Evergreen Management Lawsuit: $2.5M HOA Fraud Settlement Terms

The Evergreen Management lawsuit was a 2019 Maryland Attorney General enforcement action against Evergreen Management, LLC and its owner, Jason Barry Oseroff, for misappropriating nearly $2.5 million from 13 homeowner and condominium associations the company was hired to manage. The case ended in a July 31, 2019 settlement requiring Oseroff and the company to repay the stolen funds, pay $300,000 in penalties, and permanently barring Oseroff from managing any condominium or HOA.1The Daily Record. Property Management Firm Owner Ordered to Repay $2.5M

How the Money Was Taken

Evergreen was hired to handle association finances, pay contractors, and arrange routine services like landscaping and tax preparation. Instead, according to the statement of charges filed by the Consumer Protection Division, Oseroff and his late father and co-owner, Ivan Oseroff, diverted at least $2,486,000 in association funds over a period of years. Ivan Oseroff died in April 2017 and was not a party to the case.

The diversions took six forms:

  • At least $1.397 million in payments to Evergreen beyond what its contracts allowed.
  • At least $486,000 pulled from association reserve funds and investment accounts by liquidating certificates of deposit without authorization.
  • At least $319,400 paid to members of the Oseroff family, including charges on Oseroff’s wife’s credit card.
  • At least $146,000 withdrawn in cash from association bank accounts.
  • At least $72,000 shifted from one condominium’s account to pay another association’s bills, masking the shortfalls.
  • At least $66,000 paid directly to Jason Oseroff.

To hide the missing money, Evergreen gave homeowners falsified balance sheets, expense reports, and income statements. When association members asked for actual bank records and invoices, the company refused. The Attorney General’s office said that refusal by itself violated the Maryland Condominium Act and the Maryland Homeowners Association Act, which give owners the right to inspect their association’s financial records.

Which Associations Were Affected

The charges named nine associations as victims:

  • Arbor West Community Association
  • Brandywine Country HOA
  • Cedar Pointe Community Association
  • Charwood HOA
  • Glenn Station HOA
  • Largo Town Center Condominiums
  • Marlton Section 10 HOA
  • Watkins Park at Kettering HOA
  • Woodland Bowie Condominium

In Brandywine Country HOA’s case, even after the association revoked Evergreen’s signatory authority on its bank accounts, the company kept collecting assessment checks from homeowners and depositing them into accounts Oseroff controlled. Most of the affected associations fired Evergreen once the financial irregularities came to light.2The Daily Record. Maryland Evergreen Management Jason Oseroff

Settlement Terms

The Consumer Protection Division filed charges in April 2019 under the Maryland Consumer Protection Act.3WMAR2News. Maryland Property Management Company Accused of Misusing Nearly $2.5 Million in HOA, Condo Fees The case resolved three months later. Under the July 31, 2019 settlement:

  • Oseroff and Evergreen must return all money owed to the affected associations.
  • The settlement imposes $300,000 in penalties payable to the Consumer Protection Division, subject to reduction if full refunds are provided to consumers.
  • Oseroff is permanently prohibited from managing any condominium or homeowners association.
  • If Oseroff obtains signatory authority over any bank account other than a personal or family account, he must post a $100,000 surety bond with the Consumer Protection Division.4Upper Shore Crier. Attorney General Frosh Announces Settlement With Jason Barry Oseroff and Evergreen Management LLC

Restitution and penalties combined totaled roughly $2.5 million.

Fidelity Insurance for Maryland Associations

The case drew attention to a Maryland requirement that predates it. HOAs and condominium associations with more than four units and gross annual assessments over $2,500 must carry fidelity insurance or a fidelity bond covering losses from fraud, dishonesty, or criminal acts by officers, directors, managing agents, or employees of a management company who handle association funds. Required coverage is the lesser of three months of gross annual assessments plus the total held in investment accounts, or $3 million.5Maryland General Assembly. Maryland Real Property Article § 11B-111.6 Whether the affected associations held adequate coverage, and whether any claims were paid, was not addressed in the Attorney General’s public filings.