Feds Sue Hundreds of Las Vegas HOA's

Article Courtesy of 8 NewsNow

By Nathan Baca

Published April 26, 2012

LAS VEGAS -- The United States Justice Department is going after hundred of Las Vegas HOA's. A federal lawsuit accuses the HOA's of illegally charging the government too much money on foreclosure insurance claims.

Attorney's involved say more than 500 associations have been named. The list of defendants is more than 20 pages long -- stretching 28 feet worth of paper.

The government has foreclosed on over 23,000 Clark County homes since 2008. Homeowners associations would go after Fannie Mae and Freddie Mac for unpaid HOA dues on those homes. The lawsuit alleges they charged for every month those HOA dues went unpaid.

The Justice Department says Nevada law limits the amount they have to pay at between six to nine months of unpaid dues. They claim several hundred Nevada HOA's overcharged the government up to $15 million. The Justice Department even called it a "scheme."

When it comes to penalties, an attorney connected to the case says all of those HOA's may be liable for up to $50 million.

The lawsuit was filed April 8, 2012 and unsealed today. The HOA's themselves haven't even been

served with the lawsuit yet. Twenty-one national banks and local collections agencies are also named in this case.

Read the lawsuit against hundreds of HOA's