Rose Kasande Bailey, Embezzlement, Virginia 2024

Alexandria, Va. - A Warrenton woman was sentenced to two years in prison for wire fraud involving the pilfering of over a million dollars from homeowner associations (HOAs) she managed.

Rose Kasande Bailey, 60, formed Rosewood Management and Consulting Services, LLC, a property management company in Fairfax that specialized in property management for HOAs. As of March 2023, Rosewood provided management services to over 70 HOAs in Virginia, including properties in Lorton, Reston, Falls Church, and Leesburg.

The HOAs contracted with Rosewood to collect dues from residents to maintain and repair the properties and common areas. Rosewood maintained two operating bank accounts, while each HOA opened one or more bank accounts into which dues and fees were deposited. Bailey maintained signing authority over all Rosewood accounts as well as HOA accounts. Rosewood was required to receive HOA board approval for any single unbudgeted disbursement in excess of $1,000.

In May 2018, Bailey began transferring funds from certain HOA bank accounts to Rosewood bank accounts to cover expenses that were not approved by HOA boards. The illicit transfers, totaling approximately $1.1 million, were used to cover Rosewood payroll and business rent expenses, credit card payments, Bailey’s personal expenses, and payments on business loans associated with Bailey acquiring a new HOA management firm.

When HOAs requested updates on their operating accounts, Bailey provided altered bank statements to conceal the transfers. Prior to the discovery of Bailey’s theft, one of Rosewood’s HOAs decided to seek new management. To account for her illicit transfers, Bailey provided falsified bank statements and transferred $600,000 from other HOA bank accounts to make the departing HOA whole.

Rose Kasande Bailey, the 60-year-old Warrenton woman, was sentenced to two years in prison for wire fraud. The crime occurred in Virginia, and the sentencing took place on March 21, 2024. The exact date of the crime is May 2018. The total amount embezzled was over $1 million.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-187.

Source: https://www.justice.gov/usao-edva/pr/warrenton-woman-sentenced-two-years-prison-embezzling-over-1m-homeowner-associations