RIDGELAND, Miss. (WLBT) - The homeowners association in a prominent Madison County subdivision is suing its property managers.
The Bridgewater Homeowners Association files suit against Ridgway Lane, which has managed their properties since its inception.
Now other neighborhoods under its management are also discovering financial problems.
The complaint filed in Rankin County by the Bridgewater Homeowners Association names David Lane and his son, David W. Lane, of Ridgway Lane as defendants.
The suit says members of Bridgewater’s board tried to obtain financial records from Ridgway Lane back in September.
They say David Lane was uncooperative and wouldn’t provide them access.
After closer examination of their records they claim Ridgway Lane transferred over $100,000 from their bank accounts without their knowledge.
They also say a $117,000 deposit at community bank disappeared.
The homeowner’s association says they suffered financial losses of over $500,000 with Ridgway Lane transferring funds out of their accounts.
Residents were shocked at the news of the possible fraud.
Bob Sauer, a resident at Bridgewater, said, “It makes you really question why would they be so hesitant to not allow the actual homeowners association, whose money it is, not to have access to the records and to the bank statements and virtually everything.”
WLBT News has also learned that Ridgway Lane manages Dinsmor and the Palisades neighborhoods.
Those homeowner’s associations also sent letters to their residents letting them know they’re looking into their financial records. Dismor representatives say they found substantial financial discrepancies.
Representatives for the Palisades tell us they're just beginning their audit.
We went to Ridgway Lane’s offices in Flowood to speak with David Lane, but were told he wasn’t there. We’re still waiting to hear back from him.
The court has now subpoenaed Ridgway Lane to hand over all financial records pertaining to the Bridgewater Homeowners Association.