Deceit? Fraud? Worse?


The just-released 2024 Annual Audit must be giving heartburn to at least some of the Directors of the HOA. The "new" Board majority (since November 18, 2025) must be outraged by the mess in which it finds itself.

If they don't step up and tell the truth, they could find themselves embroiled in the mess and, quite likely, cupable and liable.

The situation with the annuity is worse than I thought. From the monthly financials released for October 2025 and December 2025, I made an assumption that the annuity had been purchased by the HOA late in 2025. Now I know that I was wrong.

From the 2024 Annual Audit, just published on the HOA's website, it is now clear that the annuity was purchased in 2024, not in 2025! The Auditor, L. Douglas Johnson, CPA, had this to say about the annuity:

"Note 8. Cash Surrender Value of Annuity 
"The Association purchased a single premium deferred annuity (SPDA) in 2024 for a lump-sum payment of $126,352.  The SPDA earns a fixed interest rate of 5.5% per annum (guaranteed for 5 years), which is credited to the principal and subject to tax annually as ordinary income.  The cash surrender value as of December 31, 2024, $121,440, includes the initial premium plus credited interest less a surrender charge that would apply if withdrawn.  The contract is subject to a 5-year surrender charge period, starting at 9% in year one and scaling down to 5% in year five with no charge thereafter.  A market value adjustment (MVA) applies if the contract is surrendered early, which could increase or decrease the final surrender value depending on interest rate fluctuations.  The annuitant is a current board member and the Association is the owner and beneficiary."

The Note in the 2024 Annual Audit states that the annuity was purchased in 2024. 

The Note, dated February 4, 2026, also states that the annuitant is a current board member. If that is correct, then the annuitant is Tanisha Holmes, Brenda Bryant, or Linda Potter. I wonder if that is an error. Who is the Annuitant? What company issued the annuity?

Where might deceit or fraud or worse come into play? In 2025, the Financial Operating Reports (prepared by CAMS through 8/31/25) show $126,351.61 as Reserve Cash & Cash Equivalents (Line 1088) at South Carolina Federal Credit Union (unreconciled).

But $126,352 was the purchase price ("premium") of the annuity. That money was not at South Carolina Federal Credit Union in 2025, unless the Credit Union sold the annuity to the HOA. If that amount had been withdrawn from South Carolina Federal Credit Union in 2024 and spent on the annuity, why is it reported as Reserve Cash & Cash Equivalents in January-August, 2025?

The Treasurer from January to mid-May, 2025 was LaToya Adams. There was no Treasurer from mid-May to July 1, 2025. William Hill was Treasurer from about July 1 to December 1, 2025. Why didn't Adams or Hill or CAMS report that $126,352 correctly?

Of course, that would have been like waving a red cape at a bull.

The HOA is carrying the annuity at its purchase price, which is not what it is worth.

The HOA paid $126,352 for the annuity at some point in 2024. On December 31, 2024 its net cash surrender value was $121,440. The monthly financial statements should show an accurate cash surrender value at the end of every month.

The unrecognized loss in 2024 was $4,912 ($126,352 - $121,440). The Auditor clearly reports that in the 2024 Annual Audit.

The Board of Directors owes the full truthful story to the Members. Who is the Annuitant? Who made that pitiful deal? Was there a cover-up? Who should have blown the whistle?

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