A South Florida homeowners association that once seemed poised for a fresh start instead became the center of one of the biggest HOA fraud cases.
Marglli Gallego, whom some residents once saw as a reformer, has been sentenced to prison after prosecutors said she led a scheme that drained $11 million from the Hammocks HOA, The Real Deal reported.
What happened?
Gallego first joined the Hammocks board in 2015 before becoming president in 2017 at the sprawling West Kendall community, home to about 18,000 residents and more than 6,500 homes.
According to The Real Deal, prosecutors said Gallego and a network that included her husband, relatives, fellow board members, and associates siphoned HOA money through fake or inflated vendor payments.
Charging documents said the board discarded 1,900 of 2,900 signatures during a 2022 recall push and later raised annual assessments 167% to more than $10 million.
Homeowners also said critics were hit with bogus fines, threats, and retaliatory tactics that left some feeling forced to move.
Save $10,000 on solar panels without even sharing your phone number Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers that can help you save as much as $10k on installation. To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best local options for your needs, and their expert advisers can help you compare quotes and pick a winner. |
After maintaining their innocence for years, Gallego and her husband, Jose Antonio Gonzalez, pleaded guilty in April. Gallego was sentenced to seven years in prison and seven years of probation, while Gonzalez received seven years of probation.
The couple also gave up a 5-acre property valued at $1.2 million that prosecutors said had been purchased with stolen HOA funds.
Why does it matter?
Florida is filled with association-governed communities.
According to the Miami-Dade State Attorney's Office, 9.4 million Floridians live in HOA communities, part of a system that can shape everyday costs, property rules, and access to records.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
Residents can face higher fees, delayed maintenance, manipulated elections, and fewer protections when they try to question where their money is going.
Investigators said it took years to uncover the full scope of the Hammocks scheme, partly because records were hidden and subpoenas were challenged in court.
What's being done?
Eight people have been arrested in connection with the case, and charges are still pending against several alleged participants.
Two former board members had already pleaded guilty and helped investigators, while civil settlements have reportedly returned millions more to the HOA.
A court-appointed receiver took control of the Hammocks in 2022 and later found records under a hatch in the HOA ballroom and at a separate storefront labeled a "spa."
In 2024, the state passed legislation making HOA board kickbacks a crime and banning the destruction or withholding of records.
South Florida residents can report HOA and condo fraud via the Miami-Dade State Attorney's Office.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
Cool Picks
