Saturday, February 14, 2009
HOA
Please be advise that the election of the HOA board is to protect the covenants, not the residents. Lets start with the no smoking at the entrance to the club house Paul Pontious is not going to do anything even if he was the one that sign and voted for it. Lets see what you guys are going to do about it?
Margot Stevens, CDD Board
Our results of our survey says Margot Stevens must pay $325 for use of the ball room. She voted for the cost of using the ballroom therefore she must pay the $325 to use it. The poll was 63% yes, and 37% no. Thank-You
Joe Hunter must go
Was it was Joe Hunter idea to charged homeowners fees to use the club house? I believe this is true and I have proof. He needs the money to help the developer enclosed the restaurant extended outside eating area. No one knew anything about this new addition until the CDD meeting. The restaurant business is going down hill. Less and less people are eating at the Lake Ashton Grill. Not only this he did not want me to have shows for charity because it would take away from the profit of their entertainment series, so he thought. He could not give me a yes answer for four weeks until after the CDD meeting, so he knew what was coming up. He wants to be in full control and in charge of Lake Ashton residents and tell the CDD and the HOA Board members what to do. In these depressing times when there are thousands of homes and store forecloses he wants to charge more money for less services. Now if your relative etc wants to get married at the club house you have to pay $325 to rent the hall. Where are your maintenance fees going? Yes, we are all being rip off, slowly, a little at a time. The people of Lake Ashton are too blind to see this. I strongly ask all of you to take action ASAP. Believe me there will be more to come.
UPDATE: Someone voted NO to keep Joe Hunter on. Joe Hunter does nothing to help the residents of Lake Ashton. He accuse me of something I did not do. At that time I was being accuse I was 1800 miles away. This guy is a trouble maker and a lair. He is no help to no one. He never gives you a direct answer. If you lesion to him, no home was ever broken into. This is paradice.
UPDATE: Someone voted NO to keep Joe Hunter on. Joe Hunter does nothing to help the residents of Lake Ashton. He accuse me of something I did not do. At that time I was being accuse I was 1800 miles away. This guy is a trouble maker and a lair. He is no help to no one. He never gives you a direct answer. If you lesion to him, no home was ever broken into. This is paradice.
HOA Corruption Page 5
Article Courtesy of Las Vegas News
Published September 29, 20068
By LAWRENCE MOWER
On Aug. 22, 2005, Bill Farnsworth, Wanda Murray and three other owners of condominiums at the Rhodes Homes development of Vistaña walked into the local headquarters of the Federal Bureau of Investigation.
In their possession was a 3-inch thick, three-ring binder full of records and other papers documenting -- at the least -- what they thought were serious conflicts of interest involving their home-owners association board of directors.
At the most, they believed the records showed a possibility of collusion between members of the board, which included a former Las Vegas police lieutenant, to steer work toward a Las Vegas construction firm, Silver Lining Construction.
They left disappointed.
"We all pretty much felt defeated because we weren't getting anywhere," Murray said.
Last week, more than three years later, the FBI and Las Vegas police raided nine sites around the valley, including the headquarters of the management company Vistaña used and the headquarters of Leon Benzer, owner of Silver Lining Construction.
Federal authorities are not only looking into Vistaña. They are also looking at six other condominium complexes.
Law enforcement officials have been largely silent about the raids, but a look at court records shows some of the developments share the same board members. And there are links between developments and Benzer's companies and associates.
But the Vistaña complex on Durango Drive just south of the Las Vegas Beltway appears to be at the heart of what a law enforcement source has described as an investigation into whether individuals were placed on homeowners association boards and, in turn, directed business stemming from construction defect lawsuits to select companies.
The group of angry and diligent homeowners appears to have been onto something. The names contained in their three-ring binder largely correspond to those in a federal warrant served on Wednesday and obtained by the Review-Journal.
The warrant requests "any and all documentation, correspondence and notes" relating to 43 people, including the owners of two large homeowners association management companies and prominent construction defect lawyers.
Being named in the document does not necessarily mean the individuals or entities listed are suspected of wrongdoing or are under investigation.
One of the construction defect lawyers named, Nancy Quon, had her office raided on Friday, according to media reports.
Another lawyer listed in the warrant, Scott Canepa, was first named in the Review-Journal on Friday.
A statement by the FBI sent shortly afterward to some local media outlets, but not the Review-Journal, said neither Canepa nor his law firm are "subjects of this pending investigation."
Several calls to the FBI seeking to clarify the statement, and to receive the statement directly from the agency, were not returned.
Attempts to reach Canepa and Quon for comment have been unsuccessful.
There was little doubt that the 732-unit, 20-building Vistaña complex had significant problems. Farnsworth, who became the first president of the association in 2003, said he looked to find a solution.
Cheap tiles were brittle and would blow off in the wind, he and Murray said.
"You can just grab any tile at random and rub it with your fingers and the tile will crumble," Farnsworth said.
Walkways were also faulty. Instead of sloping away from the building, they sloped inward, causing rainwater to run into the building.
Both defects caused water damage, and mold began to form in some units.
Farnsworth and the board hired a team of lawyers and the association filed a lawsuit in July 2003. They quickly entered into mediation with Rhodes.
A construction company, Draeger Construction -- also named in the warrant -- had agreed to do emergency repairs, according to court records.
The association board wanted to keep the suit in mediation, Farnsworth said, because it's very difficult to sell and buy a property in a development engaged in a defect lawsuit that's not in mediation.
A team of inspectors from Rhodes worked with the two construction firms the association board hired and went through the entire complex, documenting problems along the way.
The process took more than a year, and the teams found the same problems, Farnsworth said.
"Rhodes did not dispute the fact there were problems out there, because their team went right along with our team, and they all found the same stuff," he said.
The settlement figure being discussed during informal talks with Rhodes was $30 million, Farnsworth and Murray said. Farnsworth said he didn't have any reason to believe Rhodes would balk from that amount.
"They were receptive to doing the work without taking it to court," Murray said. "Rhodes was willing to do the repairs and fix the place up."
Formal talks with Rhodes were set to begin in November 2004. But in October, two people were elected to the association's board of directors and began talking of sacking both the legal team the association hired and the construction company currently doing emergency repairs, Farnsworth and Murray said.
Morris Mattingly, a former Las Vegas police lieutenant and candidate for sheriff in 2006, and Charles Hawkins, who described himself as a union foreman in campaign literature for the seat on the association board, took two of the five spots on the board.
"Their résumés, they looked impeccable," Murray said. "You couldn't find anything wrong with them."
Another board member resigned unexpectedly, and Rodolfo "Rudy" Alvarez was picked by the board as the replacement.
Mattingly and Alvarez both have ties to Benzer, court records show.
In the case of Alvarez, records show the condominium he purchased a .005 percent stake in at Vistaña was previously owned by Benzer, and the two have shared property together before.
Mattingly has also shared property with Alvarez.
Federal authorities are looking for records pertaining to Mattingly, Alvarez and Hawkins, according to the search warrant. None of the three men could be reached for comment last week.
In the weeks and months after the trio got onto the board, Draeger Construction was dropped and Benzer's Silver Lining Construction was brought on to do emergency work, according to court records.
The legal team the original board hired for the construction defect case was fired, and the board hired Quon. Quon had been interviewed and rejected when the board was first formed.
The management company, CAMCO, was also fired, and Platinum Community Services, the target of one of last week's raids, was hired.
Farnsworth acknowledged he voted to hire Platinum but resigned before the new legal team was fired and Silver Lining was given a contract. He resigned in October 2004 when there was talk of firing the first legal team, he said, because he didn't want to be a part of those decisions.
"I knew that any decision the majority made I was going to have to sign, and I wasn't going to sign it," Farnsworth said.
From there, Silver Lining was granted the right of first refusal -- in essence, a guarantee of the lowest bid -- to fix the major problems in the defect lawsuit if the suit was won, Farnsworth said. Draeger Construction had no such deal with the association, Farnsworth said.
Quon brought the association out of mediation with Rhodes and refiled the lawsuit. The suit wasn't won until this year, and the settlement -- which former board members have said was $19 million -- was far less than the $30 million that Rhodes had discussed with Farnsworth's board.
Nor have the repairs been completed. Farnsworth said missing or broken tiles have been replaced with tin pieces, and the wrong-sloping walkways have been repaired with a type of sealant, which Farnsworth said is only a temporary fix.
Murray was the first to start looking into the new board members, in late 2004. Legally blind, the now 62-year-old enlisted help and began poring over county and state public records.
She and the other owners turned up ties among Mattingly, Alvarez and Benzer.
For instance, Mattingly had purchased his Vistaña condo just weeks before the October election. They found the timing suspicious.
"The more we looked, the more we found," Murray said.
After Farnsworth's resignation from the board, he and Murray, until then a temporary board member, decided to take action and in December presented a recall petition to the board with the necessary number of signatures.
When the ballots were cast to oust the board in February 2005, however, the number of votes was suspiciously lower than the number of people in the room, Murray said.
"The room was full of people," Murray said. "And when they said the total counts, we said, 'What? There's more people in this room than you just said gave votes.' We were blown away."
