AUTHORITIES, POLITICS & MONEY Dark money comes to light by Mark Baker wral.com “... it is clear that, at the same time legislation was moving in ways that favored property managers, Alliance for Better Communities was giving heavily to N.C. Legislative Partners.” Page 800AUTHORITIES As of March 2017, there has been a complete lack of any legitimate investigation of the documentation at Sherwood West Association, Inc. (see below for effort examples) for the past two (2) years. No access has been allowed to bank records by any local or state authorities despite By-laws, NC General Statutes, evidence, scholars or CPA opinions. The local and state authorities below were given only documentation specific to North Carolina, Winston Salem Police Department: A 93-page report (Case #151675] was filed with the Winston Salem police department in April 2015 specifically regarding the documentation of Association fraud and theft. It took over six (6) months for the detective to have the one and only meeting. Dozens of letters and phone calls were made from various Members and citizens. The calls or letters to | «] only took this case as a favor.” every level of the Police Department received “WSPD Detective R.E. Workmen no return call or response (examples below). 10 WEU Professor of Finance, Dr. Bill Marcum. In April 2015, a complaint was filed with the NC Bar Association against attomey Steven E. Black (Case #15G0371). As of February 2017 (two years Tater), no action has been taken but the case has not been dismissed. A copy of the quarterly form letter from the NC Bar Association is attached. Forsyth County District_Attorney, Jim _O*Neill refused to acknowledge, respond or act to numerous phone calls or letters by various Members which can be corroborated. Letters and emails sent to the Winston Salem and Greensboro City Council Members were ignored and not put on public records as required “Unconscionable” -WFU's Dr. George Aldhizer Accounting and fraud expert regarding the refusal to investigate Greensboro SBI’s Special Agent in Charge, Scott Williams received six (6) letters and documentation in the fall and winter of 2015. In November, Williams wrote to WSPD Detective R.E. Workmen directing him to locate Association bank accounts and balances. When the Detective gave a fragmented report, it documented even further fraud. After the November report, SAC Williams will not return calls or letters made / sent by three (3) different Association Members. After more than a year expanding the documentation beyond the association and the state, an attempt to file a telephone report with the Charlotte office of the FBI was made on May 15, 2016 at approximately 4:30 pm. More effective than describing the conversation, hearing a recording of the call | “Somebody obviously got to them.” would be as informative as it is disturbing. “Jeff Macintosh The call was quickly terminated after Real Estate Agent and mentioning the name “Paul Mengert.” The Winston Salem City Council Member woman taking the call refused to give her afier reviewing just a few pages of the documentation. name or an agent’s name. She would only say Subsequently, he refuses to assist the residents of his district that her location was on the “east coast.” «after contact from other Association Members. It can be corroborated that at least one suspected Board Members had copies of the police report back-up documentation within a month of the the report. After months of excuses and misrepresentations, recordings of various conversations may be available in order to document and substantiate claims. — Page — 801PLEAS FOR ASSISTANCE EXAMPLE Letters were signed by multiple HOA Members seeking assistance with a reasonable request for a legitimate law enforcement fraud investigation. No acknowledgement or response. Fobruary 28, 2018 To: Assistant Police Chief Thompson FROM: Residents of Sherwood West Association, Inc RE: Case # 1817675 Please ref tothe attached cover letter of the complaint that was filed on Fabruary 2éth againat Detective F.E. Workmen by our spokosperson which we fully Support. There are an addtional 6 pages tothe complaint and 2 95-pago red binder of exhibits which were given to Intornal Aas, {As you will find inthe complaint, the SB promptly intervonod at our aquest last Dacembor and in ‘writing directed Detective Workman to locate our Association banking information, almost 8 ‘months after filing the WSPD roport. Tho complaint includes details of Datective Workmen's mishandling of both tho SBI's direction and the account information, romaining net dene stil. ‘This bank account information is raquitod for both our caso and! the Internal Affairs complaint. tn addltion, Mombors have aright to inspect and copy all books and records undor two NC laws. ‘Those rights continue to be denied by our Boave of Diector's atternay and