Friday, September 30, 2016

Letter to CAI CEO Thomas Skiba on 1st Amendment and cybersecurity risks of Central Arizona CAI web site

Quote of the day:
     "I can be your best friend or your worst enemy - take your pick!"
          - A US Marine
Mr. Thomas Skiba
Community Associations Institute
Chief Executive Officer
6402 Arlington Blvd., Suite 500
Falls Church, VA 22042

Dear Mr. Skiba
I am writing to you as the CEO of the Community Associations Institute. Because you have a renegade Chapter here in Arizona which needs some help. If this pattern is repeated elsewhere, it would appear your whole organization needs some help and attention.
I just received the unsigned letter attached from the Board of Directors of the CAI Central Arizona Chapter of which I’m a fully paid up member. Click HERE . It threatens “action”.  As two of the Directors are attorneys, I must assume they meant that as a threat, as it is a legally defined term in Arizona law. Their Social Media Policy referred to is a constitutional constraint running directly counter to the First Amendment.   
The postings referred to are factual. To the extent any of your members have been decried in public, it is with just cause. A large part of the industry are hardworking contractors and supplier. But attorneys, management companies, banks, realtors, insurers and other professional advisers are fair game if their practices do not meet standards. And the financial cost in 2008 to the FDIC in Arizona alone from two banks closely associated with your industry (First National Bank of Arizona & Desert Hills) cost the taxpayer almost $968 million. That’s hardly minor and the result of ongoing practices which urgently need legislative and regulatory action.
The blog as it clearly states has a purpose in effecting legislative change. As such it clearly falls within the definition of the Arizona anti-SLAPP statute in ARS 12.752 Click HERE. Having won the first right to petition anti-SLAPP case in California in 2004, rest assured I’m very comfortable that it protects not just my blog, but any individual seeking legislative or administrative relief. See below which defines the right of petition:
12-751. Definitions
In this article, unless the context otherwise requires:
1. "Exercise of the right of petition" means any written or oral statement that falls within the constitutional protection of free speech and that is made as part of an initiative, referendum or recall effort or that is all of the following:
(a) Made before or submitted to a legislative or executive body or any other governmental proceeding.
(b) Made in connection with an issue that is under consideration or review by a legislative or executive body or any other governmental proceeding.
(c) Made for the purpose of influencing a governmental action, decision or result.
2. "Governmental proceeding" means any proceeding, other than a judicial proceeding, by an officer, official or body of this state and any political subdivision of this state, including boards and commissions, or by an officer, official or body of the federal government.
3. "Legal action" means any action, claim, cross-claim or counterclaim for damages that is based on the defendant's exercise of the right of petition.
The letter also infers that emailing has continued after requests to unsubscribe. I have followed the FTC guidelines. I have a system for automatically removing email addresses which, with only one exception, has been rigorously followed. Unfortunately, many do not respond as requested. Their letter also mistakenly assumes where data is collected. Information is readily available on the web. See the attached obtained openly for your Nevada and Pennsylvania Chapter where I’m certainly not a member. Click HERE
More importantly, I’m extremely careful using their site for security reasons. Firstly, I discovered very early on their web site is not encrypted. It is http – not https. More importantly my log in details eventually allocated to me after a long wait were my email address as user name and password as WELCOME. Frankly that's stupid because people rarely change their passwords enough. To test it I used a few email addresses for CAI members known publicly and the word WELCOME. See the photos of the CAZ web page in May after I logged in for Messrs. Bolen, Hazlewood, Ekmark, Carpenter of Carpenter Hazlewood, and May and Thomas of Amcor. Click HERE They had never changed their passwords and have been members for years.
Frankly, in my opinion neither Mr. Bolen or any of them are the brightest light bulbs on the Christmas tree. But he’s been President of the Chapter and they are now throwing darts at – ME?  They are abusing members’ information as the Media Guidelines also state:
Confidential Information - You may not disclose any sensitive, proprietary, confidential or financial information about the organization.
Can I please have my money back until they understand cybersecurity? Are you also prepared to do the same for other members who should be indignant?

