NRS 205.377 Multiple transactions involving fraud or deceit in course of enterprise or occupation; penalty.
1. A person shall not, in the course of an enterprise or occupation, knowingly and with the intent to defraud, engage in an act, practice or course of business or employ a device, scheme or artifice which operates or would operate as a fraud or deceit upon a person by means of a false representation or omission of a material fact that:
(a) The person knows to be false or omitted;
(b) The person intends another to rely on; and
(c) Results in a loss to any person who relied on the false representation or omission,
NRS 205.377
NRS 205.380 Obtaining money, property, rent or labor by false pretenses.
NRS 207.470 civil actions for damages resulting from racketeering.
1. Any person who is injured in his or her business or property by reason of any violation of NRS 207.400 has a cause of action against a person causing such injury for three times the actual damages sustained. An injured person may also recover attorney’s fees in the trial and appellate courts and costs of investigation and litigation reasonably incurred. The defendant or any injured person in the action may demand a trial by jury in any civil action brought pursuant to this section. Any injured person has a claim to forfeited property or the proceeds derived therefrom and this claim is superior to any claim the State may have to the same property or proceeds if the injured person’s claim is asserted before a final decree is issued which grants forfeiture of the property or proceeds to the State.
4. Any civil remedy provided pursuant to this section is not exclusive of any other available remedy or penalty
NRS 207.480 Order of court upon determination of civil liability.
Nevada’s 2011 anti-foreclosure fraud “robo-signing” bill amended NRS 107 and NRS 205 to make these changes:
specifies duties of the trustee;
assignments not effective unless and until recorded;
a notarized affidavit under penalty of perjury that the lender or trustee is in actual possession of the note;
civil penalties for mortgage lending fraud;
Section 9 amends NRS 107.080, which is one of the main statutes related to foreclosures.
It requires a notice of default or “NOD” to include a notarized affidavit of the trustee’s authority to exercise the power of sale.
The affidavit must spell out all the money that is owed, and must include a statement under penalty of perjury that the lender or the trustee is in actual possession of the note.
As in section 6, it sets forth civil penalties for violations.
NRS 107.028Trustees: Qualifications; limitations on powers
2. A trustee under a deed of trust must not be the beneficiary of the deed of trust for the purposes of exercising the power of sale pursuant to NRS 107.080.
NRS 107.028(2)
12 CFR1026.39 Mortgage transfer disclosures – Truth in Lending (TILA) requirements of disclosure of change of beneficiary
SB 321 (2013) Nevada Homeowner Bill of Rights – prevention of “dual tracking”
A 2017 study conducted by the UNLV Lied School of Real Estate, commissioned by the Nevada Association of Realtors, studied 611 HOA foreclosures between 2011-2015.
SCA’s 2014 Foreclosures WERE NOT IDENTIFIED in the UNLV Study
Somehow the professionals conducting the study missed ALL of SCA’s 13 foreclosures between 2011 and 2015.
Ten HOAs had 1/6 of the 611 foreclosures UNLV studied.
Why didn’t UNLV know about SCA’s 13 sales Red Rock conducted?
SCA had 13 foreclosures in 2014, but SCA is not in the UNLV HOA foreclosure study’s list of HOAs that had more than five foreclosures from 2011-2015.
Notice a pattern?
ALL SCA foreclosure buyers were knowledgeable speculators.
Some would call them “vulture investors”.
This pattern – selling for a dime on a dollar to a few wise guys – would never have happened if bidding had not been suppressed by a few unsavory practices:
Convince the HOA Board that they must keep everything about foreclosure secret,
have no agendas or minutes of HOA Board actions to foreclose
give no notice to the owner whose house is being sold
Allow the manager to be the debt collector and control EVERYTHING about the money that’s collected for the benefit of the HOA members
Allow the debt collector full, unilateral, unsupervised proprietary control all the records and processes, so the HOA has no independent records;
give away signatory control over bank accounts of HOA money collected,
allow the debt collector to use the HOA attorneys against a homeowner who complains
allow the debt collector to lie about notices that were given.
At Sun City Anthem, not a single homeowner knew when or where RRFS was selling these houses.
NOTICE A PATTERN? FOLLOW THE MONEY
In the case of 2763 White Sage, RRFS intentionally WITHHELD notice to ALL parties with a known interest – and then lied about it in order to cover up how this scam works to enrich the chosen few..
Look at who bought the houses. Look at how much they paid, and look at what Sun City Anthem Board and owners were told. It’s quite a lucrative scam for a lucky few.
