MPD investigating Maricopa Properties

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The Maricopa Police Department is investigating a case involving a misuse of funds by local real estate business Maricopa Properties.

The Arizona Department of Real Estate issued a cease and desist order April 22 directing owner Dawn Anderson to stop conducting business after an audit revealed faulty paperwork and a shortage of almost $280,000 in broker trust accounts. The order accuses Anderson of using some of the money for personal expenses, including transactions in Hawaii and New Orleans last fall.

Police spokesman Ricky Alvarado said the department has received calls from people affected by the possible wrongdoing.

A sign placed on the business’ door last week said that rental security deposits of Maricopa Properties totaling $300,000 had been “stolen/spent” by Anderson. It said “rental victims” should contact the police department at 520-568-3673 and reference Case No. 130424015. The police department did not place the sign on the door. The cease and desist order does not specifically mention security deposits, but such funds are placed into trust accounts.

The police department is trying to determine what has taken place, Alvarado said. It is too early in the investigation to determine what type of charges Anderson could face.

“It’s a very complicated case,” he said.

It is possible the investigation could be turned over to another agency, such as the Arizona Attorney General’s office, Alvarado said.

Anderson has 30 days from April 22 to appeal the order. After an appeal is filed, the Department of Real Estate will schedule a hearing.

The Department of Real Estate would not comment on the case and would not say whether an appeal had been filed.

The department conducted an audit in March that covered the time period from Jan. 1, 2012 to Jan. 31.

According to the cease and desist order, the company “had outstanding trust liabilities of approximately $279,938.99.”

Anderson has not returned phone calls or emails for comment.

The order alleges Anderson did not maintain monthly trust account bank reconciliations and client ledger balances, which is required by law.

The audit also showed Anderson’s husband, Chad Anderson, was authorized as a signer of the property management trust account, according to the order. It was found that Chad Anderson was not a licensed real estate broker or an employee of Maricopa Properties and, by law, would not be authorized as a signer.

The audit revealed problems with the firm’s property management agreements such as not providing “clear and unambiguous language” as required by law. Two agreements reviewed were either left blank or not signed by all parties. Many agreements were signed by “Property Manager,” making it unclear who represented Maricopa Properties during the signing of the lease.

According to the order, Anderson admitted that a self-audit she submitted to the department in June falsely indicated that all trust account journals and client ledgers were in balance.

***ADVERTISEMENT***The order states that after Anderson reviewed the department’s audit, she agreed “she was short in the property management trust fund and had commingled trust account money by using trust account monies to pay business operating expenses, including taking a monthly paycheck for herself.”

She said use of the funds were for “business” purposes and mentioned attending conferences.

A $220 transaction was made at Turtle Bay Resort in Kahuku, Hawaii, in September. There were also two transactions – $35.12 and $858.28 – at the Courtyard Marriott in New Orleans in November.

When asked about the Hawaii transaction, Anderson “could not recall making the transaction but acknowledged she was at the location at the time of the transaction and did have control of the account’s debit card,” according to the cease and desist order.

Not only does the order question Anderson’s financial intentions, but also her character.

“Anderson, through actions described in Facts, has not shown to be a person of honesty, truthfulness and good character,” the order states.

To read the cease and desist order on the Arizona Department of Real Estate website, click here.