Timeline

"New homeowner" letters & web pages written with misrepresentations (in Folder K4)
show

• efforts were made. through an expenditure of time and energy, to fraudulently mislead others by persons who had knowledge that the LLPOA is not a homeowners’ association,
  
• such documents contain misrepresentations of facts directly contrary to the LLPOA's charter, and
  
• such documents contain misrepresentations of facts directly contrary to the LLPOA's deed and the covenants which are incorporated by the deed.
  

A signed and recorded 1980 agreement[1] to extend the covenants from the 1950’s to 2020 shows

1. the names of the signing parties who acknowledged knowing and agreeing that “No ... chemicals or other noxious substances shall be allowed to enter the lake.” (page 2),
   
2. the names of the signing parties who expressly acknowledged knowing and agreed that the LLPOA has no “duty to maintain said Lake in its present, or any other, size, depth or condition.” (page 2),
   
3. the knowledge held by all the signing parties who owned Loch Lomond properties prior to 1980 that they did not pay money on a mandatory basis to purportedly “maintain” the lake, and
   
4. similar knowledge held by all subsequent “treasurers,” “presidents,” and “vice-presidents” who shared possession of documents created in the name of the LLPOA.
   

 Fraudulent “New Homeowner” Letters
"New homeowner” letters (also known as “welcome” letters) have been delivered to incoming home buyers since the 1980's, with minor variations, by persons pretending to be legitimately elected in accordance with the LLPOA's charter.  They have been accompanied with (a) lists of persons claiming to be LLPOA officers and directors, (b) false maps similar to the ones distributed by certain real estate agents involved in the fraud, and (c) bylaws with terms which the “officers” and “directors” treat as optional.  They show that the persons holding themselves out to be LLPOA officers and directors

1.  falsely claimed to be bona fide LLPOA officials while knowing that no bona fide election limited to Loch Lomond property owners has been held since 1980,
   
2. claimed to be familiar with LLPOA documents and LLPOA obligations, and
   
3. solicited money under false pretenses with factual misrepresentations which they knew to be false.
   

Mail Fraud from Follow-Up Mailings

In addition to hand-delivering "new homeowner" letters (or "welcome" letters), those claiming to be LLPOA officers and directors have regularly mailed hundreds of newsletters on a regular basis to the Loch Lomond easement owners.  Since the 1980's when the fraud began, those involved in the scheme have mailed false billing statements and thousands of newsletters by those pretending to be operating a mandatory-membership homeowners' association. They have never corrected the false representations of facts contained in the "new homeowner" letters.  The "new homeowner" letters, which are also sometimes known as "welcome" letters, have been distributed as part of a "welcome packet."  Some property owners who purchased their properties in recent years have said that they have not received "new homeowner" letters designated as such, but they have apparently received their false information in a "welcome packet."  They too have received mailed false billing notices.

False Representations of Authority to Act on Behalf of the Corporation

In recent years, such as for 2013 and 2015, persons collecting money in the name of the LLPOA haven't even pretended to have been elected as required by the Annual Election requirement of the LLPOA's charter.  They have otherwise cancelled scheduled election meetings in 2012 and 2014 because of lack of quorums and, without complying with Article IX, Section 2 of the 2011 document recorded as bylaws and which incorporates Roberts Rules, continued to collect and transfer money. Without even creating apparent authority from holding mock elections with outsiders to defeat the LLPOA's property rights, they have treated the collected money as their own without following corporate formalities and merely continued to pretend that they are LLPOA officers and directors.  When there is a cancellation of an annual election meeting because of a lack of a quorum, Roberts Rules requires that an election meeting be rescheduled and held before the ordinary business of a corporation can continue.  Otherwise, among other things, those claiming to be officers and directors would be motivated to simply not seek to hold election meetings in a manner which requires quorums.

False Representations of Lake-Maintenance Obligation

In the “new homeowner” letters, among other things, the participants falsely claimed that the LLPOA conditionally received title to the lake under conditions established by the McIntosh company which purportedly required the LLPOA to maintain the lake to avoid a threat of losing ownership of the lake.  The false representation of fact that the LLPOA was organized to maintain the lake is repeated in the preambles to the documents recorded as bylaws in 2001, 2010, and 2011.

