Garner Police Make Arrest In HOA Fraud Case
Police Charge Diana Kelly, 54, with Embezzlement
Garner Police have arrested Diana Kelly, 54, of Clayton on 25 counts of embezzlement. Kelly was the owner and manager of Kornerstone Management, a business that was entrusted to manage many homeowner associations throughout the Garner area and beyond. In all, over $800,000 is believed to have been stolen from the many victims.
The Garner Police Department began receiving reports from area HOAs on Aug. 9, 2016, about possible fraudulent activity with their HOA bank accounts. Kornerstone represented more that 25 HOAs but after a police investigation, only 25 victims actually had any actual monetary loss.
As part of the investigation, police executed two search warrants on Aug. 11, one at Kornerstone Management, 1300 Benson Road, Suite 102, and the other at #1 Seven Oaks Drive in Clayton. Investigators seized boxes of records from both locations believed to be related to their investigation. Police investigators worked with the Wake County District Attorney's office as well as the North Carolina State Bureau of Investigations' Financial Crimes Unit to go through the large amount of evidence seized before presenting the evidence to a grand jury.
Kelly is currently in the Wake County Jail under $500,000 secured bond.
For more information, please contact Lt. Lorie Smith at (919) 772-8810, x6066.