Farnsworth and Murray said in an interview and in court depositions they later found out that two people, a condo owner and a maintenance supervisor, saw board members disposing of ballots and opening sealed ballots a few days before the election.
The owner and supervisor later testified in depositions they had witnessed the activity.
The board refused to step down, however, and another recall campaign was launched, this time under the direction of the state ombudsman's office, which oversees such elections.
That campaign was successful, with voters choosing overwhelmingly to recall the board. But when board members again refused to step down, Farnsworth, Murray and other owners took the case to court.
They didn't know what they were getting into.
Murray said the homeowners walked into court represented by one attorney.
"In walked seven attorneys on their side. And the judge goes, 'Is this a circus?'"
"There was a lot at stake," she added.
"We were just outgunned," Farnsworth said.
They ended up losing the case after opposing attorneys managed to get a few residents to say that Murray had forged their signatures.
Murray denies the charge.
"Me, who is legally blind, is going to forge somebody's signature?" Murray said.
The situation homeowners in Vistaña experienced might have been repeated elsewhere. Allegations of voter fraud have also surfaced in lawsuits at the Pebble Creek Village and Park Avenue condominiums in Las Vegas.
Since abandoning their efforts, Murray has moved away from the complex, although she still owns a property there. Farnsworth said he still lives there because it's convenient for him and his unit, unlike others, hasn't had any construction defects.
But since 2005, they've been left wondering what happened and whether anybody would do anything about the problems they saw.
"Nobody would listen to us," Murray said. "I thought that they gave up on us."
Published September 29, 20068
By LAWRENCE MOWER
On Aug. 22, 2005, Bill Farnsworth, Wanda Murray and three other owners of condominiums at the Rhodes Homes development of Vistaña walked into the local headquarters of the Federal Bureau of Investigation.
In their possession was a 3-inch thick, three-ring binder full of records and other papers documenting -- at the least -- what they thought were serious conflicts of interest involving their home-owners association board of directors.
At the most, they believed the records showed a possibility of collusion between members of the board, which included a former Las Vegas police lieutenant, to steer work toward a Las Vegas construction firm, Silver Lining Construction.
They left disappointed.
"We all pretty much felt defeated because we weren't getting anywhere," Murray said.
Last week, more than three years later, the FBI and Las Vegas police raided nine sites around the valley, including the headquarters of the management company Vistaña used and the headquarters of Leon Benzer, owner of Silver Lining Construction.
Federal authorities are not only looking into Vistaña. They are also looking at six other condominium complexes.
Law enforcement officials have been largely silent about the raids, but a look at court records shows some of the developments share the same board members. And there are links between developments and Benzer's companies and associates.
But the Vistaña complex on Durango Drive just south of the Las Vegas Beltway appears to be at the heart of what a law enforcement source has described as an investigation into whether individuals were placed on homeowners association boards and, in turn, directed business stemming from construction defect lawsuits to select companies.
The group of angry and diligent homeowners appears to have been onto something. The names contained in their three-ring binder largely correspond to those in a federal warrant served on Wednesday and obtained by the Review-Journal.
The warrant requests "any and all documentation, correspondence and notes" relating to 43 people, including the owners of two large homeowners association management companies and prominent construction defect lawyers.
Being named in the document does not necessarily mean the individuals or entities listed are suspected of wrongdoing or are under investigation.
One of the construction defect lawyers named, Nancy Quon, had her office raided on Friday, according to media reports.
Another lawyer listed in the warrant, Scott Canepa, was first named in the Review-Journal on Friday.
A statement by the FBI sent shortly afterward to some local media outlets, but not the Review-Journal, said neither Canepa nor his law firm are "subjects of this pending investigation."
Several calls to the FBI seeking to clarify the statement, and to receive the statement directly from the agency, were not returned.
Attempts to reach Canepa and Quon for comment have been unsuccessful.
There was little doubt that the 732-unit, 20-building Vistaña complex had significant problems. Farnsworth, who became the first president of the association in 2003, said he looked to find a solution.
Cheap tiles were brittle and would blow off in the wind, he and Murray said.
"You can just grab any tile at random and rub it with your fingers and the tile will crumble," Farnsworth said.
Walkways were also faulty. Instead of sloping away from the building, they sloped inward, causing rainwater to run into the building.
Both defects caused water damage, and mold began to form in some units.
Farnsworth and the board hired a team of lawyers and the association filed a lawsuit in July 2003. They quickly entered into mediation with Rhodes.
A construction company, Draeger Construction -- also named in the warrant -- had agreed to do emergency repairs, according to court records.
The association board wanted to keep the suit in mediation, Farnsworth said, because it's very difficult to sell and buy a property in a development engaged in a defect lawsuit that's not in mediation.
A team of inspectors from Rhodes worked with the two construction firms the association board hired and went through the entire complex, documenting problems along the way.
The process took more than a year, and the teams found the same problems, Farnsworth said.
"Rhodes did not dispute the fact there were problems out there, because their team went right along with our team, and they all found the same stuff," he said.
The settlement figure being discussed during informal talks with Rhodes was $30 million, Farnsworth and Murray said. Farnsworth said he didn't have any reason to believe Rhodes would balk from that amount.
"They were receptive to doing the work without taking it to court," Murray said. "Rhodes was willing to do the repairs and fix the place up."
Formal talks with Rhodes were set to begin in November 2004. But in October, two people were elected to the association's board of directors and began talking of sacking both the legal team the association hired and the construction company currently doing emergency repairs, Farnsworth and Murray said.
Morris Mattingly, a former Las Vegas police lieutenant and candidate for sheriff in 2006, and Charles Hawkins, who described himself as a union foreman in campaign literature for the seat on the association board, took two of the five spots on the board.
"Their résumés, they looked impeccable," Murray said. "You couldn't find anything wrong with them."
Another board member resigned unexpectedly, and Rodolfo "Rudy" Alvarez was picked by the board as the replacement.
Mattingly and Alvarez both have ties to Benzer, court records show.
In the case of Alvarez, records show the condominium he purchased a .005 percent stake in at Vistaña was previously owned by Benzer, and the two have shared property together before.
Mattingly has also shared property with Alvarez.
Federal authorities are looking for records pertaining to Mattingly, Alvarez and Hawkins, according to the search warrant. None of the three men could be reached for comment last week.
In the weeks and months after the trio got onto the board, Draeger Construction was dropped and Benzer's Silver Lining Construction was brought on to do emergency work, according to court records.
The legal team the original board hired for the construction defect case was fired, and the board hired Quon. Quon had been interviewed and rejected when the board was first formed.
The management company, CAMCO, was also fired, and Platinum Community Services, the target of one of last week's raids, was hired.
Farnsworth acknowledged he voted to hire Platinum but resigned before the new legal team was fired and Silver Lining was given a contract. He resigned in October 2004 when there was talk of firing the first legal team, he said, because he didn't want to be a part of those decisions.
"I knew that any decision the majority made I was going to have to sign, and I wasn't going to sign it," Farnsworth said.
From there, Silver Lining was granted the right of first refusal -- in essence, a guarantee of the lowest bid -- to fix the major problems in the defect lawsuit if the suit was won, Farnsworth said. Draeger Construction had no such deal with the association, Farnsworth said.
Quon brought the association out of mediation with Rhodes and refiled the lawsuit. The suit wasn't won until this year, and the settlement -- which former board members have said was $19 million -- was far less than the $30 million that Rhodes had discussed with Farnsworth's board.
Nor have the repairs been completed. Farnsworth said missing or broken tiles have been replaced with tin pieces, and the wrong-sloping walkways have been repaired with a type of sealant, which Farnsworth said is only a temporary fix.
Murray was the first to start looking into the new board members, in late 2004. Legally blind, the now 62-year-old enlisted help and began poring over county and state public records.
She and the other owners turned up ties among Mattingly, Alvarez and Benzer.
For instance, Mattingly had purchased his Vistaña condo just weeks before the October election. They found the timing suspicious.
"The more we looked, the more we found," Murray said.
After Farnsworth's resignation from the board, he and Murray, until then a temporary board member, decided to take action and in December presented a recall petition to the board with the necessary number of signatures.
When the ballots were cast to oust the board in February 2005, however, the number of votes was suspiciously lower than the number of people in the room, Murray said.
"The room was full of people," Murray said. "And when they said the total counts, we said, 'What? There's more people in this room than you just said gave votes.' We were blown away."
Farnsworth and Murray said in an interview and in court depositions they later found out that two people, a condo owner and a maintenance supervisor, saw board members disposing of ballots and opening sealed ballots a few days before the election.
The owner and supervisor later testified in depositions they had witnessed the activity.
The board refused to step down, however, and another recall campaign was launched, this time under the direction of the state ombudsman's office, which oversees such elections.
That campaign was successful, with voters choosing overwhelmingly to recall the board. But when board members again refused to step down, Farnsworth, Murray and other owners took the case to court.
They didn't know what they were getting into.
Murray said the homeowners walked into court represented by one attorney.
"In walked seven attorneys on their side. And the judge goes, 'Is this a circus?'"
"There was a lot at stake," she added.
"We were just outgunned," Farnsworth said.
They ended up losing the case after opposing attorneys managed to get a few residents to say that Murray had forged their signatures.
