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Three on HOA boards ousted

Members linked to federal corruption probe

Homeowners at two valley communities linked to a federal corruption probe ousted members of their homeowners association boards Wednesday.

At the Park Avenue condominiums on the far south end of Las Vegas Boulevard, homeowners recalled two people: Ed Lugo and former Las Vegas police Capt. Frank Sutton.


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At the Sunset Cliffs condominiums in the far southwest valley, homeowners didn't re-elect board member Darryl Scott Nichols to another term.

Nichols also serves on the board of the Chateau Versailles condominiums, state records show.

All three people had been named in a federal search warrant seeking documentation, correspondence and notes as part of an investigation. Being named in the warrant does not mean that individuals are, or were, involved in wrongdoing.

The FBI, with the assistance of Las Vegas police, are conducting what a law enforcement source has described as an investigation into whether individuals on homeowners association boards directed business stemming from construction defect lawsuits to select companies.

Lugo didn't return calls seeking comment. Sutton could not be reached for comment.

Nichols declined to comment after the results of the Sunset Cliffs election were announced.

A member of the Metropolitan Police Department and an agent from the Federal Bureau of Investigation were present at both meetings and took the ballots from both associations after the election results were announced.

Sunset Cliffs and Park Avenue were among five other condominium associations that were named in the warrant.

At Park Avenue, homeowners had suspected that fraudulent elections had taken place earlier in the year.

Election ballots that should have been mailed from owners living in different places in California all were mailed from the same place, current board President Barbara Soto said.

"Everything was mailed from the same post office in Long Beach at the same time," she said.

At Sunset Cliffs, owners have complained that board members met rarely, were unresponsive and that information about the association's finances were rarely disclosed.

Brandon Hintz, a homeowner who defeated Nichols for a seat on the Sunset Cliffs board, said: "I think we've taken a step in the right direction."

Contact reporter Lawrence Mower at lmower@reviewjournal.com or 702-383-0440.

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GSK wrote on November 27, 2008 08:48 PM: For Interested in Accountability...

Division employees and appointments are made by the Executive Branch--the Republican Governors in recent years. So, you have to conclude that the Republicans are satisfied with the gross mismanagement of the Real Estate Division.

Maybe you want the Democrats to help you sweep the corruption out, unless you don't trust them either? Senator Schneider is a powerful Democrat. Maybe he will help you?


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Interested in Accountability by Real Estate Division Employees wrote on November 26, 2008 01:59 PM: How does one go about gettig Real Estate Division employees like Mr. Alitt and/or Ms. McDermott investigated for gross misconduct? The FBI's investigation is clearly an extremely poor reflection on state employees, where they the ones who asked the FBI for help?

However, it seems that so much is available pointing to the likelihood the Real Estate Division is incompetent. How does a citizen initiate action to have the real estate division managers and CIC commission members investigated and held accountable?

Do we demand action from the Republicans or the Democrats, or both?


Report abuse

MikeRR wrote on October 25, 2008 02:56 PM: sound familiar?
these service providers and their lobby have these cheesy State agency in their pocket!
Disgusting how a little money can do so much harm to the public good!


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MikeRR wrote on October 25, 2008 02:53 PM: Yes the Nevada Real Estate Division is just like the New Jersey Dept.of Community Affairs.
Edward Hannaman of the NJ DCA wrote a scathing report of how HOAs operate there (cited by the AARP, see http://www.ccfj.net/twinriversAARPAmicus.htm ).
He wrote the following to a group of residents of whom I belong:


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John Doe wrote on October 24, 2008 01:47 PM: MikeRR:

The Nevada Real Estate Division is supposed to be an independent state agency. I concede that they are disfunctional and am beginning to believe that this is the way those in power want it. Eventually a bunch of us will need to band together and raid the place. We will need to figure out a way to do it, "under color of law". We will also need some type of anti-CAI organization.

It is definitely not in the best interest of CAI attorneys that HOAs honor their own documents, supervise elections, and obey the laws of Nevada. This would mean less disputes and less billable hours for their industry.

Who is guarding the hen house?

I am still laughing that both the FBI and the Metro Police Department supervised the elections. Was there a concern that the Metro Police were representing the interests of Captain Frank Sutton(retired)rather than the community as a whole? Was Metro watching the FBI or was the FBI watching Metro?


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MikeRR wrote on October 24, 2008 04:45 AM: HOAs are a terrible blight on our American way of life.
But we can fix them!
If we all paid just $4 a year...we could establish and fund an INDEPENDANT State agency that would make the HOAs honor their own documents, supervise elections, and obey the laws of the State...
They are just corrupt banana republics without supervision and oversight...Anyone who says anything else doesn't know what they are talking about, or knows exactly what is going on and is profiting from it!


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jb8824 wrote on October 23, 2008 08:08 PM: Yeah, well,

My HOA won our property a huge settlement! Our condos, which had no fire proofing from the fine work of D.R., were supposed to be fixed by the G.B. Group. No luck there either, as I still have smoke from the lady next door blowing in from our shared wall. Looks like the feds could be knocking on our HOA's door soon?


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Thetruth wrote on October 23, 2008 07:24 PM: I am a manager. It does not matter whether you live in an HOA or not. It amounts to a sense of responsibility. Most of the rules for an HOA are based on common sense. The basic idea is that everyone's home looks nice for guests, neighbors, and gasp, potential new neighbors. This is really what is all about. You have a chance to review the rules before you purchase. Inexperienced and over-zealous RE agents often just toss the documents to the homeowner just to check the box off. Oftentimes they give them to them at the last moment. "Here's your CC&Rs.. we close tomorrow." You can take people out of the trailer park, but.....that is what it's really about. Plus, a lot of first time buyers who are already used to arguing with apartment manager bring that mentality "behind the gates"


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Pooly wrote on October 23, 2008 04:31 PM: This seems to be a very hard thing for some tards to understand so Ill write it very slow, you dont have to buy (or rent) a house that is in a HOA.


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John Doe wrote on October 23, 2008 04:19 PM: Hey, you are all missing the significance of the article. The FBI is now supervising HOA elections. This is a beautiful thing.

Congratulations to those HOAs that appear to have had their first fair election!

I am just dying to hear more about Diane R. Wild, a.k.a. Diane R. Langdon and her cabana boys. Word on the street is that the FBI is getting a little more interested.


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