It boggles my mind looking at these budgets from after the prior majority lot owners went bankrupt and caused National Bank of Arizona to lose $35-million, the biggest loss in their history. The prior majority owners never paid any dues.
“WRS” refers to “Western Recovery Services, LLC,” which sold our Special Assessments for lot development to suckers. The HOA allegedly “sold” the Assessments to WRS. WRS is actually a shell company of the former majority lot owners called, “Equity Lenders & Consultants, LLC,” many of the people in WRS & EL&C are being sued by one of the “suckers” who invested $2-million, some of it in “New Tucson.”
Where did all this money go??? See “Bad Debt Writeoff,” which is probably because the prior majority lot owners never paid any HOA dues. I was told at an HOA meeting there was never a forensic examination of the books by National Bank of Arizona. In China, banks would lend money to developers and both would skim money, take kickbacks and pay themselves handsomely:
In China, ventures may be spectacularly unprofitable, yet enrich everyone lucky enough to get a piece. Developers, for example, construct vacant office buildings as an excuse to borrow from state banks. They rake off a cut for themselves, pay bribes to the party officials who deliver the land and reward bank functionaries with sumptuous banquets and trips to Macao. Soon enough, the trophy skyscraper descends into financial disaster, but the developers, bankers and party officials have already extracted their riches, and for long afterward they will still enjoy them. “Lessons the Teacher Forgot,” New York Times, 16 May 2009.