Residents paid mandatory fees to protect their community. Prosecutors say insiders turned that money into a private cash machine while warnings went unanswered for years.

A Community of Thousands
The Hammocks is not a tiny neighborhood board run from someone’s kitchen table. The master association oversees about 40 communities and more than 6,500 housing units in West Kendall. More than 18,000 people live within its boundaries. HOAs can fine owners, record liens, and pursue collections. That makes control over mandatory payments a serious power.

According to prosecutors and court records, people connected to the former board used bogus vendors, questionable contracts, and companies tied to relatives or insiders to move association money. Some businesses allegedly collected payment for work that was incomplete or never performed. This was not loose change disappearing from a petty cash drawer. Prosecutors now place the loss at more than $11 million.

Warnings, Delays and Hidden Records:
Residents raised alarms about finances, board elections, and access to records long before the largest round of arrests in November 2022. A Miami-Dade County legislative record shows that homeowners complained about a proposed assessment increase of almost 300 percent in 2022. They also alleged that association money was being used to pay legal expenses connected to former leaders.

The fight to obtain financial documents became part of the story. Prosecutors later accused people connected to the association of helping delay or block lawful requests for records. After a judge placed the HOA under receivership, court-appointed receiver David Gersten reported finding financial documents hidden beneath flooring at an association office. Prosecutors later said they found other records tied to the fraud at a spa inside an empty Tamarac strip mall.

The Pleas & the Price:
Gallego received seven years in state prison followed by seven years of probation. The State Attorney’s Office said she is barred during probation from working within the association, entering its offices or facilities, or approaching its homeowners. Gonzalez received seven years of probation. Before the pleas were accepted, the couple transferred a Homestead property valued at about $1.2 million to the association. A separate $50,000 payment was also turned over.

At the time of the pleas, authorities said eight people had been arrested, four had been sentenced, and four were awaiting trial. Charges against defendants who have not pleaded guilty remain allegations unless proven in court. Some residents welcomed the convictions but questioned whether the punishment and recovered property could ever match the damage.

Laws Changed, but a Large Gap Remains:
The Hammocks case finally helped push Tallahassee to act. Florida’s 2023 Homeowners’ Association Bill of Rights expanded the criminal charges that require an HOA officer or director to be removed. It also tightened rules for conflicts, elections, records, and meeting notices. House Bill 1203 took effect in 2024. It required HOAs with at least 100 parcels to place specified records on a protected website or mobile application. It added criminal penalties for destroying required accounting records or concealing them to evade criminal detection. Smaller associations are outside the website rule.

The Community Associations Institute estimates that about 9.5 million Floridians live in nearly 49,800 community associations, including HOAs, condominiums, and cooperatives. Yet a basic oversight gap remains. The Florida Department of Business and Professional Regulation says it can arbitrate HOA election and recall disputes, but it lacks legal authority to investigate general complaints against HOAs. Most HOA boards serve their neighbors honestly, and added regulations can raise costs. Weak oversight is also expensive. Gersten said the Hammocks receivership initially cost homeowners about $200,000 each month.

Florida Forward:
The Hammocks' convictions closed two major criminal cases, but prosecutors say they continue pursuing other participants. New laws make records harder to hide and certain abuses easier to prosecute. However, laws only work when warning signs reach someone with the power, time, and willingness to act. Until Florida establishes a clear system for reviewing HOA financial complaints, homeowners may have to uncover the next multimillion-dollar theft after years of fighting their own association.