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Homeowners Sue Developer, Accuse Him Of Misusing Funds

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By LAURA KINSLER | The Tampa Tribune

Published: June 27, 2008

NEW TAMPA - A group of 20 homeowners in Cory Lake Isles sued its developer today, accusing him of spending homeowners fees on personal expenses and to subsidize his other businesses.

Specifically, the homeowners accuse Gene Thomason of using nearly $20,000 in association money to dig a well and pay for construction of a sea wall at his home in the gated community. They also say he used association money to buy a boat motor, fishing equipment and a custom boat top.

Homeowners originally sued their property owners association in October 2007 for access to its financial records going back to 2001. Thomason, who controls the association, also owns the company that provided landscaping, security and management for the 1,000-home neighborhood. He turned over six boxes of financial records for his company, Cory Lakes Limited, in March.

Mark Basurto, lawyer for the plaintiffs, said the documents prove what the residents long suspected: that Thomason was diverting association funds for personal use.

"When we saw the invoices, the general reaction was a combination of disbelief, but at the same time, it wasn't that surprising," he said.

The lawsuit also accuses Thomason of charging the association nearly $100,000 over five years for telephone service for his other businesses and cell phones for relatives and employees.

The association paid thousands of dollars for holiday bonuses for Thomason's employees and purchased office supplies for his real estate office and other companies, according to the complaint.

"At minimum, over $500,000 has been taken by [Cory Lakes Limited] from the Association," the lawsuit contends.

The lawsuit also says as much as $3 million has not been properly accounted for by Thomason, Cory Lakes Limited and the homeowners association.

Thomason said he had not been served with the lawsuit, but added, "I'm not worried about it" and declined to elaborate.

Thomason's wife and son also were named as defendants, as were homeowners association President Jane Taggart and board member Suzanne Manzi.

"These people had a fiduciary responsibility to see to it that association funds were spent to benefit members of the association," Basurto said.

While Taggart and Manzi were named as defendants, other less-confrontational board members were left off the list. Basurto said it was for tactical reasons.

"We feel like we targeted the right people," Basurto said. "At the end of the day, there's going to have to be some healing."

Taggart could not be reached for comment. Manzi called the lawsuit "frivolous" and "politically motivated." Two of the plaintiffs, Dan Morford and Keri Ringhof, are running against Manzi's slate for seats on the Cory Lake Isles Community Development District board.

"My position is they are suing the [association] over something the [association] had nothing to do with," Manzi said. "They can't find anything good to say about this community. I don't understand why they live here."

Manzi agreed that Thomason's bookkeeping was "less than ideal" but said he has never done anything illegal.

"Their lawsuit does not bother me at all," Manzi said. "I've had mafia hits on my head."

Reporter Laura Kinsler can be reached at (813) 865-4844 or lkinsler@tampatrib.com.

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