police, Our experts boliove this violation sufficient causo to subpoona a yoar age. Four Association Members recently telephoned Sgt. Thompson requesting these records be ‘obtained. By all accounts, tho Sargent was not helpful. No gervioa or protection provided doepito ‘SBI intervention, violation of two NC Statutes, oxtonsive documantod evidence and the supporting ‘opinions of fraud investigation and accounting experts. The continuing rosistanco to obtain ‘aquired rocords and the lack of any cooperation by Dotective Workmon and Sgt. Thompson i vory frustrating and exasporating to over 200 Mombore struggling for 17 months and counting \WEU Professor of Accounting and fraud export, Georgo Aldhizer and CPA Amy Graham roquiro those records, They have already raviowed and voluntacrod to assist, Wo will pay for any aneliary loxpenses, Thoir oxport suppor for bank rocords can be corroborated to avoid hearsay dismisva \We are asking for you to ploase halp and support us by directing and supervising the process of locating accurate Association bank accounts trom 2012-2015, followed by tha aequisition ofall voritiablo bank records. Wo aro told by experts, te SBI and the Dept, of Justice that this isthe ‘Romnal operating procedure in a law onforcoment fraud investigation: not interviows, ‘We would greatly appreciate boing Informed of your dacision. Please notily our spekesperson, Mr. Caldwell If our request for records continues to be denied, please spocity wat alee le required and why this was not necassary and our case not quastioned by the SBI to immodiatoly Intervene and direct the Detective to obtain these records months ago, but an unsuccessful result. ‘To dato, tho SBI is not aware of recent expert opinions or the support of bank rocord acquisition. ‘Thank you in advance for your consideration. Respectfully, Bye bhp opt Bree Keperra) Cikrupees Fount SIGNERS: Kity Cagle, Roma LoPing, Monique Fare Chvistoper Kubl, Elena and Euguer Boudyguina ‘CALLERS: Sot Buldwio, Nathan and Sarah Beam, David Caldwell, Shire Paz 0: Professor George Aldhzar, Amy Graham CPA, Professor Bil Marcum, Hoby/Mary Masion, One Noman, Molaro Over, Rosamary Schaine, Ann Shutz; Anne Mackiaz, BamadettoHaston John and Francis Pershing — Page — 802WSPD A 100-page complaint was made against the Detective for lack of any legitimate law enforcement investigation. Five months later, the WSPD responded that their internal investigation had “revealed a procedural matter; consequently, appropriate action was taken.” However, despite this admission, there has been no further action. Except for the announcement made by the suspected Board Members in the March/April 2016 Association newsletter, there has been no communication to any of the ten (10) Members signing their support of the initial police report. Apparently, only the suspects and their attomney were informed. The growing number of accounting, real estate and fraud experts that have reviewed the evidence refute the newsletter announcement below. FROWMI THE PRESID! MARTY Si Criminal Complaint - Many of you are aware that a resident fled a criminal complaint against members of the current Board, members of a previous Board, the previous Management Company and the Board's previous attorney. Lawson | Hewton, the Board's current attornay, and | met with the detective handling the case and his supervisor. We were advised by the detective and the supervisor thet the complaint is baseless, there is nothing to the charges and the case is closed. The Chief of Potice wes mace aware of the case and ws informed that it has been closed. Bary Roars July 15,2016 David Wiliam Covell 3820 Huntingren Lane, Apartment D Winston-Salem, NC27106 Dear Mr. Coldwell, ‘The complaint that you filed on February 24, 2026, agunst Detostive R, E: Workman of the Wanston-Salem Poliee Department, hos been investigated by: the Professional Standards Division. Your complaint alleged that Detective Worknat refused (0 Conducta thorough investigation into an alleged embezelemeut coramnited by members of the Sherwood West Homeossners Association in April 2015, The Depariment kes seriously the conoems of citizens who fel they were trewed inappropriately by any officer and conducted x thorough investigation of the allegation, {i addition to the interview conducted with you interviews were conducted withthe involved police personnel, The evidence in this investigation gevealed a procedural ied with our investigative Findings, you may appeal this devision to the City of Wiston-Salem Citizen's Police Review Beard, Appeals should be Bled, in person. with the City Soeretary’s Office located in City Hal, Suite 140, et 101 North Main Steet in Winston-Salem. If you have any questions concerning the appeals process, you may eontaet the City Secretary's Office at (336) 727-2224, Siocerety Prog De Recta. | a Barry DS Rountve, MPA