John Sellers
On behalf of the Arizona Homeowners Forum
Chapter President, Linda Van Gelder, ALPHA Community Management
Chapter President-Elect, Mark Wade, Leisure World Community Association
Vice – President, Jenna Perkins, CCMC
Chapter Secretary, Toni Rudolph, First Citizens Bank
Chapter Treasurer, Jeff Reynolds, Messina Homeowners Association
Chapter Directors
Augustus Shaw, Shaw & Lines, LLC
Josh Bolen, Carpenter Hazlewood, Delgado & Bolen
Suzanne White, Paramount 911 Restoration and Construction
Martha Bails, Sun City Grand

Tuesday, September 27, 2016

A letter from the Community Associations Institute needing prompt attention

A very disturbing unsigned letter was received from the Board of the Central Arizona Chapter of the Community Associations Institute today.
If you'd like to see a copy of the letter click HERE We intend to, not only give it prompt attention, but our undivided attention - immediately. Watch this space.
Any one of the current CAZ CAI Board below could have signed it - who knows?

Chapter Directors
Chapter President-Elect

Leisure World Community Association
Augustus Shaw IV, Esq., CCAL
Shaw & Lines, LLC
Vice - President

Jenna Perkins, CMCA, PCAM
Josh Bolen, Esq.
Carpenter Hazlewood, Delgado & Bolen, PLC
Chapter Secretary

Toni Rudolph
First Citizens Bank
Suzanne White, CMCA, AMS
Paramount 911 Restoration and Construction
Chapter Treasurer

Jeff Reynolds, CMCA, AMS
Messina Homeowners Association
Martha Bails
Sun City Grand

Friday, September 23, 2016

Prescott HOA Management Company President arrested for embezzlement

The article below appeared in the Prescott Courier yesterday. We've reprinted it rather than posting a link because of the newspapers persistent practice of censoring factual postings which they might not like.
PRESCOTT – The president of the Liberty Management Group was arrested Wednesday, Sept. 21, and charged with embezzling more than $250,000 over 10 years from The Mountain Club, which, until Sept. 1 had been a long-time client of Liberty.
Joshua S. Lethbridge, 49, was taken into custody and charged with multiple felonies including fraudulent schemes and artifices, nine counts of falsely making a written instrument, and six counts of theft with intent to deprive of property.
According to a memorandum from The Mountain Club’s board of directors, obtained by The Daily Courier, “The Board met with the principal of Liberty Management Group on Sept. 2, 2016, and were told that over $250,000 had been embezzled from The Mountain Club ... over the course of a decade,” the memo said.
An email from Club President James Poore outlined the reasons the Club took its business from Liberty to another company; they all fell into the general category of customer service.
The Club learned of the bookkeeping discrepancies when representatives went in on Sept. 1 to take back “dozens of boxes of files and other records,” Poore said.
In an email, Poore said, “This is a sad month for us. Liberty Management had been a mainstay of Mountain Club administration for 15 years or so and had provided continuity to the Board over various make-ups of Directors … The Board to a person was absolutely astounded to learn of the theft.”
The Mountain Club is the oldest planned community in Arizona, Poore said. It now contracts with a different management company.
The Daily Courier’s attempts to reach the Liberty Management Group Wednesday were unsuccessful

Tuesday, September 20, 2016

Farnsworth Working Group HOA Legislative Changes

You may know this from postings on our blog but the monthly meetings hosted by Senator Farnsworth are making significant progress with a tight timetable for legislative changes on HOA issues in Arizona. If you wish to be part of this work group the meetings are held monthly. Apart from public blogs, there is also a private Google Group which is being used to organize the work effort.
If you’d like to receive an invitation to join that group, which is a work group, not a gripe group, please read the Ethics guidelines below, agree to them by return email and you’ll receive an invitation.You’re invited to join this group to enable major changes to Arizona HOA’s.

I agree that our Ethics Committee includes every Group member and that I will respect and represent the following:
I’m an Arizona Homeowner dedicated to change
I will do my best to:
Explain things the way they are – not the way I’d like them to be.
Walk towards problems.
Trust but verify – especially with people.
Observe transparency and laws at all times.
Behave to others as I would have them behave to me.
Be frank but polite. If I think it – I will say it.
Allow team-mates the space to fail.
Only use white lies on occasions to save hurt feelings.
Keep confidences, user names and passwords of this site and deliberations confidential unless agreed otherwise
Not post anything my attorney would regret, nor anything I would regret.
Conflicts are a sign of a busy people – I’ll declare them.
Treat $1 of cash the same as a $1 million bribe.
Never ask someone to do something I would not do in their place.
I also understand that if it crosses my mind I committed an ethics violation – I probably did

