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Sherman Frederick
Sherman Frederick is the publisher of the Las Vegas Review-Journal. His column appears Sunday in Viewpoints/Opinion. In between Sundays, you can find out what's on his mind here.

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More Las Vegas HOA scrutiny coming

The FBI investigation into Las Vegas Valley homeowners associations will, without doubt, spark heightened scrutiny and possible legislative oversight of HOAs. Almost every time I speak at community organizations, someone will come up to me and complain about HOA abuses. Sometimes it's a personal complaint about petty abuse of power, and sometimes it is substantive complaint of financial abuse. And that usually produces a string of e-mail.

Of course, not every HOA beef rises to the level of the Review-Journal reporting on an FBI inquiry. But every HOA beef is a sign of dissatisfaction and given the right circumstances that dissatisfaction can rise to the level of authoritative attention.

For example, a concerned resident and loyal Review-Journal reader provided these websites to me regarding the Sun City Anthem HOA. I don't vouch for any of the complaints at this point, but only point to them to show that there is much pent up angst against HOAs. Readers who have more to report should contact the R-J. You can use my e-mail if you like (sherm@lvrj.com) and I'll see that it gets to the newsroom.

http://www.anthemvoice.org/1.html
http://www.anthemvoice.org/violations.html
http://www.anthemvoice.org/illegal.html
http://www.anthemvoice.org/issues.html
http://blog.anthemvoice.org/
http://blog.anthemvoice.org/category/activities-schedules/
http://www.scaview.org/pages/Today'sAnthView.htm
http://www.scaview.org...welcome-to-our-oped-column.html
http://www.scaview.org/SCACorruption.html
http://www.scaview.org/TrumpetsWkGroup.html
http://www.scaview.org/VillaReserves.html


UPDATE: This e-mail comes from Carl Weinstein, VP of the SCA Board of directors. I pass it along, and the points contained therein, in the same spirit as the initial blog.

Sir: I read you comments on the internet which included references to various bogs containing complaints about Sun City Anthem.

To put things in perspective, Anthemvoice.org is controlled by Mr Bob Frank, a Board member currently under investigation by the Ombudsman and the State Attorney General. His comments and those he allows on the Blog are designed to stir up things.

The SCAVIEW.org is run by a disgruntled resident and contains derogatory comments from approximately 6 activists who have had all their questions answered regarding finances, reserves, et al.

Carl Weinstein
Vice President, SCA Board of Directors

Comments (16)

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The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

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16 Responses to "More Las Vegas HOA scrutiny coming"
As a former VP of the Sun City Anthem Board of Directors, whose spouse is the current president, I support the comments of Mr. Weinstein. The Board member he refers to has leveled all sorts of accusations of corruption and mismanagement, with absolutely no proof, against current and former Sun City Anthem board members, our association attorney and certified public accountant, employees of our management company, and anyone who doesn't agree with him. A hearing by the Commission for Common Interest Communities is pending against that board member for possible removal from the board. The "pent up angst" in our community is not by the vast majority of our homeowners, but is directed against this one board member who is out of control.
Written by: David Berman on Sunday, Sep. 28, 2008 at 4:58 PM -- Report abuse
I noted that the Las Vegas Review Journal also reported today that it took three years for the FBI to respond to homeowner reports of collusion between members of a homeowner board and construction firms. It seems to me, as one frustrated homeowner, that if the FBI now wants to be serious about its HOA investigation, it should cast its net wider and also go after the broader network of builder-political collusion going on in Las Vegas.

For at least three years now, my community members have been fighting with each other about false home builder promises, construction defects, builder finances and repair unreliability. To date, trying to seek legal justice has not been effective.

Looking back, unfortunately, my community (Sun City Anthem), did not go to the FBI about the financial irregularities by our HOA. Instead, we tried to work with community members and fellow board members to correct the situation. By working through the existing Nevada State regulatory complaint process, we found out that residential home builders and their legal staffs successfully exercise political control over resident complaints against homebuilders through the Nevada State Real Estate Division, considered to be the centerpiece in homebuilder political influence in Nevada.

For example, I understand that Sun City Anthem homeowners currently have over 100 public complaints against builder Del Webb/Pulte on file with the Nevada Real Division and none of these complaints have ever been dealt with.
And even in the case brought against a community board member (discussed by others) for pointing to construction and financial abuses, a year has passed without proper legal action being taken by the Nevada Real Estate Division.