FSR and FSR dba RRFS told the HOA Board falsely that everything about HOA sales had to be kept secret.
How the vulture investors unjustly profited
TRP Fund IV LLC bought four SCA properties at unnoticed sales @ an average price of $52,125, 80% below fair market value. I, and many other Sun City Anthem homeowners, were prevented from attending these sales and bidding because RRFS explicitly withheld notice.
Two sham LLCs, using the property address as the corporate name, bought houses for $6,500 & $7,600.
All 13 houses COMBINED were sold for $734,900 to a few people “in the know”, and not a single one to an SCA owner.
SCA properties RRFS secretly sold in 2014
1/2/14 RRFS sold 2532 Grandville Avefor $25,500 to TRP Fund IV LLC .
SCA did not enforce the 4/27/12 contract indemnification clause that would have shifted this expense to RRFS. TRP FUND IV v. HSBC Bank A-16-735894-C There is no SCA record that the SCA Board approved the sale of this property.
1/2/14 RRFS sold 2227 Shadow Canyon to TRP Fund IV LLC for $40,000.
There is no SCA record that the SCA Board approved the sale of this property. SCA was not identified AT ALL in the litigation as the HOA under whose statutory authority this sale occurred.
Neither SCA nor RRFS were named parties to the litigation.
There is no SCA record that the SCA Board approved the sale of this property. There is no court record that Red Rock interpleaded the proceeds. Upon information and belief, RRFS did not distribute the proceeds after the sale as mandated by NRS 116.31164(3)(2013).
2/18/14 RRFS sold 2721 Evening Sky for $40,000 to TRP Fund IV LLC
There is no SCA record that the SCA Board approved the sale of this property. There are no SCA records to ascertain what happened to the proceeds of the sale. Upon information and belief, RRFS did not distribute the proceeds after the sale as mandated by NRS 116.31164(3)(2013).
2/18/14 RRFS sold 2115 Sandstone Cliffs for $54,000 to TRP Fund IV LLC
TRP Fund IV LLC v. Bank of Mellon et al, A-15-724233-C SCA did not enforce the 4/27/12 contract indemnification clause that would have shifted this expense to RRFS. There is no court record that RRFS interpleaded the proceeds.
There is no SCA record that the SCA Board approved the sale of this property. There are no SCA records to ascertain what happened to the proceeds of the sale. Upon information and belief, RRFS did not distribute the proceed of the sale as mandated by NRS 116.31164(3)(2013).
2/18/14 RRFS sold 2842 Forest Grove for $89,000 to TRP Fund IV LLC
There is no SCA record that the SCA Board approved the sale of this property. There are no SCA records to ascertain what happened to the proceeds of the sale. Upon information and belief, RRFS did not distribute the proceed of the sale as mandated by NRS 116.31164(3)(2013).
3/7/14 RRFS sold 2260 Island City for $30,000 to SFR Investment Pool
There is no SCA record that the SCA Board approved the sale of this property. There are no SCA records to ascertain what happened to the proceeds of the sale. Upon information and belief, RRFS did not distribute the proceed of the sale as mandated by NRS 116.31164(3)(2013).
3/7/14 RRFS sold 1382 Couperin Dr for $100,100 to LN Management LLC series 1382 Couperin
There is no SCA record that the SCA Board approved the sale of this property. There are no SCA records to ascertain what happened to the proceeds of the sale. Upon information and belief, RRFS did not distribute the proceed of the sale as mandated by NRS 116.31164(3)(2013).
3/14/14 RRFS sold 2167 Maple Heights for $6,500 to 2167 Maple Heights Trust
There is no SCA record that the SCA Board approved the sale of this property. Bank of NY Mellon v. SCA 2:17-cv-02161-APG-PAL, ADR 17-91. SCA did not enforce the 4/27/12 contract indemnification clause that would have shifted this expense to RRFS.
There is no SCA record that the SCA Board approved the sale of this property. There are no SCA records to ascertain what happened to the proceeds of the sale. Upon information and belief, RRFS did not distribute the proceed of the sale as mandated by NRS 116.31164(3)(2013).
3/28/14 RRFS sold 2584 Pine Prairie for $7,600 to LN Mgt Series LLC 2584 Pine Prairie.
LN Mgt LLC series 2584 Pine Prairie v. Deutsche Bank A-14-707237-C. SCA did not enforce the 4/27/12 contract indemnification clause that would have shifted this expense to RRFS.
