HOA, Condo Fraud & Embezzlement Roundup (Dec. 2016)

Shared by Deborah Goonan, Independent American Communities

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Clayton woman charged with embezzling from HOAs (NC)

Posted 6:26 p.m. Tuesday
Updated 11:55 p.m. Tuesday

Garner, N.C. — Police on Tuesday arrested the owner of a homeowners association management company suspected of stealing as much as $800,000 from dozens of area HOAs.

Diana Ellis Kelly, 54, of Clayton, has been indicted on 25 counts of embezzlement and was released from the Wake County jail after posting a $500,000 bond.

Twenty-five HOAs from across the Triangle filed complaints this summer with the Garner Police Department or the Consumer Protection Division of the state Attorney General’s Office after accounts were found drained and checks started bouncing. Accounts for all of the HOAs were, at some point, maintained by Kornerstone Community Management in Garner, which Kelly owned and operated.
Read more, see VIDEO:

http://www.wral.com/clayton-woman-charged-with-embezzling-from-hoas/16337827/#zhde6S53fOF28sKY.99

Wow. Over $800,000 allegedly stolen from two dozen HOAs. Here’s the original report I passed along in August 2016. 

 

Authorities: Richland Township woman paid $53,000 restitution to homeowners’ association (PA)

By Patrick Buchnowski
pbuchnowski@tribdem.com Nov 30, 2016

A Richland Township woman was placed on probation after she paid back money taken from a homeowners’ association, authorities said.

Julianna T. Zamias, 33, paid $53,000 restitution to Skyview Estates Homeowners’ Association.

She appeared before Cambria County President Judge Norman Krumenacker III on Nov. 22 and was placed on the Accelerated Rehabilitative Disposition (ARD) program, Assistant District Attorney Joseph Green said.

“The association is happy they were able to get reimbursement,” Green said.

Read more:

http://www.tribdem.com/news/authorities-richland-township-woman-paid-restitution-to-homeowners-association/article_d4d544dc-b72b-11e6-99fc-a38acdf3705c.html

Zamias was able to avoid jail time by making full restitution to the small townhouse association. Her father, Dennis Michaels got probation after repaying his share of restitution. The Michaels family owed the Julz Development company, which originally built Skyview Estates

‘Super nice guy’ accused of HOA fraud (FL)

MELANIE PAYNE , TELLMEL@NEWS-PRESS.COM 8:10 p.m. EST December 9, 2016

When an anonymous caller told me Joshua C. Hall, the former general manager at Herons Glen Golf and Country Club, was caught embezzling money, I thought it was old news.

“Didn’t that happen a few years ago?” I asked. It turns out I was recalling another North Fort Myers homeowners’ association, Sabal Springs.

Thinking there was no way this could be happening that often, I googled “homeowners’ association embezzlement.” Man, was I wrong. Financial crimes at condo and homeowners’ associations are so prevalent, there are websites dedicated to HOA fraud.

Read more:

http://www.news-press.com/story/news/investigations/melanie-payne/2016/12/09/super-nice-guy-accused-hoa-fraud/95202024/

By now the word is getting out that embezzlement and fraud in HOAs – and development districts associated with HOAs – has become an epidemic. In this case, the General Manager of a FL CDD’s Golf and Country Club has admitted to stealing $200K. But community leaders are wringing their hands over what to do about it, preferring to bury the scandal from public view and keep a “nice guy” out of jail. 

 

Ramona Property Manager Charged with Wire Fraud (MI)

Robert Walsh, 37, faces four counts of wire fraud in connection with a scheme to defraud a homeowners association of $247,000.

Lake in the Hills woman charged with making unauthorized purchases from Sun City Community Association of Huntley (IL)

Published: Monday, Dec. 12, 2016 11:48 p.m. CST • Updated: Monday, Dec. 12, 2016 11:51 p.m. CST

HUNTLEY – A Lake in the Hills woman has turned herself in after Huntley police said she made more than $20,000 in unauthorized personal purchases and charged them to the Sun City Community Association of Huntley.

Jennifer Lupo, 38, of 10 Litchfield Court, was a former employee of the Sun City Community Association, according to a news release from Huntley police.

Read more:

http://www.mysuburbanlife.com/2016/12/12/lake-in-the-hills-woman-charged-with-making-unauthorized-purchases-from-sun-city-community-association-of-huntley/abvyapa/

Sun City Community Association is an active adult community by Del Webb. Lupo faces serious charges with up to seven years in prison. 

 

Seven Sentenced in $36 Million Miami Low-Income Housing Fraud

Carla Vianna, Daily Business Review

Seven defendants have been sentenced for their involvement in an elaborate $36 million housing tax credit scheme at Miami-based Carlisle Development Group, which was at one time the largest builder of low-income housing in Florida.

Matthew Greer, the company’s former CEO, pleaded guilty last year to two counts of conspiracy to commit theft of government money in a fraud involving 10 housing developments.

The developer was accused of pocketing millions of dollars in government subsidies intended to fund housing for people in some of Miami-Dade County’s poorest neighborhoods like Overtown, Brownsville and Little Haiti.

Greer, son of high-profile attorneys Bruce and Evelyn Greer, was slapped with three years in prison and ordered to forfeit about $16 million to the U.S., federal prosecutors said.

Read more:

http://www.dailybusinessreview.com/home/id=1202774555346?kw=Seven%20Sentenced%20in%20%2436%20Million%20Miami%20Low-Income%20Housing%20Fraud&et=editorial&bu=Daily%20Business%20Review&cn=20161215&src=EMC-Email&pt=Real%20Estate%20Update&slreturn=20161119203408

There’s more than one way to steal from homeowners and taxpayers. In this case, the developer admitted to bilking millions of dollars in grants to fund affordable housing.  

Jury trial date set for alleged HOA embezzler

December 20, 2016, 05:00 AM

 The jury trial date for Michael Anthony Medeiros, an alleged HOA embezzler, was confirmed for Feb. 21, according to the San Mateo County District Attorney’s Office.

Medeiros, 58, was an alleged co-conspirator with Susan Marie Lambert in embezzling $2.8 million from the Woodlake Homeowners Association in San Mateo over a six-year period.

See more at:

http://www.smdailyjournal.com/articles/lnews/2016-12-20/jury-trial-date-set-for-alleged-hoa-embezzler/1776425173059.html#sthash.edkOpoa4.dpuf

Medeiros owned a painting company, and deposited millions into his personal account based upon false invoices. He and Susan Lambert worked together, and a Judge has released Lambert pending trail outcome of Medeiros.


2 thoughts on “HOA, Condo Fraud & Embezzlement Roundup (Dec. 2016)

  1. These few examples of fraud and embezzlement are informative as to the vulnerability of HOA and Condo Associations and their members/owners. What lessons can be learned from these and other such crimes as to what individual members/owners can do to detect and/or prevent such crimes at their association? In these examples, how was the crime detected and how was law enforcement brought in to investigate and prosecute?

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