WHY WOULD THE HOA PAY 2X THE MARKET COST FOR SHODDY PATCHUP WORK ON POSTS AND BEAMS? - LET US KNOW YOUR THOUGHTS!

The lack of the accountability is shocking in this case of waist!  

We are unhappy to see design modification Ron Culver made on our Cross Creek Village HOA"F/A Staircase". His design fetures unecessary enclosures of two sides, reduced amount of daylight on the steps and "SLAPDASH" patch up work done on our ratted beams and posts, for which we need to pay two times (2X) the market cost!

Doing this in god times is ridiculous. Doing this in this economy borders criminal and warrants the FRAUD INVESTIGATION.
Do we have the right to protest? ABSOLUTELY, it’s our money being wasted!  We want to know why is the Board silent about such shoddy work? Click on ALL the pictures below to believe your eyes. Review the pictures to confirm what quality of work we'll get for whooping $56,000 for construction, after Ron Culver took $19,000 for design. The project will cost us in the end about $75,000 in time when the necessary restoration work could have been done foir $30,000 or $45,000 cheaper if the Board did not refus three separate and credible $30,000 bids!  

<=== LOOK AT THE QUALITY OF THE OVERPAID WORK !!!!

THE COMMON PRACTICE: approved list of vendors for EVERY JOB  OVER $2,500.00 TO AVOID THE KNOWN  "REFERRAL KICKBACK" FRAUD SCHEME, which seems to be chronically going on in this complex (click above to read the article).  Prudent HOA Board avoids soliciting and accepting bids from related vendors and those with conflicts of interest (e.a. Architect should not be allowed to bring in his choice of contractors).

As a result of not following this common business practice a job that could have been finished for only $30,000 will be paid $80,000.00. In this (or any other)economy this is fiscally very irresponsible and we demand some answers!   

THIS IS WHAT WE LEARNED ABOUT STAIRCASE "F/A" JOB : It was reported recently that  David McGrath took initiative and brought in yet ANOTHER of his preferred vendors, Architect Ron Culver. To avoid appearing as someone who is making money bringing in his contractors, David reportedly suggested his vendor Architect should be allowed to manage other construction vendors and projects.  - How convenient! - Let  the vendor you brought in handle all the large construction work and just seat back, relax and wait for the share of the overage.  If this is not true, why was the $26,000 higher bid selected for this quality of work?  Why is David McGrath actively HARASSING everyone who speaks up about this wasteful practice? - David McGrath is welcomed to provide his feedback.  In the mean time, while we awaiting David's comments, he rumor and the logic has it that David  made arrangement with Ron Culver to bring in ccontractors he chooses for as long as he gets in the end his cut of the collected overage.  
THE CONSEQUENCES: Because the CCV Board solicited no "2nd Opinion" about Ron Culver's "design" which called for keeping vs. removing the unnecessary "moment frame" installed to support staircase when the wood was bad,  $20,000 more was spent for construction and $19,000 was spent on Ron Culver's creation of "design" that cost more to complete.

Instead of looking for an easy way to return the staircase to its original look and condition, which would also match the rest of the HOA's staircases, Ron Culver, in our opinion, took advantage of the HOA by presenting the (1) alliteration of the original look, and (2) about $39,000  higher cost for this project as best solution. To us, this sounds as self motivated decision. Such approach made Ron Culver more money on expense of the homeowners whos interest should be protected by the Board of Directors. Since their decision cost HOA $39,000 more, which is a pure waste of founds, we must conclude that this Board has failed our trust test by failing to utilized these $39,000 for other overdue projects!

DUTY OF CARE: The HOA has the legal obligation to maintain the common area. The Board Members has duty of care to select the best company for the job at the most reasonable price. This was not done by the current Board and we want to know WHY? To protect our interest, we the homeowners now kindly demand Board's FULL EXPLANATION!

SUCH GROSS OVER PAYMENT of $46,000 ($20K design + $26K construction overpayment) could have paid a yearly salary of an employee or could have been spent MUCH better TO FIX OTHER OVERDUE PROJECTS!  

LET'S BE REAL! WOULD YOU SPEND YOUR OWN MONEY IN SUCH MANNER?  Lets suppose you have three bids to remodel your unit for about $30,000; Would you pay $56,000 to complete the job?