There is no SCA record that the SCA Board approved the sale of this property. There are no SCA records to ascertain what happened to the proceeds of the sale. Upon information and belief, RRFS did not distribute the proceed of the sale as mandated by NRS 116.31164(3)(2013).
4/29/14 RRFS sold 2175 Clearwater Lake Dr.for $45,100 to Saticoy Bay LLC
There is no SCA record that the SCA Board approved the sale of this property. there are no SCA records to ascertain what happened to the proceeds of the sale.
Upon information and belief, RRFS did not distribute the proceed of the sale as mandated by NRS 116.31164(3)(2013).
6/10/14 RRFS scheduled the sale of 2986 Olivia Heights Ave,
The sale was cancelled by a Citi Mortgage temporary restraining order. Citimortgage Inc v. SCA A-14-702071 NV Supreme court case # 71942. On 12/7/17, the SCA Board authorized paying $55,000 to Citi to settle the case. SCA did not enforce the 4/27/12 RRFS contract indemnification clause that would have shifted this expense to RRFS.
The Board President’s report of the settlement does not match the court records.
8/15/14 RRFS sold 2763 White Sage Dr. for $63,100 to Thomas Lucas took title as Opportunity Home, LLC.
The sale was conducted without notice. The buyer was a realtor in the BHHS listing office that was under contract with Nona Tobin. Jimijack vs BANA & SCA (A-15-720032-C); Nationstar vs Opportunity Homes (A-16-730078-C), Nona Tobin vs Joel Stokes et al A-19-799890-C, Supreme Court appeals #79295, 82094, 832234 and 82294. SCA did not enforce the 4/27/12 contract indemnification clause that would have shifted this expense to RRFS.
There is no SCA record that the SCA Board approved the sale of this property. There are no SCA records to ascertain what happened to the proceeds of the sale. RRFS did not distribute the proceed of the sale as mandated by NRS 116.31164(3)(2013). Instead, more than six years later, after refusing to distribute the proceeds to Nona Tobin, RRFS sued five defendants for interpleader, knowing that no one had a recorded claim except Nona Tobin.
9/11/14 RRFS sold 2921 Hayden Creek Terrace for $100,000 to Jayem Family LP
There is no SCA record that the SCA Board approved the sale of this property. There are no SCA records to ascertain what happened to the proceeds of the sale. Upon information and belief, RRFS did not distribute the proceed of the sale as mandated by NRS 116.31164(3)(2013).
11/12/14 RRFS sold 2416 Idaho Falls for $174,000 to Global Village LLC.
My Global Village LLC v BAC Home Servicing A-15-711883-C . SCA did not enforce the 4/27/12 contract indemnification clause that would have shifted this expense to RRFS.
There is no SCA record that the SCA Board approved the sale of this property. There are no SCA records to ascertain what happened to the proceeds of the sale. Upon information and belief, RRFS did not distribute the proceed of the sale as mandated by NRS 116.31164(3)(2013).
Excerpts related to attorney misconduct in this situation as well as a link to the full Nevada rules for professional conduct. Here is a link to the ABA Standards for Imposing Lawyer Sanctions which also should weigh heavily in the Court’s decision to appropriate level of discipline to impose.
The Elements of fraud apply to all the defendants being named in case A-21-828840-C that were opposing counsels to Nona Tobin in Nevada district court cases related to a dispute over the title of 2763 White Sage that was sold at an HOA foreclosure sale in 2014, i.e., in cases A-21-828840-C, A-19-799890-C, A-16-73-0078-C, and A-15-720032-C.
The elements of the cause of action of Fraud on the Court:
1. Defendant makes a false representation as to a past or existing fact.
2. With knowledge or belief by defendant that representation is false or that defendant lacks sufficient basis of information to make the representation;
3. Defendant intended to induce the Court to act in reliance on the representation;
4. Justifiable reliance upon the representation by the Court;
5. Causation and damages to plaintiff Nona Tobin as a result of the Court’s relying on misrepresentation; and
6. Must be proved by clear and convincing evidence and be pled with specificity.
Relevant Nevada court cases
NEVADA JURY INSTRUCTIONS 9.01;
NRCP 9;
(b) Fraud or Mistake; Conditions of Mind. In alleging fraud or mistake, a party must state with particularity the circumstances constituting fraud or mistake. Malice, intent, knowledge, and other conditions of a person’s mind may be alleged generally
NRCP 9(b)
Jordan v. State ex rel. Dep’t of Motor Vehicles & Pub. Safety, 121 Nev. 44, 75, 110 P.3d 30, 51 (2005);
J.A. Jones Constr. Co. v. Lehrer McGovern Bovis, Inc., 120 Nev. 277, 89 P.3d 1009 (2004);
On January 25, 2017, I sent an email to HOA General Manager Sandy Seddon and to the Sun City Anthem Board of Directors warning them about the serious financial risks the association was facing due to the misconduct of its debt collectors. The GM and the Board ignored this warning.
