The multimillion-dollar fraud case at the Hammocks, Florida’s second-largest homeowners’ association, is in its fourth year. Yet, a trial date remains elusive.
In 2022, five people were arrested over allegations that former board members hired bogus contractors and diverted payments, including to ex-board President Marglli Gallego and her husband, Jose Gonzalez, who allegedly led some of the fake vendors, court filings say. Three more people –– two of them Gallego relatives –– were later charged. Two of the ex-board members originally arrested have since switched to guilty pleas and cooperated with investigators.
The remaining six defendants maintain their not guilty pleas. Gallego, painted as the ringleader by prosecutors, is the only one still in jail after being denied bond.
Since the initial charges, the West Kendall HOA went through receivership, multiple civil suits and board elections. The criminal case? It periodically pops up for brief status hearings that shed no light on when trial will begin. Sometimes, hearings are postponed, including one for Feb. 6 moved to Tuesday.
“We all want a conclusion,” said Ana Danton, one of the roughly 18,000 Hammocks residents.
At issue: HOA fraud cases are massive, involving voluminous evidentiary files, and many witnesses and subpoenas, experts say. The problem is especially pronounced at the Hammocks due to its size and the fact that the HOA kept paper records. The court called it a “monster” case.
By last spring, the state submitted its final evidence, so Judge Laura Cruz called on defense attorneys to schedule depositions and said that continually blaming the amount of paperwork would eventually become “problematic.” Gallego’s attorney, Sabino Jauregui, countered the state had years to review files but the defense gets months. He then filed a motion to disqualify or recuse Cruz, which was denied. (Judge Andrea Ricker Wolfson now presides, which a court spokesperson previously said was due to regular judge rotation.)
Jauregui and most defense attorneys didn’t respond to a request for comment. Gonzalez’s attorney declined to comment.
George Pallas, an attorney for Ivan Dario Diez, accused of posing as a vendor, said the state controls the investigation’s pace and built its case “incrementally,” hence Diez’s 2024 arrest, showing “the probe is still active and evolving.”
“My client is entitled to a complete picture of the evidence, not piecemeal revelations that keep extending the proceedings,” said Pallas, who has said Diez did legitimate work and was targeted by others who took plea deals.
For Hammocks residents, the protracted case has been years in the making. It took five years after investigators started poking into the HOA for the 2022 charges to be filed.
“We want it to end, and it’s been so long,” Danton said.
What we’re thinking about: Will California’s wealth tax send even more billionaires fleeing to South Florida? Last week, news spread that Mark Zuckerberg and his wife, Priscilla Chan, are under contract for an Indian Creek trophy manse, following in the footsteps of Jeff Bezos and his wife, Lauren Sanchez. Send me a note at [email protected].
CLOSING TIME
Residential: A trust tied to David MacNeil, founder of WeatherTech, paid $68.3 million for the oceanfront mansion at 1940 South Ocean Boulevard in Manalapan. Frank and Dolores Mennella sold the property; Frank Mennella is a retired automotive warranty executive.
Commercial: In Palm Beach County, Dalfen Industrial offloaded a warehouse complex at 1673 and 1715 Meathe Drive for $79.6 million. Boston-based Cabot bought the Turnpike Logistics Center, comprising a 124,500-square-foot building and another 193,000-square-foot building.
— Research by Mary Diduch
NEW TO THE MARKET
A waterfront mansion under construction on the Sunset Islands hit the market for $85 million. The 16,000-square-foot home at 1649 West 22nd Street in Miami Beach is being developed by real estate investor Fred Karlton. The Corcoran Group’s Julian Johnston is the listing agent. The property includes more than 150 feet of water frontage and a 6,000-square-foot understory level with a climate-controlled garage and space for a gym and storage. A company led by Fred and Aaron Karlton paid $19 million for the nearly half-acre property in 2024.
A thing we’ve learned
A bill that would curb Florida local governments’ power to enact climate change policies passed a House committee. HB 1217 would ban the adoption and implementation of “net-zero policies,” according to Florida Phoenix. Over a dozen local governments, including South Miami, have already committed to a 100 percent clean renewable energy power portfolio.
Elsewhere in Florida
- Floridians may get to cast ballots on property tax rollbacks in November, after all. Three out of the seven proposed constitutional amendments moved forward this legislative session, Axios Tampa Bay reports. The measures, which still need House and Senate approval, would phase out taxes by increasing exemptions over a 10-year period, increase homestead exemptions by $200,000 for homeowners with “comprehensive” property insurance, and transition county and municipal tax assessments to every three years, with maximum increases of 3 percent for primary homes and 15 percent on all other properties.
- AJ’s Jewelry, a Palmetto Bay jewelry store owned by Anthony Machado –– aka “King of Bling” –– and popular among athletes and celebrities, alleges retired boxer Floyd Mayweather Jr. hasn’t paid nearly $1.4 million from an August shopping spree for gold chains, luxury watches and a gold bracelet, Miami New Times reports. Mayweather’s attorney didn’t respond to the publication’s request for comment.
South Florida’s ever-present battle with its reputation as a party hotspot continues. Miami-Dade County commissioners will vote next week whether to make it easier to ticket boaters playing loud music after 11 p.m., Miami Herald reports. Loud nighttime boaters are a particular issue in North Bay Village, a three-island municipality surrounded by Biscayne Bay.