Since no one is stupid when it comes to money, there is only one logical explanation. Based on the foregoing, it is our opinion that MAJOR OVERPAYMENT increases the chance that kickbacks are and will be involved in this transaction. - But if this is NOT true, we would REALLY like to learn why is the BOARD of educated people approving misguided, double the market bid  in time when the Board had three (3) other available bids at about 1/2 of what David’s vendor Ron Culver and David got HOA Board to approve! Again, David's Replay is welcomed!
A NEWSLETTER signed by David McGrath was posted in MARCH 2010 throughout the complex. It suggests he should be given a credit for "good management" and savings, which is in our opinion NOT DUE. The misinformation supports the rational behind it and counts on the idea that homeowners can be played and that homeowners will buy anything that mentions "saving" because they are either stupid, too busy or both. [Damaged wood will be patched and painted to look as it was replaced]

It exploits the fact that homeowners are apathetic and plain out naive to understand WHY would someone who represents himself falsely as “fighter for savings” want to overpay a simple project like this WHOOPING $26,000, after he let his vendor take $19,000 first for unnecessary design work?

Let's review the FACTS, Readers' Comments and what else is David NOT telling us:

OVERPAYMENT OF  50% ++ IS DUE TO RUDE ELIMINATION OF DUE COMPETITION. 
According to a report received from a resident who was present at the March 1, 2010 Board Meeting, David McGrath and Ron Culver harassed a member who brought in three bids for the same job, at about the half of the cost Ron Culver's contractor was about to take from us. The bids member brought was to replace ALL EFFECTED BEAMS AND POSTS at about $30,000. Ron Culver took away form the Board all competitively received bids and selected the company that wants whooping $56,000, we was informed, for a patch up work shown above.  Do you think this is KOSHER?

It was reported that Ron Culver charge CCV HOA $6,898.00 for Architectural/Design Work on January 15, 2010. Then on the same date he also got another check in the amount of $4,110.00 for more of the DESIGN WORK (two smaller invoices are harder to spot, which points even more that such billing is a SCAM) then on February 10, 2010 he get himself another $7,890.00 check, for a combined value of whooping $18,898.00 - ALL with David’s, Brian Martin's and Jen Meldola's Approval! 

BUT WAIT, DID DAVID IN THE MID TIME ALSO GOT SOME OF OUR MONEY DIRECTLY?

- On February 09, 2010 David McGrath got himself $1,196.00 check. We want to see the invoices ASAP!
- On February 10, 2010 David McGrath AGAIN got himself another $1,491.00 check, and then he got himself another checks, for $149.00, which we demand to see records why he took OUR MONEY.

As far as records are concerned, WE THE MEMBERS HAVE THE LEGAL RIGHT TO INSPECT records and this Board is denying us this right! They using the same tricks the previous Board USED TO HIDE BINO & NEDA FIROUZ SCAM!


Let see what our readers think about:
1. [ " Dear CCV Alliance, thank you for all the inputs…. Are they for real? What kind of Monkey Business this is? A full set of plans for a custom home cost $5,000.00 or less! Here we have a staircase that needs no plans for repair we need to do, and we are paying that guy Ron Culver almost $20K... that screams SCAM all the way to the penitentiary]
2. [ "I think this is only thanks to greed of the vendor and the "Trojan horse" we have on the HOA board. Why do we need Architect to bring in contractor?"]
3. [ "This is a SCAM worst then one we endured with BINO and NEDA FIROUZ! BINO used to charge us no more then $44,000 and that was WAY TO MUCH... in this economy this should be less then $30,000! - That guy David McGrath is a CROOK!]
4. [This guy is apparently ripping us off and this Board is not working for us but for their own pockets]!
5. [ People who requested to see records of what was paid was turned off by HOA new manager and was advised to call David McGrath.

The people have spoken…the truth cannot be silenced! This incompetent misappropriation of our funds is hurting us all and we need to START ACTING to prevent more losses!

Did we benefit from allegedly useful “moratoriums of spending” on maintenance? The answer is NO! The 15 acre complex needs CONSTANT MAINTENANCE. Every dollar you “save” today, by deferring the maintenance, will cost you 3 or more down the line. [Click to enlarge the picture to the right.] Dilapidation of real property works like a cavity or gingivitis in your tooth; if you don't FIX it today the filling will be larger down the line and you might even lose your tooth down the road. The same works for HOA "politicians", WHEN YOU SEE THEY LIE TO YOU, REPLACE THEM ASAP !

*All CCV Member's Comments are welcome! Click to learn more about FRAUD IN HOA.