Murray denies the charge.
"Me, who is legally blind, is going to forge somebody's signature?" Murray said.
The situation homeowners in Vistaña experienced might have been repeated elsewhere. Allegations of voter fraud have also surfaced in lawsuits at the Pebble Creek Village and Park Avenue condominiums in Las Vegas.
Since abandoning their efforts, Murray has moved away from the complex, although she still owns a property there. Farnsworth said he still lives there because it's convenient for him and his unit, unlike others, hasn't had any construction defects.
But since 2005, they've been left wondering what happened and whether anybody would do anything about the problems they saw.
"Nobody would listen to us," Murray said. "I thought that they gave up on us."
HOA Corruption Page 4
Article Courtesy of Las Vegas Review-Journal
Published September 26, 20068
By ADRIENNE PACKER
In its sweeping investigation into homeowners associations, the federal government is digging up documents and correspondence related to association board members, attorneys and construction companies, according to a search warrant issued in the probe.
During searches of seven common-interest communities governed by homeowners associations, FBI agents sought ballot lists, ballots, envelopes and nomination forms.
Authorities are investigating whether individuals were planted on homeowners association boards to funnel business stemming from construction defect lawsuits to certain attorneys and construction companies.
In one case, according to a source close to a construction company alleging it was frozen out of the bidding process to fix construction defects, the owner of a property management company referred so many cases to the same law firm she was rewarded with a trip to Cabo San Lucas.
Agents are searching homeowners association records and ballot information dating back to 2001. The properties listed on one search warrant include Vistaña, Chateau Versailles, Pebble Creek, Park Avenue, Sunset Cliffs, Chateau Nouveau and Mission Pointe.
The government also seeks seven years of correspondence involving 43 people including Lisa Kim, president of the property management firm Platinum Community Services, which was raided by agents Wednesday. Some of the others include current and former homeowners association board members around the valley.
An attorney for Platinum, Blaine Beckstead, said Thursday that the warrant Platinum was served with on Wednesday did not include the names of Kim or any other Platinum employee. The Review-Journal verified Thursday night that Kim, who could not be reached for comment, was not listed on the warrant served at that location.
Agents are also interested in documents related to political consultant Steve Wark, who served as president of the Vistaña Homeowners Association, as well as prominent construction defect attorneys Scott Canepa and Nancy Quon.
Being named in a warrant does not necessarily mean individuals were involved in wrongdoing. No arrests were made as a result of the raids.
Canepa and Quon were unable to be reached for comment.
Wark did not sound surprised that his name was listed in the warrant. He was president of the Vistaña homeowners association between late 2005 and fall 2007, he said.
Quon was one of the attorneys who represented the association in its 2005 lawsuit against Rhodes Ranch. The company fought Rhodes over faulty plumbing and other problems.
"I was president of the association, and I would expect at some point that people need to talk to me," Wark said.
He said he wasn't involved in any wrongdoing and that he has not been contacted by law enforcement.
Search warrants were executed Wednesday on nine valley properties, including a building on Bertsos Drive, near Flamingo Road and Arville Street, which is owned by Silver Lining Construction owner Leon Benzer. Federal agents are also after contracts and invoices related to Benzer's construction company.
But a source close to Silver Lining Construction said that the company was not involved in any wrongdoing.
Instead, the source said, it was another firm, Draeger Construction, that monopolized the construction defect rehabilitation industry, freezing out other bidders.
According to the source, competitors of Draeger, including Silver Lining, are looking into filing a federal anti-trust lawsuit against the construction company, property managers and attorneys. The gist of the complaint is that Draeger has monopolized the market because it is in cahoots with the property managers and attorneys.
Draeger Construction is listed in one of the warrants.
A message left for Draeger representatives was not returned Thursday.
According to the source, one property management company, Castle Management, referred all construction defect complaints to a local law firm which would then suggest to the homeowners board that it hire Draeger Construction to do tests and make repairs.
Other competitive bidders, such as Silver Lining, are not even considered even though they may offer the best deal, the source said.
At one point, the law firm treated Castle Management owner Diane Wild on a trip to Mexico, the source said.
Wild did not return calls seeking comment.
Draeger Construction landed the jobs in part because it showered homeowners association board members with gifts, the source said. But it also pitched itself as the only company that could provide properties with certain materials, weeding out other bidders.
Published September 26, 20068
By ADRIENNE PACKER
In its sweeping investigation into homeowners associations, the federal government is digging up documents and correspondence related to association board members, attorneys and construction companies, according to a search warrant issued in the probe.
During searches of seven common-interest communities governed by homeowners associations, FBI agents sought ballot lists, ballots, envelopes and nomination forms.
Authorities are investigating whether individuals were planted on homeowners association boards to funnel business stemming from construction defect lawsuits to certain attorneys and construction companies.
In one case, according to a source close to a construction company alleging it was frozen out of the bidding process to fix construction defects, the owner of a property management company referred so many cases to the same law firm she was rewarded with a trip to Cabo San Lucas.
Agents are searching homeowners association records and ballot information dating back to 2001. The properties listed on one search warrant include Vistaña, Chateau Versailles, Pebble Creek, Park Avenue, Sunset Cliffs, Chateau Nouveau and Mission Pointe.
The government also seeks seven years of correspondence involving 43 people including Lisa Kim, president of the property management firm Platinum Community Services, which was raided by agents Wednesday. Some of the others include current and former homeowners association board members around the valley.
An attorney for Platinum, Blaine Beckstead, said Thursday that the warrant Platinum was served with on Wednesday did not include the names of Kim or any other Platinum employee. The Review-Journal verified Thursday night that Kim, who could not be reached for comment, was not listed on the warrant served at that location.
Agents are also interested in documents related to political consultant Steve Wark, who served as president of the Vistaña Homeowners Association, as well as prominent construction defect attorneys Scott Canepa and Nancy Quon.
Being named in a warrant does not necessarily mean individuals were involved in wrongdoing. No arrests were made as a result of the raids.
Canepa and Quon were unable to be reached for comment.
Wark did not sound surprised that his name was listed in the warrant. He was president of the Vistaña homeowners association between late 2005 and fall 2007, he said.
Quon was one of the attorneys who represented the association in its 2005 lawsuit against Rhodes Ranch. The company fought Rhodes over faulty plumbing and other problems.
"I was president of the association, and I would expect at some point that people need to talk to me," Wark said.
He said he wasn't involved in any wrongdoing and that he has not been contacted by law enforcement.
Search warrants were executed Wednesday on nine valley properties, including a building on Bertsos Drive, near Flamingo Road and Arville Street, which is owned by Silver Lining Construction owner Leon Benzer. Federal agents are also after contracts and invoices related to Benzer's construction company.
But a source close to Silver Lining Construction said that the company was not involved in any wrongdoing.
Instead, the source said, it was another firm, Draeger Construction, that monopolized the construction defect rehabilitation industry, freezing out other bidders.
According to the source, competitors of Draeger, including Silver Lining, are looking into filing a federal anti-trust lawsuit against the construction company, property managers and attorneys. The gist of the complaint is that Draeger has monopolized the market because it is in cahoots with the property managers and attorneys.
Draeger Construction is listed in one of the warrants.
A message left for Draeger representatives was not returned Thursday.
According to the source, one property management company, Castle Management, referred all construction defect complaints to a local law firm which would then suggest to the homeowners board that it hire Draeger Construction to do tests and make repairs.
Other competitive bidders, such as Silver Lining, are not even considered even though they may offer the best deal, the source said.
At one point, the law firm treated Castle Management owner Diane Wild on a trip to Mexico, the source said.
Wild did not return calls seeking comment.
Draeger Construction landed the jobs in part because it showered homeowners association board members with gifts, the source said. But it also pitched itself as the only company that could provide properties with certain materials, weeding out other bidders.
HOA Corruption Page 3
Article Courtesy of Las Vegas News
Published October 6, 2008
By ADRIENNE PACKER
The scene was like a Southern church revival, with preachers whipping into a frenzy those in the audience, who held onto every word as gospel.
But this was no church function. And there was no praying, only preying, according to one state lawmaker who attended the homeowners association meeting for a Green Valley condominium complex.
"It's all part of this tent revival show," recalled state Sen. Mike Schneider, D-Las Vegas, about the meeting roughly five years ago. "This could be on the Strip, it's so good. To homeowners, this is the biggest investment of their lives, and they are preying on them. The general public believes whatever they say is gospel because they are attorneys."
Meetings of this sort set the stage for lucrative construction defect lawsuits, a multi-billion dollar cottage industry that brings a windfall of cash to attorneys and experts, but rarely results in all the defects being repaired, the state senator said.
"There is so much money in construction defect lawsuits, billions of dollars," Schneider said.
"It's not regulated; it's not watched by anyone."
He contends that a lack of oversight combined with flawed laws led to the recent federal probe into a conspiracy involving homeowners association board members and a select collection of construction defect lawyers, experts and construction companies hired to fix the structural mistakes.
Law enforcement sources believe individuals planted on association boards steered business related to construction defects to attorneys and companies.
