Marglli Gallego, a former president of the Hammocks HOA in West Kendall, was sentenced after prosecutors say she led a network that diverted approximately $11 million through false or inflated vendor payments. The scandal included discarded recall petition signatures, a 167% increase in annual assessments, and alleged retaliatory tactics against critics. Investigators uncovered hidden records, eight people have been arrested, and 2024 state reforms now criminalize HOA kickbacks and record destruction.
Former Hammocks HOA President Sentenced After $11 Million Embezzlement Scheme
Photo Credit: iStock
Marglli Gallego, once praised by some residents as a reform-minded leader, has been sentenced after prosecutors say she orchestrated a scheme that diverted roughly $11 million from the Hammocks Homeowners Association in West Kendall, Florida.
How the Scheme Unfolded
Gallego joined the Hammocks board in 2015 and became president in 2017 for the sprawling community of about 6,500 homes and 18,000 residents. Authorities say she led a network that included her husband, relatives, fellow board members and outside associates to siphon association funds by approving false or inflated vendor invoices and payments.
Allegations and Impact
Charging documents allege the board discarded 1,900 of 2,900 recall petition signatures during a 2022 recall effort. Later that year the association reportedly increased annual assessments by 167%, pushing annual collections to more than $10 million. Homeowners also reported that critics were targeted with bogus fines, threats and retaliatory actions that in some cases forced families to move.
Investigation, Arrests and Recoveries
Investigators say the probe took years because records were concealed and subpoenas were contested. A court-appointed receiver who took control of the association in 2022 discovered documents hidden under a hatch in the HOA ballroom and at a separate storefront labeled a "spa." Eight people have been arrested in connection with the case, two former board members have pleaded guilty and cooperated with prosecutors, and civil settlements have reportedly returned millions to the association.
Sentencing and Forfeiture
After years of denying wrongdoing, Gallego and her husband, Jose Antonio Gonzalez, pleaded guilty in April. Gallego was sentenced to seven years in prison followed by seven years of probation; Gonzalez received seven years of probation. The couple also forfeited a five-acre parcel valued at about $1.2 million that prosecutors say was purchased with misappropriated HOA funds.
Broader Context and Reforms
Miami-Dade officials estimate roughly 9.4 million Floridians live in communities governed by homeowners associations, a system that affects fees, property rules and access to records. In 2024, Florida enacted reforms that make HOA board kickbacks a criminal offense and prohibit the destruction or withholding of association records—changes lawmakers linked to abuses exposed in cases like the Hammocks.
How to Report Suspected Fraud: Miami-Dade residents can report suspected HOA and condominium fraud to the Miami-Dade State Attorney's Office. Civil and criminal investigations in the Hammocks case remain ongoing.
Help us improve.
