HARFORD COUNTY, MD — A Nottingham woman has pleaded guilty in the theft and embezzlement of money from several homeowners associations in Harford and Baltimore counties.
Over the course of a five-year period, the thefts reaching nearly $600,000 impacted more than 250 households and approximately 1,500 individuals.
The financial crimes were first uncovered by the Hamilton Reserve HOA Board of Directors shortly after Thanksgiving 2025. Ashley Sweeney, a HOA board member for the Hamilton Reserve community, spoke on behalf of board members Lori Sappington, Nicole Ports and Nick Miller, stating that they "hope to be apart of a bigger change for Maryland with HOA communities, property management companies and banks to avoid this happening to other communities."
Sarah Chester, 44, pleaded guilty to one count of theft scheme over $100,000, one count of forgery and counterfeit – private documents, and one count of embezzlement, before the Honorable Paul W. Ishak in the Circuit Court for Harford County.
Chester was sentenced to 20 years, all suspended with five years to serve. She was taken into custody to begin her sentence immediately following the hearing. Restitution in this case, which is expected to reach nearly $600,000, will be left open for 30 days to allow the state the opportunity to verify the contact information and amounts from the various affected homeowners associations, the state attorney said.
According to court documents, between 2021 and 2025, several homeowners associations in both Harford and Baltimore counties hired Chester and her company, Magnolia Properties, to manage the HOAs and their funds.
Evidence showed that during an approximately five-year period, Chester ran a Ponzi scheme. She syphoned money from each HOA into her personal accounts and used the funds for trips to Europe, country club memberships and more. She also created fake bank statements to hide her theft and transferred money between HOA accounts to replenish stolen funds in others.
More than 50 residents from various communities affected by Chester's actions attended the hearing.
“To be placed in a position of trust by your community only to violate that trust in such an egregious way is despicable and behavior that will not be tolerated in Harford County. I commend the work of Assistant State’s Attorney Ari Kodeck for his efforts in securing a jail sentence in this case, as well as ensuring that restitution is ordered and these communities will one day be made whole," said State’s Attorney Alison M. Healey.
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