Constitutional Rights and Restrictive Covenants

In 1971 the New Jersey Superior Court (State of New Jesey v. Kolcz) ruled that constitutional rights cannot be denied by any planned retirement community association, Rossmoor Community. The issue was one of a trespass complaint filed against persons seeking to distribute municipal campaign information to members of the community. An excerpt from the opinion, “Using the same reasoning as the Supreme Court, this court believes … that the present case involves defendants who were not engaged in commercial activity. It appears that persons endeavoring to disseminate political or religious information are protected by the Constitution, but those wishing to canvass an area for business purposes must yield to other considerations. The Supreme Court in Breard states that freedom of speech is not an absolute right, but must be adjusted to the rights of others. That right must yield whenever the attempt to exercise it is solely for the purpose of commercial profit. “This court believes that decisions relating to municipalities are equally applicable to Rossmoor, since it is in many essential regards a self-sufficient community.

These Case Against State Governments officers may believe that it is their duty to protect the Rossmoor residents from annoying or obnoxious sales methods, but the court cannot allow the corporation to decide to bar what it knows to be a bona fide political endeavor.” In short, the courts have upheld constitutional rights over company towns and private communities.

In the Arizona Appeals Court, (2 CA-CV 2001-0198), an opinion was given that bears directly on the issue of the delegation of legislative powers. The court said, “The legislative authority of the State shall be vested in the Legislature . . . . it is a well established theory that a legislature may not delegate its authority to private persons over whom the legislature has no supervision or control.

“The legislature cannot abdicate its functions or subject citizens and their interests to any but lawful public agencies, and a delegation of any sovereign power of government to private citizens cannot be sustained nor their assumption of it justified.”

George K. Staropoli
Citizens Against Private Government HOAs
http://pvtgov.org/
pvtgov@cs.com

CONDO FINANCING - HUD/FHA APPROVAL UPDATE

A COLLAPS OF MORAL VALUES AND COMMON SENSE...

In November 2009, the Federal Housing Administration issued new requirements outlining their lending requirements for condominium associations.
U.S. Approvals, a company that provides HUD/FHA and VA project review services published an updated summary of the requirements.

If you want to know why the housing market collapsed, which led to a world-wide recession and the new FHA restrictions, we recommend A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers by Lawrence G. McDonald. It is a riveting story.

DAVID A. McGRATH EMPLOYS FRIENDS IN VIOLATION OF CCV POLICY !!

David A. McGrath.... AGAIN! A credible new report came from the source close to CCV office alleging David A. McGrath is up to his old tricks and has LIED AGAIN to CCV homeowners in November 2009 Newsletter, where he said:

“Effective immediately, I have instituted a moratorium on spending; exceptions are allowed for life safety issues and emergencies.”

THIS IS NOT TRUE!  Right at that time, David engaged HOA in a unecessary new lawsuit, which cost the association a ton of money, thanks to his personal vendettas.   -  "Inasmuch that David defies all of us, and is abusing the office (e.g. by hiring and signing contracts with friends in violation of CCV Policy and Bylaws, without countersignature of the Board's Secretary), David McGrath lacks the authority to “institute” anything without the Board's approval. " - Says received Report!

To circumvent our Bylaws, David acts perfidiously Behind the back of the Board and has stepped up check writing to an attorney (Raymond Szu) with whom, we heard, David made a deal to have him support his vendettas at homeowner's $$$. "This is inappropriate David McGrath, you must STOP abusing the office . STOP bringing in and overpaying your friend janitor ...what's his name, Chris?", David  was recently admonished in public.  - In November and December alone David aranged the payments to Raymond Szu, in the $14,000 range, asking him to file costly motions, which is the same type of  squandering Pat Smith was doing with Adrian J Adams, Esq !!!- IF we are to recover, we cannot have dishonest Board Members bringing buddies to work here, and that’s what David is seemingly doing by overpaying friends to get them to share some profit with him.

These are the checks (miss)used for that purpose:

                    Check #            0003142         $3,645.00
                    Check #            0003145         $2,000.00
                    Check #            0003200         $7,987.50
                                                             ---------------------
                                                                 $13, 632. 50

Fact that these checks were issued without proper Board approval duly raises very serious concerns.  Why is HOA treasurer going along with this inaproriate act? If this is true, the Board have lost control of our money and is letting check holders write the checks to whoever and whenever they wish, without deliberating underlining issues and voting to legitimize each of the new expenditures, which is the legal standard.

We urge the Board to STOP DAVID'S ABUSE and investigate his habit of hiring friends as vendors and check writing practice to same people, which in order to get on our payroll, David allegedly missrepresented as "Cheep" to the Board of directors !!!  

