Hello neighbors and blog readers, a follow up to our “Royden lies with silence” article we now have another addition to the series…”ROYDEN IS CORRUPT”…..STILL!!!!
Our efforts at homeowner advocacy and education is enabled by our Counterpoint newsletter and memorialized on the blog. Here Royden members and the general public at large can access information on the Royden HOA, including consolidated covenants and their ignominious history of violating clearly stated covenants found on their website under Article IV-Covenant for annual assessments…
The Royden HOA’s most recent violation occurred in February 2018. The Royden HOA has refused to allow a member to review the HOA’s books and records. A clear provision of the Royden HOA bylaws, as is standard in all HOA bylaws, is a provision for members to review the HOA’s called a “books and records” review. More specifically….a minutes and financial records review. on site, at a directors home or office. The Royden HOA has refused this Books and Records Review by a member!!!
Continuing the Royden HOA’s boards ‘illegal “constructive fraud-breach of fiduciary responsibility” covenant and by-laws administration, the current board led by Jon Nance, Matthew Petchel, Ben Pleune and Dr. Charlton Owensby have refused Rinaldi’s February 1, 2018 request to have access to the HOA’s Books and Records.
One only needs to check the HOA’s incomplete and non professional website and look at the By-Laws and Article IV-Covenant for annual assessments, to take note of the illegal nature of the Board of Directors conduct ,of their legally mandated requirements, under NC Law. Petchel, the secretary, has not even accepted certified mail at least four times requesting a Certificate of Payment of Assessments, Books and Records Review…and…in one instance, an Annual Assessment check!!!!! .
So…WHY would the Royden HOA not allow a simple “Books and Records Review by a Member”???????WHY THE SILENCE AND TOTAL LACK OF TRANSPARENCY??? Here are some reasons why. ALL UNACCEPTABLE
1) The Royden Board of Director’s has been illegally constructed. There have not been any true elections for over 15 years. All meetings are unannounced and secret. The Board simply nominates the same directors every year with no choices. That is, 3 seats, 3 nominees, four seats, four nominees. WHY.?is Royden a CLOSED HOA..?…..What could be in the BOOKS AND RECORDS that these self appointed directors are hiding????? FOR YEARS!!!
2) Here’s a reason…THe Easement Lawsuit- This incident goes back to 2006 when Dr. Owensby (President)and Ms. McNellis (Treasurer) colluded with the Royden Attorneys and withheld their monthly invoicing for nearly 3 years (Over $195,000.00 in Legal fees) in violation of Article IV-Covenant for Annual Assessments-Special Assessments, requiring annual approval and reporting,
3)Notice that Owensby has “served”????? for over 13 years????????? WHY??? He led the Attorney Collusion of legal fees. Answer why he is so committed to serve? and you will find the reason for the Royden CLOSED Board…Special Assessments for the disastrous easement lawsuit were never approved….and…if approved, had to be approved “each year”………Never happened…Consequently Members lost $300,000.00 and lost control of the front entrance easement agreement…See the OWENSBY ORBS article in the blog for more on this devastating illegal act!.
4) Sometime around 2006, the Annual Maintenance costs, for the front entrances, exceeded $210.00, the Maximum Annual Assessment allowed in Article IV. Owensby and Woolf Boards, with Ms. Weiss’s support, continued to violate Article IV and began charging a fixed amount of $320.00….not the covenant maximum of $210.00 Totally disregarding Article IV….and…Implemented various capital projects without Special Assessment Approval……..Examination of these minutes would be informative???? Is that why access was denied????
5) The Fiscal Reserve is clearly defined in Article IV as required to “be equal to” 10% of the Annual Maintenance Budget…or around $3,500.00. Since 2006, Owensby and subsequent boards have ran up the fiscal reserve from $20,000.00 to as high as $40,000.00…by bad annual assessment fixing……for no reason….Never has the Royden HOA encountered a situation where a fiscal reserve has been needed. In fact ,the reserve has been a negative draw for fraud and seen possible mis-appropriation of funds from amounts as low as $4,000.00 to as high as $20,000.00???????? There is no reason for the High Reserve especially considering the Royden HOA’s Financial reporting violations. Was there fraud??? AND WHY HAVE SO MUCH EXCESS FUNDS ON HAND???
6)The Royden Financial reporting, for over 10 years has not been available on the Royden Website,..and not meeting NC Law Cash Flow Requirements.. and ….Ben Pleune (treasurer) has not been providing them electronically upon numerous requests ….and now are not available under the denied books and records review. Excessive reserves and Cash Flow reconciliation is a toxic mix…And an invitation for FRAUD! Owensby, to his credit, did have a cash flow balancing regimen, while president, but after 2006, this reporting convention was stopped. Since then no accountability for financial results was confirmed by reconciling annual cash flows to actual bank closing balances……..a practice, if engaged would not allow fraud and mis-appropriation of funds to flourish.Is that why Boards are rigged and no transparency????