Those who have distributed the false "new homeowner" letters and the documents recorded as bylaws have never informed those who pay money to them that they intend to use the money to divide the Loch Lomond community between easement owners who own lake-front properties and those who don't.  The use of the money for such purpose does not involve maintaining the lake and is contrary to both the LLPOA's charter and its deed.  They never inform those who pay money to them in a meaningful way that they have caused damage to the lake by using money to kill oxygen-producing plant life which is needed by the fish and which helps to reduce algae.  One exception is the admission of knowledge that they made in the Feb 1997 newsletter.
 

Plain Language of the Deed and the Covenants

The plain language of the deed and the covenants incorporated by the deed shows the exact opposite.  The deed shows that the bona fide LLPOA officers and directors in 1961 agreed to accept the lake (a) subject to the easements running with the land in favor of all Loch Lomond property owners, (b) subject to the covenants, and (c) subject to an agreement whereby the LLPOA to not allow persons to use the lake except as guests other than the owners and occupants of the three Loch Lomond subdivisions specifically identified by their recorded numbers as recorded documents “822721, 903401 and 874973.”

The plain language in the three covenants for the three separate Loch Lomond subdivisions (“822721, 903401 and 874973”) expressly granted “perpetual” easement rights in favor of the lot owners without requiring the lot owners to be members of any association or to maintain the lake in any size, depth or condition.  The covenants, like the 1980 document signed by many of the insiders in this scheme, expressly provide that the owner of the lake is not required to maintain the lake in any size, depth or condition.

Misrepresentation Regarding Contemporaneous Creation of the LLPOA

The “new homeowner” letters also falsely misrepresent that the LLPOA was formed contemporaneously with the McIntosh company’s development of the Loch Lomond community which planned lake-maintenance obligation upon the LLPOA.  They also misrepresent that membership in the LLPOA is mandatory.  In fact, the first covenants verify that the McIntosh company began its development of its first subdivision in 1954, seven years before it conditionally conveyed the lake to the LLPOA in 1961.  The LLPOA’s charter shows that it was incorporated in 1957, a year after the McIntosh company had finished recording the last of its covenants for the Loch Lomond community.

Misrepresentations re Chartered Purpose & Threats to File Liens

In the “new homeowner” letters, the participants also falsely represent that membership in the LLPOA is mandatory and liens will be placed against properties of those lot owners who do not pay money to those who collect it in the name of the LLPOA.  They also misrepresent that the purposes for which the LLPOA was incorporated includes being incorporated “to acquire and hold title to the lake and the parks of the subdivision of Loch Lomond.”  An examination of the records on file with the Recorder’s office shows that no liens have ever been filed against nonpaying lot owners although an attorney was hired in 1994 to collect the “several hundred thousand dollars” that was purported due from nonpaying lot owners.  An examination of the LLPOA charter shows that it was organized for purposes other than to be a homeowners’ association and it was not incorporated “to acquire and hold title to the lake and the parks of the subdivision of Loch Lomond.”

Threats to Contact Home Buyers After Sales Have Been Made
The false representations in the “new homeowners’ letters is substantially the same since they were first distributed to incoming home buyers in the 1980’s to the present.  A sample letter given to a home buyer in 1989 verifies this.  In 1994 when he sought to sell his home, the “treasurer” threatened to not only make efforts to interfere with any sale but also threatened to engage in actions after a sale.  She threatened that she and her organization would tell the "purchaser”that the purchaser’s access to the lake and beaches would be prevented unless all so-called back dues were paid. 
 
Pretended Compromises
(Commentary:  Apparently, as reported by some homeowners, when sales have been made by lot owners who have not been tricked or intimidated, the pretend treasurer and/or other representatives of the organization have contacted the new purchasers.  They have expressed a willingness to compromise of the amount that they want to be paid provided that the purchasers agree to a condition.  Under their pretend dispute over so-called back dues, they require the purchaser to enter into a fictitious agreement whereby the purchaser then agrees to be a member and pay money to the LLPOA.  This is a fictitious compromise because there is no factual basis for the pretend dispute and those collecting the money have no intention of operating the LLPOA as a bona fide corporation. If you are wondering whether the compromise of a pretend dispute obligates you to pay money, you might want to see an attorney.  If you were in Chicago and Chicago street thug said that they thought that you owed $20 to their neighborhood organization but would take $10 as a compromise, would a payment to them result in a bona fide compromise?)