Thursday, September 15, 2016

Complaint re Amcor to the City of Prescott Police

The complaint filed against Amcor is to be found below. A detective has been assigned to investigate.
To: Ms. Debora Black
City of Prescott Police Department

You may have seen various emails where I offered the President of Amcor, Dennis May, the opportunity to respond to certain irregularities in their management of the Crossings at Willow Creek HOA’s cash. He has not responded and therefore I wish to file an official complaint.
Per the attached credit card statements, I made two payments to the Association using my credit card on 1/12 and 2/12.  Instead of going to the HOA’s account, they went Amcor. Wells Fargo confirmed these moneys went to Fifth Third Bank which has no connection with the HOA we know about.
Amcor recently supplied me with copies attached of the General Ledger for the 7 months to July 31.
As a trained banker in forensic accounting I can find no evidence this payment ever made it to the HOA’s account.
Amcor can be located via their web site at
Separately, the HOA, Amcor and their attorneys, all of whom resigned suddenly are under an order from the Arizona Dept of Real Estate to release certain records to me, particularily related to bank accounts. They have not respond.
I’ve also copied the Scottsdale Police Department as AMCOR is based there.

Monday, September 12, 2016

City Property Management - "Your nuts!"

Is that “Nuts” as in Bastoigne?
The Arizona Homeowners Forum
Visit our blog at
From: Ken Falltrick []
Sent: Monday, September 12, 2016 8:16 AM
To: John Sellers <>
Subject: Unsubscribe

Your nuts!  Take me off of your contact lists

Ken Falltrick, CAAM | Account Services
City Property Management Company  |  "We Can Manage"
Main:  602-437-4777, Ext# 2475 | Fax:  602-437-4770
4645 E. Cotton Gin Loop   |  Phoenix, Arizona   |   85040

Sunday, September 11, 2016

Email to Patti Garvin - City Property Management CEO

Ms. Garvin
You are a licensed realtor and as far as I know, run City Property Management. You are certainly the Statutory Agent for over 150 HOA's on the ACC web site. I'm having a little trouble understanding Mr Lincks' text.
In response to what I think may be his question, there are quite a few Arizona cases involving faulty HOA disclosure. To put it mildly.
Please see the attached which is part of a database we have developed of over 7,000 Superior Court cases in Arizona obtained from recent bulk data downloads from the three branches of the Arizona Supreme Court. Click HERE All of these involve HOA's and/or the group of so called "HOA attorneys" such as Carpenter Hazelwood, the defunct Ekmark & Ekmark, and a few others. It's purpose was to educate legislators on the volume of court cases involving HOA's in Arizona.
It is still being refined and represents only a selection. Not all of those involve faulty disclosure by Management Companies but many do.
The California case happens to be one I have direct personal knowledge which I think will prove to be precedent setting for Arizona. As you may know, legal precedent in Arizona often comes from California courts.
Mr Lincks is welcome to access them all through the Arizona case lookup system online to help him answer his question. We've done our research. Might I ask him to do his?
We are working with Senator Farnsworth on changing the system. It so happens we have a live case exemplifying all of this in the Crossings. That's actually far more relevant in my mind.
Our group would welcome input from you on this on our blog. Please feel free to contribute.
On behalf of the Arizona Homeowners Forum
John don't give me some Case in California tell me what's been lost in Arizona buddy you don't have it it's not true stop fear mongering!
Brian Licks
City Property Management.
Sent from my iPhone

Brian Lincks - City Property Management - "You are fear mongering"

