From the Center for California Homeowner Association Law: the inside scoop on the Las Vegas HOA investigation

"So how exactly did five senior homeowners get the FBI to investigate possible fraud and collusion in their homeowner association? By doggedly collecting association records, by studying the facts, by keeping their ears open, by being patient, and by not giving up –- for three long years. On Aug. 22, 2005, Bill Farnsworth, Wanda Murray and three other owners of condominiums at the Rhodes Homes development of Vistaña walked into the local headquarters of the Federal Bureau of Investigation. In their possession was a 3-inch thick, three-ring binder full of records and other papers documenting -- at the least -- what they thought were serious conflicts of interest involving their homeowner association board of directors. At the most, they believed the records showed a possibility of collusion between members of the board, which included a former Las Vegas police lieutenant, to steer work toward a Las Vegas construction firm, Silver Lining Construction. The group of angry and diligent senior homeowners appears to have been on to something. The names contained in their three-ring binder largely correspond to those in a federal warrant served last week on two management companies, two association law firms, and seven associations. Read the story of these patient, dogged seniors on the CCHAL website [www.calhomelaw.org/] The link is http://calhomelaw.org/doc.asp?id=849."
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Fascinating story and well worth reading. Thanks to Marjorie Murray of CCHAL for sending this note. But there is another account out there saying that the owners were initially rebuffed by the DA and the FBI, who viewed it as a civil matter. That would be par for the course. Something else, other than a citizen complaint, must have happened to trigger the criminal probe.