U.S. Attorney Jessica D. Aber | U.S. Department of Justice
U.S. Attorney Jessica D. Aber | U.S. Department of Justice
A Warrenton woman has been sentenced to two years in prison for wire fraud after embezzling over $1 million from homeowner associations (HOAs) she managed. The sentence was handed down in Alexandria, Virginia.
Rose Kasande Bailey, 60, established Rosewood Management and Consulting Services, LLC in 2012. The Fairfax-based company specialized in property management for HOAs. By March 2023, Rosewood was managing over 70 HOAs across Virginia, including areas such as Lorton, Reston, Falls Church, and Leesburg. These associations had contracted Rosewood to handle the collection of dues used for property maintenance and repairs.
Court documents revealed that Bailey maintained signing authority over all Rosewood and HOA accounts. Any unbudgeted disbursement exceeding $1,000 required HOA board approval. However, starting in May 2018, Bailey began transferring funds from certain HOA accounts into Rosewood's accounts without such approvals. The unauthorized transfers amounted to approximately $1.1 million and were used to cover various expenses including payroll and rent for Rosewood, credit card payments, Bailey’s personal expenses, and business loans related to acquiring another HOA management firm.
Bailey provided altered bank statements to conceal these transfers when HOAs requested updates on their operating accounts. In an effort to hide her actions further when one of the HOAs decided to change management companies before discovering the thefts, she falsified bank statements and transferred $600,000 from other HOA accounts to balance the departing association's funds.
The announcement was made by Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, along with David E. Geist, Acting Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division. U.S. District Judge Leonie M. Brinkema delivered the sentence.
Assistant U.S. Attorney Kenneth R. Simon Jr. led the prosecution of this case.
Further information about this case can be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia or through PACER by searching Case No. 1:24-cr-187.
Alerts Sign-up