'Fake HOA [knows] no boundaries:' Board member discovers fraud in her HOA and gets them all to "retire quietly," but now she's getting bullied

Author image for Elna McHilderson
Elna McHilderson • Managing Editor
Sep 30, 2023 7:00 PM EDT

Sometimes there are situations that make you stop and think, "what would you do?" There are countless Reddit threads that make you ponder just this. 

Recently, we came across one about a fake HOA. A citizen had gotten onto the HOA board and was excited to make the community a better place. She was already working with the city's Parks department and even an environmental non-profit. Her first project was to make a beautiful park. However, after being part of this HOA for a few years, she started to uncover some sketchy information. 

Eventually, she realized that the HOA was actually a total fraud and not official in any since. She didn't hesitate to call out her fellow board members and quit herself. Instead of the drama exploding, the members started to quietly retire or quit and stop calling themselves the HOA, but more of a volunteer group and the fines were not mandatory. 

This was a start, she supposed, but she still wanted to get her park done. So she still worked on it, but the remaining members of the fake "HOA" decided to go against her. They started spreading rumors about her and stopping any progress on her parks project. She turns to Reddit now for help and advice. 

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  • 01
    Cloud
    via Pickpik
  • 02
    Font - Posted by u/Timely_Cake_8304 1 day ago Fake HOA - no boundaries, drama I was on the board of the HOA and then uncovered that it was not an HOA at all.
    via u/Timely_Cake_8304
  • 03
    Font - The officers had inherited a potluck club and turned it into a regime. I uncovered the deceit, confronted them and told them they should get legal advice on moving forward in a an appropriate way. They added the word "voluntary" to the dues notices and reminders they
    via u/Timely_Cake_8304
  • 04
    Font - send out. The president resigned quietly, I believe on quiet advice from an attorney, and is now the treasurer (haha). The "officers" refuse to acknowledge they ever called themselves an HOA but still act like it. The board is confused and doesn't really understand what happened. I quit.
    via u/Timely_Cake_8304
  • 05
    Font - Dues are really low, a fwe hundred dollars a year.Meanwhile, there was a large common area that was neglected and ignored by them for many years. I proposed to the new president I was going to start a beautification project since it was actually a city park
    via u/Timely_Cake_8304
  • 06
    Font - area. They said it wouldn't be a problem. I didn't want them to get upset or create drama. I started working with the neighbors around the park, the Parks Department and other local groups to create a landscaping plan, dig out dead shrubs and to build a real park project, yada yada,
    via u/Timely_Cake_8304
  • 07
    Font - They got angry, ripping out some plantings. took the areas we had prepared and ambush planted some shrubs there to prevent us working. One of the board members told me the officers are launching a bad mouthing campaign of blaming me for the past neglect (?) and forcing me to
    via u/Timely_Cake_8304
  • 08
    Font - stop by planting "over our work". I am so frustrated. When I was one the board, I had been working with a non profit in the area and been asked to be a part of a merchant association as a community volunteer. I had also been floating the idea to the other 5 or 6 neighborhood associations that they should
    via u/Timely_Cake_8304
  • 09
    Font - try to all organize get together and maybe have future joint projects. The president of the HOA became furious and told the non- profit that I was "impersonating a member of thier HOA". I had been on their HOA board for many years. He really bullied me out of this aggressively by lying about me, gossipping
    via u/Timely_Cake_8304
  • 10
    Font - and yelling at me. I backed out and moved on to other things.I do not know how to handle this. It is like playing wack a mole where the officers find anything I am doing. take it personally and crush it. I am always trying to put out these gossipping defamation fires. Am I the a$$H@&*??? I guess I am done being a volunteer
    via u/Timely_Cake_8304
  • 11
    Font - because nothing is left! Thank you for letting me vent. I feel so sad that we could make the nighborhood so much better and instead just have drama. Really overthinking this and don't feel good about giving up on the park.Thanks again.
    via u/Timely_Cake_8304
  • 12
    Font - EDIT for clarification: The common arae was actually a small city park. I was in the process of becoming certified as a park steward for this park and getting grants from the city for it's care along with other neighbors.
    via u/Timely_Cake_8304
  • 13
    Font - The fake HOA officers wanted to roadblock this maybe because they tell everyone they spend dues there?, and they are angry with me personally, They planted a bunch of stuff where we had cleared beds for planting as a way to keep us from working here. Messed up our plans out of spite, not because they want to clean up the park. I really wanted to make this a great park!
    via u/Timely_Cake_8304
  • 14
    Font - Starrion 1 day ago ● Or crush what they are doing. Dig out the old billls where they represented as an HOA and sue them for fraud and misrepresentation. What happened to all the money they collected?
    via u/Starrion
  • 15
    Font - habbalah_babbalah 22 hr. ago ● This is the way. First, OP, determine whether the fake HOA organization is incorporated or unincorporated, and whether it's registered with your state's Secretary of State, and if it registered with IRS as a 501(c)(4).
    via u/habbalah_babbalah
  • 16
    Font - If they operated as an unincorporated association, and previously demanded fees under false pretenses or threat of legal action, then the HOA board members who were serving at the time have unshielded liability from a lawsuit by the membership.
    via u/habbalah_babbalah
  • 17
    Handwriting - But if incorporated, the corporate entity still has liability from a lawsuit.
    via u/habbalah_babbalah
  • 18
    Font - Cestus5000 22 hr. ago · Agree. Our HOA has to be registered with the county. So their dues and fines have legal backing. Their rules and regulations well documented, and accounting freely available to all members.
    via u/Cestus5000
  • 19
    Font - MJGM235 7 hr. ago Yes definitely sounds like some fraud and embezzlement going on.
    via u/MJGM235
  • 20
    Font - blueskieslemontrees 7 hr. ago ● 100% this. A few hundred dollars a year can still be a burden on folks. Folks who may have given up other things to make sure they didn't miss their "dues." Other people may have spent time and money rectifying fines that would be imposed. Or again, got
    via u/blueskieslemontrees
  • 21
    Font - rid of /failed to get something because of the HOA board. Maybe an rv or the like. OP - do you think any other neighbors who know are also pissed and might get on board woth you in legal action?
    via u/blueskieslemontrees
  • 22
    Font - excoriator 1 day ago HOA Board Member You could discuss with an attorney whether you can sue for defamation. Maybe you could also sue for back repayment of dues collected under false pretenses?
    via u/excoriator

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