Remaining EPMI Property Managers Sent to Prison for Defrauding Homeowner Associations
PHOENIX – Kelsey Powell, 47, of Lemon Cove, Calif. and her former husband, Michael Powell, 53, of Wellsville, Ohio were each sentenced today by U.S. District Judge G. Murray Snow to over one year in prison. Rachel Ellerbrock, 46, of Gilbert, Ariz., was sentenced to probation. The Powells and Ellerbrock had previously pleaded guilty to conspiracy to commit money laundering for using stolen Homeowners Association (HOA) fees to enrich themselves. Last month, Harlow White - the father of Kelsey Powell and Rachel Ellerbrock - was sentenced to prison for 15 months and ordered to pay $291,420 in restitution.
White was formerly the President and CEO of Eagle Property Management, Inc., a property management company whose clients included HOAs throughout the Phoenix metropolitan area. Kelsey Powell, Michael Powell, and Ellerbrock had management roles at Eagle. In 2005, White transferred ownership to Kelsey Powell, who operated the company as EPMI. Between January 2010 and May 2014, at White’s direction, Kelsey Powell stole at least $1.2 million directly from HOA clients’ bank accounts. The stolen funds were used to pay the personal expenses of the Whites, Powells, and Ellerbrock, including large American Express credit card bills. The defendants were ordered to pay restitution to the victim HOAs including $439,000 from Kelsey Powell, $152,000 from Michael Powell, and $110,000 from Ellerbrock.
The investigation in this case was conducted by U.S. Secret Service and Internal Revenue Service-Criminal Investigation. The prosecution was handled by Monica B. Edelstein , Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-01083-GMS
RELEASE NUMBER: 2019-024_Powell etal
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