In answer to the last item in your comments below, your request to site(?) a case on realtor disclosure, you might like to check out our blog which has details of a $1.3 million judgement we obtained in a landmark real estate fraud case in California in 2007.
Consequently we're very aware of Real Estate fraud via faulty disclosure.
You might also like to visit the page below on the same blog which deals with the failure by the HOA Mgmt Co, Amcor, to disclose that they, Carpenter Hazelwood, and all the Board of The Crossings at Willow Creek, had resigned....on the very day closing took place on a lot in the subdivision. Is that not something Amcor should have disclosed? Click HERE
As the supposedly largest local HOA Management Co in Arizona, I think our viewers might really appreciate your comments which you can do on the blog for all to see.
Look forward to your input in an important debate.
Cc Arizona Homeowners Forum
The Crossings Blog
Click below
On behalf of the Arizona Homeowners Forum
Hey John, you are unaware and lack knowledge, the management company if providing disclosure on behalf of the HOA, is all ready liable for a improper disclosure!!
If you are do damn knowledgeable, site a case where the realtor was liable in Arizona for an hoa issue since the disclosure statute put the responsibility on the Hoa/ management ??
You are fear mongering, with false info!
Brian Lincks
City Management
Sent from my iPhone

Saturday, September 10, 2016

Response to Brian Lincks - City Property Management

From: John Sellers
Sent: Saturday, September 10, 2016 8:14 PM
To: 'Brian Lincks' <>
Cc: '
All City Property Management Staff by email
Subject: RE: Arizona Realtors and HOA disclosure + The Crossings at Willow Creek HOA Prescott potential bankruptcy

I’m sorry but can you clarify a little bit? I had a bit of a problem with the English language bit. See highlights below in yellow.
1.       As a Management Company, you have an indemnity from the HOA under your Management Contract? See City Property’s own contract language with indemnities below. If so, its circular. You are not really liable for anything in that case are you?
2.       In such case, other than a defining Superior Court case, what responsibility do you take as Management Company?
3.       Correct me if I got it wrong with false info- please.
4.       Are you a licensed realtor?
5.       If you would like to see a case where the realtor was sued, be happy to provide you with a live update on the issues in the Crossings.
6.       Who provides your $1mm liability insurance?

The Arizona Homeowners Forum
Visit our blog at


The Agent shall maintain in force, for the entire term of the Agreement, liability insurance in an amount of at least $1,000,000 per occurrence, a fidelity bond as specified in this Agreement, workers’ compensation insurance as required by Arizona law, and such other forms of insurance and bonding as Agent determines.

            The Association agrees to hold Agent harmless and defend and indemnify it for and against any claim, causes of action and fees arising out of any of the following:  (i) any act or omission by the Association, its members, directors, officers, employees or agents other than the Agent which violates any law, ordinance, statute, regulation or ruling of any county, municipal, state, federal, or governmental authority, (ii) any act by the Agent undertaken in compliance with instructions of the Board or within the scope of Agent’s duties as detailed herein, which does not amount to an independent act of negligence or a breach of contractual duty on the Agent’s part.

            Agent agrees to hold the Association harmless and defend and indemnify it for and against any claims, causes of action and fees arising out of any of the following:  (i) any act or omission by Agent, its members, directors, officers, employees, or agents which violates any law, ordinance, statute, regulation or ruling of any county, municipal, state, federal, or governmental authority unless such action is taken at the express request of the Board, (ii) any act or omission by Agent, its members, directors, officers, employees, or agents undertaken in violation of the instructions of the Board or this Agreement, or (iii) any independent act of negligence or breach of contractual duty by Agent, its members, directors, officers, employees, or agents. 

            Agent assumes no liability whatsoever for any acts or omissions of the Board or Association, or any previous Boards or current or previous owners of the property, or any previous management company or other agent of the Association. Agent assumes no liability for any failure or default by any individual owner in the payment of any assessment due Association or in the performance of any obligations owed by any owner, agent, or vendor to Association pursuant to any contract, lease or otherwise.  Further, Agent does not assume any liability for violations of environmental or other regulations which may become known during the term of this Agreement. Any such regulatory violations or hazards discovered by Agent will be brought to the attention of Association in writing, and Association will promptly cure them.

All exculpation and indemnity provisions contained herein shall survive any termination of this Agreement.
Copy AHF Blog
The Arizona Homeowners Forum
Visit our blog at
From: Brian Lincks []
Sent: Saturday, September 10, 2016 2:57 PM
To: John Sellers <>
Subject: Re: Arizona Realtors and HOA disclosure + The Crossings at Willow Creek HOA Prescott potential bankrupcy

Hey John, you are unaware and lack knowledge, the management company if providing disclosure on behalf of the HOA, is all ready liable for a improper disclosure!!
If you are do(?) damn knowledgeable, site(?) a case where the realtor was liable in Arizona for an hoa issue since the disclosure statute put the responsibility on the Hoa/ management ??
You are fear mongering, with false info!
Sent from my iPhone

