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Article Courtesy of The US
Sun
By Rachel Dobkin
Published October 6, 2023
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A
LAWYER who advocates for homeowners has revealed a rampant issue of fraud among
HOAs when everyday people are in complete control.
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There have been many stories of combativeness between homeowners and their HOA
boards, typically over things like lawn or home aesthetics.
However, Attorney David B. Haber from Haber Law has exposed a bigger issue
within HOAs - fraud and coverups.
Haber, who has over 30 years of experience, helps high-profile condo
associations in South Florida, and one of the schemes he has encountered was
HOAs hiring licensed contractors who are the family or friends of board members
to funnel in stolen money.
"So basically they're able to kind of hide the fraud by telling residents this
money's going towards this or that, but then they just channel it in themselves.
"Or they funnel it to their friends, and
some of them are even unlicensed and not qualified to
perform the work," Haber explained, noting that these
workers are dealing with the structural integrity of the
buildings. |
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Attorney David B. Haber from Haber Law has exposed
fraud and coverups within Florida's HOAs
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Haber warned that there are hundreds of thousands, if not millions of
dollars put into the construction of the buildings that these HOAs are
representing.
"And these associations have control of this money, these boards, and it can
be very dangerous if they're not abiding by law," he said.
The lawyer added that these board members are "lay people dealing with other
people's money."
Haber said that this fraud tactic is "rampant.
"It's not something that is unique and it happens all the time."
One recent example of HOA board members defrauding the homeowners they are
meant to represent happened within Florida's largest HOA, the Hammocks
Community Association (HCA), which covers 40 communities in West Kendall,
about 52 minutes southwest of Miami.
Former and current board members, including a former HOA president's
husband, were arrested in November 2022 and accused of stealing at least
$2million from homeowners.
Those arrested included former HOA president Marglli Gallego and her
husband, Jose Antonio Gonzalez, president at the time, Monica Isabel
Ghilardi, board member Myriam Arango Rodgers, and former board member
Yoleidis Lopez Garcia.
"What this particular situation shows is that there are still significant
deficiencies in the Florida laws and administrative procedures dealing with
elections and how to deal with corruption within condominium and HOA
boards," Haber said.
He added that the Department of Business Professional Regulation Division of
Condominiums, Timeshares, and Mobile Homes lacks sufficient funding for
investigators, "particularly in South Florida where you have so many
condominiums and HOAs."
"I believe there should be a special state attorney task force that is
solely charged with the responsibility of investigating these alleged
crimes," Haber said, noting that "we don't have the resources currently to
properly enforce the laws that are passed."
Homeowners of the HCA tried to oust Gallego and her supporters on the board
for years, the Miami Herald reported in November 2022.
Haber called the HCA's situation "very toxic," adding that "It's very
difficult in an HOA like that with so many owners to overthrow and overturn
a board."
In general, the lawyer pointed to issues within the voting process during
HOA board elections.
"People taking proxies, people forging ballots, just absolute, fraudulent
conduct in the voting process itself," Haber said.
The U.S. Sun approached the Department of Business Professional Regulation
Division of Condominiums, Timeshares, and Mobile Homes for comment.
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