Last month, authorities executed search warrants at the business of at least one developer, Leon Benzer, who owns Silver Lining Construction. They searched the office of construction defect attorney and television talk show host Nancy Quon. They also searched the offices of Platinum Community Services, a property management company. In addition, agents are poring over ballot envelopes related to homeowners association board elections believed to be corrupt.
After learning of the probe, dozens of homeowners contacted the Review-Journal about their suspicions that their board elections were rigged. Armed with significant evidence such as duplicate ballots, they filed complaints years ago with the Nevada Real Estate Division's ombudsman's office, they said. Nothing was done.
The ombudsman's office did not return phone calls seeking comment.
Schneider also suspected wrongdoing; even the state senator was dissatisfied with the response he received from the ombudsman's office.
"It's pretty ineffective," Schneider said of the state agency. "I've complained to the ombudsman for years about this. 'Why don't you do something?' All I hear is there is no teeth in the law. I tell them: 'Tell me what you need and I'll do something about it.'"
With or without the agency's input, Schneider said he plans to rework construction defect laws during the 2009 session.
His priority is changing a 1995 bill designed to help homeowners file construction defect lawsuits by establishing a structure for the process. The law requires homeowners to detail the structural flaws and the contractor to then inspect them. Mediation is to take place before litigation.
Opponents of the law argue that mediation fails because the parties are polarized the minute a complaint is lodged against the contractor. As a result, opponents claim, mediation fails and the homeowner or association brings in an attorney who in turn hires an expert. The expert often adds minor non-threatening defects to the list, and the case ends up in court.
In an article published on the State Bar's Web site, Reno-based attorney John Boyden stated the 1995 bill "constitutes a 'golden goose' for lawyers and experts."
"The chapter is flawed and actually it makes it too easy to do what these folks have done," Schneider said, referring to those under investigation. "It makes it too easy to sue."
The state senator noted that attorneys fees amount to 40 percent of the settlement if the case is litigated.
"Even if they settle on the courthouse steps, they were in litigation," Schneider said.
Add costs -- Schneider said some attorneys put their cost for copying paperwork at $100,000 for a case -- and the lawyers receive more than half the settlement.
So how do homeowners cover the cost to repair the defects?
"They don't. They're just not repaired, and those are the homes with legitimate defects," Schneider said.
Boyden, who represents subcontractors often targeted by construction defect lawsuits, said the rewards are so high for homeowners' attorneys and their experts that there is no interest in mediation.
"The pendulum has swung too far. There needs to be some happy medium and we're just not there," he said Thursday. "It's gotten out of hand. We pay some outrageous costs and fees in these cases."
Boyden suggested that a cap be placed on attorneys fees, but acknowledged there has been little appetite in Carson City to enact such restrictions.
"If you start to cap attorneys fees, you will not see this at all," Boyden said, referring to the alleged scheme in Las Vegas. "No way. It will shut it down."
Schneider said construction defect cases are so common and so lucrative for homeowners' attorneys that even law firms across the state boundary are trying to join the frenzy in Nevada.
One collection of lawyers based in Walnut Creek, Calif., flew up property managers from Las Vegas for an all-expenses-paid trip that included five-star hotels and gourmet meals. Others arranged trips to Hawaii or Mexico in an attempt to land the opportunity to represent a property management company.
"They wined and dined them until they said yes," Schneider said of the Bay Area law firm. "That's before they (attorneys) started planting board members."
Schneider also questioned why the State Bar has not looked into the actions of construction defect attorneys, who the state senator is convinced accept kickbacks from property management groups and homeowners associations. He intends to question State Bar representatives during the next legislative session.
"They should not have a financial interest in construction defect lawsuits," he said. "If they do, they're not giving unbiased advice."
Search warrants issued by the FBI say the government is interested in "any and all documentation, correspondence and notes" related to 43 individuals, including construction defect attorneys Quon and Scott Canepa. Simply because their names are listed on the warrant does not mean they are under investigation. In an unusual move, the FBI issued a statement saying that Canepa and his law office are not "subjects of this pending investigation."
Phil Pattee, assistant counsel to the State Bar, said no complaints have been lodged against the attorneys or a handful of other lawyers who represent homeowners associations.
"There is absolutely nothing in our office," Pattee said Wednesday.
Homeowners associations were not always a feeding ground for attorneys. The first to be created in the Las Vegas Valley was in the early 1940s at Bonanza Village, a neighborhood near Martin Luther King Boulevard and Vegas Drive, said Schneider, who has worked on homeowners association issues for decades.
"The deed restrictions were basically that black people could only enter through the back gate," he said. "It was a different type of association that more reflected those times."
Times have changed. According to the Department of Business and Industry, 2,962 homeowners associations exist in Nevada.
Local governments contributed to the increase in the late 1990s and early 2000s when they realized the self-governed gated communities could increase tax revenue without raising taxes, Schneider said. City councils and the Clark County Commission were more willing to change zoning to accommodate residential developments if the developers agreed to establish homeowners associations.
Residents within the communities pay homeowners dues to the association, but they also continue to pay the same government taxes as any other Las Vegas Valley resident. The government collects taxes but saves money because it is not responsible for the upkeep of the community's private streets and sidewalks.
Residents have battled their associations over seemingly silly violations such as a dying tree in the front yard or a basketball hoop in the street. Schneider said he recently received a call from a panicked elderly woman who was fined $1,000 for having a commode as a planter on her front porch.
In the mid-1990s, construction defect lawsuits began pouring in and association boards started to conspire with attorneys, Schneider believes. He said those involved in the conspiracies took advantage of a state law that does not require a board member to own the property within the community.
The state senator said the law was designed to allow tenants at Lake Tahoe properties to have a say in what happens in their neighborhood. It also allowed contractors to place representatives on a board to give the community direction until an election is held.
But according to law enforcement sources, a key to funneling business to attorneys and contractors was to plant board members. Some individuals served on a handful of different association boards.
"I don't want to take tenants' voices away, but I guess we'll look at that," Schneider said.
According to Boyden, the surge in construction defect lawsuits was spawned in part by lesser qualified contractors under money constraints who wanted a piece of the boom in growth. Other defects, according to Schneider, are rigged by the "experts" brought in to examine properties.
Schneider said he has seen more than one presentation that showed staged problems. For example, he has seen several incidents where experts showed pictures of rocks in sewer pipes or even photos of beer cans sitting on the framing when walls are opened.
"They say, 'That's why your house was so bad; you had alcoholics and drug addicts building it,'" Schneider said, referring to comments he has heard from experts. "Well, how can you have a beer can in your bathroom wall every time?"
Published October 6, 2008
By ADRIENNE PACKER
The scene was like a Southern church revival, with preachers whipping into a frenzy those in the audience, who held onto every word as gospel.
But this was no church function. And there was no praying, only preying, according to one state lawmaker who attended the homeowners association meeting for a Green Valley condominium complex.
"It's all part of this tent revival show," recalled state Sen. Mike Schneider, D-Las Vegas, about the meeting roughly five years ago. "This could be on the Strip, it's so good. To homeowners, this is the biggest investment of their lives, and they are preying on them. The general public believes whatever they say is gospel because they are attorneys."
Meetings of this sort set the stage for lucrative construction defect lawsuits, a multi-billion dollar cottage industry that brings a windfall of cash to attorneys and experts, but rarely results in all the defects being repaired, the state senator said.
"There is so much money in construction defect lawsuits, billions of dollars," Schneider said.
"It's not regulated; it's not watched by anyone."
He contends that a lack of oversight combined with flawed laws led to the recent federal probe into a conspiracy involving homeowners association board members and a select collection of construction defect lawyers, experts and construction companies hired to fix the structural mistakes.
Law enforcement sources believe individuals planted on association boards steered business related to construction defects to attorneys and companies.
Last month, authorities executed search warrants at the business of at least one developer, Leon Benzer, who owns Silver Lining Construction. They searched the office of construction defect attorney and television talk show host Nancy Quon. They also searched the offices of Platinum Community Services, a property management company. In addition, agents are poring over ballot envelopes related to homeowners association board elections believed to be corrupt.
After learning of the probe, dozens of homeowners contacted the Review-Journal about their suspicions that their board elections were rigged. Armed with significant evidence such as duplicate ballots, they filed complaints years ago with the Nevada Real Estate Division's ombudsman's office, they said. Nothing was done.
The ombudsman's office did not return phone calls seeking comment.
Schneider also suspected wrongdoing; even the state senator was dissatisfied with the response he received from the ombudsman's office.
"It's pretty ineffective," Schneider said of the state agency. "I've complained to the ombudsman for years about this. 'Why don't you do something?' All I hear is there is no teeth in the law. I tell them: 'Tell me what you need and I'll do something about it.'"
With or without the agency's input, Schneider said he plans to rework construction defect laws during the 2009 session.
His priority is changing a 1995 bill designed to help homeowners file construction defect lawsuits by establishing a structure for the process. The law requires homeowners to detail the structural flaws and the contractor to then inspect them. Mediation is to take place before litigation.
Opponents of the law argue that mediation fails because the parties are polarized the minute a complaint is lodged against the contractor. As a result, opponents claim, mediation fails and the homeowner or association brings in an attorney who in turn hires an expert. The expert often adds minor non-threatening defects to the list, and the case ends up in court.