To this observer, it seems that the Nevada State Real Estate Division should be investigated by the FBI as well.
Written by: Ron Morse on Sunday, Sep. 28, 2008 at 6:37 PM -- Report abuse
As the publisher of the SCA View-Journal, Inc., a website and email newsletter to the residents of Sun City Anthem, I have a sense that my friend Carl Weinstein, who usually applauds my reporting, is hoping that this matter will somehow just go away. To set the matter straight, I take full responsibility for the 17 articles I have written on the subject of the Board’s actions relating to the Villa Neighborhood transition reserves. I regret that my efforts in shining light on this problem were unsuccessful in dissuading the Board from taking the action they eventually did. Rather than being disgruntled, I would suggest that I am profoundly disappointed in the individuals involved in what I contend was a conspiracy to deceive while taking unfair advantage in an amount in excess of $300,000 in transition reserves for hundreds of Villa homeowners living in 162 units. I am hopeful that the State will agree with my assessment and take appropriate action.
Written by: Ron Johnson on Sunday, Sep. 28, 2008 at 7:23 PM -- Report abuse
Sir: I read your comments on the internet which included references to various blogs containing complaints about Sun City Anthem.

To put things in perspective, you should know that David Berman has his own BLOG called Anthem Journal. He has in the past greatly influenced the elections of Sun City Anthem by his MANY editorials about certain candidates he personally dislikes. His wife is now the president of The Board and his BLOG is being used as a propaganda machine to attack the candidates he and his wife dislikes.

David Berman tightly controls the content on his BLOG by blocking many of the residents from participating (including me). He has even resorted to shutting down an entire thread of comment because he did not like the way it was going. Mr Bob Frank is a victim of David Berman’s venomous editorials only because Mr Frank is courageous enough to stand up for the rights of the citizens of Sun City Anthem. These citizens gave Bob Frank the biggest majority victory in SCA history when he was elected. David on the other hand quit his position as Vice President, and abandoned his constituents. Mr. Frank want’s the board of directors to conduct a forensic audit of the association’s funds and reserves to determine once and for all what he developer SHOULD HAVE been responsible for. Mr Berman and Mr. Weinstein are opposed to an audit because of what it might reveal.

If there is an impending investigation into the practices of the board of directors you can be sure of one thing. The events and accusations will all come out, and if there is any justice, the truth will prevail over the lies. Time will tell.

Norman McCullough
Written by: HomeBoy on Sunday, Sep. 28, 2008 at 8:10 PM -- Report abuse
As a resident of Sun City Anthem, I would welcome an FBI probe of our association.

For the past few years, we have been confronted with many financial issues that deserve a full inquiry via a professional forensic audit by an impartial outside organization.

Do improprieties exist? No one knows, but I would think in light of the accusations, common sense would prevail and once and for all we would seek the truth----and that can only be accomplished by a forensic audit of our books.

Mr. Weinstein merits scrutiny into the person making the comment, and needs to look in the mirror before he criticizes a fellow board member. He was elected by first attacking another candidate in his public statements and then making sure that other candidates would have a disadvantage by filing a Conduct violation against residents displaying more than one campaign sign in their front yards. I might add that out of 7000 homes, his was the only complaint, and interestingly, his "Unity Party" all had their names on ONE SIGN. Coincidence? So draw your own conclusion as to his credibility in criticizing others for ethical behavior.

...and by the way, the ONE SIGN RULE was reversed AFTER THE ELECTION as it violated the Nevada statutes.

Let's also point out that his accusations against Mr. Frank are just that---purely ACCUSATIONS. Mr. Frank has not been convicted of ANYTHING, but reading Mr. Weinstein's comments, it appears that he is as guilty as sin.

As a spokesman for our community, should he not be impartial until a proper OPEN hearing is held?

Regarding Mr. Berman's comments, I ask that his be taken in the same light.

Ask them if they are pro or against an audit?

Chances are you'll hear AGAINST.

Why?

That's why we need an FBI probe.
Written by: Richard Arendt on Monday, Sep. 29, 2008 at 6:54 AM -- Report abuse
Director Weinstein's and former director Berman's comments clearly display the kind of false information and personal attacks distributed by some Sun City Anthem board members. This is part of a retaliation campaign against anyone who challenges them. However, the facts posted in the above links debunk the year-long bogus allegations used to attempt to degrade my effectiveness as a director.

For example, Mr. Berman said "A hearing by the Commission for Common Interest Communities is pending against that board member for possible removal from the board." He knows that is false. After a year of review by the Real Estate Division, no fault has been found, no other judgment has been announced, and no CIC Commission hearing is pending. The case is in a Real Estate Division twilight zone. He and Mr. Weinstein are brazenly violating NRS 116.31183 and NAC 116.116.405.2 with their retaliatory and prejudicial statements.

