Folder K1

Annual Reports for the decades before the fraud began (in Folder K1)

The LLPOA's Annual Reports for approximately the first two decades of the LLPOA's existence show the actual and/or constructive knowledge of those who thereafter claimed to be LLPOA "officers" and "directors" that

the LLPOA only owned the Loch Lomond lake in a passive manner for approximately the first two decades of the LLPOA's existence without anyone claiming that the LLPOA was "maintaining the lake", and
no one ever claimed on behalf of the LLPOA that they were operating a homeowners’ association.[1]

Annual Reports Filed with the Illinois Secretary of State

The Annual Reports filed with the Illinois Secretary of State from 1963 through 1979 show that the LLPOA officers and directors never represented that they were actively maintaining a lake and/or its entrance-way parks. The Secretary of State is unable to find Annual Reports for the years 1957 through 1962.

For Approximately Two Decades, No False Claims of "Maintaining the Lake"

The bona fide Annual Reports filed for years prior to 1980 show that the bona fide officers and directors never claimed to be taking action contrary to the covenants identified in the LLPOA's deed (recorded documents 822721, 903401, and 874973). The Annual Reports show that they never claimed to be maintaining the lake.

Each of the covenants for the separate three Loch Lomond subdivisions expressly negate any obligation to maintain the lake and the parks. The covenants do not require anyone to belong to a homeowners' association or any other kind of association. With respect to the lake, the language in the covenants particularly provide that neither the lake owner nor anyone else is required to maintain the lake in any size, depth, or condition.

For Approximately Two Decades, No False Homeowners' Associations Claims

Such Annual Reports through 1981 (filed prior to the time of the holding of the first mock election with outsiders) show that the bona fide LLPOA officers and directors never claimed that they were operating a “homeowners’ association.” That false claim did not appear in any Annual Report until 1983 after the first two mock elections were held in the name of the LLPOA with lot owners in two outside adjacent subdivisions. The Annual Reports filed by the bona fide LLPOA officers and directors for years before the mock elections were held, in contrast to Annual Reports filed beginning in 1987, show the bona fide officers and directors never used language claiming that they were operating a “Homeowners’ Association which administers a common-interest community as defined in subsection (c) of Section 9-102 of the Code of Civil Procedure” (735 ILCS 5/9-102(c)).[2]

For Approximately Two Decades, No LLPOA Officials with Outside Addresses

The Annual Reports also show that all officers and directors had residential addresses within the Loch Lomond community established by the McIntosh company in the 1950’s. They show that no election meetings were ever held to elect persons with addresses in any outside adjacent subdivisions. The documents show that no election meetings were held contrary to the charter so that persons in adjacent subdivisions could (a) hold office in the Loch Lomond Property Owners Association without being Loch Lomond property owners and (b) use the lake contrary to an agreed-upon deed restriction in the conditional 1961 deed accepted by the LLPOA.

Footnotes:
[1] In the early 1950’s, the McIntosh company created the ideal fishing pond which did not require any maintenance, and which was recognized as not requiring any maintenance. The body of water, nominally called a “lake,” is a creek-fed pond covering approximately 77 acres. It has an average depth of about five feet, but is deeper in some areas. By building a dam between small rolling hills in the 1950’s, the McIntosh company may have created the largest and best fishing pond in Lake County at that time.

Fish need plant life to survive. In it’s natural state, the lake produces sufficient plant life to support a large fish population which does not have to be re-stocked. In 1961 when the McIntosh company conveyed the lake, it did so under covenants by which all parties are/were required to abstain from depositing any chemicals or “foreign matter whatsoever” into the lake. The covenants also expressly provide that any lake owner has no obligation to maintain the lake in any size, depth, or condition.

The post-1979 practice of collecting money by fraud and criminal intimidation has been done, in part, to finance the chemical poisoning of plant life. This has been done to both (a) make the shallow lake or pond more esthetically pleasing to some who have water-front properties (b) provide an activity for those who enjoy the companionship and camaraderie of those who jointly engage in fraud and intimidation activities. Their knowledge that the LLPOA is not a homeowners’ association can be shown by the basic LLPOA documents plus the fact that (a) there never has been a time when all easement owners paid money to those collecting it in the name of the LLPOA and (b) they have threatened to file liens against nonpaying lot owners in a manner like homeowner associations (and even threatened in 1993 to file liens to collect "several hundred thousands dollars in back dues") but have never done so. They have never filed any of their threatened liens in a 22-year time period beginning in 1993. They have never gone to court to collect the alleged "several hundred thousand dollars in back dues" even when they have hired an attorney to threaten to collect attorney fees contrary to the law known by all American attorneys as the American rule. This is not England.

Certain post-1981 newsletters mailed in the name of the LLPOA show that the plant life for the fish population has been adversely affected by the deposit of plant-killing chemicals into the lake. The August 2014 minutes-newsletter, for example, contains an admission that “There are almost no plants in the lake anymore because of the" copper sulfate "treatments" (page 1). Page 1 also indicates that the EPA has finally ordered a limit on the copper sulfate that can be put into the lake. The McIntosh covenants shows that the McIntosh company didn't want anyone to destroy the fishing pond with copper sulfate or any other chemicals. Water plants produce oxygen. Some algae exists naturally. When Loch Lomond lake-front owners and up-stream owners allow the run-off of fertilizer, that activity contributes to the growth of more green lawns and more algae. Copper sulfate does not bio-degrade but "accumulates within the sediment layer as a heavy metal precipitate." Because of its potential for long-term harm, the EPA controls it.

In years after this fraud began in 1981 with lot owners in outside adjacent subdivisions, the pretenders were able to collect enough money to (a) build fences with locked gates (plus hire teenage gate guards) and (b) begin killing water plants which some of the pretenders called "weeds." Apparently, when water plants are killed off, there is more algae and there are more algae blooms. This gave the pretenders an activity, but as noted an authority, Aquatic Biologists, "Over time the use of copper sulfate can actually increase the frequency and severity of algae blooms. "

Those who have enjoyed fooling and intimidating others, while engaging in unlawful neighborhood empire building activity in which they are in charge, have collected income and made misrepresentations to the IRS for their own benefit and not for the benefit of the LLPOA. Some of the people who have been killing off the lake don't even live here, in the Loch Lomond community containing the three Loch Lomond subdivisions.

[2] Compare the post-1981 Annual Reports where such false representations were made after mock elections were held. Certain outside lot owners with Braemar or Londonderry addresses were purportedly elected with others to act as pretend overseers of Loch Lomond property owners with easement rights. In addition, in 2009 and other years, one Zion property owner only pretended to be a Loch Lomond property owner by giving her address at a Dairy Lane location which she did not own and which she knew that she did not own. The deeds on file with the Recorder's Office shows that she was a property owner in Zion and not a Loch Lomond property owner.