Board Member Taking Bribe! Florida

What law did they actually break? HOA law or real world law? If it's HOA law, then look at your CC&R's to see how to handle the situation. There is a line between HOA rules and actual State/Local laws. Don't mix the two up.

The situation is concerning a bribe taken by one of the homeowner board member to obtain his vote for HOA money to be turn over to the builder of $335,000 from the HOA Capital Improvement Fund for replacement of a clubhouse roof in exchange for the builder buying his house from him. The HOA has been turned over to the homeowners. There are three (3) board members, two for the homeowners and one for the the builder.
The bribe is all documented in county records.

The clubhouse is under construction and should be completed by the end of this year.
The other homeowner board member resigned over it, in the beginning they both were opposed to given them the money then all of a sudden the one board member changed his mind so abruptly.

The second homeowner board member that resigned I didn't know that the builder bribe the other board member to get his vote and purchase his house that is up on Lake County public records.. He was just mad that he changed his mind so quickly. At the time there was a lawsuit filed by the HOA against the builder over this matter and another matter and the board member that they purchased his house dropped the suit against the builder and he then resigned.

In Florida the statute that this would pertain to is 617.034, below.

617.0834 Officers and directors of certain corporations and associations not for profit; immunity from civil liability.—
(1) An officer or director of a nonprofit organization recognized under s. 501(c)(3) or s. 501(c)(4) or s. 501(c)(6) of the Internal Revenue Code of 1986, as amended, or of an agricultural or a horticultural organization recognized under s. 501(c)(5), of the Internal Revenue Code of 1986, as amended, is not personally liable for monetary damages to any person for any statement, vote, decision, or failure to take an action, regarding organizational management or policy by an officer or director, unless:
(a) The officer or director breached or failed to perform his or her duties as an officer or director; and

(b) The officer’s or director’s breach of, or failure to perform, his or her duties constitutes:
1. A violation of the criminal law, unless the officer or director had reasonable cause to believe his or her conduct was lawful or had no reasonable cause to believe his or her conduct was unlawful. A judgment or other final adjudication against an officer or director in any criminal proceeding for violation of the criminal law estops that officer or director from contesting the fact that his or her breach, or failure to perform, constitutes a violation of the criminal law, but does not estop the officer or director from establishing that he or she had reasonable cause to believe that his or her conduct was lawful or had no reasonable cause to believe that his or her conduct was unlawful;

2. A transaction from which the officer or director derived an improper personal benefit, directly or indirectly; or

3. Recklessness or an act or omission that was committed in bad faith or with malicious purpose or in a manner exhibiting wanton and willful disregard of human rights, safety, or property.

(2) For the purposes of this section, the term:
(a) “Recklessness” means the acting, or omission to act, in conscious disregard of a risk:
1. Known, or so obvious that it should have been known, to the officer or director; and

2. Known to the officer or director, or so obvious that it should have been known, to be so great as to make it highly probable that harm would follow from such action or omission.

(b) “Director” means a person who serves as a director, trustee, or member of the governing board of an organization.

(c) “Officer” means a person who serves as an officer without compensation except reimbursement for actual expenses incurred or to be incurred.

History.—s. 54, ch. 90-179; s. 92, ch. 97-102; s. 33, ch. 2009-205.

My question is there an agency or place or person that I can go to have this investigated and take the proper action.
Thanking You In Advance,

Thanks for the information.

The current law suit is in regards to enforcement of a precious agreed mediation with the HOA & the Builder and myself a homeowner. I won in the first mediation.
The second suit is for enforcement of the first mediation. The HOA & Builder violated the agreed to first mediation. The first mediation was court ordered and resulted in a agreed settlement court order signed by the Judge.

For what ever reason they feel that they don't have to follow the court order agreement. I am confident that we will prevail in the enforcement suit. We have agreed to go into mediation again per their request. In Florida the law states that we are not required to go into mediation for the
enforcement of a precious agreed mediation, but we agreed we will per their request.

My comment is in Florida even thought board members breaks the law and this applies to any board members that volunteer's, they will not and can not be prosecuted. If anyone is reading this and you are from Florida and you know of a way that if a board member break the law such as taking a bribe and receive something of personal benefit how can they be investigated and prosecuted.

I believe the board members can be held personally liable is if they act outside of their capacity of a board member, and in your case, they took a bribe and sold their personal property to vote a particular way. I would think that you might have a case but I would consult a lawyer experienced with this kind of matter.

IMO, I would not have gone through mediation and instead continued with a lawsuit. You won mediation the first time and they needed to abide by it. It seems they were unhappy with the results and wanted a do-over. Now by agreeing to mediation again, I would think there is a risk that either they win or them erasing any liability the individuals may have had. If bribery is not beneath them, who knows what else they will do in their second mediation.

Tell me about it. It seems they can do whatever they want and get away with it as long as nobody ponies up the cash to fight it in court, and who has that kind of money?!!

I had a situation where the HOA was threatening legal action against non-members for not paying them. Their lawyer admitted to another association that what they were doing was a "legal gray area" but that didn't stop them from trying to enforce their rules. They wound up losing in court.

I say take them to court. This is your community so if they are willing to break the law for personal gain, who knows what they will do with your community (and its money) in the future? Your neighbors should be outraged as well.

Just keep up holding their feet to the fire. It may make you unpopular but at least you are doing the right thing.

The homeowners are outraged over the whole situation.

I have been on a few boards before and also president of one. I know it may be unpopular but I am concern about doing the right thing. I have never seen anything like this before, I can't believe that people can be so evil. People like this makes it look bad for the many board members that are doing a great job.

Our community is one of the ones where the first builder went under and this is the second builder, they purchase it from the bank that held the loans from the first builder.

Thanks for everyone's comments I appreciate it. There is no doubt in my mind we will win in court for enforcement of the first mediation, court order. I just don't think they should be allowed to get away with their illegal actions.

I am confused..If the board member sold their home then they are no longer a HOA member. Do they own a second property/home? If the owners are in control then the builder should be considered just another member of the HOA and not have special voting/position rights. Must have gotten elected to be on board. did you all not modify your docs when took over? This would have eliminated the two voting system when builder was in charge. Just asking as confused....

How was the HOA able to conduct business without a full board?

I still don't see it...The builder bought the board members home then he would have to resign and move. He would no longer be qualified as a HOA member. You don't own a home then your not a member. If the HOA is truly owner controlled, then the builder wouldn't be on the board unless elected. They don't automatically assume the board position if they buy a board members house. Something here doesn't ring accurate as an owner controlled HOA would no longer be connected to the builder/developer. Seems some rewriting of the CC&R's need to be done on that aspect.

You stated the clubhouse has not been finished yet. Was this not a builder requirement before it was turned over? Would this not be the very reason for the money to be given to the builder? If they have not finished everything, then this money should be going to finish the projects. That would be the clubhouse and any other amenities.

There just seems to be a disconnect here in information. It doesn't quite make sense to claim bribe if by the board member selling their home to a builder when that board member would automatically lose their right to vote or position. What benefit did they get or the builder? A sold home and a position on the board? Not too illegal sounding to me....