78-year-old stole over $2 million in HOA fees from Mississippi neighborhoods, feds say
The owner of a property management company was tasked with overseeing money belonging to various homeowners associations in Mississippi, federal prosecutors said.
Instead of managing it, prosecutors said, he took the funds for himself.
David Luke Lane, 78, pleaded guilty to federal bank fraud charges in the Southern District of Mississippi on Nov. 9, the U.S. Attorney’s Office said in a news release. Lane was charged by criminal information two days before his guilty plea and waived his right to both an indictment and a court-appointed attorney.
He could not immediately be reached for comment by McClatchy News, and his company website is no longer active.
Lane operated Ridgway Lane & Associates, a property management company in Flowood, Mississippi. Flowood is part of the Jackson metropolitan area.
Prosecutors said Lane’s company contracted with various homeowners associations to manage their funds and property — which largely included fees paid by homeowners.
According to court documents, the HOA money was kept in secure bank accounts that Lane could access. As the property manager, he was only supposed to use the money for the “exclusive and sole benefit of each HOA,” prosecutors said.
But from 2016 to 2020, Lane withdrew money from the HOA bank accounts and put it into accounts he controlled, the government said. He then created fake bank statements to hide the missing funds.
In total, Lane is accused of stealing more than $2 million from multiple HOAs in Mississippi.
Lane’s alleged scheme began to fall apart in 2019, when multiple homeowners associations came forward to accuse him and his company of mismanagement, the Clarion Ledger reported. Lane and his son, David W. Lane, were named as defendants in several lawsuits as a result.
By the end of 2020, at least 12 homeowners associations had sued, according to the newspaper.
Several of Lane’s assets were subsequently liquidated — including various homes and properties in Mississippi as well as his bank accounts. His son has also said he had nothing to do with the fraud and instead “pointed the finger at his father,” the Clarion Ledger reported.
Lane now faces up to 30 years in prison and a fine of up to $1 million, court filings show. He’s scheduled to be sentenced on Feb. 11.
This story was originally published November 12, 2021 at 12:52 PM with the headline "78-year-old stole over $2 million in HOA fees from Mississippi neighborhoods, feds say."
