LAS VEGAS (CN) - About 150 homeowners' associations charge excess fees on foreclosed homes in their communities, then use threats and intimidation to collect the illegal fees, a class action claims in Clark County Court.
About 10 developers say they bought foreclosed properties through trustee sales, but that the homeowners' associations illegally placed liens against the properties that went above the legal fees.
"On multiple occasions," the homeowners' associations "have taken the property of plaintiffs under circumstances not amounting to robbery, and have obtain possession of money valued at $250 or more ... by means of false pretenses," the lawsuit states.
The homeowners' associations also hired collection agencies to intimidate plaintiffs "to promote or further the objectives of their criminal syndicate," the lawsuit states.
The associations also made threats that if the liens weren't paid, the properties in question would remain clouded in title, precluding plaintiffs from selling their property, according to the complaint.
Plaintiffs include Higher Ground LLC; RRR Homes; Triple Braided Court; Equisource LLC; Equisource Holdings LLC; Appleton Properties LLC; CBRIS LLC; MEGA LLC; and Southern Nevada Acquisitions LLC.
Download the complaint to see the long list of defendant homeowners' associations.
Plaintiffs seek unspecified damages for racketeering, negligence and breach of contract, among other things.
They are represented by James Adams.
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