Then they did everything wrong.
They added debt collection to the duties of the new Association Legal Counsel, The Clarkson Law Group without an RFP and without addressing the inherent conflict of interest this created.
The GM withheld debt collection records from me as an elected member of the Board
The Clarkson Law Group got the 6 other Board members to vote to order me to recuse myself from al HOA collection matters.
They made no investigation of the charges i alleged regarding the HOA agents stealing from the association.
2007-2017 Debt Collection Contracts were all flawed
Nevada Debt Collection licenses note that attorneys have an exception from the requirement to have a NRS 649 debt collector license
4/27/12 SCA contract with Red Rock Financial Services contains an Indemnification clause that is favorable to the HOA but this contract provision has never been enforced by Sun City Anthem managers and attorneys. This has resulted in at least $100,000 in litigation costs being shifted from Red Rock Financial Services to Sun City Anthem homeowners. HOA attorneys concealed this contract in discovery in my case. HOA attorneys (Clarkson) and Rex Weddle, Board President who aided and abetted the HOA agents’ unjust enrichment, prevented my bringing this issue to the HOA board as was my right under NRS 116.31087.
David Ochoa, Lipson Nielson attorney for Sun City Anthem in my case, A-15-720032-C, Joel A. Stokes and Sandra F, Stokes, as trustee of Jimijack Irrevocable Trust vs. Bank of America and Sun City Anthem Community Association, Inc., failed to disclose the applicable debt collection contract, dated, 4/27/12. Instead, he disclosed the 2007 contract as SCA 164-167, that does no have this protection for HOA homeowners.Most, if not all, of the $87,797 should have been paid by red Rock financial Services per the 4/27/12 unenforced indemnification clause.
Whose interests was David Ochoa representing when he disclosed the wrong contract? In my opinion, this “error”, combined with Ochoa’s other actions in my case, shows a pretty strong alignment of attorneys with HOA managers and agents against homeowners and the HOA itself.
4/20/15 Alessi & Koenig contract with Sun City Anthem – Alessi & Koenig held foreclosure sales out of their 9500 W. Flamingo office with no notice the SCA homeowners. All were sold to investors for a small fraction of their value. David Alessi was not licensed to practice law in Nevada and so should not have been exempt from NRS 649 licensing and oversight. A&K hid their assets, went Chapter 7, and morphed into HOA Lawyers Group.
8/15/16 HOA Lawyers Group contract with Sun City Anthem should not have gotten a no-bid contract expecially since they were A&K’s alter ego to evade creditors.
4/27/17 Board minutes #15A approved no-bid (without RFP) debt collection in the Clarkson contract. The Board’s giving “management” discretion over which matters remained with Leach should be noted.
5/23/17 Lipson quarterly litigation report Lipson handled the litigation related to many of the foreclosures. Upon information and belief (UIAB), Lipson worked for the insurance company (“carrier” ) that may have had financial reasons for supporting the interests of Red Rock. Further, UIAB, Lipson attorney Ochoa did not get direction from the HOA Board and acted according to direction from GM Sandy Seddon and/or CAM Lori Martin and HOA Legal Counsel/debt collector Adam Clarkson. All of them defamed me, damaged me and worked to obstruct my access to HOA records and to obstruct a fir adjudication of my quiet title case.
5/25/17 Executive session minutes contained an order for me to recuse myself from all HOA collection matters
Note that I am identified as a party to A-15-720032-A as “Nona Tobin, an Individual and Trustee of the Gordon B. Hansen Trust”. Ochoa later lied about this repeatedly into the court record in order to obstruct a fair adjudication of my claims and to prevent my access to the Nevada supreme Court on appeal.
Note that there are three other items on that executive session agenda that, in my strongly stated opinion, the Board was prohibited from discussing, or acting on, in closed session, and which contributed to the unjust enrichment of HOA managers and/or agents and which were detrimental to the HOA per se. I will give those items to the police rather than publish them n the internet to spare myself the grief of more abusive threats and harassment from the lying, self-serving attorneys.