Notices of LLPOA Meetings Held at the Real Estate Sales Office Building

Multiple schemes have been involved.  The scheme to hold mock elections with owners with lots in outside adjacent subdivisions began in 1981.  The earliest real estate agents incorporated their Century 21 franchisee in 1981 but did not own the Century 21 building on the corner of 176 & 45 at that time.  The first “new homeowner” letters did not indicate that the LLPOA meetings would be held at that location.  After the acquisition of the Century 21 building, the “new homeowner” letters were modified to include that.

Wire Fraud Through the Use of the Internet
Web pages created in the name of the LLPOA published after admissions were made in newsletters admitting having knowledge that the perpetrators were repeatedly informed by attorneys hired in the name of the LLPOA show

1. misrepresentations made similar to those in the “new homeowner” letters, plus
   
2. demand for money were made with threats to file liens against nonpaying easement owners.

A sample web page with its false representations appeared on October 6, 2011.  This was after persons claiming to be LLPOA officers and directors published their newsletters with November 2008 admissions and their June 2010admissions.  Their admission of having knowledge that attorneys have repeated informed them no liens could be legitimately filed against nonpaying easement owners is consistent with the absence of liens filed in the Lake County Recorder’s office.

Footnotes:
[1] Although it is questionable as to whether the hundreds of notarized signatures were actually added on January 1, 1980, with the document being ultimately recorded on November 6, 1980 when the collection of signatures was complete, the signing parties nonetheless

1. expressly agreed on page 2 of the 1980 document that no chemicals were to be put into the shallow lake (or fishing pond) and
   
2. also expressly acknowledged knowing on page 2 that the LLPOA has no obligation to maintain the lake in any “size, depth or condition.”
   

A number of persons involved in the fraud who signed the 1980 document (with its obviously backdated signatures) knew that the LLPOA has no obligation to “maintain” the lake but held themselves out as LLPOA officers in a nonexistent homeowners’ association while owning lake-front properties.  The signatures of some of those involved in the fraud who expressly acknowledged knowing on page 2 that the LLPOA has no obligation to maintain the lake in “any size, depth or condition” can be found on pages 57, 38, 22, 54, 34 and 35.  The fact that they subsequently held themselves out as LLPOA officers or directors after admitting such knowledge can be found in the Annual Reports for 1996, 1997, 2002 – 2004, 2000 and 2001, 1998 – 1999, 1981, and 2013 – 2014. 

One “treasurer,” for example, who was a director in 1981 who knows that no one claimed that the LLPOA was a homeowners’ association in 1981, signed the 2013 and 2014 Annual Reports while falsely swearing under oath that (1) he was implicitly familiar with “subsecton (c) of Section 9-102 of the Code of Civil Procedure” and (2) that the LLPOA is a homeowners’ association.  The 1981 Annual Report shows that he was a director at a time when (a) there was no claim that the LLPOA was maintaining the lake and (b) no one falsely claimed that the LLPOA was a homeowners’ association.  That false claim was not made in the Annual Reports until the 1983 Annual Report was filed. 

For 2013, the “treasurer” was not even elected for that position in an annual election as required by the LLPOA’s charter.  No election was held for 2013 when the scheduled election meeting in the Fall of 2012 was cancelled because of a lack of a quorum. No election meeting of any kind at that time or any other time was held for 2013 in accordance with the annual-election charter requirement and the bylaw’s requirement that Robert’s Rules be followed.  Art IX, Sec 2 of the bylaws incorporates Robert’s Rules which provide that the regular business of a corporation must be suspended until a valid election meeting is held when there was an absence of a quorum in a scheduled election meeting.  No additional chartered-required election meetingwas rescheduled or held for an entire year.   He as the "treasurer" and those working with him simply fraudulently collected money and transferred $186,121.85 (Folder F) for 2013 without the chartered authority to do so. He did so while knowingly falsely representing for 2013 (and then 2014) that the LLPOA is a homeowners’ association.