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14 Guilty in HOA Takeover Scheme
WASHINGTON – Fourteen individuals pleaded guilty yesterday in the District of Nevada for their roles in the scheme to fraudulently take control of various home owners’ associations (HOAs) in the Las Vegas area.
According to plea documents, the defendants each pleaded guilty to one count of conspiracy to commit mail and wire fraud. The defendants who pleaded guilty today include: Rosalio Alcantar, 60; Patrick Bergsrud, 43; Robert Bolten, 44; Glenn Brown, 52; Paul Citelli, 59; Michelle DeLuca, 51; Charles Hawkins, 51; Sami Robert Hindiyeh, 54; Lisa Kim, 47; Brian Jones, 38; Morris Mattingly, 51; Frank Sutton, 58; Anthony Roy Wilson, 34; and Jeanne Winkler, 44.
The fraud scheme operated from approximately August 2003 through February 2009 with various co-conspirators joining that scheme at different times. The conspirators operated the scheme to direct construction defect litigation and repairs at condominium complexes to a particular law firm and construction company.
In order to accomplish the scheme, certain co-conspirators identified HOAs that could potentially bring construction defect cases. Once identified, the co-conspirators enlisted real estate agents to identify condominium units within the HOA communities for purchase. The co-conspirators then enlisted individuals as straw purchasers to use their names and credit to purchase condominiums in the complexes.
Bergsrud and Wilson admitted in their plea documents that they acted as real estate agents for the purpose of identifying units in HOA communities for use by the co-conspirators and to assist with the property transfer documents. Wilson also assisted the conspiracy by developing ways to increase capital, such as refinancing some of the units to recapture the down payments and other fees, and also in managing the finances for the properties.
Alcantar admitted that he opened, operated and managed five bank accounts on behalf of the co-conspirator construction company owner, using names of shell limited liability companies for the purpose of concealing the identity of the individuals funding the conspiracy. Alcantar managed the transfer of more than $8 million during the time period of the conspiracy, including deposits made from the co-conspirator construction defect attorney.
According to plea documents, the payments were often wired between California and Nevada. The defendants admitted that the co-conspirators provided the down payments and monthly payments to the straw purchasers, including HOA dues and mortgage payments, and that various false and misleading statements were made to secure financing for the properties.
A total of 14 individuals pleaded guilty in the District of Nevada for their roles in the HOA takeover scheme. The individuals will face sentencing at a later date.
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Key Facts
- State: Nevada
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release ↗
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