Condo fraud revealed

Condo homeowners' environments can be incubators of fraud because volunteers comprise the boards that oversee the collection of large sums of money, and they might not properly manage these funds for the benefit of clueless residents.

Leon Benzer, owner of the Silver Line Construction Company, apparently liked the influence he wielded. He liked the cash even more. Between 2003 and 2009, Benzer fraudulently gained control of 11 condominium homeowners' associations (HOAs) in the Las Vegas area so that the HOAs would direct work to his business and a conspiring law firm.

According to a federal indictment, Benzer and several cronies identified HOA boards that could potentially bring construction defect cases. They then allegedly enlisted real estate agents to find condos within several HOA communities for purchase. Benzer and many others recruited "straw purchasers" to use their names and credit to purchase condos in the complexes, according to court documents.

"On at least 37 occasions," according to a U.S. Department of Justice statement, "Benzer and certain co-conspirators allegedly provided the down payments and monthly payments on behalf of the straw purchasers, including HOA dues and mortgage payments, and various false and misleading statements were made to secure financing for the properties.