Local News

Police estimate $500K missing in Garner HOA embezzlement investigation

Posted August 15, 2016

— Two dozen more homeowners associations in the Triangle have come forward in connection to the possible embezzlement of tens of thousands of dollars.

Last week, two HOAs had filed reports with Garner police and four others filed complaints with the Consumer Protection Division of the state Attorney General’s Office in connection to money missing from their accounts.

As of Monday, police said that 29 HOAs have filed similar reports. Police said it is too early in the investigation to determine how much money is unaccounted for, but they said they expect it will be more than $500,000.

Accounts for all of the HOAs were, at some point, maintained by Kornerstone Community Management in Garner.

Kornerstone provides services to about two dozen HOAs in the Triangle area, but its office has been locked – the company is listed as "permanently closed" on Google – and president Diana Ellis Kelly didn't return phone calls and emails last week seeking comment.

Some HOAs reported that thousands of dollars had been drained from their accounts, checks have bounced or access to their funds have been blocked. Many are not confident that they will get their money back and they expect the potential legal process will be long.

“Well, it’s hard to have pleasant thoughts, you know, hoping for the best when there’s that many people involved in it. It would have been nice if it was just a mixup in communications and it would have all been squared away. Unfortunately, it looks like it’s going to be a legal matter and it’s going to take some time to fix,” said Tony Losada with Greystone Crossings HOA.


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  • Jeffrey Derry Aug 16, 2016
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    Will not live in a HOA.

  • Aiden Audric Aug 16, 2016
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    I appreciate good HOAs.
    Unfortunately I never heard of such a thing.

    I got a letter from my HOA's management company. Said I had 3 days to cut my lawn or face penalties. I contacted them and pointed out the page, paragraph and line that read "15 days". She said "this is industry standard." I said "this is a contract." She said "fine, I'll give you five days" and hung up.

    My neighbors were breaking covenants left and right, so I reported them (it was seriously getting out of hand - campers blocking the streets, sheds and gardens built too close to other properties - not minor things).

    Their response: they told me that the covenants don't cover those issues- so I emailed them the highlighted lines in the contract. They replied back "we talked to him, he seems like a good family provider, so we see nothing wrong."

    For the next 2 years I'd get warnings every few months (unjustified). The kicker? On one I was told I needed to weed my yard. It was freshly re-landscaped! Pure harassment!

  • Gail Dragon Aug 16, 2016
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    Get rid of HOAs.