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Article Courtesy of The Real
Deal
By Lidia Dinkova
Published August 22, 2026
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WATCH VIDEO |
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The biggest homeowners association in South Florida couldn’t shield itself from
a massive fraud scheme.
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On this week’s episode of The Real Deal’s
“Deconstruct” podcast, hosts Hannah Kramer and Lilah Burke
talk to commercial real estate reporter Lidia Dinkova, who
covers all things happening in South Florida.
Dinkova extensively covered what happened at the Hammocks in
West Kendall, where Marglli Gallego was elected to the board
of directors as treasurer in 2015 before rising to president
in 2017.
Gallego proved to be the ringleader of a scheme that
siphoned $11 million from HOA coffers, diverting funds to
herself and her husband, along with other family members and
associates, according to prosecutors.
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The alleged scheme was straightforward: the former board hired vendors that did
no work at the Hammocks, then diverted the HOA’s payments to the bogus
contractors, including to the pockets of Gallego and her husband.
Residents told Dinkova the Gallego-led board of directors bullied homeowners who
spoke out or signed a recall petition seeking to oust the board. Retaliatory
tactics included having an accomplice park a truck outside of homes and hitting
owners with unjust allegations of overdue assessments and bogus fines, according
to homeowners.
Some, facing what they said were unjust fines over alleged HOA rules violations
— over the color of their driveway or unpruned trees — sold their homes and
left.
Eight people have been arrested and charged for their roles in the fraud since
late 2022. Gallego was sentenced to seven years in prison –– the longest known
sentence for an HOA president in the United States –– with credit for time
served, and seven years of probation. She is also banned from ever setting foot
at the Hammocks and from seeking work at an HOA.
The Hammocks case and the reporting around it highlighted Florida’s lack of
legal oversight over HOAs, prompting legislators to strengthen laws. In 2024,
they approved legislation that, among other things, criminalized accepting or
seeking kickbacks by board members at HOAs and destroying or refusing to turn
over records.
Those reforms gave prosecutors “more teeth to go after bad actors” across the
state.
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