In an article published on the State Bar's Web site, Reno-based attorney John Boyden stated the 1995 bill "constitutes a 'golden goose' for lawyers and experts."
"The chapter is flawed and actually it makes it too easy to do what these folks have done," Schneider said, referring to those under investigation. "It makes it too easy to sue."
The state senator noted that attorneys fees amount to 40 percent of the settlement if the case is litigated.
"Even if they settle on the courthouse steps, they were in litigation," Schneider said.
Add costs -- Schneider said some attorneys put their cost for copying paperwork at $100,000 for a case -- and the lawyers receive more than half the settlement.
So how do homeowners cover the cost to repair the defects?
"They don't. They're just not repaired, and those are the homes with legitimate defects," Schneider said.
Boyden, who represents subcontractors often targeted by construction defect lawsuits, said the rewards are so high for homeowners' attorneys and their experts that there is no interest in mediation.
"The pendulum has swung too far. There needs to be some happy medium and we're just not there," he said Thursday. "It's gotten out of hand. We pay some outrageous costs and fees in these cases."
Boyden suggested that a cap be placed on attorneys fees, but acknowledged there has been little appetite in Carson City to enact such restrictions.
"If you start to cap attorneys fees, you will not see this at all," Boyden said, referring to the alleged scheme in Las Vegas. "No way. It will shut it down."
Schneider said construction defect cases are so common and so lucrative for homeowners' attorneys that even law firms across the state boundary are trying to join the frenzy in Nevada.
One collection of lawyers based in Walnut Creek, Calif., flew up property managers from Las Vegas for an all-expenses-paid trip that included five-star hotels and gourmet meals. Others arranged trips to Hawaii or Mexico in an attempt to land the opportunity to represent a property management company.
"They wined and dined them until they said yes," Schneider said of the Bay Area law firm. "That's before they (attorneys) started planting board members."
Schneider also questioned why the State Bar has not looked into the actions of construction defect attorneys, who the state senator is convinced accept kickbacks from property management groups and homeowners associations. He intends to question State Bar representatives during the next legislative session.
"They should not have a financial interest in construction defect lawsuits," he said. "If they do, they're not giving unbiased advice."
Search warrants issued by the FBI say the government is interested in "any and all documentation, correspondence and notes" related to 43 individuals, including construction defect attorneys Quon and Scott Canepa. Simply because their names are listed on the warrant does not mean they are under investigation. In an unusual move, the FBI issued a statement saying that Canepa and his law office are not "subjects of this pending investigation."
Phil Pattee, assistant counsel to the State Bar, said no complaints have been lodged against the attorneys or a handful of other lawyers who represent homeowners associations.
"There is absolutely nothing in our office," Pattee said Wednesday.
Homeowners associations were not always a feeding ground for attorneys. The first to be created in the Las Vegas Valley was in the early 1940s at Bonanza Village, a neighborhood near Martin Luther King Boulevard and Vegas Drive, said Schneider, who has worked on homeowners association issues for decades.
"The deed restrictions were basically that black people could only enter through the back gate," he said. "It was a different type of association that more reflected those times."
Times have changed. According to the Department of Business and Industry, 2,962 homeowners associations exist in Nevada.
Local governments contributed to the increase in the late 1990s and early 2000s when they realized the self-governed gated communities could increase tax revenue without raising taxes, Schneider said. City councils and the Clark County Commission were more willing to change zoning to accommodate residential developments if the developers agreed to establish homeowners associations.
Residents within the communities pay homeowners dues to the association, but they also continue to pay the same government taxes as any other Las Vegas Valley resident. The government collects taxes but saves money because it is not responsible for the upkeep of the community's private streets and sidewalks.
Residents have battled their associations over seemingly silly violations such as a dying tree in the front yard or a basketball hoop in the street. Schneider said he recently received a call from a panicked elderly woman who was fined $1,000 for having a commode as a planter on her front porch.
In the mid-1990s, construction defect lawsuits began pouring in and association boards started to conspire with attorneys, Schneider believes. He said those involved in the conspiracies took advantage of a state law that does not require a board member to own the property within the community.
The state senator said the law was designed to allow tenants at Lake Tahoe properties to have a say in what happens in their neighborhood. It also allowed contractors to place representatives on a board to give the community direction until an election is held.
But according to law enforcement sources, a key to funneling business to attorneys and contractors was to plant board members. Some individuals served on a handful of different association boards.
"I don't want to take tenants' voices away, but I guess we'll look at that," Schneider said.
According to Boyden, the surge in construction defect lawsuits was spawned in part by lesser qualified contractors under money constraints who wanted a piece of the boom in growth. Other defects, according to Schneider, are rigged by the "experts" brought in to examine properties.
Schneider said he has seen more than one presentation that showed staged problems. For example, he has seen several incidents where experts showed pictures of rocks in sewer pipes or even photos of beer cans sitting on the framing when walls are opened.
"They say, 'That's why your house was so bad; you had alcoholics and drug addicts building it,'" Schneider said, referring to comments he has heard from experts. "Well, how can you have a beer can in your bathroom wall every time?"
HOA Corruption Page 2
Article Courtesy of Channel 8, LasVegasNow
Published November 21, 2008
By George Knapp, Chief Investigative Reporter
It's a time honored truism -- whenever the FBI gets real quiet, that's when you'd better start worrying. A law enforcement task force made up of federal agents and Metro detectives is pounding away at the HOA corruption case.
Among the more interesting leads they are checking out are rumors that some of the central suspects are trying to sell their businesses and move out of town and the likelihood that huge piles of ill-gotten cash were stashed in offshore bank accounts.
Lawmen have zeroed in on a cadre of main suspects, who are all in denial.
Attorney Nancy Quon is a familiar face to local television viewers. The construction defects attorney and fellow lawyer John Leach have co-hosted their show Homeowner Talk since the late 90's, dispensing words of wisdom about homeowner associations, construction defects, and the law through the City of Las Vegas community channel.
Quon and Leach pay the city for the production and the show promotes their respective law firms.
Quon has used other publicly owned venues to raise her profile. She teaches construction defects classes for the State of Nevada Real Estate Division. As evidence of just how lucrative a niche her specialty is, the website for her law firm lists the biggest settlements she's reached on behalf of homeowner associations. The total is more than $115 million.
A political corruption task force suspects that Quon didn't succeed by playing by the rules.
Quon did not return phone calls but her attorney Stan Lee said that, as far as he knows, Quon is not a target of the investigation. Lee said Quon has spoken with law enforcement more than once but he would not say if she has agreed to become a cooperating witness.
Back in September, Quon's law office was searched by agents looking for documents linking her to other principal suspects.
One of those other people, contractor Leon Benzer, owner of Silver Lining Construction, has certainly benefited by knowing Quon. The two are close personally, and Benzer reportedly performed extensive remodeling at Quon's homes and office as payback for all the work she has steered his way.
He specializes in rehab work in communities plagued by construction defects, and wherever a homeowner association hired Quon to file a defects lawsuit, Benzer's company usually gets the lucrative repair work.
On the day the task force made the investigation known, Benzer's office was the first place to be searched. Benzer has told associates that he isn't a target either.
It's unknown if he has offered to cooperate with the government.
Benzer has also done extensive remodeling for his friend Lisa Kim, formerly Lisa Nicklin, president of Platinum Management Services which manages dozens of homeowner associations all over the valley.
Kim is married to decorated Metro Police Lieutenant Ben Kim, head of the fraud unit. Ben Kim is also a business partner with Leon Benzer.
On day one of the investigation, agents served search warrants at Platinum's office. The company's attorney said no one at the firm is a target, although residents at various Platinum managed communities have given information to the FBI, in particular about allegedly rigged elections.
Platinum is supposed to oversee elections to homeowner boards. Residents say the deck was stacked and that friends and employees of Benzers infiltrated the HOA's then got themselves elected through scurrilous means.
"They looked like real ballots that came in. Someone duplicated ballots, duplicated envelopes and mailed them en masse," said Park Avenue resident Lee Lahargue.
"Platinum is collaborating with what's going on," said Park Avenue board member Barbara Noto.
Lisa Kim has not returned phone calls and it is not known if she has decided to spill the beans to investigators.
In all, 43 names have surfaced in the investigation, more than a dozen sites have been searched, thousands of pages of documents have been seized and are being analyzed.
No one linked to the task force will talk about the probe, but sources familiar with the effort say the agents and detectives have more information than they know what to do with and more coming in daily.
Of less concern to the lawmen are the lower level players who worked as agents for the others and got themselves elected to as many as three homeowner boards at the same time.
Some of those are ex-Metro officers who will certainly be pressured to cooperate.
Published November 21, 2008
By George Knapp, Chief Investigative Reporter
It's a time honored truism -- whenever the FBI gets real quiet, that's when you'd better start worrying. A law enforcement task force made up of federal agents and Metro detectives is pounding away at the HOA corruption case.
Among the more interesting leads they are checking out are rumors that some of the central suspects are trying to sell their businesses and move out of town and the likelihood that huge piles of ill-gotten cash were stashed in offshore bank accounts.
Lawmen have zeroed in on a cadre of main suspects, who are all in denial.
