Saturday, March 31, 2012

Don't question your HOA or you might get arrested - Friday, March 30, 2012 | 2 a.m. - Las Vegas Sun

Don't question your HOA or you might get arrested - Friday, March 30, 2012 | 2 a.m. - Las Vegas Sun

Frank and Stebbins accused two board members of “forgery” — essentially knowingly signing a false statement — which was probably also imprudent. According to a police affidavit, Frank told the investigator a “flagrantly false” board resolution related to the surplus was “used to deceive the community membership and government agencies concerning the improper disposition of millions of dollars of overcharged/surplus homeowner assessments.”
After an investigation, Henderson Police exonerated the board members and then arrested … Frank and Stebbins.

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Thanks to Rodney Gray and others for sending me this link.  It turned out that Frank and Stebbins were right about the position the IRS would take on the surplus, although that issue, amounting to a tax liability of $1.35 million, is disputed and is still being negotiated. In the meantime, the cops arrested them and they were charged with making a false police report. Say what?  Eventually the case against Frank and Stebbins was dropped, but as reporter Coolican says, "This seems to be a curious use of government resources." What is the nature of the relationship between the HOA board of directors and the Henderson police and city government, that such a thing would happen? Strange days, indeed.

1 comment:

Anonymous said...

Fred Reed's latest column about corruption ("The Receding Tide: Becoming Uzbekistan". March 26, 2012.) seem appropriate.

Several major differences exist between the usual corruption in the Third World and that in America. In most of the Third World, corruption exists from top to bottom. Everyone and everything is for sale. Bribery amounts to an economic system, like capitalism or socialism.
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And in the Guatemalas and Egypts of the planet, corruption tends to be personal. The briber and the bribed act as individuals.

In the United States, corruption occurs at the level of policy and contracts, between corporations, special interests, and Congress. It is done gracefully and usually legally. For example, Big Pharma pays Congress to insert, in some voluminous bill that almost no one will read, a clause saying that the government will pay list price for drugs instead of negotiating for a better price. Over time, this is worth hundreds of millions, paid by you. Yet the clause is legal.
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Second, unaccountable and often intrusive police not subject to control by the public... A law-abiding citizen should never be afraid of the police, and a misbehaving cop should worry intensely when said law-abiding citizen records his badge number with intent to call the chief. Those days are over.
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Third, lack of constitutional government. This is not the same as the lack of a constitution. The Soviet Union had an admirable constitution, and paid no attention to it. America heads rapidly in the same direction.
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Fourth, impunity. In the bush world, the rich and powerful are never brought to trail regardless of their crimes. We are there.
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Fifth, a yawning gap between rich and poor. As the American economy declines, the middle class sags into the lower middle class.
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Mexicans know what kind of government they have. Americans do not.

I never thought of HOAs as a Third World country before, but it makes perfect sense now.

You can read all of his columns at http://fredoneverything.net/fred-columns.shtml . For about a decade, Fred has been living "in Mexico near Guadalajara, having found burros preferable to bureaucrats."