Former Hammocks HOA president, husband plead guilty in massive over $11 million fraud scheme
Two key figures in what authorities describe as the largest homeowners association fraud case in U.S. history have pleaded guilty in a Miami-Dade courtroom.
Former homeowners association president Marglli Gallego and her husband, Juan Antonio Gonzalez, admitted their roles in a scheme that prosecutors say stole more than $11 million from thousands of residents.
Miami-Dade State Attorney Katherine Fernandez Rundle said the couple was responsible for defrauding approximately 18,000 homeowners.
They were responsible for stealing upward of $11 million from hardworking Miami-Dade homeowners, Fernandez Rundle said.
Gallego, 44, pleaded guilty to racketeering and was sentenced to 7 years in prison, followed by 7 years of probation. Her attorney said she has already served about 3 1/2 years, leaving several years remaining on her sentence.
Gonzalez, 49, pleaded guilty to one count of money laundering. He was sentenced to probation and agreed to pay $50,000 in restitution to the association.
As part of the plea agreement, the couple was required to transfer ownership of a property they owned outside the Hammocks community. Authorities estimate the value of the property at approximately $1.2 million.
"There's no deal until we get a deed," prosecutors said, noting the property transfer was a key condition of the agreement.
Investigators also revealed new details about evidence in the case. According to authorities, documents linked to the fraud were not found in the Hammocks community but instead at a spa located inside an empty building at a strip mall in Tamarac, in Broward County.
Current homeowners association President Don Kern called the outcome a major milestone for residents.
"This is like a holiday for the Hammocks," Kern said. "Every single homeowner was hurt by these injustices — and its over."
Residents, however, are not happy with the outcome, saying that the couple should have had a greater punishment for the damage that they are steel reeling over.
"A lot of people lost their home. It's $11 million. Seven years in jail versus $11 million. Where's the money? Are the people that lost their home going to recover their home?," Hammocks resident, Ana Danton said.
The seven year sentence Gallego was given is believed to be the longest prison sentence for any board president, but another resident, Todd Botner, said the damage is too large for the years given.
When asked if she had a message for Gallego and her husband, Danton had this to say to them and "everybody in their position:" "Sooner or later, they're going to get caught. By the most humble person in the community, by who they least expected, they're going to get caught."
So far, eight people have been arrested in connection with the scheme. Four have been sentenced, while four others are still awaiting trial. Authorities say additional arrests are possible.