Bankruptcy records link owners of troubled HOA management company in Colorado to new company

The saga continues six months after an HOA management company denied to CBS Colorado and homeowners that it was the same company it was replacing. They were ordered to pay $2.7 million after a judge determined the company's owner diverted more than $700,000 from another HOA into her own bank account. 

From day one, Shadow Creek residents like Dave Wells have raised concerns about the company brought in to replace their HOA management company.

"It would just be nice to know if our money, and everybody else's money that we're represented by through these companies, is actually above board," Wells said.

Last fall, homeowners learned CCMA would replace Mastino Management — a company at the center of several lawsuits and a civil theft case, where a judge found they deliberately diverted more than $700,000 from a neighboring community into personal accounts.

Despite state business records showing the same couple — Kim and Rick Bacon — formed both companies, residents were assured the Bacons were no longer involved.

In February, reporter Karen Morfitt went to CCMA's office to speak with the new owners.

"We've been asking for comments for several days, just wanting to ask some questions about concerns some residents have, and wanted to see if we could contact the owners," Morfitt said to a woman at the door.

"No, unfortunately not at this time," the woman replied.

"Why is that?" Morfitt asked.

"Because it's an investment group."

As part of their Civil theft case, Mastino was ordered to pay back millions of dollars in the theft case, Mastino Management filed for bankruptcy and was ordered to "immediately cease business operations."

Instead, they began transferring money from Mastino bank accounts to cover a home mortgage, car loans, and directly to CCMA.

In July, the bankruptcy court discovered those transfers. It resulted in a $100,000 settlement involving CCMA and is signed by its owner, Rick Bacon.

"That's the most frustrating thing — we were ostracized for having an opinion and bringing the facts to the news and to our neighbors, only to be pushed down," Wells said.

CCMA's website is still live, and their phone number still works — but their history is difficult to track.

David Donnelly with Colorado's Division of Real Estate says community association managers — or CAMs — are currently unregulated.

"If I had a client, I could form a company and start acting as a CAM tomorrow," Donnelly said.

According to Donnelly, a law that once required CAMs like Mastino to be licensed — and allowed the Division of Real Estate to investigate complaints — expired in 2019.

It has been reintroduced in the legislature twice since then, but both attempts failed.

"It's possible that in the future, some type of regulated program may come back," Donnelly said.

Residents like Wells, who have seen firsthand how quickly one bad company can turn into another, hope lawmakers will reconsider.

"There has to be some type of regulatory board or commission. There's got to be accountability," Wells said.

CBS Colorado requested a response from the Shadow Creek HOA Board members who hired the replacement company regarding records showing the Bacons' continued involvement, and did not hear back.

A separate request for comment from both the Bacons and CCMA also went unanswered.