SCA Board Members Should Be Held Personally Accountable For Huge Tax, Restaurant & Other Financial Losses!
SCA Directors have been told they are solely responsible and individually accountable for the corporate decisions and errors concerning the funds collected from and managed on behalf of SCA members since the 2005 transition from developer control.
But, by hiding behind the “so-called” Business Judgement Rule (BJR), HOA directors are told they can get away with almost anything (short of flagrant embezzlement) and not be held personally accountable.
So say association attorneys John Leach & Ed Song, auditor/tax preparer Gary Lein, community management company contractor RMI (headed by CEO Kevin Wallace), Nevada Real Estate Division Administrator Gail Anderson, and the NV Commission for Common Interest Communities and Condominiums (7 members appointed by the Governor from the HOA trade association (CAI) including 3 with obvious Sun City Anthem board conflicts of interest–auditor Gary Lein, Del Webb/Pulte executive Randolph Watkins and 6-year SCA Board Treasurer/President Favil West).
However, while directors are expected to consult “professionals” when making their board decisions,
the NV Attorney General has notified directors that corporate laws prohibit them from blaming the professionals for providing poor and/or illegal advice.
The obvious conclusion is that individual Sun City Anthem Directors are personally responsible for their past mistakes and toleration of financial misconduct, law violations, income tax fraud, community property losses, contractor failures and over-charges, and cruel abuses of community members without justification and without following due process rules.
It is truly illegal and immoral for current directors to refuse to deal with past gross financial errors which can be corrected on behalf of our members.
Special accountability for fraud and abuse rests on the backs of SCA Presidents since 2005. The SCA contract with RMI grants exclusive/sole authority to the SCA board president to direct all RMI employee and related contractor actions.
In other words, board presidents are the first persons to be held personally accountable for board wrong-doing and gross negligence. Second in the accountability chain under corporate law would be the Board Treasurers and Secretaries Actions to enforce accountability should start with those officers.
But, what can be done? Have any of them committed real crimes as described in Nevada Revised Statute (NRS) 205? Read the laws for yourself from this online record and see what you think.
http://www.leg.state.nv.us/nrs/nrs-205.html
It is clear that if the evidence showed a director used a lethal weapon (such as a gun or knife) to threaten one or more SCA members to give up hundreds of their dollars, such a director could be charged and convicted under felony crimes for armed robbery and theft.
But, if the same director exploited HOA rules and hid behind the BJR to force members to pay exorbitant annual dues so the money could be wasted on untrustworthy sub-contractors where board members might receive hidden benefits or kickbacks for themselves, could they not also be held accountable by law enforcement agencies for what seems to be similar felony crimes?
We have hundreds of highly experienced members of this SCA community including some currently elected to positions as Clark County and Henderson Judges.
No doubt such expertise could be used to find ways to enforce accountability–if such professionals would do their duty and stop looking the other way while crime flourishes all around us.
If you know of such professionals in the financial, legal, and law enforcement businesess, please approach them and ask them to get involved–for their own sake as well as the whole community’s lifestyle and financial future.
And, in the process, remind them that ignoring such crimes only encourages more of the same….
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