. The former owner gets swindled. Tenants can end up kicked to the curb following a bank foreclosure, even if they have a lease. See the screen shot below for the companies involved, and the number for Florida Attorney General’s Office.

screen-shot-2016-09-25-at-1-55-47-pm

Mother, disabled children fear they will be forced from their home (VIDEO)
Another family contacts the I-TEAM over real estate scheme

By Lynnsey Gardner – Investigative reporter , Jodi Mohrmann – Managing Editor of special projects

http://www.news4jax.com/news/investigations/mother-fears-she-kids-will-be-forced-from-their-home

 

Resort Developer accused of Fraud in FL

Condo owners in this beachfront resort and condo-hotel allege they were misled by Z Capital Partners, the company who purchased the facilities of the Association at a bankruptcy sale. Z Capital made all sorts of promises to get owners to agree to the sale, but then failed to honor any of them. Now Carillon Beach condos and hotel rooms have lost considerable value, while assessments have been steadily increasing.

(FL) North Carillon Beach condo association files motion to re-open bankruptcy case
Motion is step toward suing Z Capital for alleged fraud and mismanagement

The North Carillon Beach Condominium Association filed a motion in federal bankruptcy court in New York on Thursday seeking to reopen a Chapter 11 case, as a step toward suing the building’s owner, Z Capital Partners, for alleged fraud and mismanagement.

The motion seeks unspecified damages for Z Capital’s alleged unlawful exploitation of the association and unit owners. It alleges that Z Capital fraudulently induced the association and unit owners to support its purchase of the oceanfront complex so it could gain control of the property and use its experience in asset stripping, cost cutting and restructuring for its own benefit.

Read more:

http://therealdeal.com/miami/2016/08/12/north-carillon-beach-condo-association-files-motion-to-re-open-bankruptcy-case/

 

Light sentence for embezzling $55K from condo association?

When this Maryland property manager entered a guilty plea, and agreed to treatment for abuse of prescription drugs, a Judge decided to order three years of probation. No mention of an order for restitution to the condo association – that money is long gone.

The money that was stolen was to be used for necessary repairs that were never done. Does that mean the condo owners and residents are also dealing with deferred maintenance?

Former Tidewater Property Management employee receives no jail time for $55,000-theft scheme (MD)

A former Tidewater Property Management employee was given a 10-year, fully-suspended prison sentence Wednesday morning after pleading guilty in April in stealing over $55,000 from individual homeowners and the Wyndham Condominium Association.

Donald Eugene Henderson III, of Pasadena, pleaded guilty to one count of theft scheme between $10,000 and $100,000. On Sept. 7, Howard County Circuit Court Judge Mary Kramer placed Henderson on three years of supervised probation.

Read more:

http://www.baltimoresun.com/news/maryland/howard/columbia/ph-ho-cf-henderson-sentence-theft-scheme-0915-20160907-story.html

 

Investigation of HOAs swindled by Kornerstone Community Management continues

When homeowners asked police if they will ever get their money back, they were not given a straight answer. Instead, they were reassured that their HOA insurance policies will help cover the losses.

Translation: homeowners will probably never get their money back. And their insurance rates are certain to increase.

HOAs meet with Garner police over embezzlement case (NC)

GARNER, N.C. (WNCN) – In August, Garner Police said more than $500,000 may have been stolen from 28 home owners associations in Wake and Johnston counties by a company called Kornerstone Community Management, Inc.

Thursday, the HOAs met with Garner Police.

Police officials said they started the embezzlement investigating about a month ago. Now Garner Police says up to $1 million may be missing.

Read more, watch video:

HOAs meet with Garner police over embezzlement case


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