Attorney Nancy Quon is a familiar face to local television viewers. The construction defects attorney and fellow lawyer John Leach have co-hosted their show Homeowner Talk since the late 90's, dispensing words of wisdom about homeowner associations, construction defects, and the law through the City of Las Vegas community channel.
Quon and Leach pay the city for the production and the show promotes their respective law firms.
Quon has used other publicly owned venues to raise her profile. She teaches construction defects classes for the State of Nevada Real Estate Division. As evidence of just how lucrative a niche her specialty is, the website for her law firm lists the biggest settlements she's reached on behalf of homeowner associations. The total is more than $115 million.
A political corruption task force suspects that Quon didn't succeed by playing by the rules.
Quon did not return phone calls but her attorney Stan Lee said that, as far as he knows, Quon is not a target of the investigation. Lee said Quon has spoken with law enforcement more than once but he would not say if she has agreed to become a cooperating witness.
Back in September, Quon's law office was searched by agents looking for documents linking her to other principal suspects.
One of those other people, contractor Leon Benzer, owner of Silver Lining Construction, has certainly benefited by knowing Quon. The two are close personally, and Benzer reportedly performed extensive remodeling at Quon's homes and office as payback for all the work she has steered his way.
He specializes in rehab work in communities plagued by construction defects, and wherever a homeowner association hired Quon to file a defects lawsuit, Benzer's company usually gets the lucrative repair work.
On the day the task force made the investigation known, Benzer's office was the first place to be searched. Benzer has told associates that he isn't a target either.
It's unknown if he has offered to cooperate with the government.
Benzer has also done extensive remodeling for his friend Lisa Kim, formerly Lisa Nicklin, president of Platinum Management Services which manages dozens of homeowner associations all over the valley.
Kim is married to decorated Metro Police Lieutenant Ben Kim, head of the fraud unit. Ben Kim is also a business partner with Leon Benzer.
On day one of the investigation, agents served search warrants at Platinum's office. The company's attorney said no one at the firm is a target, although residents at various Platinum managed communities have given information to the FBI, in particular about allegedly rigged elections.
Platinum is supposed to oversee elections to homeowner boards. Residents say the deck was stacked and that friends and employees of Benzers infiltrated the HOA's then got themselves elected through scurrilous means.
"They looked like real ballots that came in. Someone duplicated ballots, duplicated envelopes and mailed them en masse," said Park Avenue resident Lee Lahargue.
"Platinum is collaborating with what's going on," said Park Avenue board member Barbara Noto.
Lisa Kim has not returned phone calls and it is not known if she has decided to spill the beans to investigators.
In all, 43 names have surfaced in the investigation, more than a dozen sites have been searched, thousands of pages of documents have been seized and are being analyzed.
No one linked to the task force will talk about the probe, but sources familiar with the effort say the agents and detectives have more information than they know what to do with and more coming in daily.
Of less concern to the lawmen are the lower level players who worked as agents for the others and got themselves elected to as many as three homeowner boards at the same time.
Some of those are ex-Metro officers who will certainly be pressured to cooperate.
HOA Corruption
Article Courtesy of Channel 8, LasVegasNow
Published February 13, 2009
The sweeping FBI political corruption probe into homeowner's associations sent shockwaves throughout the Las Vegas valley last year.
Seven associations have been caught up in allegations of crooked lawyers and construction companies. State lawmakers want to bring the hammer down on more potential schemes, all while the FBI investigations are still moving along.
For years, homeowners have cried out for help saying scam artists were weaseling their way onto associations and then funneling millions of dollars in cushy construction deals to their well-connected buddies.
In late 2008, FBI Agents raided offices looking for proof of corruption and theft. The I-Team uncovered how it was possible for shady investors to buy into 1-percent of homes and then get elected to HOA boards.
It's these loopholes that State Senator Mike Schneider wants to close.
For years he has railed against monolithic HOA's and their boards. He is proposing bills to close that 1-percent loophole and make penalties about as tough as they come.
"There should be felony charges in there. There should be jail time and that's how serious this is," he said.
Schneider also wants to force HOA boards to open up their books to homeowners and be more transparent about contracts.
Part of the investigation centers on just how the tainted board members used the rules to get what they wanted.
It's unclear if all these reforms are going to come out as one bill, but Senator Schneider says he
wants to have the bills introduced in the next week or so. He says he finally thinks HOA lobbyists won't have ground to stand on, thanks to the investigations.
Published February 13, 2009
The sweeping FBI political corruption probe into homeowner's associations sent shockwaves throughout the Las Vegas valley last year.
Seven associations have been caught up in allegations of crooked lawyers and construction companies. State lawmakers want to bring the hammer down on more potential schemes, all while the FBI investigations are still moving along.
For years, homeowners have cried out for help saying scam artists were weaseling their way onto associations and then funneling millions of dollars in cushy construction deals to their well-connected buddies.
In late 2008, FBI Agents raided offices looking for proof of corruption and theft. The I-Team uncovered how it was possible for shady investors to buy into 1-percent of homes and then get elected to HOA boards.
It's these loopholes that State Senator Mike Schneider wants to close.
For years he has railed against monolithic HOA's and their boards. He is proposing bills to close that 1-percent loophole and make penalties about as tough as they come.
"There should be felony charges in there. There should be jail time and that's how serious this is," he said.
Schneider also wants to force HOA boards to open up their books to homeowners and be more transparent about contracts.
Part of the investigation centers on just how the tainted board members used the rules to get what they wanted.
It's unclear if all these reforms are going to come out as one bill, but Senator Schneider says he
wants to have the bills introduced in the next week or so. He says he finally thinks HOA lobbyists won't have ground to stand on, thanks to the investigations.
Friday, February 13, 2009
THE BROWN SPOT
Only $2,212 in replacement cost turns into a $118,773 replacement cost. Everyone pays. Just because a green spot is now a brown spot. This is just plain nuts. It sounds like our old HOA board before the new ones got elected. Paul Pontious should take notice of this. Just as crazy as the no smoking at the entrance to the ballroom and everyone does. Paul at Bingo says nothing about no smoking at the entrance to the ballroom. He think he owns the Bingo game and feels like he can use the money to control Lake Ashton and make any repair he wishes to. He is exempt from the laws in signed when he was in office.
Thursday, February 12, 2009
Snoring fishing joke
The guys were all at a fishing camp. They had to bunk two to a room. No one wanted to room with Daryl because he snored so badly. They decided it wasn't fair to make one of them stay with him the whole time, so they voted to take turns.
The first guy slept with Daryl and came to breakfast the next morning with his hair a mess and his eyes all blood shot. They said, 'Man, what happened to you?'
He said, 'Daryl snored so loudly, I just sat up and watched him all night.'
The next night it was a different guy's turn. In the morning, same thing--hair all standing up, eyes all blood-shot. They said, 'You look awful!'
He said, 'Man, that Daryl shakes the roof. I sat up and watched him all night.'
The third night was Frank's turn. Frank was a big burly ex-football player; a man's man. The next morning he came to breakfast bright eyed and bushy tailed.
'Good morning,' he said.
They couldn't believe it! They said, 'Man, what happened?'
He said, 'Well, we got ready for bed. I went and tucked Daryl into bed and kissed him good night. He sat up and watched me all night.'
The first guy slept with Daryl and came to breakfast the next morning with his hair a mess and his eyes all blood shot. They said, 'Man, what happened to you?'
He said, 'Daryl snored so loudly, I just sat up and watched him all night.'
The next night it was a different guy's turn. In the morning, same thing--hair all standing up, eyes all blood-shot. They said, 'You look awful!'
He said, 'Man, that Daryl shakes the roof. I sat up and watched him all night.'
The third night was Frank's turn. Frank was a big burly ex-football player; a man's man. The next morning he came to breakfast bright eyed and bushy tailed.
'Good morning,' he said.
They couldn't believe it! They said, 'Man, what happened?'
He said, 'Well, we got ready for bed. I went and tucked Daryl into bed and kissed him good night. He sat up and watched me all night.'
HOA received the INS money but NO repairs
Article Courtesy of The Sun Sentinel
By Daniel Vasquez
Published February 11, 2009
John Narvaez hates looking at the gaping holes in the fence surrounding his condominium complex caused by Hurricane Wilma in 2005. He doesn't understand why the damage has not been fixed; his association received insurance money for that and other yet-to-be-finished repairs.
But for Narvaez, that broken fence symbolizes the growing number of questions nagging him and neighbors about their association's affairs and finances.
"There are a lot of things that need to be repaired and replaced around here," said Narvaez, a retired Brooklyn corrections officer and former director of the 114-unit Oaks Condominiums Association in Dania Beach. "We're told there is no money. Where is the money?"
Narvaez has asked for answers during general association meetings, but says the records he has received in response offer little detail. He now realizes he should have put his questions in writing.
Bill Raphan, a supervisor for the Florida Condominium Ombudsman's office in South Florida, recommends sending a letter requesting specific records — contracts, receipts, bank statements, estimates, etc. — for specific dates and sending it via certified return receipt mail.
"The association then has five days to produce those records and make them available for inspection," Raphan said.
Once you're allowed to look over the records, you can ask for copies. However, state statutes do not specify how much an association can charge for copying costs, nor do they say how much time it has to provide those copies.
