2 class action lawsuit against Bella Collina

JURISDICTION AND VENUE

25. The Court has subject matter jurisdiction over the federal claims alleged herein pursuant to 28 U.S.C. §1331, because those claims arise under the laws of the United States (18 U.S.C. §1961, et seq.).
26. The Court has supplemental jurisdiction over the state law claims alleged herein pursuant to 28 U.S.C. §1367, because the federal and non-federal claims arise from a common nucleus of operative fact.
27. Venue is proper in this Judicial District under 28 U.S.C. §1391(b) because all Defendants reside and/or do business in the State of Florida, and because all claims for relief arise from acts, events, and omission that occurred in this District and a substantial part of the property that is the subject of the action is situated in this District, e.g. all real estate which is the subject of this case is located in Lake County Florida.

GENERAL ALLEGATIONS

28. Bella Collina consists of 801 home sites authorized by the Original CC&Rs, any reasonable and duly enacted amendment thereto and the articles of incorporation of the POA.
29. The POA filed articles of incorporation with the Florida Department of State Division of Corporations as a Florida nonprofit corporation on December 23, 2003.
30. Burman, at all relevant times, was a board member and a controller of the POA and the owner and operator of Aegis.
31. Aegis, at all relevant times, contracted with the POA to provide management services to the POA as a state licensed community association manager (CAM”).
32. The “POA” governs the Community for the lot owners, who become members when they acquire a lot.
33. Bella Collina was developed by Ginn-LA Pine Island Ltd., LLLP (hereinafter “Ginn” or “the original developer”), a foreign limited liability company, as a residential community pursuant to §720.301, Florida Statutes, et. seq., also known as the Florida Homeowners Association Act.
34. Ginn recorded the original Declaration of Covenants, Restrictions and Easements for Bella Collina (the “Original CC&Rs”) on January 16, 2004. (The Original CC&Rs are recorded at Book Number 2490, Page 568 in the official records of Lake County, Florida and are incorporated herein by reference.) ILLEGAL DEVELOPER CONTROL OF THE POA
35. The original articles of incorporation of the POA, recorded on December 23, 2003, in pertinent part, set forth that Bella Collina “is intended to comprise eight hundred ten (810) Homes and the Association Property,” (Article I, Section 5); that “total developed lots shall mean eight hundred ten (81O)”; that each lot owner is a member; that a majority of the board members shall include a majority of members other than the declarant on the turnover date, which must occur “Three months after the conveyance of ninety percent (90%) of the “total Developed Lots” (as defined in Article X.C hereof) by Declarant, as evidenced by the recording of instruments of conveyance of such lots amongst the Public Records of the County,” (Article V, Section D, 2, i) at which time the members shall assume control of the Association. (The Original Articles are attached as Exhibit C of the Original CC&Rs, and are incorporated herein by reference.)
36. On April 19, 2004, the POA filed Amended and Restated Articles of lncorporation, which, in pertinent part, decreased the authorized number of lots from 810 to 801 (Article I, Section 5). The Amended Articles are attached as Exhibit B of the Second Amended and Restated CC&Rs which are filed at Book Number 2810, Page 722 in the Official Records of Lake County Florida and are incorporated by reference herein.)
37. Consistent with §720.301(8), Florida Statutes, the recorded original declarations and the articles of incorporation shall be collectively referred to as the “Governing Documents,” all of which are in the possession of Defendants and are public records.
38. The Governing Documents also recognize the existence of a club known as The Bella Collina Club, which in conjunction with a separate sports club and equine center with a bridle path encircling the community and ballfields were some of the luxurious amenities promised in the Original CC&Rs.
39. In reliance on the Original CC&Rs, numerous individuals, including the Plaintiffs, purchased lots in the community at prices between slightly less than $300,000 and up to $2,000,000 each for an estimated gross total of approximately $500,000,000.
40. On information and belief, Ginn provided all lot purchasers with a HUD registered report, which indicated on page 13 that construction of the country club, and other amenities, was optional at the discretion of the developer and membership was not mandatory.
41. Ginn sold almost all lots in two single day promotional events called “launches.”
42. It marketed the lots throughout the United States and various parts of the world, and former and current lot owners are residents of many states and countries.
43. Many of the promised substantial and material amenities, e.g. the sports club, ballfields, equine facilities, and bike and bridle trails, were never completed.
44. After the first conveyance, but before the turnover, the articles could only be amended by a majority vote of the board at a duly called meeting, and after turnover, by a majority of voting interests at a duly called meeting. The first conveyance of a lot was to Ray Coudriet Builder on April 23, 2004.