Cictot Paice CC: Angela Carmon. Cite Auomey Professional Standards Division 803NC BAR ASSOCIATION aiy Bast Edenton Street (27601) Post Office Box 25908, Raleigh, North Carolina 276 ‘Telephone (19) 828-4620 Fax: (619) 54-8156 Webs wonencbac gee VAX The North Carolina State Bar Office of Counsel Mt, David W. Caldwell 3820-D Huntingreen Lo. ‘Winston Salem, NC 27106 Re; Ourfile number: 150371 Respondent lawyer: Steven E. Black Dear Mr. Caldwell, ‘The Oifice of Counsel atthe North Carolina State Bar is reviewing the above referenced grievance file. Please be assured that we are moving forward in our review and we will contact you if we need additional information. You willbe notified in writing when the State Bar Grievance Committee makes its decision on this matter. Thank you for your patience and cooperation, Sincerely, Quarterly letters are sent from the Bar Association. This letter QUygpte.M Chev) came eleven (11) months after filing an ethics complaint against Alyssa Chen attorney Deputy Counce Steven E. Black. As of March 2017, nothing has been done, but the letter assures that “we are moving forward” Two (2) years of form letters is unreasonable and unacceptable Katherine E ean, Counsel A. Root dmonson, Fern Gun Simeon, David R. Johnson, eaife A. Poser, Margaret T Clout, amen oyme Bannon, Bren P.D. Ota, Leanor Bailey Hodge, Bany 8. MeNeill Mary D, Winead 6. Pack Murphy, Alyse M, Chea, usenach 8. Cox, Joshua T. Wall, Maria. Brown - Deputy Course Peter. Balae~ Trust Account Compliance Counsel Page —— 804DARK MONEY This entire article can be found at Raleigh's wral.com by writer Mark Baker Dark money comes to light —- | Gomis @ Sania ee TIS An alliance with its eye on Raleigh Three property management executives fled the paperwork to create the Alliance for Better Communities in July 2012. Paul Mengert is president of Association Management Group In Greenshoro. John Stone Is president of Community Association Management m Pinehurst. chris Gileland Is president of Wallin Douplas Manag. harlow, {on properties when owners falled ta pay thelr association fees, sailed through the General Assembly. Backers of the bill argue it's. a consensus update that couitd result In better protections, It passed by wide margins, with only ane House member voting against final passage. Other bills that would have required homeozmers association board members to get continuing education or subjected property management companies to regulation by the state Real Estate Commission never found thelr Way out of committee. Typically, whether a bills heard by oF vated an by a committce Js something determined by commattee chatrman, although that list Is typically vetted by tap legislative leaders, To be clear - none of those actions can be sled to a speefic donation. Some of those bills ‘were sponsored only by Democrats, which nearly alvays guarantees fatlure Ina legislature contralled by Republicans, e latlon was ‘moving in ways that favored property managers, Allance for Better Communities was giving Heavily 10 N.C. House egislative partners. white none of this proves a quid pro quo, i i eleae that. at the same time eg ‘The fact of the matter is we're talking about folks seeking to Influence the legislature giving. a whole lot of money sold Ben Ray, 2 spokesman for the state Democratic Party. “The payolf was that Tilis was able to Fun ads boosting his ‘name identification, and this organization (N.C. House Legislative Partners) concealed all of H.” —— Page 805City POLITICS For the past eighteen (18) years, AMG’s Paul Mengert has been business partner with attorney Donald Vaughn. Mengert and Vaughan co-own the office building they have shared for those 18 years. Mr, Vaughn is the husband of Greensboro’s Mayor Nancy Vaughn in Guilford County oth Gnena 3e3 Etaiae ® Aarsho yf “Secstery Compote Aatreste> 806 2 Paul Mengert’s james 18-year business partner, Sons Attorney Donald Vaughn Eeoettenpttan VM, LLC Dolmen jee Sede Search |iesiais| Map ves LLC 612 W FRIENDLY AVE | Q\vaue 2 | 705 CANNON RD zoom te reaning tbels csv ierNC ASSOCIATION BUREAU A self-created entity created with members involved in the Enterprise. North Carolina Association Bureau education and governance Resources. Four (4) of the same Property Management a . ‘Companies Board of Directors that attempted to register Jason Saino, Represent identical Business Tim Sellers, Partn Naney Tidwol, V Paul K. Mengert, Pr: John Stone, F Corporations ¥ IN BUREAU __° Paul Mengert, Chris Gilleland, John stone ~ © ALLIANCE FOR BETTER COMMUNITIES } ° Paul Mengert, Chris Gilleland, John Stone } o NC LEGISLATIVE PARTNERS °o NC POLITICIANS Page 807STATE AND NATIONAL POLITICS An internet search provides dozens of articles on a wide range of influential political connections and public record contributions for city, state and national politicians, However, the