Thursday, May 22, 2014

The Hidden Costs of Robert Sher's Decisions

As a shameless self-promoter, Robert Sher has boasted about all the money he has "saved" us.  Most homeowners have gotten sick of hearing all about these so-called savings when they see that the property is in a state of disarray.  Homeowners are also tired of all the smoke and mirrors used by Sher in describing these savings.

Example:
Sher boasted about keeping the HOC dues at $125 for the second straight year, but he also quit covering our building insurance.  Our phase dues went up in order to cover these costs.  So, by keeping the HOC assessments at $125, Sher was effectively RAISING THEM by giving us less value for our $125/month.  If he actually provided a budget, we could see what he's actually planning to do with the money that should have paid for insurance.  Same goes for the 2013 pool closure......Same goes for the lack of sewer line maintenance....etc, etc, etc.....

Robert Sher's bright ideas are not saving you money; they are costing you money!!!  But we are not here to tell you what you already know.
  • We're not talking about how poorly our property is maintained & operated.....or how unattractive a Cedar Run property looks to a prospective buyer (thus lowering the value).
  • We're not talking about the healthy salary that Robert and Jack are collecting as a reward for their services.
  • We're not talking about all the homeowners who are in collections after Sher told them to blow off their phase dues.
The above items are a mere fraction of the real costs of the 'Robert Sher Experiment'.  The real costs that are truly detrimental for Cedar Run Homeowners can be summed up in three words:

LAWSUITS!!!  LAWSUITS!!!  LAWSUITS!!!


Hundreds of Thousands of Cedar Run Homeowner Dollars have ALREADY been spent on lawsuits and legal fees, and there is no end in sight as long as Sher runs the show.

Lawsuit #1:  Cedar Run Board of Directors vs Alfaro et al.
Old board sued Sher group for posing as the Board of Directors without having a legal election.
https://w3.courtlink.lexisnexis.com/cookcounty/Finddock.asp?DocketKey=CABC0CH0CBFCD0CH

Lawsuit #2:  Cedar Run Phases vs Cedar Run HOC
9 of the 11 Cedar Run phases sued the master board for collecting phase dues.
https://w3.courtlink.lexisnexis.com/cookcounty/Finddock.asp?DocketKey=CABC0CH0DJCHE0CH

Lawsuit #3:  Best Trees/Lawns vs Cedar Run HOC
Breach of contract.  $3485 judgement awarded to Best Trees.  Best trees now seeking additional damages totalling $13292.
https://w3.courtlink.lexisnexis.com/cookcounty/Finddock.asp?DocketKey=CABD0MB0BBGGFF0MD

Lawsuit #4: Barrington & Itasca Banks vs Cedar Run HOC and Cedar Run Phases
Both banks sued Sher and the Master Board for collectign phase dues and causing phases to default on their loans.  Sher group in contempt of court.
https://w3.courtlink.lexisnexis.com/cookcounty/Finddock.asp?DocketKey=CABC0CH0EFGAC0CH
https://w3.courtlink.lexisnexis.com/cookcounty/Finddock.asp?DocketKey=CABC0CH0EEJJF0CH

Lawsuit #5: Aquaguard Inc. vs Cedar Run HOC
Breach of contract and non-payment for services rendered.  Aquaguard seeking $21051.77.
https://w3.courtlink.lexisnexis.com/cookcounty/Finddock.asp?DocketKey=CABD0MB0BGEFHD0MD


Lawsuit #6: Robert Sher vs APM
Sher sued to stop phase 5 from holding an election
https://w3.courtlink.lexisnexis.com/cookcounty/Finddock.asp?DocketKey=CABD0CH0BBFDH0CH

Lawsuit #7: Robert Sher vs Alma and Cedar Run Phase 2
Sher (unsuccessfully) sued to try and stop phase 2 from holding an election and later tried to invalidate the results of the election.
https://w3.courtlink.lexisnexis.com/cookcounty/Finddock.asp?DocketKey=CABD0CH0BBIBA0CH

Lawsuit #8: Cedar Run HOC vs Alma and former Master Board Directors 
(counterclaim filed as part of Lawsuit #1) Sher sued Alma and the former board, hoping to prove fraud and mismanagement - Despite being thrown out of court three times, Sher keeps re-filing....
https://w3.courtlink.lexisnexis.com/cookcounty/Finddock.asp?DocketKey=CABC0CH0CBFCD0CH


