If you are a Loch Lomond property owner,

this should interest you.  All of it is documented. 


How Loch Lomond Home Buyers Were Misled For Years
If you bought property in the Loch Lomond community after 1981, it is more likely than not that you received a hand-delivered “new homeowner letter” (aka "welcome letter") as well as a visit from someone who wanted to welcome you to the neighborhood.  Here's a sample letter from 2011 that is substantially the same as one from 1991.  The sample from 2011 is different in that it identifies the real estate sales office where certain persons who controlled the gates regularly met for their activities while using the U.S. mail to threaten to interfere with sales unless money was paid to them.
In more recent time periods, in some instances, those who distributed the “new homeowner letters” or “welcome letters” used the U.S. mail to deliver them instead of hand-delivering them

The Loch Lomond community with three subdivisions was created in the 1950’s prior to 1957 by the McIntosh company. The McIntosh company did so by subdividing its McIntosh Acreage into three subdivisions.  There never has been a time when a single subdivision constituted the entire McIntosh Acreage.  No subdivision was ever “added” to another subdivision.  The 1961 deed to the LLPOA identifies the three separately recorded covenants which show that the McIntosh company recorded separate covenants for each of its three separate subdivisions.

Whether multiple subdivisions can be re-subdivided into becoming one subdivision is determined by the Mundelein Code, rather than the whims of persons acting outside of the law. Title 19 of the Mundelein Code provides the procedures that must be followed when re-subdividing subdivisions.  It can be found on the web.  Under 19.04.030, no land is to be subdivided or re-subdivided and filed for record without a Village approval. Under 19.04.060, unanimous consent of all property owners is required prior to any Village approval of re-subdivisions.  As shown by the absence of Village records which would show if the Loch Lomond subdivisions were re-subdivided, no one ever obtained Village approval for a re-subdivision of the three McIntosh subdivisions into becoming one subdivision. No one obtained the required unanimous consent to do so.

When you moved in, you may have been glad to receive the “new homeowner letter” and the visit, if any.  After all, you were being welcomed as a newcomer.  And you were being told that not only were part of a “homeowners’ association,” your participation in the LLPOA was welcomed.  In reality, you were welcome as long as you paid money and supported those who collected it without raising any questions.  If you had a teenager in the house, that could have been better still.  There may have even been a discussion about the possibility of the LLPOA hiring your teenage son or daughter to act as a “lifeguard.”  If so, they could actually be hired on a part-time basis to sit near the entrance of the South Beach and act with other teenage gate guards to obstruction nonpaying easement owners without lake-front properties from accessing the lake. The welcome-to-the-neighborhood activities and the hiring of teenage gate guards have been ways for the organization to recruit more members.
What you didn’t think about at the time was that you may have been misled.  You didn’t have any way to verify what was said in the letter and any person delivering it, and you weren’t skeptical.  Without additional information, you did not have a way to know that false representations were knowingly made in the letter.  Significant ones.  It is unlikely that you knew at the time that the claim that the LLPOA is a homeowners association was a neighborhood hoax supported and known by certain licensed real estate agents.  A fiction.  It’s unlikely that you had access to the documents that would show you that the claim was untrue and that the people seeking to collect money knew that it was untrue.  In contrast, there are documents on this web site showing that both the representations were false and those who made the false representations knew that they were false.

The scheme to trick newcomers into paying money began after 1980.  Every licensed real estate agent who owned property in the Loch Lomond community prior to 1981 knew that neither they nor their neighbors had been paying money on a compulsory basis to those who held themselves out as LLPOA officers and directors.  Every additional property owner who owned property in the Loch Lomond community prior to 1981, and who since held themselves out as an LLPOA “officer” or “director”, has known that neither they nor their neighbors had been paying money on a compulsory basis.  Others have known as well from additional events and documents.

This long-term scheme could not have worked without the participation of certain real estate agents.

How Earlier Property Owners Were Misled and Threatened
If you bought your property in one of the three Loch Lomond subdivisions prior to 1982, you and others who bought Loch Lomond properties at that earlier time knew that you and they never paid money on a compulsory basis for any reason to the LLPOA or anyone claiming to collect on behalf of the LLPOA.  If any of your neighbors are licensed real estate agents who bought their property prior to 1982, they know this as well.

