In an attempt to award the handling of certain business practices for Las Vegas condominium homeowners' associations to fraudulent companies, Steven Wark has pleaded guilty to one count of conspiracy to commit mail and wire fraud.
According to a plea agreement, Wark admitted that he was a member of a fraud scheme that attempted to control the board of directors for numerous state HOAs in order to direct their businesses to both a law firm and construction company associated with conspirators that organized this scheme.
Wark said he joined the scheme in May 2005. He added that the scheme began as early as August 2003 and lasted until approximately February 2009.
Court documents said that the scheme was accomplished by using straw purchasers that acquired mortgage loans for units within the HOA communities. Wark admitted in court that he became a principal and managing partner of a business entity related to this scheme for the sole purpose of obtaining a condominium unit at the Vistana Condominiums complex in Las Vegas to gain a seat on the board of directors.
Once the defendant was elected to the board, Wark breached his statutory fiduciary duty to the homeowners by accepting from his co-conspirators compensation, gratuities and other remuneration that improperly influenced his decisions therefore leading to a conflict of interest.
Wark confessed that he did not have any “real interest” in the business and that his co-conspirators provided the downpayment and monthly payments for the condominium unit as well as the HOA dues.
According to plea documents, Wark's co-conspirators managed and operated the payments to maintain the properties owned and controlled by the straw purchasers by running a “Bill Pay Program.” Through this program, co-conspirators funded the properties through several limited liability companies controlled by members of this fraudulent scheme. Many of the payments were wired from California to Nevada.
Wark admitted that after being elected to the Vistana board and accepting payments from his co-conspirators, he subsequently voted in favor to his co-conspirators. Wark also said he acted as the co-conspirators' campaign consultant to help ensure they were elected to the HOA boards. Another tactic that co-conspirators used to rig certain HOA board elections was to prepare forged ballots for out-of-town homeowners.
Wark acknowledged that he was given cash payments and received an interest in the Vistana condominium by or on behalf of his co-conspirators for his assistance in purchasing the property, obtaining HOA membership status and using his position to manipulate the HOA's business to enrich the co-conspirators at the expense of the HOA and valid homeowners.
Wark is facing a maximum sentencing of 30 years in prison.
