Legal Question in Real Estate Law in California

I serve as Vice President on the Board of Directors for my HOA. I have uncovered a significant amount of evidence that another board member is using information from executive sessions for personal financial gain. This person opens LLC's and when a homeowner is falling behind on dues, he arranges to buy their homes. The board member then motions to "forgive" all dues without disclosing he is in escrow on the unit. When confronted, he still denies owning the unit(s). The LLC is registered in his name and his address. Unfortunately, 2 other board members trust him explicitly and dont see any problem with this. After this board member finalizes the purchase, he has his contractors put in flooring, cabinets and other upgrades, signs off on the invoices for "slab leaks" and puts them through the association for payment. He then picks up the checks and one of the other trusting board members signs for the second signature. My family has gotten two threatening letters to keep quiet after I confronted him in an open session. I filed a demand for ADR last week. The 4 other board members are covered under the associations attorney, but she cannot discuss anything with me. Do I have rights as a board member for legal representation as well? I cant find any type of rule put in place for this type of situation since it's usually a homeowner, not a board member demanding ADR. Thank you


Asked on 1/09/12, 3:27 pm

2 Answer from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

My understanding is the FBI is investigating scams like these. Try calling them.

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Answered on 1/09/12, 4:42 pm


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