On October 6, 1985, in the real estate section of the Chicago Tribune, the McIntosh company which had established the three separate covenants for the three Loch Lomond subdivisions announced that its founder was retiring and that it was discontinuing its business. 

This event apparently provided an opportunity for certain criminal activities and an opportunity for some persons to receive money by false pretenses.  They could begin pretending that they were operating a mandatory-membership homeowners' association and that all Loch Lomond property owners were obligated to pay money to them.  There was, however, a contrary court opinion issued in 1984 which held, among other things, that a voluntary-membership association in a subdivision which owns easement property cannot assess dues not otherwise required in restrictive covenants in deeds to subdivision lots owners merely because the owners have easement rights permitting them to use common areas.  The court also held that an association cannot impose covenants upon a lot owner which are new and different from the original covenants by merely taking a vote on the issue.

The schemers recorded a document in 1986 contrary to the 1984 Lakeland  holding which they designated as a bylaw.  They purportedly adopted a bylaw which compelled all of the lot owners in the three Loch Lomond subdivisions to pay money to them.  The recorded document also purportedly compelled all of the lot owners, in approximately 561 lots, to be compulsory members of the LLPOA.  The document was nonsense, but they pretended to believe that they could somehow draft lot owners into being members of the LLPOA and they used the document as a pretext to raise false disputes during real estate closings.  They, and those who thereafter joined them knew that their claim was a pretext that they used for years.  Twenty-two years later, in 2008, the schemers used language in one of their newsletters which, when understood in the context of their never filing liens as bona fide homeowners' associations otherwise do when large amounts remain unpaid, shows that they admitted knowing that they were aware of the pretext and that they held an intent to raise false disputes during real estate closings.

For honest people, both the existence of (1) the existence of the Lakeland  decision and (2) separate Loch Lomond subdivisions plus two outside subdivisions, all of which are governed by separate covenants, would present two problems.  Not so with the schemers.  In 1986, they solved their apparent problem with the 1984 Lakeland  holding by including a  retroactive 1983 effective date in the recorded document.  By the inclusion of the purported retroactive 1983 effective date in the document recorded by them on January 10, 1986, the participants showed that they were aware of the 1984 Lakeland  opinion which prohibited them from doing what they set out to do.  For more information regarding their demonstrated knowledge, see Folder K3.

The existence of separate covenants for the three separate Loch Lomond subdivisions developed by the McIntosh company, plus the additional ones for the two outside subdivisions not developed by the McIntosh company (and which the bona fide LLPOA officers and directors agreed in the 1961 deed to not allow to use the lake), would have also presented a problem for any honest person.  The schemers solved it by distributing documents which falsely describe the five separate subdivisions as constituting a single subdivision which they call (and fraudulently convinced others to call) the Loch Lomond subdivision.  Only the Village of Mundelein has the authority to approve of re-subdivisions, and re-subdivisions require the unanimous consent of all property owners (19.04.060).  By distributing false maps and documents designated bylaws which falsely describe five separate subdivisions as being one subdivision, they falsely represent that they have a factual basis for believing that the five subdivisions have been re-subdivided into a single subdivision.

It's noteworthy that the recording of the 1986 document was a special event.  No other effort was made in 1986 to record any other documents designated as bylaws in the name of the LLPOA.  The specially recorded 1986 "bylaw" (with its retroactive 1983 date) purportedly negated the 1984 Lakeland  holding, the pre-1957 Loch Lomond covenants for the three subdivisions (recorded documents 822721, 903401, and 874973), and the LLPOA's 1957 charter.  When one of the schemers signed it, he purportedly compelled all Loch Lomond easement owners in the three Loch Lomond subdivisions to be members of his organization and pay money to him which he collected in the name of the LLPOA.  Although the Annual Reports show that he was purportedly elected in multiple mock elections with the participation of lot owners in outside subdivisions, the language in his special bylaw showed that it only applied to Loch Lomond property owners and not to lot owners in the two outside adjacent subdivisions.

Money was solicited from existing Loch Lomond property owners while the schemers told their intended victims that they were soliciting money "for the children"  and for the betterment of the community.  There is no known instance in which  the schemers have informed incoming home buyers that the lake regularly has at least one type of parasite.  There is no known instance in which the schemers have warned incoming parents that young children have gotten ill from getting into the lake.  Some paid.  Others didn't.  Those who did not pay received a threat from the person who recorded the false "bylaw" that he and those working with him, including real estate agents, would seek to interfere with the sales of their properties if they did not pay.

