Election Committee TOMORROW 9 AM – pick order of names on ballot

Concord Room Anthem Center
9 AM Tuesday, Feb. 13
Election Committee
Board Candidate Orientation
Candidates draw for ballot order

I’ll be there despite Clarkson’s challenge to my eligibility. I have requested that I be treated as a candidate unless a State of Nevada official with proper legal authority rules that I am not eligible to be a candidate.

As you can see in the email below (which I sent to the SCA Board, the GM, the Ombudsman, the NRED investigator and others), I have requested, in respect for my advanced age and frail heart, that I not be treated unfairly or be subjected to a hostile surprise attack, be escorted from the room or face any other bullying or humiliation because I have the temerity to insist on my right to volunteer to serve as a member of the Board.

I encourage you to come if you are interested in ensuring that SCA is not the kind of place where a homeowner in good standing, acting in good faith, can be treated shabbily for simply trying to be of service.

Remember, this is not about me. 

This is about having a system of governance that is fair, open and protects ALL homeowners equally – no matter who is in charge.

Bernie Madoff and how NRED risks being like the SEC

What’s up with the Ombudsman?

Several people have told me that their NRED complaints of GM election interference were summarily rejected without satisfactory investigation or explanation. They feel the rejections were unfair as the complaints were rejected for reasons unrelated to the substance of the issue raised.

For example, they reported that NRED did not independently verify the accuracy of the allegation that two pages of valid petition signatures were not counted  which caused Bob Burch to be wrongly left off the recall ballot. I was told that NRED’s rationale for the rejection was the unrelated reason that the Ombudsman had validated the vote counting process for the other three directors who were on the ballot. 

Limitations of enforcement agencies

We have to educate the NRED investigators on the specifics of the violations alleged in SCA owners’ complaints so investigators can understand the complaints within the context of needed homeowner protections.

We must not get overly discouraged even if it appears there is “zero enforcement” rather than “zero tolerance”. As we’ve seen nationally with response to sexual harassment complaints, that can change in a heartbeat.

NRED has all the problems faced by other enforcement agencies, like you’ll see below were exhibited by the SEC, – an inability to see the forest for the trees. Even if there is no corruption in NRED, they have  limited authority, limited funding, and have to balance competing interests between monied stakeholders (attorneys, management companies, debt collectors, etc.) and the people who are supposed to be served (homeowners). NRED’s problems are compounded in Nevada by historic complicity in HOA corruption by attorneys and judges and the fear people have to speak up and be whistleblowers.

But, just as Rana Goodman helped to expose how guardianship abuses depended on complicity between attorneys and judges and unscrupulous public guardians, we have to shine a light on what is happening at SCA because Board/GM misconduct too requires lack of transparency and complicity by legal authorities to be sustained.

 

Why I am publishing my complaints in full

While I haven’t seen the other owner  complaints or the rejection notices they received, this action by NRED raises a red flag for me. So far, I have received no word from NRED about the status of my complaints, but I am not willing to leave NRED’s investigative thoroughness to chance.

In light of this disappointing development, I am going to emphasize the way I use this website to expose evidence substantiating my claims. I am doing this primarily so the allegations and supporting evidence are in a usable format to assist the investigators. I believe that will reduce the chance that my complaints will be dismissed without a full investigation and a fair hearing. 

As far as the chance of influencing the beliefs of the readers of this blog, I have low expectations. I don’t believe people who think I deserved what happened to me will easily change their minds, and when you read below about cognitive dissonance, I think you’ll see why. 

What happened to me sets a bad precedent for ALL Nevada HOAs.

Kicking me off the Board was based on false and defamatory accusations and was simply a continuation of their retaliation against me for speaking out.

Such flagrant disregard of homeowners’ right to vote and choose who represents them on the Board absolutely cannot be tolerated or ignored.

Throughout my days on the Board, I was harassed, defamed and retaliated against for my having:

  • recommended that the attorney be terminated,
  • warned them about the theft and fraud of SCA’s former agents,
  • requested information about excessive management compensation and for
  • complained about violations of NRS and SCA governing documents, particularly in the areas of GM/CAM threatening frivolous litigation, abuse of privilege, misuse of attorney, concealing information and recall election interference.

 


If my removal from the Board is upheld, it will set the unhealthy precedent in Nevada that ANY majority of ANY Nevada HOA Board can remove any HOA Board member whose views they don’t like simply by falsely accusing her and then deeming her position vacant.
  • Good-bye, due process.
  • Good-bye, owner control of Nevada HOA.
  • Hello, unjust enrichment by attorneys and other HOA agents.
  • Hello, corruption.

