Tag: Fraud

Landmark FL HOA law imposes criminal conduct

FL Session Law, Ch. 229 (2023), “Homeowners’ Associations  Bill of Rights,” adds the following section imposing misdemeanor charges against certain violations for fraudulent elections.

FL § 720.3065. “Fraudulent voting activities relating to association elections; penalties.—Each of the following acts is a fraudulent voting activity relating to association elections and constitutes a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083”

This is a landmark bill that imposes criminal penalties on the conduct of the HOA and all persons involved in fraudulent HOA elections.  Recent court decisions have held the private government HOAs are public entities with respect issues concerning the governance of the HOA.

Criticism of the board’s conduct is subject to the constitutional protections of free speech. The Nevada Supreme Court opinion in Kosor ((Kosor v. Olympia Companies, NV No, 75669 (Dec. 31, 2020))  held that HOAs are public forums and referenced several California opinions serving as legal precedent.

 “[A] unit owner’s association or a planned community association (association) may not prohibit a unit owner or member (member) from peacefully assembling and using private or common elements of the community . . . legitimate and valid criticisms of your HOA and its president and board are protected from HOA lawsuits of defamation and libel.”

I find it incredible that there are homeowner rights advocates who find it difficult to see how challenges of constitutionality apply to private government HOAs. The 14th Amendment, Section 1, in part, “No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States.”

What happened to the AZ lawsuit against HOA attorney for aiding & abetting missing $650,000?

In 2009, homeowners in DC Lot Owners Association obtained a court appointed Receiver to find out what happened to some $650,000 in missing HOA funds. CAI members, and CCAL members, Maxwell & Morgan were the HOA attorneys.  (See Arizona Capitol Times Oct. 7, 2009 article, Casa Grande HOA stripped of powers over accusations of theft and fraud).

In 2010, the Receiver then filed suit against Maxwell & Morgan and Charles Maxwell, personally — DC Lot Owners Assn v. Maxwell & Morgan, CV 2010-004684 — charging aiding & abetting, disgorgement, and breach of ethical duties among other charges.  As of this date, some 18 months after filing the complaint, the Pinal County, Arizona Superior Court shows no record of the case number, or of a complaint being filed naming DC Lot or Maxwell & Morgan as parties.  There is no record of a minute entry order to seal the court records, leaving the public totally ignorant of this important case involving HOA attorneys.

After some persistence, it was determined from a call to the Pinal County Clerk’s Office that the case was indeed sealed, no date given.  Why is the public being shut out?  Who ordered the sealing of the records?  The Judge?  Or was it pressure from the national HOA lobbying organization to squelch bad publicity about one of its self-declared, honored CCAL attorneys?  There is no legitimate reason for sealing the records of this case.  What happened to the $650,000?  Who is responsible for the loss?  The public has a right to know!

I am pursuing the matter seeking the help of media organizations to unseal the records.