A COMMUNITY of retiree members are outraged that a homeowner’s association treasurer avoided jail time after pleading guilty to stealing more than $230,000.
Federal prosecutors said Sharon Lee Ann Gordon, the treasurer of the Lava Bluff HOA in Hurricane, Utah, about 300 miles southwest of Salt Lake City, took advantage of the community for years.
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Prosecutors said that between 2016 and March 2022, Gordon drained $232,078 from other members’ accounts for her personal benefit.
Gordon, 66, stole money from accounts designated for the Lava Bluff HOA’s street repairs, savings, general operating costs, and the community’s RV lot expenses.
She embezzled the funds by forging board members’ signatures and transferring the money to her account.
Gordon also withdrew cash from the HOA accounts and wrote checks to herself, her boyfriend, and casinos, according to court documents.
When the HOA board detected Gordon’s scheme, a lien was placed on her home.
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The move led to Gordon selling her home and paying the HOA $168,629 after she signed a note claiming she would repay the amount she stole, according to prosecutors.
“She exploited a community full of fixed-income retirees attempting to enjoy their hard-earned golden years,” prosecutors said.
“She repeatedly stole from her neighbors. Conduct like this affects more than money – it diminishes common bonds of trust.”
Prosecutors said Gordon also falsely claimed on her April 2022 tax form that her income for 2021 was $13,502.
Her income was at least $20,000 more than that figure.
Gordon pleaded guilty to wire fraud and a false statement on a tax return.
She was sentenced to one year and one day of home detention.
Gordon will be on probation for three years following her home detention release.
After her sentencing, Judge Robert J. Shelby ordered Gordon to pay $20,490 in restitution to the IRS in addition to the $63,448 she still owes to the Lava Bluff HOA.
What is an HOA?
One in five Americans live in an area with a Homeowners’ Association – or HOA. But what exactly is it that they do?
- An HOA is a homeowner’s association – an organization that aims to maintain a clean and cohesive place to live for its residents.
- Entire neighborhoods, subdivisions, condominiums, family homes, or townhouses within “a planned development” will often make up an HOA.
- They also act as a governing body for tenants, who run and fund the HOA through monthly fees.
- Their principal aims are to keep the community functioning and visually appealing and to maintain property values.
- They primarily focus on common areas of a neighborhood, such as roads, parks, and pools – but may also stipulate what residents can do with their properties, such as yards and driveways.
- Often these restrictions enforce uniformity on properties, for example, ensuring most houses look the same and all driveways are clear of weeds.
- An HOA rulebook of covenants, conditions, and restrictions (CC&R) is distributed to all residents, and an elected volunteer board of directors enforces these regulations.
- Breaking these rules can result in penalties such as fines and even litigation – as most HOAs are incorporated and subject to state law.
- HOAs are often the subject of controversy, with some members feeling that the rules are too punitive and restricting, or that the leadership has too much power.
- But others like that HOAs give communities the power of self-governance, and can ensure a degree of harmony between residents.
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