"But if you discover problems, a records request is just the first step," Raphan said.
He recommends these five steps: 1. Get records. 2. Get copies. 3. Identify anything questionable. 4. Send an inquiry to the board, asking to explain specific expenditures, revenues, receipts, etc. 5. If you find evidence of wrongdoing, contact police.
If you discover a problem that is financial in nature or have a problem obtaining records from your association, you may file a complaint with the Department of Business and Professional Regulation. To get a copy, go to SunSentinel.com/condoform or www.myflorida.com/dbpr.
The form will ask your name and address, as well as whether your complaint is against a developer or association. It will also ask you to provide the name of the principal developer or association president and contact information.
You must say if you have requested records and what the association response was, and write a description of each potential issue.
Narvaez says he plans to start with sending a written records inquiry to his association. A new board was appointed in January and he and his neighbors hope for a more open relationship.
"I am not in this to harm anyone or get anyone in trouble," he said. "I just want to make sure our board operates correctly and openly."
By Daniel Vasquez
Published February 11, 2009
John Narvaez hates looking at the gaping holes in the fence surrounding his condominium complex caused by Hurricane Wilma in 2005. He doesn't understand why the damage has not been fixed; his association received insurance money for that and other yet-to-be-finished repairs.
But for Narvaez, that broken fence symbolizes the growing number of questions nagging him and neighbors about their association's affairs and finances.
"There are a lot of things that need to be repaired and replaced around here," said Narvaez, a retired Brooklyn corrections officer and former director of the 114-unit Oaks Condominiums Association in Dania Beach. "We're told there is no money. Where is the money?"
Narvaez has asked for answers during general association meetings, but says the records he has received in response offer little detail. He now realizes he should have put his questions in writing.
Bill Raphan, a supervisor for the Florida Condominium Ombudsman's office in South Florida, recommends sending a letter requesting specific records — contracts, receipts, bank statements, estimates, etc. — for specific dates and sending it via certified return receipt mail.
"The association then has five days to produce those records and make them available for inspection," Raphan said.
Once you're allowed to look over the records, you can ask for copies. However, state statutes do not specify how much an association can charge for copying costs, nor do they say how much time it has to provide those copies.
"But if you discover problems, a records request is just the first step," Raphan said.
He recommends these five steps: 1. Get records. 2. Get copies. 3. Identify anything questionable. 4. Send an inquiry to the board, asking to explain specific expenditures, revenues, receipts, etc. 5. If you find evidence of wrongdoing, contact police.
If you discover a problem that is financial in nature or have a problem obtaining records from your association, you may file a complaint with the Department of Business and Professional Regulation. To get a copy, go to SunSentinel.com/condoform or www.myflorida.com/dbpr.
The form will ask your name and address, as well as whether your complaint is against a developer or association. It will also ask you to provide the name of the principal developer or association president and contact information.
You must say if you have requested records and what the association response was, and write a description of each potential issue.
Narvaez says he plans to start with sending a written records inquiry to his association. A new board was appointed in January and he and his neighbors hope for a more open relationship.
"I am not in this to harm anyone or get anyone in trouble," he said. "I just want to make sure our board operates correctly and openly."
$2,212 bill turns into a $118,773 bill thanks to the HOA
Article Courtesy of The Tampa Tribune
By TOM BRENNAN
Published February 7, 2009
TAMPA - After years of hearings, a weeklong jury trial, two appeals and costs running into the hundreds of thousands of dollars, a ruckus over who should pay to sod a lawn in a deed-restricted community is back to square one.
A three-judge panel in Hillsborough County Circuit Court has reinstated a lawsuit filed by Edward and Billye Simmons against the Pebble Creek Homeowners Association.
The judges overturned a jury verdict in favor of the association, a ruling awarding it $118,773.31 in attorney fees and costs, and a pending foreclosure against the couple's property.
This week's ruling ordered a new trial on all issues in circuit court, removing the case from county court, where it has languished since 2002.
Edward Simmons said he doesn't question his decision to spend as much as the association to fight a $2,212 bill it imposed for replanting the lawn at a rental home he and his wife own at 9769 Fox Hollow Road.
"It is the right thing to do," he said. "It was an abuse of power; they abused their authority."
Association officials and the group's lawyer declined to comment.
The dispute started in August 2000 when the association lodged a deed-restriction complaint against the couple. They ignored it, saying their yard didn't look any different from neighboring yards - all then victims of a record drought.
In January 2002, the association replaced the lawn and billed the couple for sod and labor. When they didn't pay, the association sued in county court in June 2002.
Simmons said he was willing to pick up the tab for the lawn around the house but not for the patch next to the county's right of way. He contends the deed restrictions said that part of the yard was public property and maintenance costs were to be shared by all in the 1,049-home subdivision through annual assessments - a position supported by the appeals judges.
Simmons, a real estate broker and retired Tampa police captain, also contends the association trespassed when it installed the replacement lawn.
The case passed through a series of judges, a factor the appeals panel cited in its reversal.
"The problems plaguing this case appear to have been aggravated by a lack of continuity caused by a revolving door of county court judges," the judges said in their decision.
After a weeklong trial in February 2006, a jury ordered the couple to pay. The association put a lien against the property and proceeded to foreclosure. But before the property could be auctioned in August 2007, the sixth judge in the case suspended the foreclosure after the couple posted a bond covering the legal costs while Simmons appealed.
Simmons said he and his wife had a contract to sell the house during the height of the recent real estate boom, but the association wouldn't remove the lien even after he promised to place most of the purchase price with the court to cover eventual legal costs.
He said he plans to recoup that loss in the new trial. He said that was one reason he wanted the case transferred to circuit court. County court is limited to damages less than $15,000.
"It is a shame the only way justice is served is if you have the money to pursue it," he said.
By TOM BRENNAN
Published February 7, 2009
TAMPA - After years of hearings, a weeklong jury trial, two appeals and costs running into the hundreds of thousands of dollars, a ruckus over who should pay to sod a lawn in a deed-restricted community is back to square one.
A three-judge panel in Hillsborough County Circuit Court has reinstated a lawsuit filed by Edward and Billye Simmons against the Pebble Creek Homeowners Association.
The judges overturned a jury verdict in favor of the association, a ruling awarding it $118,773.31 in attorney fees and costs, and a pending foreclosure against the couple's property.
This week's ruling ordered a new trial on all issues in circuit court, removing the case from county court, where it has languished since 2002.
Edward Simmons said he doesn't question his decision to spend as much as the association to fight a $2,212 bill it imposed for replanting the lawn at a rental home he and his wife own at 9769 Fox Hollow Road.
"It is the right thing to do," he said. "It was an abuse of power; they abused their authority."
Association officials and the group's lawyer declined to comment.
The dispute started in August 2000 when the association lodged a deed-restriction complaint against the couple. They ignored it, saying their yard didn't look any different from neighboring yards - all then victims of a record drought.
In January 2002, the association replaced the lawn and billed the couple for sod and labor. When they didn't pay, the association sued in county court in June 2002.
Simmons said he was willing to pick up the tab for the lawn around the house but not for the patch next to the county's right of way. He contends the deed restrictions said that part of the yard was public property and maintenance costs were to be shared by all in the 1,049-home subdivision through annual assessments - a position supported by the appeals judges.
Simmons, a real estate broker and retired Tampa police captain, also contends the association trespassed when it installed the replacement lawn.
The case passed through a series of judges, a factor the appeals panel cited in its reversal.
"The problems plaguing this case appear to have been aggravated by a lack of continuity caused by a revolving door of county court judges," the judges said in their decision.
After a weeklong trial in February 2006, a jury ordered the couple to pay. The association put a lien against the property and proceeded to foreclosure. But before the property could be auctioned in August 2007, the sixth judge in the case suspended the foreclosure after the couple posted a bond covering the legal costs while Simmons appealed.
Simmons said he and his wife had a contract to sell the house during the height of the recent real estate boom, but the association wouldn't remove the lien even after he promised to place most of the purchase price with the court to cover eventual legal costs.
He said he plans to recoup that loss in the new trial. He said that was one reason he wanted the case transferred to circuit court. County court is limited to damages less than $15,000.
"It is a shame the only way justice is served is if you have the money to pursue it," he said.
Wednesday, February 11, 2009
Terrible Weather Fishing Joke
Coming out of his garage the rain is pouring down: it is like a torrential downpour. There is snow and sleet mixed in with the rain. The wind is blowing at over 50mph.
Minutes later he returns to the garage. He comes back into the house. Turns the TV to the weather channel and he finds it is going to be very bad weather all day long, so he puts his boat back in the garage, quietly undresses and slips back into bed.
There he cuddles up to his wife's back, now with a different anticipation and whispers, "The weather out there is terrible". To which she sleepily replies, "Yeah, can you believe my stupid husband is out fishing in it?"
Minutes later he returns to the garage. He comes back into the house. Turns the TV to the weather channel and he finds it is going to be very bad weather all day long, so he puts his boat back in the garage, quietly undresses and slips back into bed.
There he cuddles up to his wife's back, now with a different anticipation and whispers, "The weather out there is terrible". To which she sleepily replies, "Yeah, can you believe my stupid husband is out fishing in it?"
