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HOA Members Financials, page 6

HOA FORECLOSURE

2-15-2012

Association
Management Group

Rossabi, Black & Slaughter

$3.249

Page 2
 BOARD OF DIRECTORS DOCUMENTATION
Executive Board Meeting minutes were found that document the unreimbursed expenses and decision of
the Board to sell the property for $60,000. Below are excerpts from 3 different Board meetings.

Unit 3990-C
SPANO

$7,891 embezzled
from HOA Members

see
2012
Audited Financial
Statement below

The realtor,
Katherine D. Clark
was a
Board Member
Page 3
 SALE BY THE HOA

Fourteen (14) months later and in the name of the Association

Page 4
 4-17-2013

Rossabi, Black & Slaughter, PA

Page 5
 HOA MEMBER S FINANCIALS

This is the 2013 SWA Income/Expense financials given to Members

at the March 2014 annual Meeting

Prepared by Association Management Group and approved by the Board of Directors

MONROE UNIT .
Rental income
missing

MISSING
$60,000
Sale of Unit 3990-C
Documented expenses
unreimbursed

Page 6
 2012 AUDITED FINANCIAL STATEMENT
David Scott Spano and Donald Monroes HOA foreclosures were in 2012.

Sale of the Spano unit in 2013.

In the 2012 Y/E audited financial statements, the MONROE foreclosure bid is taken as an expense
from Association funds as Bad Debt.

The SPANO unit was owned for over a year by the Association, but is not listed as an asset on the 2012
Balance Sheet.

The income from the rental of the MONROE property does not appear as revenue nor is it listed on the
Balance Sheet.

Page 7
Monroe Unit rental
income missing
in the audit

2012
Unit 3990-C
Expenses
paid with
Members funds
see Minutes above

See
MONROE
Commissioners
Deed
above

2013 AUDITED FINANCIAL STATEMENT

Page 8
 SPANO UNIT
Sale in 2013
No income
to the Association

2013
Spano unit 3990-C
Expenses
embezzled from
Members funds

Unpaid
30%
Income tax
on the sale.

IRS rate
specific to
non-profit
Associations

Page 9
 SECOND AUDIT OF 2013

Instead of allowing anyone access to the Associations book and records, Mr. Black and AMG had a
second audit performed on the 2013 financials, by accountant Ernest Logemann. The first audit was
done by an independent, third-party auditor, CPA Ralph Atkinson.

The results of the second audit revealed additional fraud and embezzlement, such as the foreclosure
expense charges, unlisted assets, unpaid taxes, etc.

Below is a comparison of the dramatically different audits, purportedly from the same bank
statements from the North Carolina, Georgia and California checking accounts.

Larger image of the second audit found on the following page

The 2013
Financial Statement
shown above

The second audit of purportedly the same bank records found the missing income
now listed as the net of $42,773.

It also found unaccounted expenses

Page
of $59,211 that the first audit also missed.
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BOTH AUDITS ARE MISSING THE MONROE RENTAL INCOME

Page
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 SECOND AUDIT UP-CLOSE
For easier comparison, the line item changes between the first and second audit have been noted

Purportedly, the two audits were from the same bank statements (3 checking accounts).
The two audits were performed only six (6) months apart.

The $60,000 sale is listed

as net income of
$42,775
after deduction of the
previously embezzled
expenses

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 CLASSIC EMBEZZLEMENT
Take the 2009 proposal,
increase the 2010 budget to cover the expense and the shared profits.

BUDGET
$22,000
Acct. 9940

$12,583

Fax date of work competition

Nine months later
Signing for
Cactx Corporation
Is a Board Member
(15+ years)

Association Management
Groups
Linda Lanier

Checks signed by Page

Board President 13
(see below)
 To Board President: Debra Easter
7-13-2010

TMC PAINTING
embezzlement
see below

Rental unit fraud

of unpaid
assessments

Ms. Easters response:

Budget increased
(Proposal already received)

Association
Management Group

Fax date of work competition

6-17-2010

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 SWA RENTALS

There is evidence at Sherwood West Association Inc. (SWA) of embezzled funds being used to buy
units in the Association

Compiling other evidence, some outlined below, the diagram shows a model of how TMC Painting
Enterprise was one of the means used the Board Member(s) and property management. Documents and
data indicate that the embezzled funds are invested in the purchase of units (most with foreclosure
history) which provide on-going cash flow.

