Ocean Towers Scandal: $6M Embezzled, HOA Accused of Fraud

At the Ocean Towers luxury complex in Santa Monica, a scandal involving the homeowners association (HOA) has emerged, with leaders and their relatives accused of embezzling $5.7 million from residents. The alleged theft involved billing for construction projects that were reportedly never completed and is part of a broader pattern of mismanagement that includes rigged elections and retaliation against those who spoke out. This case has led to a 100-count indictment against the defendants, including charges of grand theft, identity theft, and money laundering. Residents have reported retaliation for speaking out, including lawsuits, threats of lease revocation, and barriers to selling their units. The situation has been ongoing for years, with one resident claiming, "They've sucked our blood for the past 25 years." A battle to regain control of the HOA board uncovered the alleged fraud, now estimated at $6 million, drawing the attention of the California Department of Justice.