T
he Hammocks community in unincorporated Miami-Dade County has been recovering after a series of arrests in late 2022 of a former board president and her husband, as well as three ex-board members accused of participating in a scheme involving bogus contractors. These contractors were hired but did no work on the property, while the association’s payments to them were misappropriated, including to the pockets of some of the former board members. David Gersten, who became the receiver of the community nearly two years ago, has implemented a Hammocks Bill of Rights to protect against potential future fraud, kickbacks, and insider dealings. Gersten has also settled lawsuits against several vendors accused of participating in the scheme.

    The community has about 5,500 single-family homes, townhomes, and condos, making it one of Florida’s largest HOAs. As receiver, Gersten worked with a team of attorneys and forensic accountants to trace misappropriated funds, start repairs and maintenance of common areas, hire a property manager, and hold new board elections. Gersten has obtained a full $1 million policy from the community’s former crime insurer, Philadelphia Indemnity Insurance Company, this year.

    The community has elected a new board in February, and Gersten will remain as monitor to oversee the association’s operations. Gersten will have the power to access financial records, sit in at board and committee meetings, break tie votes, approve the hiring and firing of all vendors, attorneys, and other outsiders providing professional services to the HOA, and otherwise ensure the community’s operations are in order.

    The transition to monitor status marks a turning point for the community, which has been recovering from the alleged fraud scheme. Gersten will remain monitor at least through year-end and will submit a report to the court on Dec. 1 on the community’s progress, recommending when he should be fully discharged.