In January of 2023 the Administrator and Vigilance Committee fabricated claims that the Administrator was allegedly assaulted and threatened by property owners who had questions about the legal status and financial acts at HPV. The Vigilance Committee took it upon themselves to distribute falsehoods throughout the community to discredit those that would dare question the Administrator. While the effort was successful in creating discord, the unanswered questions remain.
The prosecutor’s office has investigated these alleged incidents thoroughly for 2 years. This past week the findings of that investigation were released. The investigation found that the accusations of the Administrator were without merit, and the property owners are completely innocent of any alleged crimes. We do not expect the Administrator or the Vigilance Committee to inform property owners of these published findings.
Currently there are 15 active criminal cases against the Administrator and HPV leadership. These are the result of crimes against owners which include assault, dispossession, threats and fraudulent administrative actions. Many of these actions have been done to harass and intimidate property owners who are critical of the mismanagement of Haciendas Palo Verde. However, the most egregious actions of the administration involve financial mismanagement and affect every property owner of Haciendas Palo Verde.
In Baja California Sur a criminal case from the date of being denunciated to a resolution in criminal court takes roughly 3 or more years. Legal actions in BCS are not resolved quickly, but we are now being heard at the Federal level and that support is pushing the local resources to complete their work timelier, under the scrutiny of the Federal Courts. We are confident that justice in these 15 cases will be served in time and in our favor.
Additionally, there are several civil cases in different stages of progress. One demand is dealing with the annulment of selected illegal actions of the Administrator and the Vigilance Committee committed in 2023. The Administrator has now been served with the suit, and the court is awaiting her response, due within the next week.
This legal service prompted the Administration to send out a WhatsApp message to property owners. This message misrepresented important facts of the case. It is not true that this suit was filed because the administrator successfully manipulated the 2023 AGM to a misguided vote to sue certain property owners. The suit was filed due to the belief the Administrator broke the law in the conduct of the meetings, which will render them null and void. This action will provide the Administrator the opportunity to explain to the judge how HPV can declare the entity a “touristico” development and not subject to the laws of BCS according to the corporate charter of which is on file in the public record. We should all look forward to that presentation.
As to the 2024 AGM, we do not think it is an accident that the Administrator has failed to distribute any minutes to the property owners. Reading these minutes would raise many questions as to what was presented to the property owners and why no actions against certain individuals were taken. And, why are we seeing continued legal bills after being promised, by their legal counsel, there would be no further charges for these actions. Remember, there were additional legal representations at the meeting to include an independent Notario. Where are the minutes? Clearly such a lawsuit against the individual owners would prove frivolous and result in another very costly disaster for the HOA.
So far, the Administrator and her legal team have lost all motions they have filed in the courts in reply to our actions. They are burning through 750k pesos in legal costs while using the money of property owners for their own private legal representation.
This and other actions create an immense liability for the Condominium Regime (and thereby the Property Owners) who are at risk of paying millions in damages in the future. We all also face loss in property values, as the legal issues and associated liabilities to owners become more and more public knowledge. Realtors are already questioning the situation and conveying the possible liabilities to potential investors.
Property owners should recognize the liabilities the current management has created. The system and assumptions the developers have unlawfully put in place do not work to the benefit of property owners and are contrary to the laws of BCS. We need a competent management that understands and respects the law and has a set of required professional qualifications. It is imperative that we mitigate the liabilities this administration is causing us owners. Changing our management and abiding by the laws of BCS is the only way to protect the HOA from further litigation, expense and declining property values.