veil of dark money and PACs are difficult to penetrate which is their advantage. os. wae en tyes Kari Rove visits Fayetteville to raise money for Thom Tillis fyEeo Former George W. Bush strategist and presidential adviser Karl Rove visited Fayetteville on Wednesday to raise money for Thom Tillis, the state House speaker and Republican candidate for U.S. Senate, The soiree was held at the home of Terry and Rosalind Hutchens and open to people donating $4,000 to $2,600. The event was closed to the press; neither Rove nor Tillis granted interviews before the fundraiser Attendance and fundraising figures were not available Wednesday. Terry Hutchens, founder of the Hutchens Law Fim of Fayotteville, Charlotte and Wilmington. is a longtime supporter of Republican candidates, said Republican political consultant Carter Wrenn, a Other notable names among McCrory's appointments include: + Tetry Hutchens, a lawyer with Hutchens, Senter, Kellam & Pettit. Campaign finance records show his name attached to $12,415.32 in donations to McCrory in 2011 and 2012, although much of that was *in kind” contributions. NCCanitoi[| McCrory appoints executives, campaign donors to economic development board Page 808Road Worrier: Ethics law doesn’t pertain to fundraisers appointed by McCrory to NCDOT board “We should not give the appearance that someone gets an appointment because they’ve raised thousands upon thousands of dollars for a particular candidate,” McCrory said. “And there's no doubt that that’s been the norm in state government for decades.” This is recent history we do not want to repeat. In March, McCrory appointed Terry Hutchens, a Fayetteville attorney and chamber of commerce board chairman, to the transportation board’s Division 6 seat. Hutchens is a big supporter of McCrory and other Republican office-seekers. On the disclosure form he filed in April, Hutchens reporting raising more than $61,000 from donors for a handful of Republicans who ran for office in 2014, half of it for now-U.S. Sen. Thom Tillis. Election records show that Hutchens and his wife gave McCrory about $18,000 of their own money during his 2008 and 2012 races, including $6,000 in in-kind donations - which can represent expenses related to a fundraising dinner or similar event, Did he raise funds for McCrory? Hutchens did not respond to the Road Worrier’s requests for comment. McCrory’s spokesman did not respond, either. — Page 809SHERWOOD WEST ASSOCIATION INC. HOA Homeowners should take this good advice from fraud experts: “Often the bank data is the only documentation that will tell us the truth about the money” - Fraud Files Forensic Accounting Blog If there is fraud in your association, your financial statements are probably worthless. 810“HOA” HIGH BIDDER David Scott Spano AHO Dennis Wayne Palmer $3,249 om 02 Wayne LR see HOA DEED & “Tl BK: RE 2045 FORECLOSURE SALE" Povarerars. Loan Modification src ne mss €n the following pages ewe, carRare oniceoF FoREcLasURE NOTICE OP FORECLOSURE DRAWNBY ANDMAILTO: — MarpweiM Che ORANNDY ANOMAILTO: Mame. Penaeenes rere sontucarouna sear canone Tsetse vino GS. 88 CORTON aa Wao Fae AMOINTATSALE 08867 TPOWERGF SALE Fos RODE FACE 19 a he oth County Reiney chasis hapeeieteiieiiiebeleaentahemmeenad elo come Syed We Ae 0,209 Dia he oman Coe Sot Pace bak Foaye Cay Regge " fi UE P2577 00008 Donald Monroe & A. Stanley Mitchell Brigitte Monroe (deceased) $4,920,01 $4,920,01 BK: RE 2045, Posarstarst Two (2) year rental Unaware of "Giveback” by "HOA" ‘One (1) year rental by "HOA" orice oF ronectosuné Vg, ENVELOPE DRAWNBY AND MAILTO: — Mapwetnt cate novice oF FoRECLosuRe Neem Pa fons eS 0. seancancann (GRANTEE Shon We Aston a AMunT ATSALE:S492001 POWER OF SHUR Foss BOOK TT FAC 97 he ot Coun Rapy Dea ih ssi Che ‘Ney Shera! Wet Aci a Page —— 811FORECLOSURE THEFT The research that led to the discovery of the Enterprise began with $60,000 missing from Association funds from the HOA foreclosure and subsequent sale outlined below. DAVID SCOTT SPANO, UNIT 3990-C VALLEY CT. The $60,000 missing from HOA audited financials Mr. Spano never had a Deed of Trust on the property. Purportedly, he walked away from his $77,000 cash outlay to the other property he owned. Forsyth County GIS 6806-97927 4 Partycat Lie 3990 Valley CT Apt/Unit Zoom 0 c Property Card Commpnitu tnt L L BER Appeal Form Appeal les tox 8 aniz2013 Sales jew Tax. By 3117-3177 HOA SALE sable Owners $60,000 | in the name ofthe Association $120 Current Owners Parcel ID(PIN) 6808.97.74 S201 Properly 3990 Valley © go HOA Foreclosure Address ApyunitG gq BlockLot 6024 190 Additional Lots eiieanoy, - 2776-2764 pee Winston's“ $77,000 ‘SPANO deed Jurisdiction $189 Owner Name Partycat Li 729/998 Taxable 0} — 1916-723 $0 Taxable Owner 9930 Yarbr, gp Address Taxable Owner NOTE THE 1996 FORECLOSURE city St Zip 11 YEARS PRIOR ROD records were not found Taxable