7)Ben Pleune is a lawyer and the current treasurer. He and the rigged board have continuously violated Article IV in the Annual Assessment process, and have incorporated a (secret) financial reporting system that does not include a cash flow statement, tied to reconciling to the HOA’s Banking statements……all while maintaining an inordinately high Fiscal reserve well over $16,000.00 of the covenants requirement………With absolutely NO TRANSPARENCY….Not on the website, not in the annual financial statements, not in the requests for electronic financial reports…….and NOW…..DENIAL OF A BOOKS AND RECORDS REQUEST!!!!! We ask you, Royden members…… would you give someone control of your bank account and check book….and never ask for a reconciliation of the checking account entries to the bank statements????? Certainly NOT…But Royden Homeowners are so trusting that they have let a “select group” in office via rigged elections, to do the exact same thing!!!!!! LUDICROUS except TRUE!!!!
8) From 2012-2017, the Royden HOA was engaged in several lawsuits and Director’s and Officers Liability Insurance claims for violations to Article IV and other financial irregularities. During this period, the rigged Royden boards, Nance, Owensby, Petchel, Brechnitz and Pleune included…spent over an estimated $30,000.00 in legal fees in an attempt to defend against the claim. The claim(s) were made by a member that the HOA had violated Article IV-Covenant for Maintenance Assessments. After at least 8 court appearances, over a three year period, the Royden HOA attorneys got the suit …..”dismissed”…..That”s right….Dismissed…. on a legal technicality..called 12(B) 6=Failure to state a claim for which relief can be granted!!!!! Far to complicated and related to HOA Law to be explained here.
The result was that the Royden Attorneys never had to defend the HOA’s annual assessment policies, since they were never revealed to a jury…..The Royden HOA even filed a Sanctions action against Rinaldi for being an “vexatious litigant” and won an award of over $6,300.00. (Paid in 2017 but never reported to the membership). Minutes of the various meeting held over the four years of legal action have never been shown to members and were requested in the Books and Records request..But DENIED!!!..WHAT ARE THEY HIDING!!!! Mr. Petchel!!!!!
9)An Apathetic membership community enables this corruption and illegal actions in violation of the basic Royden Covenants and NC Law clearly shown on the Royden Website. Sometimes these members are criticized as lemmings and having more money that sense. In reality, the Royden members are content will a “low” annual assessment, a dated and unattractive front entrance and a financial structure that is fraught with the potential for past and continuous fraud and mis-appropriation of funds. The question remains,,,,when will a member or members demand the most basic requirements from an HOA Board…..Compliance to the covenants, financial integrity and open transparency!!!! Apparently Royden members have no time for these simple tenets of professionalism and honest dealings.
10)Consolidation of Covenants has been discussed for over 5 years, including the Woolf/Weiss led deceptive gambit to force a fining regimen on the Royden Community (for landscape violations) to satisfy their need for “MORE POWER”. Look at past annual reports. Each of them discuss consolidation of covenants..Led by KC Brechnitz…no less…Where are they??? It’s a classic “Catch 22” for the deceptive Board….To Change the Covenants, you have to disclose the covenants, to disclose the covenants, they would have to reveal Article IV-Covenant for Maintenance Assessments, if they reveal Article IV at a SPECIAL MEETING, they will have to be prepared to explain why they have not followed Article IV for over 10 years?????? See why the Royden Board is doing nothing about covenants and not issuing the consolidated covenants completed in 2004…..A ROYDEN CATCH 22…and they CAN’T HANDLE THE TRUTH!!!!……..(They also are praying Rinaldi moves!!!!!!) See why we have the BLOG!
SOOOOOOO…Where are we. The rigged Board looks to continually violate the covenants at every turn with each Annual Assessment being fixed in violation of Article IV. The rigged board regimen is required to pull off the constructive fraud, with the Attorneys, so that at all times there are 4 out of 7 directors…yes the aforementioned names…to vote as a majority and ..who are in the hip pocket of the Royden Attorneys, Horack, Talley, Pharr and Lourdes, who,….. by the way, are complicit in any “constructive Fraud, Breach of Fiduciary Duty Claim, when made against the Royden HOA, as they are a “trusted related party” that enabled the HOA to perpetuate practices that were in violation of the Royden HOA Covenants and By-Laws. Look it up.
Therefore, with this collusive arrangement (rigged board and attorneys) continued violation of the Article IV-Covenant for Maintenance Assessments exposes all of the Directors….and members..and Attorneys … financial liability for a “constructive fraud-breach of fiduciary duty” claim from any future individuals or members seeking redress for the assessments violations. Apathetic members are in effect turning their heads to the continued abuse of their fiduciary responsibility by these…..”volunteer neighbors”………
SOLUTION…..Just one MEMBER…yes just ONE…Needs to step up and say enough is enough! Join us in a lawsuit seeking the following….
Immediately implement the Consolidated Covenants and Article IV
Amend the Covenants for a $320 Maximum Annual Assessment in lieu of the current $210.00 Maximum
For both actions, use a PHASE VOTING system with 2/3 majority required!
With this action, the RHA will have conceded that the original suit was valid and the sanction action violated the Royden by-laws and all monies should be returned.
Absent these actions, either implemented via litigation or by independent Royden Board action, the constructive fraud will have to be continued and any new board members, ie Ms. Tsuei-Strauss, will be exposed to the same liability as the members of the “rigged” boards and attorneys, responsible for this breach of fiduciary duty.
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Remember….”all that is necessary for evil to triumph is that good men do nothing”
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