45. By July 31, 2004, at least 311 lots had been conveyed.
46. By June 31, 2005, 405, or one-half of the authorized lots had been conveyed, at which time the POA was obligated to call a meeting and elect one non-developer member as a director.
47. By August 29, 2005, 721 lots, over 90% of the authorized number of lots, had been conveyed according to the Lake County public records, which occurrence triggered the requirement that the non-developer lot owners assume control of the three member POA board.
48. Judge Richard L. Singletary of the Circuit Court for Lake County, Florida, by Order dated June 24, 2016, ruled that the Turnover date was August 29, 2005, as more particularly described herein.
49. Ginn filed Amended and Restated Declaration of Covenants, Restrictions and Easements for Bella Collina was recorded on May 15, 2004, after most Plaintiffs purchased their initial lots, and after execution of hundreds of lot purchase agreements with other unsuspecting purchasers. (The Amended and Restated CC&Rs, hereinafter the ‘”Amended CC&Rs,” are recorded at Book Number 2571, Page 1533 in the Official Records of Lake County, Florida and are incorporated herein by reference.)
50. Ginn filed the Second Amended and Restated Declaration of Covenants, Conditions, and Restrictions for Bella Collina and Supplemental Declaration (hereinafter the “Second Amended CC&Rs,”) on April 18, 2005, by which time 396 lots had been conveyed.
51. Burman and Ginn were required by law to be familiar with the CC&Rs and §720.307, Florida Statutes, which compel the turnover of control of a community when 90% of lots were sold.
52. Burman and Ginn knew, or should have known, that Bella Collina exceeded the lot sale threshold percentage for turnover on August 29, 2005.
53. Burman and Ginn knew, or should have known, that every board appointed by Ginn after August 29, 2005 was illegitimate and that their actions were ultra vires.
54. Aegis and Burman received $85,000 to 109,000 per year in reported compensation for board membership and management fees, without competitive bidding or disclosure to members, and in wholesale defiance of the Florida Homeowners Association Act’s prohibition against board members receiving compensation.
55. Ginn, Burman and Aegis, from 2004 to until 2012, managed Bella Collina and exerted exclusive control over the POA.
56. The Declarations remained substantially unchanged for over seven years, during which time, Ginn never attempted to enforce the illegal and unreasonable amendments for mandatory club membership, the build compulsion, or the special assessment for club dues.
57. Also prior to 2012, national economic circumstances affected Bella Collina and the disenfranchised POA member-lot owners became ripe for exploitation.

THE CONSPIRATORS

59. Massachusetts convicted Arrighi of conspiracy to receive stolen or embezzled funds in the amount of $1,603,303.12 and willful failure to file tax returns, including fiduciary returns in Massachusetts, for which he was disbarred by the Massachusetts Board of Bar Overseers.
60. On information and belief, Arrighi is experienced with the embezzlement of funds and was employed by Schar and the Defendants to execute their criminal conspiracy as hereinafter described.
61. On information and belief, Simonson and Greene became skillful at defrauding creditors, use of legal entities to launder money, use of legal proceedings to harass victims, and various illegitimate accounting practices while employed by Catalfumo Construction, Inc. during its massive fraud of business partners and creditors, and, at all relevant times, were the authorized agents and employees of Schar, using these practices in the management of his assets and companies including those at Bella Collina, as hereinafter described.
62. On information and belief, Schar funded and controlled the actions of the Conspirators.
63. On information and belief, Schar, Simonson, Arrighi, Ryan, The Ryan Law Group, D’Ambrosio, Burman, Aegis, Greene, Clarke, Lebreux, and Scharich (hereinafter the “Conspirators”) and others conspired and expressly agreed to execute a plan to illegally control the POA and to aggressively target its members with threats, intimidation, harassment, economic pressure, insults, humiliation and lawsuits to coerce them to surrender their ownership in their lots (hereinafter the “Conspiracy”).

Prepared by: Don Juravin protects homeowners