Deed 3117-3177 BKPg Taxable Deed 4/17/2013 Date — Page — 812FORECLOSURE OF UNIT 3990-C ‘The deeds and records of the Association’s foreclosure of David Seott Spano at Sherwood West Association Ine. give evidence that: © The Association paid the outstanding taxes of $4,095 and withdrew the property from the advertised auction, © The taxes were paid with Association funds and not reimbursed from the subsequent sale; ‘The property was withdrawn from the auction according to the Forsyth County auction company Zaccheaus Legal Services (ZLS-NC.com) © However, the Commissioner's Deed is clear and specific about the details of the property at auction and the Association had been the “last and highest” bidder and was awarded the property after the objection period; © The Association’s winning bid, for an unencumbered property, was $3,429; © The property was deeded to Sherwood West Association, Ine.; © The $3,429 of foreclosure expenses were listing in the financials as “bad debt” and no reimbursed from the sale. * $15,661 documented as embezzled from Association funds to pay for the foreclosure expenses, repairs and upgrades to prepare the Unit for sale, realtor commission*, etc See financials: $7891 + $7,770 = $15,661 © The Board of Directors sold the property on April 17, 2013 for $60,000. The income from the sale was not in Association Income/Expenses or Balance Sheet. The expenses paid from Association funds were not reimbursed. * The realtor 6% commission was paid to long-time Board Member Katherine D. Clark. Cross-reference Forsyth County Tax Records, page 185 HOA Member's Financials, page 817 — Page 813HOA FORECLOSURE CGO i 12006698 FORSYTH CO, NC me ot NO TAXABLE CONSIDERATION wa 2-15-2012 BK: RE 3044 PG: 1928-1329 ‘Yaw IDs « NTC Return To SHERWOOD WEST ASSOCIATION, INC ; an ‘Association Adress of Grantee: Post Office Drawer 10263, Grecnshoro, NC 27404] Management Group : , o I Adddeess of Grantor: PO tnx 41021, Greensboro, NC 27404 Rossen, Black & Slaughter Prepared bys Margaret M, Chae NER'S QUITCLAIM ED IN FORECLOSURE, THIS DEED, made this JP _ day of Febroary, 2012, between Margaret Grantor”) aeting, ag Commissioner aad Sher the lot owned by David Scott Spano, (the ” “Owners” Chase (the regarding RECITALS: AL Owner(s) isfare shown as the title owner(s) of Lot No, 190 on a plat entitled "Sherwood West, Section 6-C" in Plat Book 26, at Pague 189 in the Office of the Register of Deeds of Forsyth County, North Carolina (hereinafter, the "Property" B. The Sherwood West Assoctation, Ine filed a claim of lien against the Property for unpaid dues and assessments pursuant to authority contained in the Declaration of Covenants, Conditions and Restrictions for Sherwand West Association, luc, recanted in Deed Book 1037, Page (99, Forsyth County Registry (the “Declaration") and the authority contuined in Chupter 47F of Uw General Statutes of North Carolina, ‘The Association thereafter initiated foreclosure upon the Claim of Lien. C, Pursuant to un Order entered by the Clerk of Superior Court of Yorsyth County on December 14, 2011 in file number LI SP 1648, Margaret M. Chase was appointed as a Commi’ —¢5 945 ‘As Commis blish novice as by law provided and did offer the poorer fax sale Jn Janvary dre than ten sai) idl remain n was made.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. SHERWOOD WEST HOMEOWNERS ASSOCIATION HOARD OF DIRECTORS MEETING SUNUTES Someary 14,2013 Unit 3990-C SPANO, Feces n Account Reps Wak ae Lina nie ot ee isd shu sey sre program AMIS intsing cle Cea g} $7,891 embezzled Accounts, She als ave the Deegauberfimaneia! repo, from HOA Members TEL wassoentg DC iopepueifrte gd The dni cover tn Tay 10 wild epiesnte xt le Ta see 2012 Audited Financial sutrkwoop wrst nonrowses assoctaria ‘Statement below OARD OF DIRECTORS SPECIAL MEETING MINUTES ‘Match 37, 2015 Pat Conyston, Gil Fine, To poh, Shelly Leighton, MhyHs Matin UersoM, Gait Finau, Present, called the mscting to yrdse at §:38 puns uF Aviins, Beth Stockes (IL), Dablie Paster. Mary Dare, Linds Loa. Katy Chk (AM) ad Naney Thete wasn brief discussion abost 3900-C Deine isid 31 $69.96) witha tay value oF SKB, 200 (Gre-reovahoation, With dhe dow evatuotian die tnx vale Is $72,401, Also discs as tor aeened propedies vs owner occupied tis, A vote wus taken on Whether to secepl st offer of $00,000, Toure wos a4 tic unt te Presiden eat the esis woe ( se The teeing as noun at 8:50 pam, Sahuod by Beth Starkey 8 BOARD OF DIRECTORS OF MEETIN WOUD WEST ASSOCEATION, INC, Apts, 2013 inspec: Tom repent that incor forthe fit quarter ota $82,627 while espenies were $41,469. He ned Shay asessment icke-os, ston with sss casts accented wath 190046, ny hess peep in cet Nv KOU, FNC Bank iss naw Boe acted hy Union Hank, dink ol Whee Shwarsicer, wai proves hari services for camiuniy asiogistons and munageunent expatica, Tom rocimetded tate