A shocking case of $1M HOA embezzlement has ended with a two-year prison sentence for a Virginia property manager. Rose Kasande Bailey, 60, admitted to misusing funds from multiple homeowner associations under her management.
How the $1M HOA Embezzlement Happened
Bailey operated Rosewood Management and Consulting Services, LLC, a Fairfax-based company that provided HOA property management services since 2012. By early 2023, Rosewood managed over 70 HOAs in Virginia, including properties in Lorton, Reston, Falls Church, and Leesburg.
These HOAs relied on Rosewood to handle resident dues for maintaining and repairing properties and shared amenities. Each HOA had its own bank accounts, while Rosewood maintained two separate accounts for its business operations. Bailey, who had signing authority over both Rosewood and HOA accounts, used this access to orchestrate the embezzlement.
In May 2018, she began transferring funds from HOA accounts to Rosewood’s accounts to pay for unauthorized expenses. These included payroll, business rent, credit card bills, and Bailey’s personal expenses. In total, approximately $1.1 million was misappropriated, with some of the funds even used to acquire another HOA management firm.
After the Fact
To hide the unauthorized transfers, Bailey provided falsified bank statements to HOA boards when they requested updates. In one instance, when a client HOA decided to switch management firms, she transferred $600,000 from other HOA accounts to cover the shortfall and avoid detection.
Bailey’s fraudulent actions came to light after the discrepancies were discovered, leading to a federal investigation. The court sentenced her to two years in prison for wire fraud and ordered her to make restitution to the affected HOAs.
This case highlights the importance of transparency and oversight in HOA financial management to protect community funds from misuse.
