October 4, 2021
Board of Directors
Greater World, Inc.
PO Box 832
El Prado NM 87529-0832
GWInc may be a legitimate corporation, but you are NOT a legitimate HOA.
There are numerous reasons to question your legitimacy, but the clearest is that GWinc bases it’s legality upon the legality of the GWLUA. So if I can prove the GWLUA is illegitimate, then GWInc is illegitimate by extension.
The GWLUA was established using the law NMSA 53-10, the first line of which reads: “ when two or more people wish to form an association…” You can’t form an association of one. This law requires two or more people who wish to form an association, and they must be identified by name and address in the formation document.
Please review the documents titled Articles of Association of the GWLUA. It doesn’t matter which version you use, because they all contain the same TERMINAL ERROR: there is only one founder: Michael Reynolds. Every set of Articles, which purport to found the GWLUA, fail to identify THE REQUIRED TWO OR MORE FOUNDERS. The formation documents simply fail to satisfy the most basic requirement of NMSA 53-10. This is not up for debate: two or more was such an important term that it was made the first item in the law.
That means EVERYTHING the GWLUA ever did is void: every ruling they made, every fee they charged, every document they filed… they are all void. This also means that GWInc, the offspring of the GWLUA is void, since it takes its legitimacy from an illegitimate organization.
You therefore have no legal right to demand membership of anyone, nor the right to demand fees from anyone.
This means that the approximately $250,000 that the GWLUA and GWinc collected from community members over the past 20 years, was extracted fraudulently.
This is not an issue yet raised in the current lawsuit. If Natelson noticed the error, it was not in his interest to divulge it. Your lawyer, Emery, apparently never read NMSA 53-10, so he was not aware of the numerous violations of the law.
You are in EXACTLY the same place we were when Chavez, our first HOA specialist, said that the GWLUA needed to cease all business operations immediately and make themselves legal.
The ONLY way to form a new legal HOA, when none previously exists, is to have 100% agreement among the proposed members. And we know that isn’t possible because you were given signatures from half the community, begging you to stop incorporation.
Since you are not a legal HOA, you cannot legally assess fees or demand any action of your ‘members.’ To continue to do so, amounts to fraud.
You must therefore,
The cheapest, fastest and least stressful solution is to do exactly what I state above as quickly as possible.
If you fail to do so, you will be promoting fraud with every further action you take.
You cannot simply ignore this issue and continue business as usual, because to do so violates your duty of care as board members, and only furthers the fraud. Furthermore, it is only a matter of time before a property owner tries to obtain a building permit and challenges your right to intervene. Sooner or later, someone will lose their patience and stop this farce that is GWInc. Your only choice is how quickly and how far this escalates. Clearly, quietly capitulating and dissolving GWinc, is the cheapest alternative.
If you force community members to take this into their owns hands and seek legal intervention, this will become exponentially more expensive and destructive to all involved. I suggest you review your D&O insurance, under the section entitled: exclusions. Your carrier will not cover deceptive, illegal or fraudulent behavior. It will also be illegal for you to use community funds for such behavior. This means that each board member will ultimately be personally liable for these actions. And of course, should it come to a lawsuit, community members will ask for triple damages in addition to compensation for their legal fees. Not only will the current board be liable, but all past GWInc board members will be liable, as will the GWInc incorporators.
Think long and hard about this. This problem is not going away. You WILL have to address it sooner or later, and the longer you wait, the bigger it gets.
I decline to pay any of your annual assessments for the reasons stated above. I do not do business with illegal entities.
Gillian Fryer, Esquire