Bost consid BAST with nnd treinses nent. fine assncited with maturing CD, Board ayred tha Tam aces anki: sess 0 Association's vatieus accoeats Thoogh eatrea aaticer has let atone to dy fill 2012 reviews. Tas suggested that the Burd might went to wrsider a capilaow sinht in faze years ak Ieeal providers omni a reporting opions of new financial sohware were ale diese {tte Board azproved a motor to proceed with slubliouse root reps by Cheat ect i the emnunt of $4 2) Karke diated apse hist of opendiuces associa with TOR, evsladene loves olla Fees Lil “awe noted Hint Assosatos wil aye 0 poy Ciy's Leal Ses rated os collctio, Sale expested i else _Z7 Santi sf proposals fr eluate Sashee rman sas te til May esting The realtor, [mation w approve request omy 3910-C fo fll-enata force bate Uiils Baad C Waste ths Katherine D. Clark pio nthe seiner ofthe batdiay was eocern was a ‘olen was approved naming Tom 2s eoaaler fe another yoo, Board Member 815SALE BY THE “HOA” Fourteen (14) months later and in the name of the Association FORTINET TEN TA 2043017262 00185 Seater nomen cotnrg 404 4-17-2013 S000 ‘O447-2013 04:15:24 PM Sxereenouewe PG: 3177-3178 NORTH CAROLINA QUITCLAIM DEED xese Tax: $120.00 ore Menier No GGT. 7697 Verified by _Comniy cathe. dapof______ 20 By: YAitoxto ‘his instrument was prepa — | Rossabi, Black & Siaughter, PA Brief description forthe Index: 3990-0 Vale COUT *NO OPINION ON TITLE WAS REQUESTED AND IS NEITHER EXPRESSED NOR IMPLIED DY THE PREPARATION OF THIS BOCUMENT* THIS DEED nae tis 1B day of APPEL 2013, yan beeen GRANTOR GRANTEE SHERWOOD WEST ASSOCIATION, INC., a North Caolina non-profit coportion P.O, Box 19265, Gieensbore, NC27404 PARTYCAT,LLC, 1 Nonh Carolina tinted lisbtiy company 3930 Yarbrough Avenue ‘Wingan Salem, NC 77106 Enter in appropciate block fos each Grantorand Grace: name, milingaddwess, mui anpropiate,chanicter of entity. ‘The designation Grantor and Grartce as used herein shall include sid partis, thee heirs, sueceseers,andnssians, and stall include ‘singular, plural, aseulse, feminine or neter a5 required by context. WITNESSETIH, that said Grantor, tora valsble consideration paid by the Grates, the receipt of wich sheteby acknowledged, tas remised and released and by these present dacs tenise, else, convey and forever sisi unto the Grane, his heirs andor ‘successors andassigns, cl itil, chim and interest of he Grant in and toa extant parcel of andlying and being in Forsyth Com, Need: Casting, aod more paroulrly deserved as follows BEING all of Lot No. 190 ona plat etiled “Sherwood West Secon 6-C" in Plat Book 26, al Page 189 inthe Office ofthe Register of Dooie f Foryth County, Noh Carolina Alloca portion ofthe propery herein conveyed _inclides or X. docs notinctude te pttary residence of Granor Tre property hereinabove described was 3:4 Reginy, by Grantor by instrumen:recarded in Book 304, Page 1328, Forsyth County Page ~—— 816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 SHETWOOT WEST Income/Expense Statement ‘Yess ia Osis Operating Actell Budget Ser Acical —Bupat Sr ro 70082 4 32105000 SAMY _ azz UK zoo aan ra@ 0000 90090 (1000) 200 Rs Te (easy soz00 100900 20 9700 3001200 s7r7so 150009 0m 2500 250 090 ana) 24 335,00773 _S30s0n00 6.19779 MISSING $60,000 Sale of Unit 3990-C Documented expenses unreimbursed ——= Page 8172012 AUDITED FINANCIAL STATEMENT David Scott Spano and Donald Monroe's 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. SHERWOOD WEST ASSOCIATION, INC. STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCES INCOME TAX BASIS ‘Years Ended December 31, 2013 and 2011 Monroe Unit rental income missing 2012 in the audit Tavesiiiad _ ‘Operating, Repl Fup im REVENUB - ‘Member asseaonients $313,200. § 0 $313,200 Cathouse rental 350 980 Interest inzome 186 700 886 ‘Other income 0 EXPENSES ‘Management fees ‘Administative expenses Social expense 2012 Oe pes nd ining Unit 3000.6 Les nd doug Website servi Expenses Reps and meinenmee grounds paid with Repairs and maintenance - other 95,332 Member's funds: Cts nd poe pence 193% vil 251101 | ee Minutes above ts 3335 Mone G0 Fedlosiro exo See EKCESS (DEFICIENCY) OF REVENUE OVER MONROE XPENSES BEFORE INCOME TAX EXP! $3,395 (19) 46,204 | Commissioner's. Deed ae 4 Deed Br EXCESS (DBFICTENCY) OF REVENUE (OVER EXPENSES: 191) 46,010 BEGINNING FUND BALANCES 126281346483 ‘Transfer between funds 198) 67,898 ENDING FUND BALANCES $205,545. $186,988 Samay; 8182013 AUDITED FINANCIAL STATEMENT Association, ‘Ine, Skavenent of Revenue, Exe: “ines Revenve: Herber assessments Club house rental Interest income Other income Expenses Nanagenent fees Adninistrative expenses Social expense Office supplies and printing legal and accounting Website service Repairs and maintenance - grounds Repairs and maintenance - other Clubhouse and pocl expenses Ucilities Insurance Patrol service Racens (Deficiency) of Revenue