Incorporation of the LLPOA in 1957
It is helpful to understand the history of the three Loch Lomond subdivisions and the LLPOA.  The three subdivisions were developed prior to 1957 in 1954, 1955, and 1956.  In 1957, Loch Lomond Property Owners Association was incorporated as a voluntary-membership association by a friendly Loch Lomond property owner as a way to socialize with others in the Loch Lomond community.  Eligibility for membership was limited by the charter to Loch Lomond property owners.  The dues were $10 a year.  No claim was ever made by him that the LLPOA was formed to “maintain” the lake.  No claim to that effect was ever made by any LLPOA officer or director for the next 20 years or so.  Neither he nor they ever claimed that.  This is shown by the Annual Reports filed with the Secretary of State.

Acceptance of Deed Subject to Easement Rights & Other Restrictions
In 1961, four years after the LLPOA was formed and the McIntosh was finished developing the Loch Lomond community which it began in 1954, the McIntosh company conveyed the lake to the LLPOA by a deed subject to certain conditions.  The deed shows that there were several.  The LLPOA agreed to receive the lake subject to the “perpetual” easement rights of all the lot owners.  The LLPOA specifically agreed to receive the lake subject to the three separate covenants for the three subdivisions in which provide that there is no obligation to maintain the lake in any size, depth, or condition.  The LLPOA also agreed when receiving the  deed to not allow persons to use the lake on a regular basis except for those who owned or occupied lots in the three Loch Lomond subdivisions identified in the deed as recorded documents “822721, 903401, and 874973.”
Fraudulent Document Signed to Purportedly Transfer Property Rights
In 1981, twenty years later, persons from two outside subdivisions signed a document in which they expressly admitted knowing that they were not Loch Lomond property owners but only owned properties in adjacent, outside subdivisions.  By signing the document, all of the signing parties showed that they were not fooled into believing that they became property owners in the “Loch Lomond subdivision” when they bought their properties.  Nonetheless, without being Loch Lomond property owners, they signed a fraudulent document because they purportedly granted themselves rights which they did not have the right to transfer.  They purportedly transferred rights to themselves to use the lake without having property rights in the Loch Lomond community. 

No LLPOA officials, either bona fide or imposters, could make a bona fide transfer of such lake rights because that would be contrary to the deed restriction which expressly prohibited such usage.  The outside lot owner without having Loch Lomond property rights to do so also purportedly granted themselves rights to vote in LLPOA elections and share control over actions taken in the name of the LLPOA.  No LLPOA officials, either bona fide or imposters, could make a bona fide transfer of such rights because that would be contrary to the restriction contained in the LLPOA’s charter.  In 1981 and in every year since, outsiders in at least two subdivisions (and now perhaps in a third outside subdivision known as the Hickory Hills Estates subdivision) have participated in mock elections held in the name of the LLPOA.  The Annual Reports required to be filed with the Secretary of State after the 1981 election onward shows the names of some of those outsiders who claimed to be LLPOA “officers” and “directors.”

Attempted Intimidation of LLPOA’s Founder and Others
What happened to George Schultze, the friendly Loch Lomond property owner who just wanted to make friends and who incorporated  the LLPOA in 1957 as a voluntary-membership association limited to lot owners in the three Loch Lomond subdivisions for social and other non-profit purposes?  In 2006, 49 years later, when the elderly George Schultze would not pay money to the imposters who were falsely claiming to believe that the LLPOA was incorporated as a mandatory-membership homeowners' association, the perpetrators recorded a false document. One of the perpetrators, who held herself out as an LLPOA officer for years, was not eligible under the charter to hold a position as an officer because she was not a Loch Lomond property owner as the founders intended when obtaining the 1957 charter and accepting the 1961 deed with its deed restriction limiting lake usage to lot owners occupants of the lots in the three Loch Lomond subdivisions created by the McIntosh company.  She acquired her property in one of the outside adjacent subdivisions, who under a deed restriction prohibited from using the lake.  Those who signed the false 1981 document expressly admitted knowing that they only owned properties in one of the outside adjacent subdivisions.  She had shared access to the LLPOA documents and knew that in the preceding 49 years prior to 2006, not a single lien had been filed against any nonpaying Loch Lomond property owner.  From that information, she and other "officers" knew that the LLPOA was a voluntary-membership association whose membership eligibility was limited to Loch Lomond property owners as that term was clearly understood when the corporation was formed and when the deed to the lake, with its restrictions, was accepted.