Friday, September 9, 2016

Invitation to Arizona Realtors to support HOA reform

The message below was sent to a selection of Arizona Realtors yesterday. Although facilitated by this blog as a transmission medium, the message was a joint initiative of members of the Farnsworth Group. It was timed to coincide with the Realtors caucus on Sept 8. We for our part could not help noticing that the incoming President Elect of the Association of Realtors is a founding member of the Hall of Shame on this web site and one of the most enthusiastic to seemingly disconnect from serious real estate disclosure issues being highlighted here. Please encourage her to change her outlook, in which case we would warmly welcome her support and contribution here which is open to all.

To:                                                                                                                  September 8, 2016
On the occasion of your Association’s Sept 8, 2016 Realtor Caucus, we are canvassing you personally, as an Arizona real estate professional, to take a critical step to make your business safer, quicker and easier to prevent Realtors being sacrificed as pawns to HOA Industry & Lobby Groups.
A group of homeowners are working with State Senator David Farnsworth to make radical changes in HOA practices, including enforcing better HOA disclosure in Arizona. One HOA lobby group has tried to persuade the Senator not to do it because the buyers won’t read it anyway. Who do you think the courts will hold accountable if the buyer believes that he or she is harmed by reasonably discoverable material facts that were not disclosed - the volunteer board that is indemnified from liability, the unlicensed and unregulated HOA management company, or the licensed and regulated Realtor? And don’t forget realtors set disclosure standards in Arizona, not the attorneys. The right standard is:
“If it crosses your mind whether to disclose – you should disclose it” – be you the seller or the HOA.
Buyers and their realtors are constantly the victims of bad or non-existent HOA disclosure. The fact that you have met your obligations under the real estate licensing laws and rules may not protect you from lawsuits, or at least being dragged into one.
Did you know that the court could hold you, and in turn your insurers, to a higher standard than the regulatory agencies? The best way to avoid claims of wrong doing is to lay all the cards on the table upfront.
To protect yourself, use an HOA Industry Advisory. See one at Check out also the Arizona Homeowner’s Forum at which is focusing on inadequate HOA bank anti-money laundering procedures under the Patriot Act and highly suspect money activities in a major HOA threatened by bankruptcy in Prescott. Attorneys have provided positive feedback on the use of an HOA Industry Advisory. is here.  If you are not attending your caucus, register your support for HOA reform legislation, higher disclosure standards and cleaning out the HOA industry. You can do that by emailing your AAR representative, or its President, Paula Serven at  Senator Farnsworth’s email is
Please don’t stay on the sidelines on this one. Numbers count. Make your voice heard – SOON
The Arizona Homeowners Action Group

c/o to unsubscribe

Friday, September 2, 2016

The Forum's Ostrich club + Complaint to Prescott Police re: Credit Card payments to Amcor

In the various postings over the last few months we dealt with the potential bankruptcy of the Crossings HOA in Prescott, serious disclosure issues, fraud and evidence that anti-money laundering procedures are not being respected by certain banks in their dealings with Management Companies. We can understand that contractors and commercial vendors are uninterested. But look at the CAI leadership, accountants, HOA's, Management Companies and BANKERS, and senior realtors who seem so little interested in these issues. What are they afraid of?
I nominate Thomas Skiba and his two Virginia CAI colleagues as undisputed nominees of the board of the Arizona Homeowners Forum Ostrich Club. Nominations are still being processed for RICO awards by other participants by the way.

Also a report was filed with the Prescott Police Department on Dennis May, CMCA, AMS (whatever those initials mean), President of Amcor Property Professionals in Scottsdale. Click HERE to read it.
This relates to credit card payments made to AMCOR, rather than the HOA, and which appear never to have made it to the Crossings HOA account. Amcor were given time to respond and did not.
Both they and Carpenter Hazlewood are also refusing to obey a Default Order issued by the Arizona Department of Real Estate requiring Crossings HOA documents to be given up which would clarify this. Click HERE to view that order.

