Embezzler pleads no contest: Former Woodlake homeowners’ association manager faces about three years prison

Lambert and her alleged co-conspirator Michael Anthony Medeiros have been accused of taking an estimated $2.8 million from homeowners at the 990-unit Woodlake condominium complex near Peninsula Avenue and Delaware Street.

On Monday, the cases were separated and, on Tuesday, Lambert, a 65-year-old Fremont resident, pleaded no contest on the condition she receive no more than three years and four months in state prison, said District Attorney Steve Wagstaffe.

Medeiros is slated to face a jury in February and has been out on $1 million bail.

“The number of victims involved was large because there were so many people they were defrauding,” Wagstaffe said. “It wasn’t some conglomerate where this amount of money is just a drop in the bucket; it’s truly taking advantage [of individuals].”

Lambert had managed the association, which had a nearly $5 million annual budget, for more than a decade. A call to her defense attorney was not immediately returned Tuesday.

A Woodlake resident previously reported homeowners caught wind of the theft when a board member saw suspicious activity, including charges at various casinos, on a bank statement from a debit card Lambert had been issued.

After Lambert was fired, the association uncovered a stack of nearly 150 false invoices for construction work that was never completed. Police and investigators determined she had been conspiring to defraud the homeowners between Feb. 8, 2007, and September 2013, according to prosecutors.

Prosecutors said Lambert would make false invoices and write checks to Medeiros’ company Professional Painting, Inc. He would then allegedly cash the checks and the two would split the profits.

Lambert reportedly had a gambling problem and remained in custody on the $1 million bail since she was first arrested in September 2015 after a nearly two-year investigation.

Medeiros has been out of custody and has an Oct. 4 hearing on his motion to reduce his $1 million bail. He is scheduled for a jury trial Feb. 21, 2017. Lambert is not required to testify as part of her plea deal, Wagstaffe said.

The court agreed she would receive no more than three years and four months in state prison, however, it is up to a judge to decide during sentencing how long she must serve. On Tuesday, the judge indicated she preferred to wait to sentence Lambert until after Medeiros’ trial, Wagstaffe said.

Lambert had faced the two felonies along with multiple enhancement charges that could have landed her up to nearly six years in prison if convicted, prosecutors said previously. Lambert would have been on trial with Medeiros had she not pleaded guilty Tuesday, Wagstaffe said.

Lambert is not eligible for probation and is facing mandatory prison time, although it wouldn’t be unusual for her to remain in county jail if the judge opts to hold off on sentencing, Wagstaffe said.

Restitution will also be determined at a later time, but Wagstaffe noted Lambert apparently did not have much money as she was reportedly addicted to gambling.

“She did this just for her personal pleasure and that makes it an egregious violation,” Wagstaffe said, adding “the case [against her] was very, very strong.”

Members of the homeowners association could not be reached for comment.

The association was formed in 1987 to oversee the large 30-acre condominium that includes a slew of amenities. The site has a lake, five swimming pools, private courtyards, clubhouse, spa, 18-hole putting green, four tennis courts, two saunas, a gym and a billiard room, according to the Woodlake website.

samantha@smdailyjournal.com

(650) 344-5200 ext. 106