Casa Grande AZ - According to a piece published in the Arizona Capitol Times,
a Casa Grande homeowners association was placed in receivership, following allegations that board members drained funds for their own benefit - including what was described as the “theft” of more than $600,000."Last month, the Receiver filed charges of breach of fiduciary duty, breach of ethical duties, disgorgement, professional negligence, aiding and abetting, and breach of contract against the Maxwell & Morgan law firm as well as against Maxwell and his wife, personally.
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Except for the breach of contract, the above charges are torts — wrongful actions — permitting a claim for punitive damages, which the Receiver is seeking. Filing tort claims and seeking punitive damages against the HOA and the individual directors is the only effective means today that homeowners have against abusive boards.
The law firm for the Receiver is Cheifetz, Iannitelli and Marcolini
The article states that
along with other reasons, Olson cited a board member’s unauthorized withdrawal of $665,000 from association’s account.
“The court finds that the parties controlling the DC Lot Owners Association were grossly negligent in failing to protect to, protect, preserve or detect these withdrawals, which constituted the bulk of the liquid assets of the association,” Olson said in his order. “This alone justifies the appointment of a receiver.”
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