2010 SCA Board Election Was Corrupted. Will 2011 Be Better?

An ancient saying is: “Those who cannot remember the past are condemned to repeat it.”
SCA members are at risk of learning the meaning of that saying with regards to the 2011 board election.

The 2010 SCA Board election and related FBI investigation was most recently reported on at this link.
hoa-fraud-investigation-looks-at-rigged-board-elections

But, most members are unaware there were over 27 alleged violations of the Nevada Statutes
submitted for action in May 2010 by the Real Estate Division and case number IS-10-2182 was assigned.
Over 600 pages of evidence of the allegations were submitted.  Since May 2010, one statute violation
has been validated and the SCA Board was sanctioned by a formal Letter of Instruction issued with a
warning of severe penalties should the violation occur again.  The other 26 alleged violations are still
being investigated.

Please review the 5-page overview of the 2010 election allegations enclosed below.  We are asking SCA
members to use this summary to help monitor the activities of the 2011 election.  Members are planning
to notify the Board, Election Committee and the Real Estate Division Investigator on a daily basis when
apparent violations are detected.  This approach should help deter the kinds of flagrant violations seen
in 2010 and help the investigator come to quicker conclusions about the integrity of those in charge.

Of course, we hope to detect no statute violations in 2011.  We know the board, committees and CAM
know how to comply with the statutes.  But, in doing so, they will lose control of the election outcome.

Meanwhile we are greatly concerned over the failure of the Nevada authorities, the Real Estate Division
and Commission for Common Interest Communities (CIC), to respond in a timely basis to the massive list
of statute violations in April 2010.  SCA members deserve open and fair board elections.  And, if all or most
of the reported violations are not valid, we should be told where we went wrong in interpreting the laws.

Otherwise, the allegations must be validated and the Directors, CAM, attorneys, and Election Committee
appropriately punished and/or removed by the CIC Commission for committing flagrant violations.

Some have asked, so what is the problem?  We will save the details until a later article; but, for now, we
will mention there are apparently serious conflicts of interest within the Real Estate Division and by 4 out
of 7 of the Commission members.  Such conflicts appear to insulate the SCA directors from punishment.

For example, one Commission member is 7-year SCA director and former SCA President/Treasurer,
Favil West.  And, SCA auditor for the past decade, Gary Lein, is a CIC Commission founding member.
So is Randy Watkins, VP of Del Webb Community Property Management (who manages the Anthem
Council operations and serves as the executive community manager for many Las Vegas area Pulte
developments).   The fourth CIC Commission member (out of seven) with apparently serious conflicts
of interest is the Chairman, attorney Michael Buckley.  He is a member of the Jones-Vargus firm that
has been involved with various construction defects matters affecting Del Webb/Pulte developments.

All four of those CIC Commission members are founders and/or leading members of the Nevada CAI
organization that effectively controls how HOAs boards are trained and how HOAs are governed.
Such CAI leaders appear to have strong business interests in protecting the SCA Boards from being
convicted of statute violations. While this information alone may not prove unacceptable conflicts of
interest, the outrageously poor results from the Commision’s work in recent years is an indictment
on the ethics of the whole system.  Those details will be provided in a later article.

So, with such influential friends in that high Commission, it is not surprising that NONE of the over 100
well-written and well researched allegations of statute violations filed against SCA Boards since 2007
have ever been scheduled for CIC Commission Hearings.  For unexplainable reasons, ALL allegations
against SCA Directors in the past 5 years have been dismissed for “insufficient evidence” or,  they have
been “hung up” in the “investigative system” for many years while they (allegedly) gather dust in the
office of the Division Administrator.  We believe it is just using common sense to consider that such
bad results reflects corruption of some sort or another.

Bottom Line?  Members are stuck with ensuring we get open and fair board elections.  As long as we
tolerate election corruption, and continue to elect poorly performing directors, we will continue to get
more of the same.  Hopefully, 2011 will be the year that our membership puts a stop to election fraud.

Summary of the 2010 alleged election violations:
Alledged 2010 SCA Election Violations

This entry was posted on February 11, 2011 at 04:01 and is filed under 2011 Campaign, Truth Squad, SCA Board, Community Affairs, Laws & Rules. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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