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Clark County, NV (KTNV) - It's the latest chapter for homeowners and residents of Paradise Spa, which is a community of seniors and low income families on the south end of the Strip.
Chief Investigator Darcy Spears first inducted Paradise Spa into Contact 13's HOA Hall of Shame last year, and the state finally heard the case today.
Allegations of embezzlement and misappropriation of HOA funds led to a settlement agreement, but here's the catch.
It nets no money for homeowners.
But it is the first step toward long overdue accountability in a case where more than $2,000,000 is missing.
When you read the state's complaint against three former Paradise Spa board members, it seems they did nothing right.
They didn't hold meetings or properly conduct elections.
They kept their money in an unauthorized, out of state bank.
They owe about $1.5 million in unpaid HOA dues.
And they took more than a million dollars of insurance money for buildings burned in two separate fires... but never fixed anything and never accounted for the money.
"We have been damaged and it will take a long time to get back to where we need to be," said former State Senator Bill O'Donnell, Paradise Spa's new president.
He's been picking up the pieces left behind by Beverly Hills millionaire Aaron Yashouafar who is the former board treasurer and owns most of the Paradise Spa units.
We caught up with him for the first time at the Common Interest Community Commission hearing.
"What do you have to say to the Paradise Spa homeowners about where their money is?" asked Contact 13 Chief Investigator Darcy Spears.
Aaron: "No comment."
Darcy: "No comment at all? The Commission thinks these people have been badly harmed. Don't you think they deserve some answer from you about what you've done with the insurance money?"
Aaron: "They will get the answer in the proper procedures."
The answers will likely come in a courtroom as the FBI and Nevada Attorney General have an ongoing investigation into possible criminal activity regarding Paradise Spa's finances.
For now, the Nevada Real Estate Division has settled with Yashouafar and former board members Jim Pazargad and David Pourbaba for a total of $32,000 in fines and the promise not to serve on any HOA boards in Nevada for three years.
"We have taken the first step and we have won," O'Donnell said. "And we're gonna take step number two and hopefully we'll win there. And we're gonna continue and continue until this is solved and, basically, justice is done."
LAS VEGAS -- A man voted one of New York's 10 worst landlords has been sanctioned by Nevada regulators for his activities in Las Vegas.
For months, 8 News NOW has followed the struggles of homeowners at Paradise Spa. They say that Aaron Yashouafar misappropriated millions of dollars from their HOA.
According to the complaint by the Nevada Real Estate Division, Yashouafar served as the treasurer of the Paradise Spa HOA. He also owns the majority of units in the complex.
Yet Yashouafar and his associates, according to the complaint, failed to pay nearly $1 million in HOA fees for their properties and another $800,000 in insurance proceeds are missing.
Though Yashouafar denies the allegations against him, Tuesday he agreed to a deal with the Real Estate Division. Under its terms, Yashouafar and his associates are prevented from serving on any HOA boards for three years. In addition, Yashouafar must pay $22,000 in fines within 90 days.
Before approving the deal, members of the State Commission for Common-Interest Communities expressed their frustration with what some considered an inadequate remedy. However, current Paradise Spa board president Bill O'Donnell told commissioners his board approved of the settlement.
"There's plenty of money out there that has been either stolen or misappropriated or absconded with and we kind of know where that money is and we definitely plan on going and getting that," he said.
The HOA has filed a civil lawsuit against Yashouafar and a criminal investigation into his activities is on-going. Yashouafar declined to comment after the hearing.
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