ST. GEORGE — A former treasurer of a homeowner’s association in Hurricane accused of embezzling more than $230,000 from the community’s main account appeared in federal court for sentencing on Monday.
Sharon Lee Ann Gordon, 66, of Hurricane, appeared before U.S. District Judge Robert J. Shelby on two federal charges, wire fraud and making a false statement on a tax return, charges she pleaded guilty to in November of last year.
During Monday’s hearing, Gordon was sentenced to 12 months and one day of home confinement followed by two years of federal supervision. She was also ordered to pay the remaining $63,440 in restitution to Lava Bluff HOA and $20,490 in restitution to the IRS for revenue losses stemming from underreported income between 2017 and 2021.
According to the complaint, the defendant served as the treasurer of the HOA of the Lava Bluff Mobile Home Park on North 3880 West in Hurricane, which gave her access to the association’s bank accounts as she was responsible for managing funds and keeping financial records.
Lava Bluff is a 55 and older community consisting of approximately 180 units, a majority of which are manufactured homes.
Over six years, Gordon diverted at least $232,00 from four HOA accounts at three different banks that held HOA savings funds, an account earmarked for future street repairs funds and general operating expenses.
Once the scheme was discovered, a lien was placed on Gordon’s property and the HOA was paid back more than $168,600 from the sale of her home.
The false statement on a tax return charge was filed after Gordon electronically filed her tax return that falsely listed $13,500 as her total income for 2021, when in fact she received at least $20,000 more.
During sentencing on Wednesday, Assistant U.S. Attorney Stephen Dent said that Gordon’s conduct spanned nearly a decade and involved repetitive theft while she served in a position of trust. She exploited this position to extract the HOA’s money for her own benefit — criminal conduct that merits a prison sentence, he said.
“She stole from her own neighbors,” he added.
Mitigating factors that weighed against a long prison sentence were Gordon’s age, her lack of criminal history, and mental health issues she has reportedly struggled with for years. She also cares for her longtime partner who has terminal cancer. Dent asked the court to sentence Gordon to serve 15 months in federal prison.
Gordon’s defense attorney, Steven McCoy, told the court that his client immediately admitted to taking the money. McCoy added that his client signed a promissory note and then paid more than $168,000 in restitution to the HOA before sentencing.
A number of victims addressed the court during the hearing, including one homeowner who said the money stolen was earmarked for new road paving and other repairs needed throughout the planned community. These projects will now cost up to three times as much as they would have three years ago.
In addition to the monetary loss left in the wake of Gordon’s actions, there was also a loss of trust that has left the retirement community divided and their trust shattered. The defendant was not taking money from a random bank account; she was stealing from her neighbors and friends.
“I don’t understand how she could do this and still look us in the face,” one homeowner said.
Another resident said there were 62 cents left in the account when they went to the bank to close it, adding that Gordon had drained the account and left them “with nothing.”
Gordon addressed the court by saying she was sorry for the harm she had caused so many people.
U.S. Attorney Trina A. Higgins said in a statement, issued by the U.S. Attorney’s Office for the District of Utah, that Gordon “abused her HOA position of power to steal thousands of dollars for her own personal benefit,” and the defendant’s “greed further emboldened her to hide money from the IRS.”
FBI Special Agent Shohini Sinha of the Salt Lake City Field Office said the money that was designated for the community’s management instead went to line Gordon’s own pockets.
“This case should serve as an example that fraud never pays,” Sinha said in the statement, adding that the FBI and their law enforcement partners are committed to identifying and investigating those who abuse their trusted positions.
This case not only saw the members of the Lava Bluff HOA directly harmed by Gordon’s actions, “but as is always the case with tax fraud, the American taxpayers as a whole were victimized,” said Carissa Messick, IRS special agent in charge of criminal investigations.
During Monday’s sentencing hearing, the judge said this case was one of the more difficult cases he has presided over during his 12 years on the federal bench. These financial crimes result in losses that go far deeper than the economic losses, which is what makes this case so heartbreaking, he said.
Gordon’s actions also affected a financially vulnerable community of seniors who should be enjoying their retirement, instead of being wrapped up in a federal case, he added.
Shelby also ordered that Gordon obtain a mental health evaluation and successfully complete any treatment programs as recommended. Gordon also is prohibited from entering any casinos or engaging in online gambling, as well as other special conditions as part of her probation.
Shelby closed by addressing the victims, saying it was his hope the sentencing hearing would leave the Lava Bluff community with a semblance of closure that would allow them to move forward and rebuild their community.
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