By Maggie Beamguard
Insider Editor
The Seven Lakes Landowners Association recently released a lengthy response to accusations of alleged improprieties.
The Oct. 2 e-mailed communication to residents was titled “A message from the Board of Directors with Advice & Review of SLLA Attorney Roger Knight.” It was unanimously approved by the association’s Board of Directors and serves as a rejoinder to a letter dated June 20, 2024 addressed to Moore County District Attorney Mike Hardin.
The board was recently provided a copy of the letter, which has also been made available at the SLLA offices. It is referred to as the “Hardin Letter” in the board’s response to the allegations.
The letter to Hardin was signed, but the party is not identified in the board’s response. The Seven Lakes Insider has not independently reviewed the Hardin letter. Hardin could not be reached for comment.
“This letter contained defamatory allegations against the current Board, Board President Heather Guild, and Treasurer Amber Johnson,” the response states. The message leaves open the possibility that those named in the Hardin letter and other community volunteers may take separate legal action.
The board addresses seven claims identified in the letter sent to Hardin. The responses to the allegations below are abridged for space reasons. A full copy of the board’s response is available to SLLA residents in the SLLA office.
Claim: There was illegal dumping at the SLLA yard debris site, abetted or condoned by the Board and the Board President.
Board Response: “Various Moore County Departments and the North Carolina Division of Environmental Quality (“NCDEQ”) Dam Safety division were aware of the yard debris site and no government authority had ever issued a citation or order regarding the yard debris site. There was no indication that there was a problem with the yard debris site. However, as we were only recently informed, there are certain materials that are not currently allowed in this type of site and the location of the yard debris pile was not compliant.”
After being notified of certain disallowed materials, “the Board President took the necessary action of calling the SLLA landscape and maintenance contract holder, Evergreen Landscaping Services (“Evergreen”), and told them to cease all deposits at the yard debris site. She further asked Evergreen to remove materials not allowed under State regulations.
“Evergreen was and is not suspected of intentional wrongdoing by either NCDEQ or by SLLA.”
Claim: The Board or Board President Colluded with Evergreen to Overpay Evergreen for Removal of Materials from the Yard Debris Site
Board Response: “An anonymous caller called the NCDEQ to allege that Evergreen had engaged in illegal dumping at the yard debris site. NCDEQ conducted an initial inspection on April 22, 2024. Following the inspection, NCDEQ noted the debris site had been in operation for many years and did not meet current standards. NCDEQ provided the SLLA with instructions for bringing the site into compliance, and a deadline for the work to be complete within two to three (2-3) weeks. Evergreen was already engaged in removing material that it had recently placed on the site and was asked to remove the additional material specified by NCDEQ. The fact is that, given the time constraints imposed by NCDEQ, the SLLA had little choice but to have Evergreen continue with the work.
“The Seven Lakes community was kept informed during the entire process via email and public discussion at the Board meetings.
“The anonymous call to NCDEQ did result in significant additional clean up to and modernization of the site, at a cost to the SLLA of $35,000 (cleanup) and $41,000 (modernization). All information related to the yard debris site, the cleanup, the cost and the inspections is available at the SLLA offices.
Claim: The board did not go through a bid process for the yard debris work and there were deceptive financial practices involved in paying for the clean up.
Board Response: “As noted above, there was no time for a formal bid process. Updates were provided to the community via board meetings and e-Blast mailings.
“There was no “misappropriation of funds”, and that statement does not in any way reflect multiple communications to the SLLA Community.”
Claim: Purchase of two bar code readers and a pool pump somehow amounted to “deceptive practices”
Board Response: “The South gate bar code reader failed in August 2023, and the gate was inoperable, stuck in the ‘up’ position for several weeks posing a security concern.
“SLLA received a $1,200 discount for ordering two new readers, and since the one at the North gate was the same age as the one at the South gate, the Board deemed it a wise decision to order both. The Board approved the purchase via email.
“The Board unanimously approved the purchase of the two readers and the SLLA Community was informed of the purchase at the next Board meeting per the September 28, 2023, Board Meeting Agenda and minutes.
“There was another vote to purchase a necessary item through an email vote, involving the purchase of a new pool pump. The old pump failed and the SLLA was told the day after the May 9th Board meeting it could not be fixed, replacement was the only option. The Community Manager secured an estimate, and the Board voted unanimously, via electronic means as allowed in the North Carolina General Statutes, to approve the funds so the pool could open on schedule over Memorial Day weekend.”
Claim: The board president and treasurer are negligent in overseeing auditing and accounting practices.
Board Response: “This spurious accusation is ironic, as it was the current Board President that publicly raised the issue of the out-of-date depreciation of SLLA assets in October 2022. The then-Treasurer responded that the Finance Committee had noticed the same thing and was trying to resolve the matter, so far without success. The Board President then personally created a 25-year spread sheet itemizing SLLA assets and sent it to the Treasurer and Finance Committee in February 2023. The then-Treasurer resigned in March 2023 and the current Treasurer was appointed in April 2023.
“The current Treasurer and the Finance Committee have been working to update the depreciation schedule and asset list, with the goal of providing it to the auditors in time for the 2023/2024 audit.”
Claim: Possible self-dealing by the board president
Board Response: “In the example cited in the Hardin Letter, the Board President wrote two checks for the Board-approved purchase of a horse, now known as Mowgli, on January 7,2024. One check was for $3,600 to cover the cost of the horse. The other was for $480 to cover the cost of transporting the horse.
“Board Director Ann Turner made the recommendation to purchase the horse two days before delivery, which was unanimously approved by the Board. This did not leave enough time to execute a check request through CAS without incurring a $39 fee per check. Thus, to save the SLLA $78, Board President Guild covered the costs from her personal account. “Further, upon a vet check, the horse turned out to be 2-3 years older than the seller thought or led the SLLA to believe. To satisfy the SLLA, the seller gave the SLLA a $500 rebate. Ms. Guild asked the seller to make the $500 check to the SLLA. This way there would be no question the SLLA received the credit. That check was deposited to the SLLA account on January 26, 2024.”
Claim: The board president “led a covert maneuver to use SLLA-owned lots to generate ballots to complete at the board’s discretion.”
Board Response: “The practice of the Board voting as lot owners for the lots owned by the SLLA was in place for years prior to Ms. Guild’s election to the Board. When a resident brought the practice to her attention in April 2023, she immediately asked the Community Manager to request guidance from the SLLA legal counsel. The SLLA legal counsel confirmed on April 27, 2023, that the practice was not consistent with the statutes and Ms. Guild immediately directed the practice stop.”
The board response concludes by saying that, “It is sad to see those who volunteer their time and talents to the Seven Lakes Community be unfairly and falsely accused. Actions of the Board President and the Board are taken in good faith, are taken publicly or are published in public minutes and the Board President and Board do their best to make sure the SLLA Community is kept fully informed of what is happening at Seven Lakes.”
When asked about the board’s response to the allegations, Guild said, “At this point I don’t have anything to add.”
Contact Maggie Beamguard at maggie@thepilot.com.
