Ethics violation and recourse

The president of our HOA has been using his position and the inside information his position affords him to gain access to homes well below market value then rehab, flip and sell for top dollar.

He recently back doored a purchase where he knew another member of the community (who doesn't have his insider info) was trying to buy. The property was in a complicated Trust but he used his position to locate the one Trustee who wanted to cut out the other members. Like I said, complicated.

Reasearch into HOA board member ethics seems pretty clear .... his behavior appears to be a direct conflict of interest and ethical violation.

"Conflicts of interest also arise when a director, or a member of his or her immediate family1, receives improper personal benefits as a result of his or her position as a director of the Company.”

"No Board Member may use his/her position into enhance his/her financial status through the use of inside information derived from being a member of the board."

"Any Board members conduct, particularly the Presidents should be above reproach and avoid the appearance of impropriety."

Is my evaluation of this persons behavior accurate and is there any recourse?

Is this an ASSUMPTION because they are a board member/officer? For example, our HOA foreclosed on a property due to non-payment of dues. The process of foreclosure requires 3 months of PUBLIC notification printed in a PUBLIC resource. In our area that is the classified ads on Wednesdays for legal notices. So foreclosures/liens are PUBLIC noticed as part of the process. Or course a foreclosure stops as soon as the money owed is paid...

So for you to say "Insider" information, may not necessarily be accurate. Unless this person is intentionally foreclosing on homes on the behalf of the HOA to purchase homes, then that is ethical issues. Otherwise, you can't stop someone from PUBLIC sourced information and then claim it's insider knowledge. They just happen to know where to resource the information.

Yes, he used his position to get the name and contact info of the Trustee from the HOA Attorney

Maybe the correct term is benficiary of the Trust. Either way, this county does not make public names and contact info for those involved in a Trust.

Cindy,

Are you on the Board?

What proof do you have re how he got the trustee information?

From the other parties to the Trust who did NOT share the contact info

Personally I see no problem. The person got the information prior to others and acted on it.

sounds to me there are multiple people in this trust. someone talked.

Well typically the registry of deeds lists the name of the trust, not the people in the trust. But who knows, it could have been listed in a document that got recorded.

oh noooooooooo

now y'all know where i live

(as publicly recorded)

I knew it long ago!

Who's talking ip addresses. That's for kiddies.

CindyY1, it looks kind of shady, but I'm not sure if there's clearly an ethics violation or recourse.

I'd be concerned with the HOA lawyer having a conflict of interest and disclosing client information. Both are big no-nos.

But the board member just was able to leverage connections as a result of the board member's position. Did the board pass a resolution or otherwise take any action to facilitate the board member's actions? Would the HOA itself have bought the homes, but was deprived from doing so? If the answer to both is "no", then it's tough to see what was done wrong.

I'd just bring this to the HOA members' attention and vote the person out of office.