The Palisades reports its losses in the Ridgway Lane embezzlement scandal are $89,000. Six homeowners associations sued Ridgway Lane for allegedly cleaning out HOA bank accounts that were managed by the Flowood company. The Palisades HOA Board of Directors sent the following email to its members yesterday:
- AS you may know, Ridgway Lane, a local property management company, has provided property service management to Palisades Homeowners Association for well over 15 years. Recently the Palisades Board made the decision to terminate Ridgway Lane’s services immediately, due to the Board and appointed Finance Committee discovery of irregularities in financial statements and bank statements and significant losses of approximately $89,000 due to transfers out of our accounts to third party entities and David Lane.
- The board acted immediately to cancel the operating and reserve accounts at Community Bank held by Ridgway Lane and transfer our remaining funds of $25,342.63 into a new operating account and
- $ 10,993.39 in to a new reserve account. The Board is continuing the pay our outstanding and upcoming bills through these accounts, and maintain all services currently in place. We have enough money in our accounts to cover expenses for the remainder of 2019. As we normally do, we will send out semi- annual assessments and begin collecting those assessments for 2020 at the end of this year.
- With the collection of these assessments, we will be able to move forward with paying our monthly bills in 2020 and begin to build up our reserves again as finances allow, as we wait to see what restitution may come from civil and criminal actions.
- The Board has made the decision to begin legal proceedings against Ridgway Lane and David Lane in order to recover our losses. We have engaged the services of Roy Liddell with Wells, Marble and Hurst PLLC to guide us through this process.
- The Board is also moving quickly to interview and engage a replacement property manager which we feel will suit our needs and has a proven record of integrity and success. We will also ensure that all the appropriate checks and balances are in place.
- We realize that some homeowners have become frustrated with the lack of information since first being notified of the problem, but have just recently been able to provide what we feel is accurate information regarding finances and our plan for moving forward. As we learn more details and obtain further information, we will provide them to you.
Here is the list of affected HOA's that have sued Ridgeway Lane.
Bridgewater
Bridgewater at Old Agency
The Barrington
Lakebend
Dinsmor
Bruenburg
Discovered but not yet taken action.
Palisades
Stonebridge
JJ knows of at least three more Ridgway Lane-managed HOA's that have probably suffered
Earlier Ridgway Lane posts
St. Ives Escapes
Add Stonebridge to Ridgway Lane List
King Kenny Rulz, Bridgewaters get freeze.
Lawsuit: Lane Confessed
Dinsmor losses over $200,000
On deck: Bruenberg
Up next: The Barrington.
Bridgewater goes for freeze, Bridgewater at Old Agency says RL embezzled over $340,000
Palisades plundered.
Dinsmor HOA discoveres "irregularitites."
Bridgewater accuses HOA manager of embezzlement.
21 comments:
There has got to be a girlfriend behind this-
10:40, there probably is, but can somebody please help me get my sugar baby moved over to the Barrington? I’m tired of driving to Canton (the Links) and everyone know my biz. I like the idea of a discreet entrance
Serious question here, why were so many of these HOA's using Community Bank? Was Ridgway Lane recommending or requiring it? It just seems interesting to me that Community Bank's name keeps coming up in all of these.
Ridgeway- Lane has had a long relationship with Community Bank
My HOA luckily got rid of Ridgeway Lane several years ago
It would probably be worth looking at the past financials to
see if Lane skimmed any back then
Ridgway....anyone seen Ridgway?
Asking for a creditor
I’ve commented on other posts, but will state here again. Community should have stepped/spoke up. They HAD to have seen red flags. They are very personal, hands-on bankers. I will never believe they weren’t suspicious of the shuffling of funds. The bank is not (should not) be stupid enough to think the office girls were constant screw-ups. (I was told this was excuse given when another affected HOA’s funds were deposited into our HOA account. As soon as I heard this, I knew we would be affected, too.) Given that Community KNEW RL was handling a LOT of other people’s money, they should have been more diligent. They have avenues available to them to alert others of suspicious activity.
I just gotta say, dear HOA, I don't feel so good about your future assessments.
Sounds like palisades needs a whole new board as well
The developers ( Miss- Georgia Corp)of my Madison neighborhood were principals with Community Bank and had Ridgeway-Lane involved from the beginning
Once the last vacant were sold and developer lost control did Ridgeway Lane get ditched.
12:20pm,
Try to keep up. Ridgway had left the company awhile back as previously reported and no one is making any accusation he’s been involved.
King Kenny & Queen Sallie continue to crave control and have no intentions of resigning. They defended Lane Sr and did whatever he wanted. Palisades has a loan that I’m sure Lane suggested. I hope they’re not holding their breath waiting on the January dues to be paid because residents are saying they refuse to give this board a dime. Queen Sallie has overspent for years and used the money for unnecessary landscaping changes. Three pitiful looking trees now stand where beautiful magnolias once thrived. We’ve used the clubhouse many times over the years and people complimented the beautiful purple climbing blooms over the trellis. I was told this week they’ve been removed as well. This $89k disappeared on the existing board’s watch, but no explanation or apology has been extended by them. They are defensive and secretive.
My HOA left me feelin’ like I been with a ho’
Cawz, they took my funds and ain’t got no mo’
Caint fix the pool, cant fix the roads,
cant pay the lights at the end of the street
Ain’t got no common grounds for my neighbors to meet
But when it all was said an done
And I becomed wise and I got me a counsel
I finally learned how to use paper and pounsel.
I learnt how to mow and decorate the front gate
So when you drive by, don’t gimme no hate.
I ain’t lazy, I’m just fruiticious,
Just got to learn how to wash my own dishes.
@ 12:27
The bank is not responsible for managing your money. They are simply a "store house".
...and no one is making any accusation he’s been involved.
Not yet.
To 2:06 PM - yes, yes, and yes. It seems every spring the front entrance has perfectly good plants pulled up with new stuff put in. What a stupid waste of money, along with the "security" company that is paid to sit and wave as you wait for a security gate to open and record your car.
"...for well over 15 years." What's the point of this parenthetical phrase? Does it mean fifteen and a half? Seventeen? Twenty three? Fifteen and 45 days? Almost 16? Regardless, what's it's point?
@3:10-
1. No, they aren’t. Besides, Lanes’ banking business went way above “storing” money.
2. According to your logic, no bank has ever alerted anyone to mismanaged funds. Well, again, you’re WRONG!
3. I know from personal experience they are very hands on, daily, with their business customers. Have you ever had or managed business accounts with Community? If not, you truly can’t relate, so just stop with your ignorant “banks only store money” logic.
@4:13 PM - Regardless, what's it's point?
That should be "Regardless, what's its point?"
Has anyone filed criminal charges yet? This is looking like it might turn into a criminal conspiracy investigation between multiple players and entities beyond Ridgewood Lane.
Could someone please enlighten the neighbors of Bridgewater 1 how it is possible the current HOA President EH for many, many years could have let this embezzlement go on for so long? He touts himself as the best CPA there ever existed. Many find that laughable.
@9:19 PM - be patient, Grasshopper. Financial investigations take time. These small law enforcement agencies don't have auditors/CPAs, but hopefully the local Famous But Incompetent (FBI) gum shoes do.
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