Woman sentenced to 2 years in prison for embezzling over $1M from HOA

FAUQUIER COUNTY, Va. - A Warrenton woman has been sentenced to two years in prison for wire fraud of over a million dollars from homeowner associations she managed.

The suspect, 60-year-old Rose Kasande Bailey, formed Rosewood Management and Consulting Services, LLC, a property management company in Fairfax that specialized in property management for HOAs, according to court documents, in 2012.

As of March 2023, Rosewood provided management services to over 70 HOAs in Virginia, including properties in Lorton, Reston, Falls Church, and Leesburg. Officials say the HOAs contracted with Rosewood to collect dues from residents to maintain and repair the properties and common areas.

Rosewood maintained two operating bank accounts, while each HOA opened one or more bank accounts into which dues and fees were deposited. Bailey maintained signing authority over all Rosewood accounts as well as HOA accounts. 

According to documents, in May 2018, Bailey began transferring funds from certain HOA bank accounts to Rosewood bank accounts to cover expenses that were not approved by the HOA boards. The transfers, totaling approximately $1.1 million, were used to cover Rosewood payroll and business rent expenses, credit card payments, Bailey’s personal expenses, and payments on business loans associated with Bailey acquiring a new HOA management firm.

Bailey provided altered bank statements to conceal transfers when HOAs requested updates on their operating accounts. 

It's being reported that one of Rosewood’s HOAs decided to seek new management, prior to the discovery of any theft. She also provided falsified bank statements and transferred $600,000 from other HOA bank accounts to make the departing HOA whole, as an attempt to account for her illicit transfers.