There are many valid financial management issues in Sun City Anthem about millions owed by Pulte for underfunding our reserves and other contractual obligations. And, there have been hundreds of thousands of dollars lost by past boards due to gross mismanagement of a restaurant lease agreement. These are provable facts. One would think that because of David Berman's public record as a suspended attorney and self-acknowledged forger of a Boston, MA judge's signature on tax documents, he and his Board President spouse should be the first directors to aggressively support an independent, forensic audit

Bottom Line: why would any director oppose a forensic audit that could permanently remove the unresolved financial misconduct questions during their tenures?

Robert Frank, Colonel, USAF (Ret.)
Sun City Anthem Director
Written by: Robert Frank on Monday, Sep. 29, 2008 at 9:35 AM -- Report abuse
Why was CAMCO -- another HOA -- not mentioned? If they'd investigate them, the FBI will have to hire extra men...
Written by: Steve Zelma on Monday, Sep. 29, 2008 at 10:34 AM -- Report abuse
I am posting this Email message to help some one who is having trouble getting online. Norman McCullough
-----------------------------------------------------------------------


Thank you for your interest in the investigations currently going on about HOAs.

I am an 84 yr old widow. I have resided in Sun City Anthem since 1999. Until 3yrs ago I thought it was one of the most beautiful, if not THE most beautilful , developments in the LV area. That was when we started learning about all the construction defects and the discrepancies in our reserve funds.

Dedicated and concerned members of our community have filed numerous requests, phone calls, and certified mail to our Board of Directors, Management Company, the ombudsman, real estate commission, and the attorney general to resolve these problems. The current board and finance committee have juggled our reserve figures while having no legal authority to do so. The company they hired to do the reserve study was not even licensed in Nevada. (I understand that company has just now applied for a Nevada license.) This has pitted neighbor against neighbor. Phone messages to Del-Webb/Pulte go unanswered on construction defects.

We too, need and would welcome further investigation into the construction defects and an independent forensic audit of our reserves to put an end to a situation that should have never happened in the first place. No one deserves this kind of treatment from those elected to look out for your best interests, let alone Senior Citizens.

Again, Thank you for focusing on this issue,

Respectfully, Eunice Bohannon

Written by: HomeBoy on Monday, Sep. 29, 2008 at 11:33 AM -- Report abuse


Thank you for your interest in the investigations currently going on about HOAs.

I am an 84 yr old widow. I have resided in Sun City Anthem since 1999. Until 3yrs ago I thought it was one of the most beautiful, if not THE most beautilful , developments in the LV area. That was when we started learning about all the construction defects and the discrepancies in our reserve funds.

Dedicated and concerned members of our community have filed numerous requests, phone calls, and certified mail to our Board of Directors, Management Company, the ombudsman, real estate commission, and the attorney general to resolve these problems. The current board and finance committee have juggled our reserve figures while having no legal authority to do so. The company they hired to do the reserve study was not even licensed in Nevada. (I understand that company has just now applied for a Nevada license.) This has pitted neighbor against neighbor. Phone messages to Del-Webb/Pulte go unanswered on construction defects.

We too, need and would welcome further investigation into the construction defects and an independent forensic audit of our reserves to put an end to a situation that should have never happened in the first place. No one deserves this kind of treatment from those elected to look out for your best interests, let alone Senior Citizens.

Again, Thank you for focusing on this issue,

Respectfully, Eunice Bohannon

Written by: Eunice Bohannon on Monday, Sep. 29, 2008 at 11:41 AM -- Report abuse
Sounds like a great deal of "rallying the troops" is taking place here.

Never been in a HOA, never will.

The common folks that I know, those that live under such ombudsmanship, only have complaints about them. Very little is mentioned about what good they do.

Everything in life seeks a balance, homeostasis. I've never recognized such a state which leads me to believe there is much to believe in the complaints of homeowners. The R-J reporting on the issue confirms that belief.

Oh, as to the FBI taking three years, that's what they do: Long, drawn-out, insidiously meticulous, forensic examinations of witness statements and paper trails.

Parenthetically, I could never understand why such a slow moving organization was made the lead in homeland security investigations...
Written by: Mike.Ault on Monday, Sep. 29, 2008 at 12:15 PM -- Report abuse
My apologies to Ron Johnson who is a friend. The word disgruntled was in reference to the residents who often post on his blog and not to Ron. And by the way, you can see comments from those same residents on this blog. It's funny, if you spread a few breadcrumbs on the kitchen floor, the desert roaches come out to feed right away!
Written by: Carl Weinstein on Tuesday, Sep. 30, 2008 at 9:01 AM -- Report abuse
You can see that the Vice President of Sun City Anthem is so concerned about the financial welfare of our residents he now refers to them as roaches looking for breadcrumbs.

He does not care about the feelings of distrust displayed by the elderly people of our community that have commented on this website.