Over Eqpenses Before Income Tax Expense Income Tax Expense Beudn Fund Balances inde Transfer between £ Ending fund Balances Year Hnded December 31, 2013 and Changes if Pond_ Balan aks SPANO UNIT Sale in 2013, No income sora to the Association tirasieicted —— Operating Replacenent Euna’ nd. foval § 332 195 9 $ 332 196 300 300 308 a48 787 137 923 (7322) 13g8on 168. __ — —{_1s6 $3377 4 322)$ 130 435 205 565386 948392 493, {_67 626)___67 sag S_275 676 2247 292 g_22 98 (See accompanying notes and Independent Accountant's Review Repoxt) Unpaid 30% Income tax on the sale. IRS rate specific to non-profit Associations Page 819SECOND AUDIT OF 2013 Instead of allowing anyone access to the Association’s 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, unl ted 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. The 2013 Financial Statement shown above Larger image of the second audit found on the following page =... [avoir comparison | [__.. S0m 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 of $59,211 that the first audit also missed BOTH AUDITS ARE MISSING THE MONROE RENTAL INCOME. Page 820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. AUDIT #2 2019 AUDIT BY ERNEST LOGEMANN CPA __Toral REVENUE — ‘Member assessments S 331.232 <— 964 Club house rental 900 Interest income ‘Gain on sale of real estate Other income The $60,000 sale is listed as net income of EXPENSES $42,775 Management fees 26,689 after deduction of the Adininisteative expenses 3733 previously embezzled Social expense 923 expenses Office supplies and printing 292 Legal and zecounting ASS <— (3,033) Website servi 900 Repairs and maintenance - grounds 64.107 <— (5,837) Repairs and maintenance - other 91.610 <— 49,605 Clubhouse and pool expenses 15.760 <— 1,150 Utilities 26.253 Insurance 3.610 <—(_ 150) Imerest 0 Taxes 3.512<— 3,512 rol service 6.195 <— (525) vellineous <— 6,296 'S OF REVENUE OVER EXPENSES BEFORE INCOME TAX FXPENSI Winco TAX EXPENSI 348 <— 8,182 NET EXCESS OF REVENUE 59,211 TOTAL OVER EXPENSES 13.010 BEGINNING FUND BALANCES 402.170 Pranster between funds ENDING FUND BALANCESCLASSIC EMBEZZLEMENT Take the 2009 proposal, increase the 2010 budget to cover the expense and the shared profits. B5/P6" 8 Toras saeTabaase oem Fase ena _ SURFACES (e738 KetrM ‘ince 1970 vom CREPE “BUDGET $22,000 Acct. 9940" Ms, Linda Lanier SHERWOOD WEST Ast INC 27105, P.O. Drawer 10263 poate re (Greensboro, NC. 27404 aw F942 | (Prior Customer: STRUCTURAL CRACKPILL® Aer complete overall surface preparatin(),fristinsll combinatio(s) of fori asphalt Surface topping, Uoweled acrylic crckeputch, & ruber of azryle filler (le, widesto-naroves)) throughout existing deteiorated surfaces to prepee for surface refurbishment : 33.595 EEURBISHIMENT: After above provige complete pressure-washing followed by two (2) coats rover all reas and ten tyce (3 coats of cloe a3 selected by customer) completed with layout & te psioing oF 2 ines , $8938 : $12,583, QLTIONGS Acquire & ins a new reteaonal nets (wih center sirap) @ $220-$400 each, depending upan election desied. (weight/materaitheading/ headband/éowelsthiknerswarsaniy) Ether sand/paint(ofubiss existing. net post or compleely replae= with new sets @ ca) @ $300S1,000, depending upon selection (ateralMestures). Additional complete recreational colo-coat avaiable @ S1890 (if desired), Also, ald $693 it to @) color desired/selested |NOTHLS): All work subject to los! weather. Customer to alow tnoeghence ances and water lion Surounding jbse poss eras wil be dolecedslghlyahovghall sen care te. No sae guarate a bie bate provided, less completly cured. Castor to remove uss eceningtroogh fences No ble ponerse dgainst exiting ecks ro-pening oF new ones appenring No porns) ofthe work to be subsontered toa th py aking & ost inwafationsto be completed & is spanily. Pease efron crlesd marae ax date of work competition ‘Nine months later - nth CACTX Corporation z Signing for ab Sats Corporation sa Board Member Se eicacel aaron: petite ment nn moe (15+ years) a daobenmeth ae Saran Seog aE esoaton rayon SSeS STS iy = A Group's oe Linda Lanier — = Checks signed by Board President (see below) — Page — 822Tom Lopina _ From: “TomLopina topaa@rontine! nob Sine erence a mraz au <—| To Board President: Debra Easter ‘Sujet, Ter Ager br SWA Dod acing Monday uly 1,200, 7-13-2010 ‘Thansbebbe 1 suggest te minutes eet be cont amount apeaves i we fea ocean ees cue oases, yea _[ TMC PAINTING ‘othaves ware noun hat hs prea he mee cs yo | embezzlement ar see below Tone cour toured a proposal ton Goo ete 9/1409 fr Sua rae FTO “Suraces Rothe for $8.88 and “Opto coven vers mee Fs wh was seyrouea7 Yop te ett S08 arin pas weve neon a ope ort wan sound Wo alee? & Gove, bul |TeGH Vy he over ak Teny charged si ‘bade Hwecanet referee mules toa specie proposal tnt ua anya tn tad Sct ary ‘98 fs faucany respon fesponiy ahem the Ue