                                             Ostrich Club Nominees

AACM Members
Suzanne White

Poppy Vogel

April Ventura

John Ott

Julie Munson

Annie Colegrove

Kimberly-Rose Cogill

April Ventura
Sherwin-Williams Paint Company
Fernando Torres
Integrated Landscape Management
Ashley Hatley
BrightView Landscape Services
Amanda Bielenbert
Vial Fotheringham LLP
HOA Accountants
Jeremy Newman
Newman & Associates, Inc
Marco Goodman
Gallacher, Bosen, & Goodman
HOA Banks
Kimberly Piscione
US Bank
Joanne Haluska
Alliance Association Bank
Elle Larkin
Alliance Association Bank
Blair Fox
Alliance Association Bank
Community Associations Institute
Bruce Townsend
Community Associations Institute
Sean Pearson
Community Associations Institute
Thomas Skiba
Community Associations Institute
CMCA Members
Elaine Anghel
Associated Asset Management, LLC.
Elaine Anghel
Associated Asset Management, LLC.
John Price
Cadden Community Management
Catherine LaTona
Jason Proudfit
FirstService Residential
Howard Schmitter
HBS Management Solutions
Mike Kuzmin
Kooz Enterprises
Mark Wade
Leisure World Community Association
Tabatha Long
Marley Park
Augustus Shaw
Shaw & Lines, LLC
Robin Coulter
Sun City Oro Valley
Paula Randolph

Kenneth Flynn

Deborah Colon-Mateo
Cadden Community Management
Homeowners Associations
Karen Young
Ahwatukee Homeowners Association
Anemone Colegrove
Apache Wells Homeowners Association, Inc.
John Wachter
Arizona Traditions Homeowners Association
Patricia Alderson
Central Square Association, Inc.
Victoria Margolis
DC Ranch Association
Renee Berthiaume
Glen Canyon Villas Homeowners Assocation
David Harris
Las Sendas Community Association
Mark Wade
Leisure World Community Association
Agnes Haviq
Leisure World Community Association
Chris Campbell
McCormick Ranch POA
Garth Andrews
Paseo Hermoso Homeowners Association
Romulo Guevara
Shadow Bend Condominiums of Scottsdale
Joe Graham
Starlight Pines Homeowners Association, Inc.
Sue Davis
Starlight Pines Homeowners Association, Inc.
Martha Bails
Sun City Grand Community Association
Barb Griffin
The Pueblo Homeowners Association
Diane Cheney
The Recreation Centers of Sun City West
Gina Metoyer
Trilogy at Power Ranch
Ryan Knobloch
Trilogy at Power Ranch
Jay Russett
Westbrook Village Association
Kelly Reading
Westbrook Village Association
Susan Fabian
Westbrook Village Community Association
HOA Attorneys
Nikki Patel
Carpenter Hazelwood
Kellie Callahan
Carpenter Hazelwood
Mike Wales
Carpenter Hazelwood
Josh Bolen
Carpenter Hazelwood
Denise Ochoa
Kasdan LippSmith Weber Turner LLP
Augustus Shaw
Shaw & Lines, LLC
Mindy Martinez
Western Risk Insurance
Management Companies
Walter Moneypenny
Associated Asset Management
Kenneth Flynn
Brown Community Management, Inc.
Deborah Colon-Mateo
Cadden Community Management
Marianne Wiggishoff
Capital Consultants Management
Bart Park
Capital Consultants Management
Cathy LaTona
Capital Consultants Management
Dawn Fowler
Capital Consultants Management
Shannon Ellerbusch
Capital Consultants Management
Cindy Cassin
Capital Consultants Management
Richard Orduno
FirstService Residential
Kerry-Lynn Goto
Great Boards, LLC
Dawn Engel
Planned Development Services
Connor Doyle
Sentry Management
Nicholas Sewald
Vision Community Management
Jason Proudfit
Vision Community Management
Darwin Albrecht
Association of Realtors
Michael Labout
National Association of Realtors
Sharon Applewhite
Coldwell Banker Residential Br
Judi Monday
Yvonne Coelet
PMN Tenney Properties
Heidi-Gaye Quigley-Larke
Heidi Gaye Quigley-Larke
Colette Rosati
Hunt Real Estate ERA
Nicole Hamming
Glass House International
Paula Monthofer
High Peaks Real Estate LLC
Tammy Franco
Cindy Roggeman
Colette Rosati
Hunt Real Estate ERA
Christopher Cobb
Cobb Realty LLC