Instead of resorting to name calling Carl,you might address the real issues. They have been pretty well defined by Bob Frank who said;

“There are many valid financial management issues in Sun City Anthem about millions owed by Pulte for underfunding our reserves and other contractual obligations. And, there have been hundreds of thousands of dollars lost by past boards due to gross mismanagement of a restaurant lease agreement. These are provable facts.”

You are the Vice president of SCA. It wouldn’t be too hard for you to prove your concern for the citizens of Sun City Anthem at the next board meeting on Oct. 7.

Why don’t you propose a resolution to conduct an independent forensic audit of the operating and reserve funds of Sun City Anthem and let the entire board to vote on your resolution. Lets remove the unresolved financial misconduct questions.

Or -- could it be you are afraid of what it might reveal?
Written by: HomeBoy on Tuesday, Sep. 30, 2008 at 11:26 AM -- Report abuse
84-year-old widow Eunice Bohannon reminds us that board meeting secrecy and the lack of accountability for board member corruption is a very serious problem within NV HOAs. It is time for homeowners to demand that NV Open Meeting Laws be extended to apply to HOAs.

Since homeowner associations are clearly a new form of local government and they have been designed by developers and government officials to take over many of the functions that local government serves for non-HOA dwellers, why do we allow HOA boards to operate so much in secret as they do? Why don't Open Meeting Laws apply?

Would not some of the corruption found in HOAs be prevented if Open Meeting Laws were applied? Sure, I know that some of my fellow board members strongly dislike having public conversations about their opinions before voting on major budget and policy issues. They prefer to make their decisions in secret and then pretend to be voting in public at board meetings.

But, in my opinion, if a director can not openly discuss the pros and cons of a matter involving other peoples' money, and allow the members to comment in public immediately before the board votes, you are not worthy of the trust given you to serve on that board.

Bob Frank
Sun City Anthem Director
Written by: Robert Frank on Thursday, Oct. 02, 2008 at 9:22 PM -- Report abuse
I received a very strange answer from Carl Weinstein (the Vice President of SCA). He chose NOT to answer on THIS BLOG, but on another. Why would he do that? Why would he be so reluctant to answer on this particular BLOG?

Well – the answer to those questions may lie in the content of his answer. Perhaps he did not want to reveal what he had to say on the other blog. Lets take a look at what Carl Weinstein said shall we? It is too lengthy to be posted in its entirety (300 word limit), but I can list here some of the most intriguing comment that just begs for further examination, like the following;

Carl Weinstein (our Vice President), said (Quote);

“The thing I cannot bring myself to believe is that there was fraud or theft involved. I really believe honest and/or careless mistakes were made in the past. I would be so pleased to just make sure we don't repeat the errors of the past. Digging up the dirt from the past doesn't make SCA any better.”

On the other hand we have Robert Maddox (one of the most respected attorneys in Nevada), who quotes NRS 49.115 and says “The fraud here was perpetrated on SCACAI, and particularly on the owners of units in the Villas and Pinnacles, whose reserve account was allowed to be seriously under-funded by the developer.”

Who do you believe FBI ---, the person who called us “Desert roaches looking for bread crumbs” or Robert Maddox who was the “Attorney of the year in Nevada in 2007?

Lets have an investigation and find out why the developer was allowed to under-fund the reserves of Sun City Anthem.

Norman McCullough
Resident - SCA
Written by: HomeBoy on Monday, Oct. 06, 2008 at 11:37 AM -- Report abuse
Mr. Weinstein and his cabal ran under the banner of the "Unity Party".The actions and words by him & Mr. David Berman referring to people who disagree with them as "nuts" or "desert roaches" is certainly not conducive to bringing unity to our community.
Now I understand Weinstein wants to fire the Security Chief. Has he taken leave of his senses? That is the one group of people in this community who are more concerned about others than themselves.What could possibly be the board's motivation for this act of stupidity?
Written by: John Schmidt on Tuesday, Oct. 07, 2008 at 1:15 PM -- Report abuse
Readers should note that SCA Vice President Carl Weinstein and former VP David Berman posted false and hateful statements about those who disagree with them and their associates.

Mr. Weinstein even called those who disagree with him "desert roaches".

David Berman calls those who allege that he and his cooperating board members have committed financial mismanagement to be out of control.

And yet, with all that bullying and insulting behavior, neither one has said why they oppose Director Frank and other residents who are asking for an independent forensic audit to find out what can be done about the current and previous board failures to collect millions of dollars owed by the developer, Del Webb/Pulte.

A disinterested party would have to conclude that it sounds like Weinstein and Berman and their friends have some things to hide, and some serious conflicts of interest.
Written by: Sun City Anthem Resident on Sunday, Oct. 19, 2008 at 11:47 PM -- Report abuse
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