Fraud River Highlands

    Fraud River Highlands Fraud River Highlands Fraud River Highlands

    Broad River Highlands could have been great.. Instead, a handful of insiders manufactured governance for personal gain. 

    Click here to learn about my nightmare

    (828) 567-6958

    Fraud River Highlands

    Fraud River Highlands Fraud River Highlands Fraud River Highlands

    Broad River Highlands could have been great.. Instead, a handful of insiders manufactured governance for personal gain. 

    Click here to learn about my nightmare

    (828) 567-6958

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    My Worst Nightmare.....and probobly yours

    History of Community

     

    Financial Mismanagement & Fraud

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    2007 to 2013. Developer Troubles

    BRH WAS DEVELOPED BY FALL CREEK LAND. THEY SOLD 10 LOTS OUT OF 92 AND TD BANK FORECLOSED

    2008 – Developer Todd Black records restrictive covenants and plats for Broad River Highlands, a 92-lot planned community.  


    2008–2010 – Only about 10 lots are sold. Development stalls, and financial problems mount.  


    2010–2011 – Banks foreclose on the remaining unsold property. The project effectively goes into receivership.  


    Legal effect – Under the North Carolina Planned Community Act:    

    • §47F-3-104: Special declarant rights terminate upon foreclosure unless expressly preserved in the foreclosure documents.  
    • §47F-3-101: Defines the association as the body corporate through which owners act.  
    • §47F-3-102: Grants powers (maintaining common areas, levying assessments) only to a lawfully established association.  


    Because Black lost the property in foreclosure and no valid transfer of declarant rights occurred, it appears those rights ended at that point. Without a valid declarant, later adoption of bylaws, amendments, or board actions stand on questionable legal footing.
    Summary: The community’s history is rooted in early bankruptcy and foreclosure. With only 10 of 92 lots sold before collapse, Broad River Highlands never had a clean handoff of declarant rights. This left gaps in governance that continue to affect owners today

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    2014 to 2021 - Wild West

    2014 – Developer Bankruptcy and Foreclosure

    • Todd Black, the original developer, lost control of Broad River Highlands when TD Bank foreclosed.
       
    • Only 10 of 92 lots had been sold before foreclosure.
       
    • Relevant Law: N.C.G.S. §47F-3-103(a) requires the executive board to be appointed by the declarant until turnover. With foreclosure, declarant rights must be expressly transferred (§47F-3-104). That never happened here.
       

    2014 – Transfer to BLP

    • TD Bank conveyed the unsold lots and the common areas to BLP (Brian Ledford Properties).
       
    • This was a foreclosure transfer, not a turnover to the owners.
       
    • No organizational meeting of members was held.
       
    • Governing Document: Original Declaration (2007) required amendments by 67% of all members (§47F-2-117 also requires member approval for covenant amendments).
       

    2014 – Fabricated Bylaws Introduced

    • A set of “5031C” bylaws surfaced.
       
    • They were never voted on by the members, never recorded, and conflict with the Articles of Incorporation (2008).
       
    • Relevant Law: N.C.G.S. §55A-10-20 requires member approval for amendments when bylaws and articles conflict. Articles of Incorporation control when inconsistent (§55A-2-02(b)).
       

    2016 – Articles Amended by Insiders

    • In December 2016, Jeff Tubbs signed amendments to the Articles as “President,” despite no lawful election or turnover.
       
    • These amendments were used to open bank accounts and create the appearance of a valid board.
       
    • Relevant Law: §55A-8-01 requires a duly elected board of directors to act for the corporation. Amendments filed without proper authority are void.
       

    2019 – Still No Turnover Meeting

    • Over a decade after creation, no declarant turnover to the members had occurred.
       
    • Relevant Law: §47F-3-103(f) requires a turnover meeting of the owners no later than the earlier of: (1) 120 days after 75% of lots conveyed, or (2) two years after declarant ceases to add lots. Neither occurred here.
       

    2020–2021 – Quorum Failures

    • Annual meeting minutes in 2020 and 2021 recorded that there was no quorum of members.
       