What did she and other participants in 2006 do for the elderly Mr. Schultze?  Without having any lawful authority to do so, they recorded a false document, a forgery, to purportedly revoked his easement rights.  They acted to impair his ability to sell his property until the confusion caused by their falsely recorded document could be resolved.  The imposters even claimed that no one could even allow him to be a guest and walk down to the water’s edge.  He wasn’t the only one subjected to the slander of title activity.  When other elderly and long-time Loch Lomond property owners knew that the LLPOA was a voluntary association and refused to pay the imposters, the particpants in the scheme recorded additional fraudulent documents which purportedly revoked their easement rights as well. 

In 2009, a few years later when only one of the LLPOA "officers" was a Loch Lomond property owner in accordance with the 1957 charter and the terms of the 1961 deed, she personally signed a false document to purportedly take away the easement rights of another nonpaying Loch Lomond property owner.  One of the other persons pretending to be a Loch Lomond property owner knew what it means to be a "property owner" because the deeds on file with the Lake County Recorder's office shows that she only owned property in the distant town of Zion.  She was (or is) related to a Loch Lomond property owner, but the recorded deeds show that she was not a Loch Lomond property owner.

The participants in this scheme have expressed their knowledge that they cannot file liens against nonpaying Loch Lomond property owners.  But they threatened to record additional documents to purportedly revoke the easement rights of nonpaying Loch Lomond property owners.  In contrast, after 2009, the participants demonstrated their knowledge that they cannot legally do so by not recording any additional false documents of that nature.

Money Used for Gate Guards to Obstruct Nonpaying Easement Owners
If you were one of those who was tricked into paying money, your money went to help hire teenagers to physically obstruct nonpaying easement owners without lake-front properties from accessing the lake.  Some of those teenagers, and apparently especially those who received more paid hours than others, were the sons and daughters of LLPOA “officers” and “directors,” or friends who benefited from a patronage system under the leadership of those who knowingly engaged in the wrongful activities.  Over the years, the wrongdoers have established a patronage system and recruited others to work with them.  If access to the financial records is ever allowed, they should show that money was transferred to the teenage children of certain officers and directors to act as gate guards.
Even the most casual observer should know that paying adults and teenagers to obstruct easement owners without lake-front properties from accessing the lake as a way to coerce them to be members of the LLPOA is not using the money to “maintain” the lake.



In fact, the use of "any criminal means" to compel membership in an organization is a felony in violation of 720 ILCS 5/12-6.5. On its face, the statute is not limited to street gangs that sell drugs.  It is public knowledge that under 720 ILCS 5/47-5(5) , it is a crime to obstruct private ways to obtain money without lawful justification.  In addition, it is also public knowledge that under 720 ILCS 5/47-5(14) it is a crime to interfere or threaten to interfere with home sales to obtain money without lawful justification.

Income Tax Fraud
When you look at the documents found on the following pages, at the very least, you be aware of certain income tax fraud.  Ever since the days of Al Capone (a sometimes amiable person who some thought to be a patron), ordinary citizens have known that when money is obtained from criminal activities, that money must be reported to the IRS.  They know that  persons obtaining the money must pay federal income taxes on it.  Some persons might wrongfully excuse the conduct of those engaging in fraud and wrongfully say that the money collected in the name of the LLPOA makes the LLPOA the one responsible for reporting and paying taxes on the income.  But, the LLPOA is not a homeowners' association entitled to the federal tax breaks allowed to homeowners' associations, and the misuse of the LLPOA's name and property makes the LLPOA a victim rather than a participant.