 

Bernie Madoff’s Ponzi scheme

The Securities and Exchange Commission (SEC) let Bernie Madoff’s fake hedge fund grow to over $50 billion over decades despite repeated credible complaints.

Let’s hope NRED is more responsive than the SEC was to warnings and does not allow SCA Board, GM and attorney to act unlawfully in ways which allow SCA agents to be unjustly enriched or which allow a majority of a HOA Board to act unfairly for personal political advantage.

Remember Bernie Madoff?

Probably everyone does. Bernie was the former chairman of the NASDAC securities exchange. He had an impeccable reputation that allowed him to operate a hedge fund that grew over decades to $50 billion by 2008. Although it was a just a low-tech Ponzi scheme, it was successful as an affinity scam among wealthy Jewish communities, Madoff remained untouched by the regulatory Securities Exchange Commission (SEC) for decades.

But you probably haven’t heard of Harry Markopolos, the financial analyst who figured out Bernie Madoff’s fraudulent hedge fund at least a decade before Bernie turned himself in. Marcopolis submitted at least five formal written complaints to the SEC which the enforcement agency failed to investigate.

SEC’s enforcement failure cost victims $50 Billion

Had SEC done its job in 2000 when Markopolos told them Madoff  was a fraud, less than $7 Billion would have been lost, and many fewer people would have been victimized. SEC still didn’t listen in 2001 when the fund had doubled. SEC still didn’t listen in 2005 when Markopolos documented 29 red flags on the then-$25 Billion fund. In 2008 as the global economy was in meltdown, and the Madoff fund had ballooned to $50 Billion or more, Bernie turned himself in to spare his family, never having been investigated, much less found guilty, by the SEC.

Markopolos’ book is aptly entitled, “Nobody Would Listen: A True Financial Thriller” as the true story of how the regulatory agency SEC was over-lawyered and using lawyers in areas outside their expertise. SEC, therefore, did not have adequately trained investigators who knew diddly squat about financial markets.

The SEC failed to act repeatedly on Markopolos’ extremely precise directions on what sources to check or what single phone call to make and what question to ask to verify the accuracy of Markopolos’ analysis. 

Why didn’t SEC investigate thoroughly? Congressman Gary Ackerman grilled SEC attorneys after Bernie turned himself in to find out why SEC blew off credible complaints for a decade in this interesting CNN clip of the Madoff Congressional hearings.

Ackerman Scolds SEC for Not Stopping Bernie Madoff Scheme Despite Being Warned for 10 yrs

What were they thinking?

  • Maybe lawyers were the wrong people were doing the job.
  • Maybe it’s was the financial conflicts of interest regulators had with the industry they were regulating.
  • Maybe the theory of cognitive dissonance explains why nobody could believe that Bernie Madoff was anything other than he appeared to be.
  • Maybe Madoff’s reputation was so stellar and everybody was making money, no one wanted to question how he alone could get such stellar returns year after year.
  • But, whatever the reason, SEC investigators couldn’t see what was right in front of their face.
How does all this about Bernie Madoff and the SEC relate to SCA owner complaints being given short shrift by NRED?

Remember SEC’s failures and expect to find similar problems with NRED investigations.

Remember the SEC’s failure to listen to Harry Markopolos for a decade cost victims $50 Billion, and the SEC attorney still tried to weasel out of it, claiming “executive branch privilege“.

Remember nobody believed Bernie Madoff was running a scam. If you find yourself not believing what I tell you is happening at SCA is true, it might be simply because it is unimaginable, or it might be because it creates a lot of cognitive dissonance to think I might be right.

Remember that, while there are limits on what we can expect enforcement agencies to accomplish, a lot can change if a critical mass of people speak up.

We’ve just seen nationally how the pendulum swings when a tipping point is reached. The way sexual harassment complaints are now addressed has gone from zero enforcement to zero tolerance seemingly overnight.

A critical mass of SCA homeowners must insist that at SCA, there will be zero tolerance of misconduct by SCA Board members or SCA Agents, and zero tolerance of their harassment of, or retaliation against, whistleblowers.

 

Elder Abuse: Part II – SCA Agents

We have another covert systemic type of elder abuse going on right here at SCA. We have all of the problems endemic to Nevada HOAs in general, but those generic problems have been fueled here by a historically divided community and exacerbated by a poorly-executed transition to “self-management.”