We like to thank Mark Montgomery for his efforts to keep the public informed. Mark, we like your blue font, keep the messages comming. Please email the alliance the check numbers and amounts paid to David's vendor Chris (janitor)!!.  - David and the Board treasurer could not be reach for comments. Nevertheless, both of them are invited to post  here or send email to explain this alarming behavior!

It is interesting how people have double standards and are not even ashamed about that. Several months ago our treasurer was very adamant about firing Dana, our office assistant because she was less then truthful … OK , the lady lies so what? You are seating on the Board with the big liar and you are not bother with that… please explain, dear Lady Treasurer, why do you have “double standards”?

Mark is right! David and his cosigner could and should be held responsible to return our money to the association's bank account, if in fact, it is determine that payments they initiated did not come with proper approval of the Board of Directors and that is what we were informed.

ADRIAN J ADAMS, ESQ "FIRED", PAT SMITH RESIGNS TO AVOID "THE BOOT" !

The prize goes to Board members Fred Gharib, Brian Martin and Jen Mendola for taking decisive steps to eliminate drainage of our founds caused by disloyal activities of Board member Pat Smith A-1125.

We beleive that for many years Pat Smith was an Adrian J Adams' “employee” and a "cuppler" who collected in secrecy percentage from EACH "legal" bill Adams submited to HOA for bullying and harassing homeowner, other "legal" shenanigans or simply nothing.
To ensure that she and her cohorts were permanently installed on the Board in perpetuity by concocting bogus reasons for disqualifying alternative candidates at future elections, Pat Smith and Adrain J Adams, Esq came up with the new twisted “Member in Good Standing” policy, which is one of Pat's  latest tricks coming on the heels of her June 30, 2009 ELECTION FRAUD she staged in concert with  CAI trained manager Mark Montgomery and dishonest lawyer  Karen Nagad, Esq who reportedly harassed our residents and lied in court blatantly on top of fabricating evidence. This are all FACTS!

To discourage reading, Pat Smith presented proposed changes in "pale green typeface" hoping the current Board Members are stupid and would not “catch her drift”. She was wrong!

Pat’s "CC&R committee" coast us money and should be terminated in Oct 20th open sesion. With Pat Smith gone, the only treat to our founds left on the HOA Board of Directors is David Mcgrath. Read more below! 

ADRIAN J ADAMS, ESQ - HE DID IT AGAIN - SAME STORY DIFERENT HOA !!!!

The CCV Alliance was informed about yet another major HOA lawsuit being filed against SPECIFIC BOARD MEMBERS in the prestigious 136 unit Malibu Bay Club (Case#Case Number: 56-2010-00374836-CU-MC-VTA  Case Title: Gelberd et al., v. Sandbach et al.)

 The complaint alleges that Board President and certain disloyal Board Members "Control Group" hired Adams Kessler, PLC to advice them how to hide everything in "executive sessions" and more. The Board Members overpaid Adrian J Adams, Esq and hired family members and friends contractors in an alleged attempt to self-benefit from self-dealing. [ Similar story happened at Cross Creek Village]. Our old friend , ruthless harasser Adrian J Adams, Esq, is mentioned in the Complaint but was not sued (yet) directly, pending discovery in the above entitled case.  This is the same Adrian J Adams, Esq who got kicked out of Cross Cross Creek Village for engineering election fraud and harassing homeowners and certain Board Members.  As it appears, Adrian J Adams, Esq is on the radar of several diligent attorneys willing to go all the way to put him on the Fast Track for disbarment.  If you have any personal knowledge about this troubling condo lawyer, please contact attorney Lottie Cohen, 3637 Motor Avenue, Los Angeles, CA 90034-4883. We are fully supporting all legal efforts to use available evidence regarding Adams' ruthless intimidation, over billing, harassment, and more in favor of disbarring Mr. Adrian J. Adams, Esq as soon as possible. 

Speaking about disbarment of unethical lawyers, the CCV Alliance was recently informed abut another overdue referral being filed with California BAR Chief Trial Counsel. Referral was made due to his alleged misconduct  at Cross Creek Village HOA by a Santa Clarita attorney Raymond Szu - click on the picture to the right to enlarge!  David McGrath hired this avid poker player and lawyer to torment and harass specific homeowners tso o please David and his next door neighbour Jen Meldola because they dislike certain national backgrounds and religion and because this homeowners asked why is David McGrath receiving HOA money? 

The investigation is pending and we hope to see the alleged abusers of HOA position properly reprimanded.