cre Date arate mater camo up i: night hth eperdtoberepot yovrecsies —g| Rental unit fraud fom Aig showy over 15000 einen The rurer nascar here an Nee i fecnvedIna mont ie Ree was Teceoary whe ope of unpaid tom assessments From 6 = sent anda. 7 Soto 1020 Sublet me: Agen fr SA asd een Moray Jy 12,2010 OCERA Pang contact was aptoved by ema ete hwea ete sane 2090 moetng mins under Bontse Rosas or 7 a. ma los $20 2010 bag a Canta pron wa tase on Ms. Easters response: Budget increased (Proposal already received) Completed Proposal © wan meat a —Fropesel CACTX” Ss BD) conan» SURE ‘eis et Pre — LZ BEG wntetssente arto TA-T2ADNIO? (0) Since 18 sen ORE TEorEoras 9721952 (mPa) SHERWOOD WEST “CLUB HOUSE” ‘Ms. Linda Lanier Hntngroen Lane SHERWOOD WEST ASSOCIATION Winston-Salem, NC 27108 ‘Association P.O, Drawer 10255 Tenis Court* Management Group Greensboro, NC 27404 rior Customer: 2009) WTRUCTURAL CRACK“FILL: After complots oval aurice reparation(),fasisiinstall combinetion(s) of ome asphalt Surace topping, Yoweled aerylie emckpatch, de tubes of asi filler Ge, widest tornanowes) Sroughowt exiting deteriorated surfaces to prepare fr surface refurbishment $3,395 rm MENT: After above srovide complete pressure-weshing followed by two (2) costs mbar overall ares and Ybe tee (3) costs of color as slesed by customs) completed with layout & ro for2" nce . ve 58930 823“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 THIRD PARTY BUYERS f He Alliance Lue H& W Assat Management SCOSR, ote. wc PAINTING ENTERPRISES Repository of MONEY GETTING OUT MONEY CIRCLES BACK Page —<—= 824TMC PAINTING ENTERPRISES ‘TMC Painting Enterprises (“TMC”) is based in Pilot Mountain, NC. Itis 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 Coe’s 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 Worker's Comp, No insurance, ‘No bond, 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. TMC PAINTING ENTERPRISES PAINT PAINT ANNUAL YEAR UNITS FENCES TOTAL $ 47,000 $ 47,000 $ 45,000 _$ 10,000 $ 55,000 $57,279 $ 5614 $ 62,893, $__38,754_§ 29,955 $ 68,709 $21,313 $10,300 $ 31,613 2013 $ 16,420 $ 12,295 $ 28,715 2014 $23,675 S$ 9,890 $ 33,565 $ 18,800 gis 8/8 2005 AE 8 8 2015S. 18,800 Page = 825earch for Your Unclaimed Property Step 2: Add Properties to Your Cart 4... MY Claims cart Ttems to Cart button, You can also seereh for more prope have added all of the properties you wish to ciaiy Properties in My Cart button te continue, Gv Oo \EY Properties in cart: ‘The results for your search criteria are displayed botow For properties. that you wish 1 daim, click the checkbox beside each proper'y and click the Add 15+ years / President 6 years DEBRA A. EASTER ‘SWA Board of Directors Soarch for More Properties To search again, enter th Click the Search Properties by Last name or Company . a rch information for Bbeferson oF company you are searching for ang New Search”) (Rese Setecions al Cai Search TMC's TONY COE ———————— according to the Pilot Propertya Namo Full Address ‘amount | Mountain Post Office The RT and Box translate to the home address of NC industrial Commission Insurance Coverage Search System Employer / Carrier / Policy Search Results Worker's Comp Cancelled 9-4-2007 Worked on property until 2015 when they were reported to the Worker's Comp Board pie “cattery PAE 2BER. PAINTIN ENTERPRISES ASTID oven Ifon-line records are reliable, the license plate is registered to a convicted prostitute in Texas. —— Page 826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, Itis 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. Gp) HOME REAL ESTATE COPROPERTY MANAGEMENT Keyword: propery manag aly ars QI ene cornorenny wowaeuent 4G) seo vreraucn om Won aera Ne FOE 21 ‘Keywords: propery managers, taking anerators The addresses are all +) HOME REAL ESTATE COPROPERTY MANAGEMENT properties owned by © tease Senin soon neeion zee Ogburn Real Estate once ence Oaburn Real Estat Cp Mowe REAL stare cornopenry manaceuent or @ yeti ime eee cone of a dozen companies or LLCs they own Errore macewer eyed pur managers ting ors DSIRE eee comorerryaawuanucnr {054 Spin i Wo Sar e271 48 yw opr marge bsg operas >) HOME REAL ESTATE COPROPERTY MANAGEMENT 250 Ave san Salem EH 0647 Keyword: pope manage uy oases ‘Sherwood West 4) sonny na wewnsaen near eT Association ev TONE REAL ESTATE COPROPERTY WANAGENENT TS Stoney meet | GZ) SOME REAL ESTATE COPROPERTY UAAGENENT BATES —| Property was rented Ogee imeem for 2 years, but rental HOME REAL ESTATE COPROPERTY MANAGEMENT SALES income missing from QDorwonane Ave, Wision Salam, NC 27106-2613. OD sronece en women re a HOA financials @ "simnseeamne nour Cross-reference Embezzled Rental Expenses, page 128 — Page a 827CONCLUSION Like so many of the other associations listed, Sherwood West’s 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 o 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 828