Alabama Homeowners Association Alleges Management Co., Banks Misused Member Dues

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A Jefferson County, Alabama homeowners association (HOA) alleges Rouland Management Services (RMS), Pacific Western Bank (PacWest) and MUFG Union Bank wrongfully used member dues for reasons other than the maintenance of common areas and payment of expenses. 

The 17-page case alleges that PacWest and Union Bank had information related to “suspicious transactions” between and among accounts belonging to the plaintiff, the Black Creek Station Homeowner Association, and similarly situated HOAs yet failed to inform the parties of suspected or actual wrongful activity. 

According to the suit, PacWest and Union Bank further breached their fiduciary duties to affected homeowner associations, and thus residents whose dues the HOAs collected, by failing to suspend the supposedly suspicious transactions and conduct a proper investigation into the situation. 

“Due to such breach, Plaintiff and the Class members have been severely damaged in that monies held are now gone, wasted, and misappropriated due to unauthorized activity and unauthorized charges,” the lawsuit alleges, arguing that HOAs would not have lost the money had the banks had in place “proper policies and procedures.” 

In the simplest terms, the case says, Rouland Management Services was paid by affected homeowner associations to manage accounts containing the HOAs’ dues. The suit explains that lot owners paid certain assessments to RMS that were, in turn, held in certain bank accounts at PacWest and Union Bank. The lawsuit stresses that that money was to be held and used only for the upkeep and maintenance of common areas, payment of common expenses and otherwise for the upkeep of the Black Creek Station development. 

The plaintiff claims neither it nor other HOAs were ever allowed or granted access to obtain copies of statements for the accounts containing their money deposited with PacWest and Union Bank. 

From there, the case says that RMS, Union Bank and PacWest were “put on notice” with regard to discrepancies in accounts managed by two individual defendants, Aimee Statham and Darrell Rouland, on behalf of Rouland Management Services. According to the lawsuit, the plaintiff discovered in June 2021 that its account balance was roughly $43,000 shorter than what it should have been, containing a little over $2,000 despite the plaintiff’s belief that it had an account balance of around $45,000. 

“Plaintiff subsequently filed a police report and various law enforcement agencies began an investigation,” the case continues. “To date, Plaintiff has not recovered the monies and does not even have funds to adequately operate the Association.” 

The complaint relays that RMS, Rouland and Statham were sued by another homeowners association last April over allegations that the parties misappropriated money from homeowners association accounts. 

According to the lawsuit, neither the plaintiff nor other HOAs had knowledge of the alleged misappropriation of funds given they did not receive any statements directly from either Union Bank or PacWest, but received instead “spreadsheet/statements by Defendants hiding the misappropriation of Plaintiff’s and Class Members funds.” 

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