Warrenton resident sentenced for wire fraud after stealing millions from Virginia homeowner associations
Warrenton, Virginia – A Warrenton woman, Rose Kasande Bailey, 60, was sentenced yesterday to two years in prison for wire fraud after embezzling more than $1.1 million from homeowner associations (HOAs) she managed through her property management company.
How the Fraud Unfolded
Bailey founded Rosewood Management and Consulting Services, LLC in 2012. The Fairfax-based company specialized in providing property management services to over 70 HOAs across Virginia, including communities in Lorton, Reston, Falls Church, and Leesburg. Rosewood’s role involved collecting dues from residents to fund maintenance and repairs for common areas.
Each HOA had one or more dedicated bank accounts for their funds, while Rosewood maintained two operating accounts. Bailey had signing authority over both the HOA and Rosewood accounts. Any unbudgeted disbursement exceeding $1,000 required prior HOA board approval.
In May 2018, Bailey began transferring funds from HOA accounts into Rosewood’s accounts without approval. These unauthorized transfers, which amounted to $1.1 million, were used for personal and business expenses, including payroll, rent, credit card bills, and payments on loans tied to acquiring another HOA management firm.
Covering Her Tracks
To hide the fraudulent activity, Bailey altered bank statements before sharing them with HOAs. When one HOA decided to terminate its contract with Rosewood, Bailey falsified financial records and transferred $600,000 from other HOA accounts to replenish the departing HOA’s funds.
Legal Proceedings and Sentencing
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David E. Geist, Acting Special Agent in Charge of the FBI Washington Field Office’s Criminal and Cyber Division, announced Bailey’s sentencing. The case was prosecuted by Assistant U.S. Attorney Kenneth R. Simon Jr., with sentence delivered by U.S. District Judge Leonie M. Brinkema.
Bailey’s actions represent a severe breach of trust, not only damaging the financial stability of the affected HOAs but also undermining confidence in property management services.
This case highlights the importance of accountability and oversight in financial management, especially when it involves community funds. The FBI and federal prosecutors reaffirm their commitment to investigating and prosecuting financial crimes that harm the public.
