March 2009  

We do not make jokes, we simply watch the LA Times, the Orange County Register and CID/HOA board of directors and report the facts!

Laguna Woods Board Meeting Security Rivals BOS CCW Hearings

Posted by: CotoBlogzz | 03/14/2009 2:00 PM

The Laguna Woods Third Mutual Board mimicking the recent OC CCW hearings, finally politically assassinated one of its own.

Katie McDaniel, an apparent critic of the status quo was removed last night from the Third Mutual Board by majority acclamation - by a board referred to as the Gang Who Couldn't Shot Straight


The Third Board, under the leadership of Carol Moore, with support from Mr. John  Paulus, Kathryn Freshely  and  Cynthia Conners  took a calculated risk by drawing a line on the sand siding with the property management company, and perhaps exposing residents and individual board members to additional liability.  Particularly when the only argument to remove Ms McDaniel from the board was "because we can".  All this following an altercation during a closed door board meeting documented in OC Sheriff's Battery Report 09-038879, alleging that president Moore threw a bottle full of water hitting and bruising Ms. McDaniel.

Apparently the board blames a recent property management ultimatum to the board, where the property management company instructs the board to do as told, or else.  Then there are questionable transactions that can be "erased" with an early loan payment, thus avoiding an HUD audit.

Mr. Paulus moved to remove Ms. McDaniel, seconded by Ms. Conner. Voting in favor of removal were  1) Moore, 2) Paulus, 3) Freshley, 4) Souza, 5) Meunnichow, 6) Conners, while voting against were 1) Stanley Feldstein, himself a victim of an earlier political assassination,  2) Don Lippert, 3) Dominic Burrasca, 4) Carol Skydell, while Ms. McDaniel  was not allowed to vote.

Stanley Feldstein, providing an eloquent defense on behalf of Ms. McDanile, cited from the  Davis Stirling  Act and argued the action was not proper and or legal.  In at least one case, an attorney representing a resident at the meeting supported Mr. Feldesteins argument.   While the Third Board had their attorney present, Gary Kessler, (Adams, Kessler) and  who insisted the removal was in fact legal.  Mr. Kessler made his debut as a new counsel for the Third Board, but apparently flopped:  "I must tell you I was not at all impressed with Mr. Kessler, his persona was nervous and much like a young man on his first date meeting the parents for the first time!! Nervous and skittish, with a silly laugh ! He could use some work on his people skills." said a resident in attendance.


Ultimately Mr. Feldstein posited is that the reason the board removed Ms McDaniel is what we regularly refer to as the Stanford Prisoner Syndrome:  Power

 
In other board action, John Paulus resigned as treasurer and the board  elected Ms Freshley to replace Paulus, while Meunnichow is the new secretary.   While it was widely accepted that the board would remove Mr. Feldstein as 1st Vice President, and Don Lippert as 2nd Vice President, this did not come to pass, apparently the strong resident showing put this action on pause.
 
Residents from United Mutual were not allowed into the board room where the meeting was being held, and instead were directed to the Redwood room commonly known as the Overflow Room, where they had to  watch the proceedings on closed circuit television. Residents had to produce their ID cards proving they were Third Mutual residents, before they were even allowed to enter into the board room. Security was all over the place, in front of the community center, before entering the building,  at the entrance of the board room checking residents IDs, in the foyer, and one in the Redwood room, along with property management employees.  Not sure if any undercover security personnel were present.
 

Predicting the largely materialized turnout, we asked the Third Board a number of questions, prior to last nights meeting, which went answered.  Excerpts follow:

Given that there seems to be  no compelling argument to remove Ms. McDaniel from the board, other than "because we can", and considering that:

In addition to the PCM ultimatum to the board, there is the issue of a potential HUD audit and a threatened injunction against early loan payoff, should the United Mutual pursue that avenue.
Then there is the phantom resident buying up distressed property, allegedly for re-development purposes.
We understand that residents may challenge the board tonight referring to Robert Rules, and of course the Journal will be there to cover the proceedings along with the rest of mainstream media.
The questions for you and the rest of the board are:
1.  What is the board ready to do, in case Robert Rules are invoked?
2. Is there something that our readers are missing?  All the evidence points to siding with the property management company against resident's wishes and perhaps pointing to a potential cover up.
3.  What is the board ready to do in case the HUD audit comes to pass?
4.  Is each individual board member seeking personalized legal counsel?

 

Comments.

 

Anon

 

LW has become equivalent to "Dead Man Squawking."  Yup, it's a quagmire of dead-ends and circular arguments draining vital resources and adversely affecting the residents' quality of life if not their property values.  The process of politically assassinating the competition is usually experienced in third world countries, and now it seems that third world model amounts to business as usual at the scandal ridden LW.  That's a pretty transparent attempt to "shut-up" board directors who actually believe they have a duty to be intelligent and serve the people who elected and/or appointed them to office.  A rare breed indeed.  Pity those sitting board directors don't do the job they were voted-in to do.  But, to be battered while on the job, well that's another story.  But then political assassination can be even easier it appears, with the help of legal counsel.  So how hard is it for a board director to perform a simple task of representation?  A task of being honest and not succumbing to that position of a pawn for say, law firms or other entities like management companies with an intere$t in, let's say, "other objective$?"  Apparently, it is a very hard task.

 

Interestingly enough, the author of the article writes of "questionable transactions that can be "erased" with an early loan payment, thus avoiding an HUD audit."  Apparently that erasure appears to address not just the HUD audit but other potential improprieties as well.  Might the legal definition of the author's simple sentence instead amount to a sophisticated type of "ratification" wherein those criminals responsible for such actions, and the term "criminals" is used of course "metaphorically", want to wipe out their dastardly deeds once and for all so no one can, as we say, look back at them ever again?  Who would advise such a group to do that? and why?  Maybe a state ordered forensic audit might better answer that question, and answer it before hundreds of elderly non-suspecting owners are thrown out on the street to the next "LW Tent City;" don't forget such a City is only for "seniors" who have run out of money.  After all, this IS all about MONEY isn't it?  Nothing about "leisure" nothing about "amenities" nothing about "cutting costs" nothing about "quality of life" nothing about "individual rights in their properties" nothing about "peace of mind."  Looks like "LW" now stands for "Lawyer World."

 

Owners in any HOA need only look to the latest string of closing law firms and lawyers looking for jobs to understand that once on a payroll almost anywhere, but especially at any incompetent HOA, is akin to winning the lottery for some lawyers.  An HOA payroll that never quits, it kinda, well, sort of, just "keeps giving."  Surprise! A stupid board that knows owners have problems meeting their own debt obligations yet takes advice from vendors such as management companies and yes, even lawyers, to raise dues, specially assess, sell off housing, and do it with impunity is a goldmine to any struggling law firm or lawyer.  Now it appears that the "Shut-Up Rule" has morphed for board usage as the "Get Off The Board Rule."  Picture this, some errant idiotic board-breaching directors with a collective IQ of Moron-4, decide if you don't do what we tell you to do we get to kick you off the board.  But not so fast, always remember the magic words, "on advice of counsel . . .". 

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