Given the evidence of Association Funds embezzled to pay any expenses of these rental units and no
mortgage, the rental income would be 100% profit.

This diagram is theoretical, but based on the documented evidence that follows. The bank records of
Sherwood West Association Inc. (3 checking accounts), TMC Painting Enterprises (Pilot Mountain,
NC) and Home Real Estate (Winston Salem) will give the structure and participants. However all
access has been denied even by the authorities we trusted.

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15
 TMC P AINTING ENTERPRISES
TMC Painting Enterprises (TMC) is based in Pilot Mountain, NC.
It is managed by Tony Anthony Coe (TAC) & wife Stephanie Coe, both with criminal records.
including numerous arrests for bad checks.

Stephanie Coe keeps a PO Box at the same PO as AMG, over 100 miles away
A 15+ year Board Member, Debra Ann Easter, received her mail at the home of the Coes
as documented by NC Unclaimed Property (see below)

The Board & AMG gave them an on-going annual non-compete, no-bid engagement for 13 years.

TMC has: No Workers Comp,

No insurance,
No bond,
Page
16
 No business license,
No Secretary of State registration.

Our Board/AMG has paid an average of $49,050 per year to paint trim and fences.

Recently, Members asked two (2) competitors to submit bids without the knowledge of the Board or
AMG.
For the same work, the bids were $6,500 and $5,750.

DEBRA A. EASTER
SWA Board of Directors
15+ years / President 6 years

The RT and Box

translate to the
home address of
TMCs TONY COE
according to the Pilot
Mountain Post Office

Workers Comp
Cancelled 9-4-2007

Worked on property until

2015 when they were
reported to the
Workers Comp Board

If on-line records are

reliable, the license plate is Page
registered to a convicted 17
prostitute in Texas.
 HOME REAL ESTATE

Home Real Estate, owned by Ogburn Real Estate and Investments, is the company that rents and
manages units on HOA properties.

Ogburn was the rental company and purchaser of the Donald Monroe unit outlined above.

The foreclosed unit of A, Stanley Mitchell was found to be an address used by a separate company called
Home Real Estate CoProperty Management. This company does not have any corporate or business
registrations, Workers Comp, and does not pay City taxes.

The Yellow Pages lists these CoProperty Management companies across Winston Salem.

It is suspected that the CoProperty is the conduit for moving funds back to Board Member(s), vendors and
other parties involved. Again, bank records will be definitive.

The addresses are all

properties owned by
Ogburn Real Estate
Home Real Estate
or
one of a dozen companies
or LLCs they own

Sherwood West
Association

Former foreclosed unit

of A. Stanley Mitchell

Property was rented for

2 years, but rental
income missing from
HOA financials

Page
18
 Cross-reference
Embezzled Rental Expenses, page Error: Reference source not found

C ONCLUSION

Like so many of the other associations listed, Sherwood Wests property values are down
over 20%. This steep decline is due to lack of maintenance as our money is being
embezzled or used for other purposes not related to our homes or community.

Extensive evidence that reaches beyond local and state jurisdictions requires honest
responsible action on the Federal level that is independent of political influence or
monetary incentive.

If assistance does not come from the Federal Government, then tens of
thousands of HOA homeowners will continue being robbed from their own
dues while US taxpayers shoulder the burden of massive fraud.

Thank you for your time reviewing these materials and in advance for your actions.

David W. Caldwell
3820-D Huntingreen Ln.
Winston Salem, NC 27106

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APPENDIX

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A PPENDIX A 2013 NC G ENERAL S TATUTE 47F

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 A PPENDIX B - F ORSYTH C OUNTY 15 CVD 2202

MISSING
J. CASSELL
Deed of Trust
Assignment

Appointment
2-8-2011
B: 7213 P: 632

SUBSTITUTE
TRUSTEE DEED
5-19-2011
B: 7240 P: 1637

R. RATLIFF
Appointment of
Substitute Trustee
2-9-2007
B: 6674 P: 2085

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 A PPENDIX C C HASE H OME F INANCE , LLC

MISSING
J. CASSELL
Deed of Trust
Assignment

Appointment
2-8-2011
B: 7213 P: 632

SUBSTITUTE
TRUSTEE DEED
5-19-2011
B: 7240 P: 1637

R. RATLIFF
Appointment of
Substitute Trustee
2-9-2007
B: 6674 P: 2085

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