David Saks: LAS VEGAS WOMAN PLEADS GUILTY IN CONNECTION WITH SCHEME TO FRAUDULENTLY CONTROL HOA

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

LAS VEGAS WOMAN PLEADS GUILTY IN CONNECTION WITH SCHEME TO FRAUDULENTLY CONTROL HOA

Fourth Las Vegas Resident Pleads Guilty in Connection with Scheme to Fraudulently Control Condominium Homeowners’ Associations

U.S. Department of Justice September 23, 2011
  • Office of Public Affairs (202) 514-2007/TDD (202) 514-1888
 
WASHINGTON—A Las Vegas woman pleaded guilty today for her role in a scheme to fraudulently gain control of condominium homeowners’ associations (HOA) in the Las Vegas area so that the HOAs would direct business to a certain law firm and construction company, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, Special Agent in Charge Kevin Favreau of the FBI Las Vegas Field Office, Sheriff Doug Gillespie of the Las Vegas Metropolitan Police Department and Special Agent in Charge Paul Camacho of the Internal Revenue Service-Criminal Investigation (IRS-CI).

Deborah Genato, 41, pleaded guilty before U.S. District Judge Lloyd D. George in the District of Nevada to one count of conspiracy to commit mail and wire fraud. Genato is the fourth person to plead guilty in connection with the scheme to defraud HOAs in the Las Vegas area.

According to the plea agreement, Genato was the property manager for three condominium complexes in the Las Vegas area, Vistana, Park Avenue and Chateau Nouveau. Genato admitted that from at least as early as February 2007 until at least approximately February 2009, she participated in a scheme to control various HOA boards of directors so that the HOA boards would award the handling of construction-related lawsuits and remedial construction contracts to a law firm and construction company designated by Genato’s co-conspirators.

According to plea documents, in order to accomplish the scheme, co-conspirators used straw purchasers to obtain mortgage loans for units within HOA communities. According to plea documents, Genato’s co-conspirators managed and operated the payments associated with maintaining straw properties owned and controlled by co-conspirators by running a so-called “Bill Pay Program,” by which co-conspirators funded the properties through several limited liability companies at the direction of a co-conspirator. Many of the payments were wired from California to Nevada. Co-conspirators also transferred an interest in some of the units to other co-conspirators to make it appear as if the co-conspirator was a bona fide homeowner.

Court documents indicate that the straw purchasers and those who acquired transferred interest in a unit agreed to run for election to the respective HOA boards. These co-conspirators were paid in cash, check or promised things of value for their participation, all of which resulted in a personal financial benefit to the co-conspirators.

Genato admitted that to ensure that her co-conspirators would win the elections, she and others employed deceitful tactics, such as creating false phone surveys to gather information about homeowners’ voting intentions, using mailing lists to vote on behalf of out-of-town homeowners unlikely to participate in the elections, and submitting fake and forged ballots. Co-conspirators also hired private investigators to find “dirt” on the bona fide candidates in order to create smear campaigns. Genato admitted that she used her position as property manager at Vistana, Park Avenue and Chateau Nouveau to provide mailing lists, labels and other voting materials to create fake election ballots. Genato also admitted that she allowed co-conspirators to gain access to the election ballots that had been mailed into the property management company by the bona fide homeowners prior to the election date.

According to plea documents, another tactic the co-conspirators used to rig certain HOA board elections was to prepare forged ballots for out-of-town homeowners and either cause them to be transported or mailed to California and thereafter to have the ballots mailed back to Las Vegas from various locations around California to make the forged votes for out-of-town homeowners appear to be legitimate.

Court documents indicate that the co-conspirators also attempted to create the appearance that the elections were legitimate by hiring independent attorneys to run the HOA board elections. The homeowners were led to believe that these “special election masters” were supposed to handle tasks including contacting the bona fide homeowners to inform them of the election, mailing the bona fide homeowners election ballots and voting instructions, collecting and securing the election ballots, and presiding over the HOA board election, including supervising the counting of ballots. However, the “special election masters” too, were paid in cash, check and promised things of value, by or on behalf of Genato’s co-conspirators for their assistance in rigging the elections.

According to plea documents, once elected, the co-conspirator board members would meet with other co-conspirators in order to manipulate board votes, including the selection of property managers, contractors and general counsel for the HOA and attorneys to represent the HOA. Also, the co-conspirators created and submitted fake bids for “competitors” to make the process appear to be legitimate while ensuring co-conspirators were awarded the contract.

Genato admitted that once hired, she and her co-conspirator property managers breached their fiduciary duties by receiving and accepting cash, check or things of value for using their positions to gain inside information and recommend that the HOA board hire certain co-conspirators for remediation and construction defect repairs and for construction defect litigation, and concealing their relationship with the co-conspirators from the bona fide homeowners. According to plea documents, this process created the appearance of legitimacy since bona fide homeowners believed the elected board members and property managers were, as fiduciaries, acting in their best interest rather than to advance the financial interests of co-conspirators. Genato admitted that she and her co-conspirators were paid or received things of value for their assistance in purchasing the properties, obtaining HOA membership status, rigging elections, using their positions to manipulate the HOA’s business and to further the goals of the conspiracy and enrich the co-conspirators at the expense of the HOA and the bona fide homeowners

Genato’s sentencing is scheduled for Jan. 6, 2012. The maximum sentence for conspiracy to commit mail fraud and wire fraud is 30 years in prison.

The case is being prosecuted by Deputy Chief Charles La Bella, Assistant Chief Michael Bresnick and Trial Attorneys Nicole H. Sprinzen and Mary Ann McCarthy of the Criminal Division=s Fraud Section. The case is being investigated by the FBI; the Las Vegas Metropolitan Police Department, Criminal Intelligence Section; and the IRS-CI.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.

Courtesy FBI



David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • September 26 2011 05:08PM

Comments

This blog does not allow anonymous comments