Our system fails to provide sufficient competent owner oversight and internal controls necessary to prevent abuse by professional agents who are supposed to be fiduciaries acting SOLELY in the best interests of the owners,  but who are taking unfair advantage of us for their own unjust enrichment.

You are going to hear this same refrain from me repeatedly:

The biggest risk SCA owners face is being screwed over by unscrupulous agents who are supposed to be acting solely in our best interest, but who are not. They are actually unfairly acting in their own self-interest and profiting at our expense.

The reason “they” kicked me off the Board is they wanted to shut me up. They wanted to prevent me from telling owners what they are doing. They wanted me to stop publicly trying to force them to make system changes that would protect SCA owners from abuse by our own, highly-compensated, but unscrupulous, agents.

Who is “they”?

  • “They” are now (2016-now) GM Sandy Seddon and (May, 2017-now) association attorney/debt collector Adam Clarkson Law Group now.
  • Before (2009-2015), “they” were FirstService Residential (FSR)/formerly RMI, SCA’s managing agent, also licensed debt collector dba Red Rock Financial Services (RRFS).
  • In between (2015-2016), “they” were Alessi & Koenig, LLC attorney-debt collector that went into chapter 7 bankruptcy after being sued on 500 of the 800 HOA foreclosures they did between 2011-2015 and then…
  • “they” illegally morphed into HOA Lawyers Group, LLC (2016) but continued being SCA’s debt collector until replaced by Clarkson.

“They” are NOT necessarily the members of the Board, but “they” need to control the Board. “They”get their hands so far into our pockets only because the Board lets them do it. At least a majority of the Board has to negligently, maybe unwittingly, enable the attorney and management to take over the reins.

I believe the Directors are probably acting in good faith and trying to do their best, but are simply placing their faith in the wrong “experts”. However, even if the Directors are just innocently looking the other way, their ignorance is allowing SCA owners to be taken for an expensive ride.

So, what now?

Too bad for them.

“They”didn’t really get rid of me by unlawfully deeming my Board position vacant.

Now I have the time to tell you all about it. And I think I’ll start with what’s wrong with paying Sandy Seddon twice as much as we should be paying her.

 

Elder abuse: Part I – Guardianship

Many of you may not be familiar with the guardianship problem, but it’s where unscrupulous people become legal guardians and take over the finances and lives of the frail and elderly. They use a legal loophole to victimize the elderly and even take away the rights of the victim’s family. Guardianship abuse has been much worse here in Nevada because of the corruption that is rampant throughout our legal system.

Click this link https://www.newyorker.com/magazine/2017/10/09/how-the-elderly-lose-their-rights for an in-depth article published October 9, 2017 in the New Yorker, “How the Elderly Lose Their Rights: Guardians can sell the assets and control the lives of senior citizens and make a profit from it” by Rachel Aviv.

For more information about guardianship abuse, visit  http://www.stopguardianabusenv.org/ This website was produced by the Nevada Association to Stop Guardian and Elder Abuse, a non-profit organization dedicated to stopping exploitation and abuse of those in need.

SCA resident, Rana Goodman, the President of the nonprofit, is mentioned in the New Yorker article. Rana deserves our profuse thanks for being such a tireless advocate for these most vulnerable among us. She has successfully gotten some legal changes to allow us to prospectively (before we are of diminished capacity) nominate who we want as our guardian so we can prevent some unscrupulous professional guardian from swooping in and taking over our lives.

It’s tragic to think that this type of abuse can even happen. Legal guardians are supposed to be fiduciaries. They are supposed to protect people who can’t take care of themselves. They are supposed to act solely in the best interest of the client. They are supposed to use the powers they “legally” get over their wards only for the good of the person under their charge, but sadly, and with the support of lawyers and judges, many helpless people have been victimized.

Whenever there is a lot of money involved, there will be those who will scam the system and rip innocent people off, and with unfortunate frequency here in Nevada, there will be judges and attorneys who help them get away with it.

As time goes by, I will show you in my blogs how a similar type of systemic corruption is pervasive within Nevada HOAs, and I’ll show you how it can work unfairly to the advantage of HOA agents, like managers, debt collectors, and attorneys, to rip off HOA owners. I’ll show you how SCA’s former agents essentially stole my late fiance’s house, and I’ll show you how SCA’s current agents are getting the Board’s unwitting blessing to rip SCA owners off in a lot of different ways.