LAS VEGAS -- A man voted one of New York's 10 worst landlords has been sanctioned by Nevada regulators for his activities in Las Vegas.
For months, 8 News NOW has followed the struggles of homeowners at Paradise Spa. They say that Aaron Yashouafar misappropriated millions of dollars from their HOA.
According to the complaint by the Nevada Real Estate Division, Yashouafar served as the treasurer of the Paradise Spa HOA. He also owns the majority of units in the complex.
Yet Yashouafar and his associates, according to the complaint, failed to pay nearly $1 million in HOA fees for their properties and another $800,000 in insurance proceeds are missing.
Though Yashouafar denies the allegations against him, Tuesday he agreed to a deal with the Real Estate Division. Under its terms, Yashouafar and his associates are prevented from serving on any HOA boards for three years. In addition, Yashouafar must pay $22,000 in fines within 90 days.
Before approving the deal, members of the State Commission for Common-Interest Communities expressed their frustration with what some considered an inadequate remedy. However, current Paradise Spa board president Bill O'Donnell told commissioners his board approved of the settlement.
"There's plenty of money out there that has been either stolen or misappropriated or absconded with and we kind of know where that money is and we definitely plan on going and getting that," he said.
The HOA has filed a civil lawsuit against Yashouafar and a criminal investigation into his activities is on-going. Yashouafar declined to comment after the hearing.