Funny List
Top Signs of Net Addiction
You wake up at 3 a.m. to go to the bathroom and stop to check your e-mail on the way back to bed.
You get a tattoo that reads "This body best viewed with Netscape Navigator 3 or higher."
You name your children Eudora, Mozilla and Dotcom.
You turn off your modem and get this awful empty feeling, like you just pulled the plug on a loved one.
You spend half of the plane trip with your laptop on your lap...and your child in the overhead compartment.
You decide to stay in college for an additional year or two, just for the free Internet access.
You laugh at people with 28,800 modems.
You start using smiley's in your snail mail.
Your hard drive crashes.
You haven't logged in for two hours. You start to twitch.
You pick up the phone and manually dial your ISP's access number.
You try to hum to communicate with the modem. And you succeed.
You wake up at 3 a.m. to go to the bathroom and stop to check your e-mail on the way back to bed.
You get a tattoo that reads "This body best viewed with Netscape Navigator 3 or higher."
You name your children Eudora, Mozilla and Dotcom.
You turn off your modem and get this awful empty feeling, like you just pulled the plug on a loved one.
You spend half of the plane trip with your laptop on your lap...and your child in the overhead compartment.
You decide to stay in college for an additional year or two, just for the free Internet access.
You laugh at people with 28,800 modems.
You start using smiley's in your snail mail.
Your hard drive crashes.
You haven't logged in for two hours. You start to twitch.
You pick up the phone and manually dial your ISP's access number.
You try to hum to communicate with the modem. And you succeed.
Lamaze Golf Joke
The room was full of pregnant women and their partners, and the Lamaze class was in full swing.
The instructor was teaching the women how to breathe properly, along with informing the men how to give the necessary assurances at this stage of the plan. The teacher then announced, "Ladies, exercise is good for you. Walking is especially beneficial. And, gentlemen, it wouldn't hurt you to take the time to go walking with your partner!"
The room really got quiet. Finally, a man in the middle of the group raised his hand. "Yes?" replied the teacher... "Is it all right if she carries a golf bag while we walk?"
The instructor was teaching the women how to breathe properly, along with informing the men how to give the necessary assurances at this stage of the plan. The teacher then announced, "Ladies, exercise is good for you. Walking is especially beneficial. And, gentlemen, it wouldn't hurt you to take the time to go walking with your partner!"
The room really got quiet. Finally, a man in the middle of the group raised his hand. "Yes?" replied the teacher... "Is it all right if she carries a golf bag while we walk?"
Villagers to lose their indoor pool
Article Courtesy of The Daily Commercial
By DAVID DONALD
Published February 8, 2009
THE VILLAGES -- Lillian Campagnola, 73, exercises in the indoor heated pool at The Villages Wellness Center several times a week.
Because she's easily dehydrated, she can't participate in many outdoor activities. The pool is one of the only places the Villager can continue her exercise routine without getting dehydrated.
Plans to close the pool in June when the Wellness Center moves to the La Reina building in Spanish Springs will leave many residents with medical conditions without a place to exercise, she said.
"All we want is the pool to be maintained," she said, "even if that means charging memberships."
A letter sent to members from the Wellness Center last month stated the center was moving from its location near The Villages Regional Hospital on U.S. Highway 441 to expand its services. The new center will feature more exercise machines, classes and massage therapy services.
"With our growth in membership and utilization, a larger facility is much needed and this new location provides our members with numerous advantages," Terry Upton, general manager of the center, wrote in the letter. "While our new facility does offer many advantages, it does not provide for a swimming pool or hot tub. Knowing that some of our members enjoy those services only, we will refund the remaining balance on any membership if so requested."
Upton did not return calls for comment.
The center's pool is the only indoor heated pool in the huge retirement community. Those with skin irritations, joint problems and conditions like fibromyalgia (a muscle and connective tissue disorder) will have to go somewhere else to continue their routine, said Campagnola.
There are pools in other surrounding communities, but some residents can't drive to Leesburg or Belleview in Marion County because of their medical problems, she said.
Campagnola has gathered more than 150 signatures to ask the developers of The Villages to consider keeping the pool.
What the developers intend to do with the Wellness Center and the pool is a mystery to residents.
Villages spokesman Gary Lester could not be reached for comment.
Both homeowners associations in The Villages are picking up the pool issue.
Joe Gorman, president of the Property Owners Association, said they intend to pursue the issue. A lot of people moved to The Villages especially because they had access to an indoor pool, he said.
"We're concerned," Gorman said. "It does affect more than just a handful of people."
The Villages Homeowners Association is actively working with the Wellness Center and other entities to explore what the cost would be to build an aquatic center with a heated pool, said Roger Kass, president of the association, in a voicemail.
Ruthie Kelly, 78, who's had two strokes, said she and other residents plan broach the issue with the Amenities Authority when they meet on Feb. 11 at 1:30 p.m. to ask them to consider enclosing certain heated pools within The Villages.
Villagers pay monthly amenities fees to pay for facilities and services such as heated pools, community centers and activities throughout the community.
A member of the Wellness Center since 1999, Kelly uses the pool several times a week to exercise. Kelly said there must be an alternative for residents like herself.
"You're not going to displace these people," said Kelly. "It's a matter of health."
By DAVID DONALD
Published February 8, 2009
THE VILLAGES -- Lillian Campagnola, 73, exercises in the indoor heated pool at The Villages Wellness Center several times a week.
Because she's easily dehydrated, she can't participate in many outdoor activities. The pool is one of the only places the Villager can continue her exercise routine without getting dehydrated.
Plans to close the pool in June when the Wellness Center moves to the La Reina building in Spanish Springs will leave many residents with medical conditions without a place to exercise, she said.
"All we want is the pool to be maintained," she said, "even if that means charging memberships."
A letter sent to members from the Wellness Center last month stated the center was moving from its location near The Villages Regional Hospital on U.S. Highway 441 to expand its services. The new center will feature more exercise machines, classes and massage therapy services.
"With our growth in membership and utilization, a larger facility is much needed and this new location provides our members with numerous advantages," Terry Upton, general manager of the center, wrote in the letter. "While our new facility does offer many advantages, it does not provide for a swimming pool or hot tub. Knowing that some of our members enjoy those services only, we will refund the remaining balance on any membership if so requested."
Upton did not return calls for comment.
The center's pool is the only indoor heated pool in the huge retirement community. Those with skin irritations, joint problems and conditions like fibromyalgia (a muscle and connective tissue disorder) will have to go somewhere else to continue their routine, said Campagnola.
There are pools in other surrounding communities, but some residents can't drive to Leesburg or Belleview in Marion County because of their medical problems, she said.
Campagnola has gathered more than 150 signatures to ask the developers of The Villages to consider keeping the pool.
What the developers intend to do with the Wellness Center and the pool is a mystery to residents.
Villages spokesman Gary Lester could not be reached for comment.
Both homeowners associations in The Villages are picking up the pool issue.
Joe Gorman, president of the Property Owners Association, said they intend to pursue the issue. A lot of people moved to The Villages especially because they had access to an indoor pool, he said.
"We're concerned," Gorman said. "It does affect more than just a handful of people."
The Villages Homeowners Association is actively working with the Wellness Center and other entities to explore what the cost would be to build an aquatic center with a heated pool, said Roger Kass, president of the association, in a voicemail.
Ruthie Kelly, 78, who's had two strokes, said she and other residents plan broach the issue with the Amenities Authority when they meet on Feb. 11 at 1:30 p.m. to ask them to consider enclosing certain heated pools within The Villages.
Villagers pay monthly amenities fees to pay for facilities and services such as heated pools, community centers and activities throughout the community.
A member of the Wellness Center since 1999, Kelly uses the pool several times a week to exercise. Kelly said there must be an alternative for residents like herself.
"You're not going to displace these people," said Kelly. "It's a matter of health."
SHE SHOUTS, HE'S NOT A RESIDENT
Margot Stevens says I am not a resident, what the hell is she talking about?????? Who is she an alien? She is not well liked on the CDD board. Just a matter of time before someone loses their cool. She never comes out with a straight answer. At the next meeting just hear what she has to say. Much of it does not make any sense. Margot, make sure all your house guest park their car at the club house, you must show an example to the residents of Lake Ashton what a driveway looks like when no car is parked in the driveway at night. Thanks
Fishing Trip
Well, I got back from fishing sick and tired. I spend the entire week in bed. Would I do it again. NO! Had to get on the bus at 5:30AM for a two hour ride to New Smyrna Beach boat landing to get on the 100' Pastime Princess boat. Well we got there but we could not get on the boat. Motor trouble again. We got there before 7:30AM and was allowed on the boat just before 9AM. It took us 2 hours to go about 25-30 miles out at sea. We got over 50 sharks, a few red Snappers, lots of Sea Bass, Trigger fish, and Vermillion Snappers. Spend all day going from one spot to the other. It was a poor showing of fish. I had on five layers of clothing. We got back in about 6:30. We had to wait around again because we had to pay extra for them to clean the fish. Again we were delay for more than an hour. The bus got back about 10PM at Lake Ashton. Man, I was tired and sick.
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