When the HOA President Has a Record: Why Financial Crimes and Board Leadership Don’t Mix

Picture this: You live in a community where the person in charge of overseeing hundreds of thousands of dollars in collective homeowner funds — your HOA president — has a long history of financial crimes.

We’re not talking about a speeding ticket from 20 years ago. We’re talking forgery charges, writing bad checks, and other crimes directly tied to money and trust.

Now ask yourself: If this was a bank employee, a certified public accountant, a mortgage loan originator, or even a school treasurer, would they still be allowed anywhere near the books? The answer is an unequivocal no.

The Problem: No Screening, No Standards

In Georgia (and most states), there is no law preventing individuals with criminal backgrounds — even those involving fraud or theft — from serving on an HOA board.

That means someone with a documented history of mismanaging money, forging checks, or stealing from prior employers can legally:

• Serve as HOA president or treasurer

• Approve and sign vendor contracts

• Authorize legal action against homeowners

• Control access to bank accounts and reserve funds

If your HOA doesn’t have a management company, the risks multiply — because all that financial control is concentrated in the hands of a few individuals, often without professional oversight.

Why This Erodes Trust and Integrity

An HOA board is supposed to serve as the fiduciary guardian of the community. That means protecting funds, making responsible spending decisions, and enforcing rules fairly.

But when board members have proven histories of dishonesty or financial misconduct, it:

• Destroys homeowner confidence in financial decisions

• Creates an environment ripe for embezzlement and kickbacks

• Makes selective enforcement and retaliation easier to hide

• Increases the potential for fraudulent billing and inflated vendor contracts

The result? Homeowners stop trusting the board. Transparency fades. And the community becomes divided.

Real-World Precedent: Professions That Won’t Allow It

In many licensed professions, financial crimes are a career-ender:

• CPAs (Certified Public Accountants) can lose their license for any conviction involving dishonesty or fraud.

• Mortgage Loan Originators are automatically disqualified from licensing if they have a felony financial conviction within the past 7 years.

• Attorneys can be disbarred for embezzlement, fraud, or theft.

• Bank employees can’t be hired if they’ve committed a crime involving breach of trust or dishonesty.

If these professions demand that kind of integrity, why shouldn’t HOA boards — especially when they’re controlling millions in collective homeowner assets?

Another Reform Idea: Background Checks and Bans for Financial Crimes

It’s time for Georgia (and other states) to adopt legislation requiring:

• Mandatory criminal background checks for all board candidates

• Bans on serving for individuals convicted of financial crimes within the last 10 years

• Mandatory disclosures to the community if a sitting board member is charged with or convicted of a financial crime

• Annual homeowner vote of confidence for board members handling fiduciary responsibilities

If state law can require property managers to meet professional standards, why are unpaid HOA board members — who control even more community funds — allowed to operate with no screening?

The Bottom Line

Financial crimes don’t happen by accident — they require intent, opportunity, and a willingness to betray trust. When your HOA president or treasurer has a history of such crimes, it’s not just a red flag — it’s a blaring siren.

Communities deserve leaders who protect homeowner investments, not gamble with them. And until the law catches up, homeowners must demand transparency, push for reform, and hold their boards accountable.

💬 Has your HOA ever elected or appointed someone with a history of financial crimes? Share your story at www.homesweetheadache.com — your voice can help change the laws and protect our communities.