How Alien, Inc. profited off YOU and ME!

For all these years I thought that our landscaping was handled by Circle C Landscaping Company. I thought this because every time I contacted the Association regarding matters of the common areas, they would always mention the name of Circle C Landscaping Company. In actuality, there has never been a company officially registered by this name. Circle C Landscaping Company was only a mask and the real company operating behind this mask was Alien, Inc., which happens to be owned by Gary Bradley, the Developer. Alien, Inc. ?“handled?” more than just landscaping for the Association.

Here are some facts about Alien, Inc.

Alien, Inc. was originally owned by Gary Bradley. Last year I was told by one of its employees working at Circle C Information Center that Alien, Inc. had been sold. Currently, Alien, Inc.?’s Registered Agent is James D Gressett, Mr. Bradley?’s former partner. I was told by the employee of the Texas Secretary of State that Registered Agent does not have to be the owner.

Steve Bartlett was the President of Alien, Inc. for many years. Mr. Bartlett worked for Alien, Inc. before the inception of the Association in 1988. Mr. Bartlett is currently the Vice-president of CCHOA and has been the Director of the Board since the inception of the Association in March 1988. According to Sal Costello?’s research, Mr. Bartlett owns Castle Realty Management Services which charged the Association a $55 per hour fee for the Board?’s ?“voluntary responsibilities?” for all these years. Castle Realty Management Services billed CCHOA through Alien, Inc.; therefore, there was no CCHOA?’s checks payable directly to the Castle Realty Management Services before Alien, Inc. was sold. Please read my Investigative Report Item #10 at http://www.BeatGreedyBoard.com for detail.

According to the Auditors?’ Reports of 2000 & 2001, two employees of Alien, Inc. were also CCHOA?’s Board members. Since they were also CCHOA board members, they have total control of our Association?’s fund.

Total amount of the Association?’s fund being funneled to Alien, Inc. in the three years of 1999 through 2001 is as follows:

1999 - $383,266 - 51% of CCHOA?’s total expenses of $744,293
2000 - $505,906 - 57% of CCHOA?’s total expenses of $880,112
2001 - $424,642 - 37% of CCHOA?’s total expenses of $1,137,156

At the bottom of this report, you can see a list of the check payments for the above three years.

Did you notice in 2001 the percentage of the Association fund being funneled into Alien Inc. had dropped dramatically to 37%? It was because that in mid July of 2001 the landscaping part of Alien, Inc.?’s business was taken over by our former Secretary/Treasurer, Susan Hoover. Ms. Hoover?’s company is named Circle C Landscape L.L.C. From 7/17/2001 to 12/19/2001 (5 months), Susan Hoover had charged us totally $211,232 for landscaping services, averagely of $42,246 per month.

(see Part 2 below)

How Alien profited off YOU & ME!


Now let me show you how Alien, Inc. profited on each of these items:

LANDSCAPING
As we are all aware that landscape maintenance and repairs are our biggest expenses. For the three years from 1999 through to 2001, Alien, Inc. charged the Association for the maintenance and repairs as follows:
2001 - $568,247 average monthly $47,354
2000 - $469,140 average monthly $39,095
1999 - $444,963 average monthly $37,080

There are two parts to the landscaping services. The first part is Basic Services (a monthly flat fee) which includes lawn mowing, shrub trimming and weed eating. The following was the monthly basic services:
2001 - $31,350 monthly
2000 - $29,950 monthly
1999 - $28,757 monthly

The second part is called Reimbursement and Special Projects such as planting trees and flowers, etc. All the reimbursed items and special projects would be charged an extra 10% profit which was labeled an ?“Administrative Fee?”.

SWIM CENTER LIFEGUARDS?’ WAGES
Lifeguards?’ payroll was processed by Alien, Inc. and a 10% profit was added on the total of the payroll expenditure which includes payroll taxes and workman?’s compensation insurance.

I can?’t understand why this payroll was not being handled by the bookkeeper ?– Terri Shea Giles. This is a bookkeeper?’s job! Why was the handling of the payroll funneled through Alien, Inc.? It cost us 10% more!

ARCHITECTURAL INSPECTION/REVIEW
10% profit was being made by Alien, Inc. on this questionable expenditure.

COMMUNICATION - CIRCLE C INFORMATION CENTER
We were told by the Board that the homeowners shared 50% of the costs of the Information Center personnel. However, we were not being told that Alien, Inc. made 10% profit on our share of the costs.

In my opinion, this expenditure can be and should be totally eliminated. We have already been charged a $35 hourly rate for the clerical work done by Denise Nordstrom for the homeowners. Why should we pick up these overlapped expenses? The only reason that the Board wants us to share this cost is to reduce the expenses of the Developer, thus they themselves can benefit more.

DENISE NORDSTROM?’S SALARY
Alien, Inc. made 10% profit on Denise?’s payroll. I wonder why Denise?’s payroll was not handled by the bookkeeper. It is bookkeeper?’s job!

WASTE REMOVAL by Texas Disposal Systems, Inc.
Believe it or not, Alien, Inc. even made a 10% profit on this expenditure. I wonder what kind of effort Alien, Inc. had put in to deserve a 10% profit on this?! Sending a monthly payment check does not deserve this kind of profit. Besides, it is the responsibility of the Treasurer or Bookkeeper to make this kind of payment. Please read the Bylaws, Page 6 TREASURE for Treasurer?’s duty.

There were some more items but I could not list them all. All I can tell you is that almost everything funneled through Alien, Inc. was subject to the 10% ?“Administrative Fee?”.

JUST A REMINDER:
Auditors?’ Reports of 2000 & 2001

Two of the employees of Alien, Inc. were CCHOA?’s Directors of the Board who had total control of Association?’s fund. Hello! Is this a conflict of interest?!

(see Part 3 below)

List of payments 1999 - 2001


If you want to see a list of the payments made by CCHOA's checks, please visit my Web site at http://www.BeatGreedyBoard.com Item #11

Great work Lisa & Sal!

But now that you have lets us know all of this (Mr. Schaffrath must be so upset about your ranting...) what can we do? You guys are helping to show the homeowners around here (the ones that actually would CHOOSE not to have their heads in the ground) what a bunch of slime bags our HOA board members are but what can we do? Go to court? Embarrass them? (They have no shame, guilt or conscience) You would have to imagine that they read this stuff. The only other thought I have is the law of KARMA, what goes around comes around.

Let?’s get rid of the bastards!