RJ Webb realized something wasn’t right when he became president of the East Polk County Association of Realtors in 2021. The numbers didn’t add up, and when the association’s CEO asked for financial documents, he refused to provide them.
What followed was a year-long battle that resulted in criminal charges, alleged extortion attempts, and a cautionary tale about how vulnerable small membership organizations across America are to theft.
On November 21, Polk County Sheriff Grady Judd announced the arrest of 53-year-old Jennifer Garula-Mers, former CEO of the Eastern Polk County Association of Realtors (EPCAR), on grand theft charges involving more than $81,000, according to 10News Tampa Bay (1). Judd said at a news conference that the case left the real estate agents’ association “on the ropes” and “nearly bankrupt,” forcing the organization to consider merging with another association to survive.
“He needs to stay in jail,” Judd said, according to 10News. “He’s a thief. He’s a swindler. He’s a fraud.”
According to the Polk County Sheriff’s Office, Garula-Mers began his financial misconduct a few months after he was hired as CEO of EPCAR in 2020 (2). The theft continued until his termination in August 2024.
Garula-Mers allegedly gave himself unauthorized pay raises totaling $43,105.86, bringing his final annual salary to $99,472, the sheriff’s office reported. He gave himself $12,500 in unauthorized bonuses and wrote additional payroll checks totaling $20,348.89, according to FOX 13 Tampa Bay (3).
He didn’t stop there. The Polk County Sheriff’s Office said Garula-Mers obtained an additional $7,938.27 by changing the contribution rate to EPCAR’s individual retirement account. He made improper refunds totaling $2,112.97.
EPCAR credit card has become another tool for personal gain. According to 10News, detectives discovered $3,267.51 in non-business transactions, including food, shopping, beauty supplies, household items and Amazon purchases.
Investigators documented losses totaling $81,453.92, the sheriff’s office said.
Webb’s concerns about financial irregularities began early in his presidency. When he challenged Garula-Mers for documents and financial information at board meetings, Garula-Mers refused to comply, according to Judd’s remarks at the press conference reported by 10News.
The response from EPCAR’s board of directors was perhaps more troubling than the alleged theft itself: they sided with Garula-Mers, dismissed Webb as a troublemaker, and recommended that he leave both the presidency and the association altogether, according to the sheriff’s report.
“When the new president comes in and says there is a problem, the board ignores him, punishes him, and recommends that he not only leave the association but also the presidency,” Judd said, according to FOX 13. “But who was here?”
Undaunted, Webb filed a civil lawsuit to stop what he believed was the theft of association funds. That’s when things took a darker turn.
According to sheriff’s office investigators, after Webb filed the lawsuit, he and his father, also a real estate agent, received a threatening phone call from someone who identified himself as “Anthony from Chicago.” “If the case continues, things will not end well,” the caller warned, according to 10News.
Detectives traced the phone to 55-year-old David Stachowiak, according to the sheriff’s office. Judd said Stachowiak was a “co-conspirator” hired by Garula-Mers, 10News reported.
According to Lake Wales News, Stachowiak was arrested in October 2024 and faces multiple felony charges, including extortion, tampering with evidence, and using a two-way communication device to commit a crime (4). He has since been released from prison and is awaiting trial.
Garula-Mers was arrested by the Hernando County Sheriff’s Office in Spring Hill, Florida, on November 20, 2025, according to the Polk County Sheriff’s Office. He faces a second-degree felony charge and is being held without bail pending his first court appearance.
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Unfortunately, the EPCAR case is not a rare occurrence. Small nonprofits, trade associations, and membership organizations across America are vulnerable to fraud and embezzlement, often with devastating consequences. According to the Washington Post, one-sixth of all embezzlement cases in the United States involve nonprofits and religious organizations, ranking just behind the financial sector in terms of vulnerability to internal theft (5). The Association of Certified Fraud Examiners’ 2024 Report to the Nations found that nonprofits lost an average of $76,000 per case; this figure was $60,000 in 2020 (6).
Many smaller associations rely on a single administrator to handle payroll, refunds, membership dues, and event budgets; Without distinction of duties, this person can work unsupervised for years. Trade associations often have volunteer boards composed of industry professionals without accounting training. They focus on their own work and trust the professionals they hire to manage the organization.
Above all, professional forensic audits sometimes cost more money than small organizations can afford. According to Upper Michigan’s Source (7), many fraternities cannot afford the investigation required to proceed with prosecution, meaning “in many cases the criminal will go free.”