Lawsuit #9: Village of Wheeling vs. Cedar Run HOC (code enforcement)
Sher refused to replace concrete walkways that were torn up to perform sewer line repairs.  HOC fined $2000 by judge.  (More information on this will be posted later - we are waiting on Freedom of Information Act request from the Village of Wheeling)

Lawsuit #10: Illinois Department of Financial & Professional Regulation vs Robert Sher & Jack Shaw
Due to multiple homeowner complaints about Sher/Shaw's management of Cedar Run.  The IDFPR has charged Robert & Jack with ethics violation, and they are arguing to revoke their Community Association Manager licenses.  This is taking place in an 'Administrative Court'.  (If you would like additional information on how to file a complaint with the IDFPR, please email us at restoreCR@gmail.com)

Worst one of them all:
By far, the most costly of all of the above is #4. Every time there is a court date (and there are usually one or two per month), five law firms must appear downtown at the Daley Center.  Every one of them must write up a response that will be filed in the court records.  Everyone of them are being paid by Cedar Run Homeowner money!!

Explanation:
If you own a unit in Phase 1, 2, 3, 4, 6, or 8, your phase dues are paying attorney fees to represent your phase association AND you are paying Itasca bank's legal fees.  If you live in any of the other phases, you are paying an attorney to represent your phase AND you are paying Barrington Bank's legal fees.  No matter what phase you're in, your HOC dues are being used to pay Anne Shaw to represent the HOC.

How could we possibly be required to pay the banks' attorney fees??  Because the loan agreement stipulates that if the banks must take legal action to enforce the loan agreements, we are on the hook for their costs.

Why haven't we seen a special assessment for these fees?  Because the legal fees are simply being rolled into the loan balances. If the loan payments are restructured, we may see sharp increases in our phase dues.  Even of we don't, these costs will add years to the term of the loan and accrue more interest.  These effects are long-term and irreversible!!

Ironically, Robert Sher's defiance for these loans has caused these same loans to grow significantly.  Around 2005-2006, our phase associations took out loans, with interest, to finance major roofing and siding projects.  Now, in an indirect way, they are forced to borrow more money, with interest, to pay legal fees and court costs.  All thanks to the impulsive, irresponsible decisions of Robert Sher.


For the sake of Cedar Run's future, Robert Sher needs to go!!

Visit our 'How to Take Action' page regularly for details on how you can help restore Cedar Run.  Please direct any questions, comments, or concerns to restoreCR@gmail.com.  You can always call or text us at 224-944-9058.


3 comments:

  1. For those wishing to comment on this blog, we ask that you keep it clean. A recent comment was moderated for this reason.

    One question that was asked related to the litigation. The basic question was, "If Robert Sher has lost so many times in court, then why is he still in power?"

    This is a great question, and one that we definitely want to answer.....
    Unfortunately, none of these losses in court can force Sher out of power. When we say Sher lost in court, it's actually the Master Board that lost. Despite the fact that Sher made every poor decision that got the board in court, he is merely their agent. Even more disturbing is that any damages owed by the board are funded by homeowner money.

    However.....the one loss in court that can help get rid of Sher is the one that deals with elections!! Finally, after nearly two years of tyranny, the issue of elections (or absence of elections) is being put in front of the judge. Sher has tried multiple tactics to stop it from even going in front of the judge, but it will on July 2nd,2014.

    We anticipate that an election will be ordered. Getting Sher out power will then be up to the homeowners. The final solution to the Robert Sher crisis will be a political one.

    We will soon be collecting proxies so homeowners can lock in their votes.

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  2. since the court law suits are over is the new board going to take action or let him off the hook ? also when will the building remodel loans be paid off and will we reduce monthly assessment .

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    Replies
    1. Thank you for the comment. It is up to the board members themselves to decide if any action will be taken. This blog does not speak for the board, but there have been no reports of any plans to pursue anyone for damages. Right now, their priority is the transition to new management and implementation of rules.

      Regarding the building loans...Each phase has its own loan. None are the same. You are encouraged to contact your phase board/management and ask how many years remain on the loan term. As an owner, you are entitled to that information.

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