Paradise Spa HOA president: "We have no insurance"

Molly Waldron

Paradise Spa HOA president: "We have no insurance"

CREATED Mar. 2, 2012

 Las Vegas, NV (KTNV) -- The fire on Friday morning at Paradise Spa is the latest in a long line of problems that have plagued the complex. Multiple fires have damaged the property over the past few years, and now the HOA says it doesn't have insurance to cover the costs from the latest blaze. 

Contact 13 first reported on Paradise Spa in 2010.

Our report back then exposed condemned buildings and allegations of embezzlement when the HOA was under the control of Beverly Hills millionaire Aaron Yashoafar. He was indicted on six counts last December, but the crimes he's charged with have left Paradise Spa in a serious predicament when it comes to last night's fire.

The condo community is set up so that the HOA pays all utilities and insurance on the buildings with money they collect from residents in monthly dues. But Yashoafar's companies own most of the units in monthly dues.

In the December indictment, Nevada's Attorney General accused Yashouafar of cashing in on almost a million dollars in insurance money that was supposed to be used to fix two other buildings that burned in 2009 and 2010. Those buildings were never fixed.

"This is the third fire we've had in the last three years," Paradise Spa HOA president Bill O'Donnell said. "And unfortunately this is a tragedy because we have no insurance. The individual that was responsible for 280-some-odd units in here still has not paid us any association dues so we have no money to pay for any insurance premiums. So, unfortunately, this building is probably a million-dollar problem now."

O'Donnell, a former state senator, took over as HOA president after residents booted Yahoafar from the board. O'Donnell is frustrated because he says he warned the AG last summer that the state needed to move fast in prosecuting Yashoafar and getting the HOA's money back.

He was worried about residents' safety in a situation where there was no insurance.

Now, his fears have been realized while the state continues to work on the case. It's set to go to trial October 1. 

Loading...