A former homeowners association president and her husband have pleaded guilty to stealing over $11 million from residents of a Miami community. Marglli Gallego, 44, admitted to racketeering and grand theft charges for siphoning monthly maintenance fees from the Hammocks Community Association, one of Florida's largest HOAs. Her husband, Jose Antonio Gonzalez, 49, pleaded guilty to money laundering.
Miami-Dade State Attorney Katherine Fernandez-Rundle described the scheme as 'one of the largest homeowner association frauds in U.S. history,' affecting more than 18,000 residents. Gallego was sentenced to seven years in prison followed by seven years of probation, while Gonzalez received seven years of probation, was ordered to pay $50,000 in restitution, and forfeited a $1.2 million home.
An investigation launched in 2022 after residents flagged declining reserve funds and excessive spending led to the arrests of eight people, including Gallego and Gonzalez. Prosecutors revealed that Gallego created shell companies to funnel HOA funds under the guise of vendor payments for services never provided. One company under Gonzalez's name netted over $1.4 million between 2017 and 2022.
New details emerged on Thursday, including the discovery of HOA records hidden in a storefront disguised as a spa in a Broward County strip mall. Gallego allegedly used HOA credit cards for personal purchases at fast-food restaurants and grocery stores, and ordered security to harass rival association members. The fraud prompted new state laws targeting HOA election fraud and improving transparency.
Other board members and associates also pleaded guilty, including Monica Ghilardi, who received a year in prison and 12 years of probation. Many residents expressed dissatisfaction with the sentences, with one resident noting that 'a lot of people lost their homes' due to the fraud.