There hasn't been a valid LLPOA election since 1980 when, in accordance with the LLPOA's charter, only eligible Loch Lomond property owners could vote.  The first mock election with ineligible outsiders was held in 1981 when persons who were not Loch Lomond property owners signed the false document and purportedly gave themselves the right to participate in the elections and hold office.  Their false document includes a self-serving statement that they had somehow received their authority from the 1981 LLPOA officials.  The subsequent Annual Reports show some of the leaders who knowingly falsely represented under oath to the Illinois Secretary of State that the LLPOA was a homeowners' association.  They also show the identities of some of the ineligible outside persons that they worked with who were not Loch Lomond property owners but fraudulently held themselves out as LLPOA "officers" and "directors." 

In addition, it appears that there are additional documents showing that those who collected the money in the name of the LLPOA did so without operating the LLPOA as a bona fide corporation.  They acted contrary to (a) the terms in the LLPOA’s deed, (b) its charter, (c) the 1984 Lakeland opinion which they have shown to be aware, (d) the various LLPOA bylaws for various years when it suits them to disregard the bylaws, (e) Robert’s Rules of Order as incorporated within Art. IX, Sec 2 of the bylaws regarding the limitations on actions that can be validly taken in the name of an incorporated association when there is an insufficient quorum to hold a valid election, and (f) the normal manner in which bona fide homeowners’ associations are operated.  Their distributed newsletter/minutes shows an absence of dissenting views or questioning views because such views are squelched.  Those operating this scheme never have to take any dissenting views or contrary questions seriously because they are not operating the LLPOA as a bona fide corporation.  Some might believe, and I do, that they collected money in the name of the LLPOA so that they could open bank accounts in the name of the LLPOA to wash the money and use it for whatever hobby that they wanted.  This includes neighborhood empire building with a small-time patronage system.

If those engaged in this fraud are not immediately contacted by the IRS, they should not take comfort from this as a sign that the IRS is indifferent or will not examine the documents.  Knowledgeable attorneys and tax accountants know that there is no statute of limitations for tax fraud.  In fact, the IRS can go back to 1981 when this fraud began with the first mock election and one of the licensed real estate agents thereafter held herself out as one of the LLPOA officers for 1982.

None of this would not have happened without the participation of the real estate agents.  Among other things, they have been distributing false maps on an annual basis which (1) knowingly misrepresent that that there is one single Loch Lomond subdivision and (2) knowingly misrepresent the boundaries of the Loch Lomond community established by the McIntosh company and that the outside properties that the McIntosh company specifically did not want to have access to the lake are included in "the" Loch Lomond subdivision. 

In a two-page letter (along with a printed appendix plus pdf files of the referenced documents) was mailed to Attorney Nesbit of Kovitz, Shifrin, and Nesbit.  He was purportedly hired in the name of the LLPOA to protect the interests of the LLPOA.  If he was actually hired to protect the interests of the LLPOA, he owes his loyalty to the corporation.  There is nothing to indicate that he was otherwise hired to protect the interests of persons fraudulently conducting mock elections and acting contrary to the interests of the LLPOA.  Among other things, the appendix informed him in the second paragraph that  a small organization has been removing money from the accounts of the putative client  your corporate clients without the authority to do so and without accounting for such withdrawals in a meaningful way.  It also provided details showing how mock elections had been held in the name of the LLPOA and other frauds.  He responded by saying that he was not authorized to read and analyze the letter. Thereafter he received a one-page letter with a request to take action because of the mischievous distribution of a legalese-sounding document which, without obtaining the approval of all lot owners in the Loch Lomond subdivisions, would purportedly change the covenants for the three Loch Lomond subdivisions.  The letters and appendix are worth reading because they show what he and his law firm knows.

Among other things, the law firm knows what Attorney Shifrin (of Kovitz Shifrin Nesbit) knew when he wrote, as a recognized legal authority by the Illinois Institute of Continuing Legal Education,

“In order to create a ... homeowners’ association, there must be a unanimous subscription to an underlying document by the owners of the property — a charter, bylaws, a trust agreement and/or proprietary lease (coop), or a recorded set of covenants and bylaws that run with the land. Anything less creates a “voluntary” association in which membership is not mandatory and rules are not enforceable against nonmembers.”

-- Jordan I. Shifrin, of Kovitz Shifrin Nesbit, IICLE Real Estate Litigation Handbook, Cooperative, Condominium, and Homeowners’ Association Litigation, 1980, Section C, 10.6.

Supporting Documents

Here’s where you can find the supporting documents in various folders.