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Subject: Ethics violation and recourse
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Author Messages
CindyY1
(Florida)

Posts:7


04/14/2019 2:04 PM  
The president of our HOA has been using his position and the inside information his position affords him to gain access to homes well below market value then rehab, flip and sell for top dollar.

He recently back doored a purchase where he knew another member of the community (who doesn't have his insider info) was trying to buy. The property was in a complicated Trust but he used his position to locate the one Trustee who wanted to cut out the other members. Like I said, complicated.

Reasearch into HOA board member ethics seems pretty clear .... his behavior appears to be a direct conflict of interest and ethical violation.


"Conflicts of interest also arise when a director, or a member of his or her immediate family1, receives improper personal benefits as a result of his or her position as a director of the Company.”

"No Board Member may use his/her position into enhance his/her financial status through the use of inside information derived from being a member of the board."

"Any Board members conduct, particularly the Presidents should be above reproach and avoid the appearance of impropriety."


Is my evaluation of this persons behavior accurate and is there any recourse?


RichardP13


Posts:0


04/14/2019 2:09 PM  
Do you know how his used his position on the Board to gain an advantage?
MelissaP1
(Alabama)

Posts:8599


04/14/2019 2:24 PM  
Is this an ASSUMPTION because they are a board member/officer? For example, our HOA foreclosed on a property due to non-payment of dues. The process of foreclosure requires 3 months of PUBLIC notification printed in a PUBLIC resource. In our area that is the classified ads on Wednesdays for legal notices. So foreclosures/liens are PUBLIC noticed as part of the process. Or course a foreclosure stops as soon as the money owed is paid...

So for you to say "Insider" information, may not necessarily be accurate. Unless this person is intentionally foreclosing on homes on the behalf of the HOA to purchase homes, then that is ethical issues. Otherwise, you can't stop someone from PUBLIC sourced information and then claim it's insider knowledge. They just happen to know where to resource the information.

Former HOA President
GeorgeS21
(Florida)

Posts:1285


04/14/2019 2:27 PM  
Aren’t trustees public in county records?

If he has done something unethical, you are going to need absolute facts to that.
CindyY1
(Florida)

Posts:7


04/14/2019 4:48 PM  
Yes, he used his position to get the name and contact info of the Trustee from the HOA Attorney
CindyY1
(Florida)

Posts:7


04/14/2019 4:53 PM  
I know the Trustee's contact info was not public information. I doubt the HOA attorney would have provided the contact info to just anyone.

Plus, the code of ethics was prety clear that board members are not to participate in anything that even gives the impression of impropriety leading to financial benefit.
CindyY1
(Florida)

Posts:7


04/14/2019 4:59 PM  
Maybe the correct term is benficiary of the Trust. Either way, this county does not make public names and contact info for those involved in a Trust.
SteveM9
(Massachusetts)

Posts:3362


04/14/2019 5:14 PM  
Posted By CindyY1 on 04/14/2019 4:53 PM
I know the Trustee's contact info was not public information.



So the lawyer who created the trust is also the HOA lawyer? Seems odd....

I could get the contact info of a trust pretty easily. I would simply write to the address on file for the tax bill, and if they responded, I now have their contact info.
GeorgeS21
(Florida)

Posts:1285


04/14/2019 5:35 PM  
Cindy,

Are you on the Board?

What proof do you have re how he got the trustee information?
MelissaP1
(Alabama)

Posts:8599


04/14/2019 7:48 PM  
How did the friend get it also? It wasn't just the president it seems. So if they were in line to be contacted about the trust, how did they find it? So far not seeing any undo influence by the President other than imposed opinion.

Former HOA President
CindyY1
(Florida)

Posts:7


04/15/2019 8:32 AM  
Posted By MelissaP1 on 04/14/2019 7:48 PM
How did the friend get it also? It wasn't just the president it seems. So if they were in line to be contacted about the trust, how did they find it? So far not seeing any undo influence by the President other than imposed opinion.





From the other parties to the Trust who did NOT share the contact info
GeorgeS21
(Florida)

Posts:1285


04/15/2019 8:39 AM  
OK - this is another dead end, I think.
JohnC46
(South Carolina)

Posts:8729


04/15/2019 10:05 AM  
Personally I see no problem. The person got the information prior to others and acted on it.
SteveM9
(Massachusetts)

Posts:3362


04/15/2019 4:46 PM  
Posted By CindyY1 on 04/14/2019 4:48 PM
Yes, he used his position to get the name and contact info of the Trustee from the HOA Attorney




Why would the attorney for your hoa have this info on a trust?
SteveM9
(Massachusetts)

Posts:3362


04/15/2019 4:48 PM  
sounds to me there are multiple people in this trust. someone talked.
RoyalP


Posts:0


04/15/2019 7:12 PM  
.... or the attorney SOLELY knows how to access the register of deed's records
SteveM9
(Massachusetts)

Posts:3362


04/15/2019 8:02 PM  
Well typically the registry of deeds lists the name of the trust, not the people in the trust. But who knows, it could have been listed in a document that got recorded.
RoyalP


Posts:0


04/16/2019 6:31 AM  
register of deeds - land records - county public records


eg.

https://www.horrycounty.org/apps/LandRecords/PropertyCard/46312010037
RoyalP


Posts:0


04/16/2019 6:34 AM  
oh noooooooooo

now y'all know where i live

(as publicly recorded)
CjC


Posts:197


04/16/2019 12:21 PM  
Deed paperwork would have been signed by the trustees and signatures could be seen there.
RichardP13


Posts:0


04/16/2019 12:53 PM  
Posted By RoyalP on 04/16/2019 6:34 AM
oh noooooooooo

now y'all know where i live

(as publicly recorded)



I knew it long ago!
RoyalP


Posts:0


04/16/2019 2:12 PM  
as i, you

ip addresses are public info

RichardP13


Posts:0


04/16/2019 2:49 PM  
Who's talking ip addresses. That's for kiddies.
RoyalP


Posts:0


04/17/2019 6:18 AM  
JohnS111
(New York)

Posts:165


04/20/2019 5:31 PM  
CindyY1, it looks kind of shady, but I'm not sure if there's clearly an ethics violation or recourse.

I'd be concerned with the HOA lawyer having a conflict of interest and disclosing client information. Both are big no-nos.

But the board member just was able to leverage connections as a result of the board member's position. Did the board pass a resolution or otherwise take any action to facilitate the board member's actions? Would the HOA itself have bought the homes, but was deprived from doing so? If the answer to both is "no", then it's tough to see what was done wrong.

I'd just bring this to the HOA members' attention and vote the person out of office.
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