    • Despite this, board seats were “rolled over” as if elections had occurred.
       
    • Relevant Law: §55A-7-22 requires a quorum to transact business at member meetings. Elections without quorum are invalid.
       

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    2022 to Current - Stalage 13

    2022 – “Successor Declarant” and Confusion

    • NC Country Land LLC filed documents claiming to be the successor declarant.
       
    • No lawful turnover meeting was ever held under §47F-3-103(f), which requires owner control within two years after a declarant stops adding lots.
       
    • Owners were told the declarant still controlled covenants, but no valid transfer of rights was documented.
       

    2022 – Articles Amended Again

    • Articles were changed in December 2022 without member approval.
       
    • §55A-10-20 requires member approval when bylaws or articles conflict.
       
    • These filings conflicted with the 2008 Articles and the 2007 Declaration, which require 67% of all owners for amendments.
       

    2023 – Bylaw Amendment Attempt

    • In September 2023, the Board pushed through a bylaw amendment changing director terms.
       
    • Only 39 votes in favor were counted, far short of the 59 votes (67% of 88) required under the Declaration and §47F-2-117.
       
    • The amendment was recorded despite being invalid, and is now used to justify Board control.
       

    2023 – Covenant “Amendment” Dispute

    • In May 2023, the Board attempted to change the amendment procedure itself by claiming a majority of votes cast was enough.
       
    • The Declaration (2007) requires 67% of all members.
       
    • Any amendment recorded with less is void.
       

    2024 – Legal Costs Escalate

    • The Association paid more than $30,000 in legal fees in a 12-month period.
       
    • Most of these fees were not for defending the Association, but for defending the property manager (Julie Gonzalez) and insiders, including FHA/ADA complaints.
       
    • §55A-8-30 requires directors to act in good faith and in the best interests of the corporation. Funding personal defenses is a breach of fiduciary duty.
       

    2024 – Retaliatory Enforcement

    • After members raised questions about tax fraud, misuse of reserves, and fabricated amendments, violations were issued selectively.
       
    • §47F-3-102 and NC case law (Wise v. Harrington Grove) require uniform enforcement of covenants.
       
    • Insiders (Tubbs, Marshall) were not fined despite 12-month build violations, while others were targeted.
       

    2025 – Special Meeting Attempt

    • Members called a special meeting under §47F-3-108, which gives them that right with 10% support.
       
    • Management and counsel interfered with the process, claiming amendments and elections had already settled matters.
       
    • No valid meeting notice or proper vote count was produced.
       

    Pattern (2022–Present):

    • Amendments filed without proper quorum or required supermajority.
       
    • Legal fees misused to defend the manager and insiders.
       
    • Selective enforcement used as retaliation.
       
    • Member rights under §47F (Planned Community Act) and §55A (Nonprofit Act) repeatedly ignored.
       

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    Inside Broad River Highlands: Profiles in Power and Division

    Financial Mismanagement

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      Downloads

      Declaration Amendment 5.25.23 - Amendments Require 67% Approval (pdf)Download
      02 03 2022 - POA sold Lot 22 to Blueline (pdf)Download
      02 17 2022 - Declarant Rights from BLP to NC Country Land (pdf)Download
      02 26 2014 - Declarant Rights from FCL to BLP (pdf)Download
      02 26 2014 - Deed to Roads from BLP to POA (pdf)Download
      Deed from Bank to BLP (pdf)Download
      Original Declaration & Covenants - 07 25 2007 (pdf)Download
      03 07 2022 - Amendment to Declaration (pdf)Download
      02 27 2022 - Declarant Rights Assigned to NC Country (JPG)Download
      Bylaws Amendment Directors & Terms 9.27.2023 (pdf)Download
      ByLaws (pdf)Download
      Declaration Amendment 3.7.22 (pdf)Download
      02 26 2014 - Deed to Roads from FCL to POA (pdf)Download
      Declaration Amendment 10.05.22 (pdf)Download
      ArticlesofInc-2008 (pdf)Download

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