Recent cases show the scope of the problem:
In October 2025, former Minneapolis Regional Chamber of Commerce CEO Jonathan Weinhagen was indicted on federal charges of embezzling hundreds of thousands of dollars, KARE 11 reported (8). Prosecutors allege Weinhagen set up a fictional consulting company under an assumed name and billed the chamber for more than $100,000. Most shocking incident: Prosecutors said Weinhagen stole $30,000 the chamber donated to Crime Stoppers as a reward for unsolved child murders in north Minneapolis, KARE 11 reported.
In August 2025, former Wake Forest Chamber of Commerce president Elizabeth Simpers was arrested for allegedly taking more than $69,000 for personal expenses, including dental work, jewelry and massage services, WRAL reported (9). Simpers had faced similar allegations at her previous employer, the YMCA, but was still hired to lead the room, according to WRAL.
Homeowners associations are not immune. According to an IRS press release, in April 2024, Utah HOA treasurer Sharon Lee Ann Gordon was convicted for embezzling $232,000 by writing checks to herself and her boyfriend and forging the signatures of board members (10).
When a small association is subject to embezzlement, financial loss is just the beginning. For real estate agent associations in particular, embezzlement can force members to pay higher dues to cover their losses, lose access to continuing education requirements, face a delay in licensing support, or join larger regional associations at higher cost.
Reputational damage can be equally devastating. For organizations dependent on voluntary contributions or membership fees, loss of trust can be fatal. As EPCAR is currently facing, associations may be forced to merge or disband when their financial reserves are exhausted.
According to the Association of Certified Fraud Examiners, the top three causes of nonprofit fraud are lack of internal controls, lack of oversight of existing controls, and override of controls. But even small organizations with limited budgets can implement critical measures:
Separate financial tasks: The person who writes the check and the person who reconciles the bank statements should not be the same person. Even in small organizations, dividing these responsibilities between two or three people significantly reduces risk.
Require two signatures: According to the National Council on Nonprofits, checks or transfers above a certain threshold require two authorized signatures (11). This simple check could have prevented many documented cases of embezzlement.
**Conduct regular audits: **Annual independent audits by external accountants can detect irregularities before they become disasters. For organizations that can’t afford full audits, even periodic surprise reviews of bank statements and vendor payments create accountability.
Monitor credit cards: Requiring a receipt for all refunds over the face amount and having credit card statements reviewed by someone other than the cardholder are basic controls that any organization can implement.
**Use technology: **Modern accounting platforms can flag unusual transactions, require approval, and automatically create audit trails. Automation makes monitoring easier and reduces the likelihood of errors and fraud.
Watch out for red flags: ACFE reports that 85% of fraud cases have at least one warning sign. Common red flags include fiscal officials who resist transparency, unexplained budget shortfalls, officials who never take vacations, incomplete financial records, and frequent special assessments.
Do background checks: According to MIP Fund Accounting Services (12), people who commit fraud at a nonprofit often move to another organization and repeat their crime. It is crucial that all employees involved in finance undergo proper background checks.
For members or board directors who suspect embezzlement, the steps are simple: Document everything by collecting bank statements, invoices, and expense reports. Members generally qualify for these documents under state law, according to the National Council of Nonprofit Organizations.
Report your findings to the board in writing by creating a paper trail. Contact a forensic accountant who can conduct an appropriate investigation; According to Venable LLP’s guide on nonprofit fraud (14), boards discharge their fiduciary duties by relying on qualified professionals. Submit a report to local law enforcement. As Polk County’s EPCAR case showed, law enforcement has tools to pursue financial crimes that board members do not.
According to JS Morlu LLC’s HOA fraud analysis (15), embezzlement is often caught after months or years of misconduct. The longer the fraud continues, the greater the loss and the more difficult it becomes to recover.
Garula-Mers’ alleged crimes represent a betrayal of trust by more than one person. They shed light on systemic vulnerabilities in the operation of small membership organizations across America.
The EPCAR case should serve as a wake-up call for every small nonprofit, trade association, chamber of commerce, HOA, PTA, and membership organization: the risk is real, the damage can be devastating, and it is far cheaper to prevent than to cure.
While Garula-Mers and his alleged accomplice await trial, the lesson is clear: trust alone is not a system of control. Every small organization needs formal safeguards, transparent oversight, and a culture where investigative authority is not only allowed but expected.
@assignment
10News Tampa Bay (WTSP) (1); Polk County Sheriff’s Office (2); FOX 13 Tampa Bay (3); Lake Wales News (4); Washington Post (5); ACFE’s Report to the Nations data (6); Source of Upper Michigan (7) ); SQUARE 11 (Minneapolis) (8); WRAL (Raleigh) (9); IRS Criminal Investigation (10); National Council of Nonprofit Organizations (11); MIP Fund Accounting Services (12); Venable LLP (13); JS Morlu LLC (14)
This article provides information only and should not be construed as advice. It is provided without any warranty.
