AG’s office investigating Maricopa Properties

The Arizona Attorney General’s office is investigating a local real estate business that was forced to close its doors in April after an audit by the state department of real estate revealed a misuse of funds.

The Arizona Department of Real Estate issued a cease and desist order April 22 directing Dawn Anderson, owner of Maricopa Properties, to stop conducting business after an audit revealed faulty paperwork and a shortage of almost $280,000 in broker trust accounts.

The attorney general’s office has contacted people who might have lost rent money or security deposits when the business shut its doors. 

A letter from the attorney general’s office sent to one property owner on June 21 asked the person to submit a list of their properties managed by the business and the amount of money they lost on each property after the real estate business closed. 

The letter also asked the person to break down their monetary loss into categories: rent payments, pre-paid rent, repairs and maintenance, and security deposits. 

The attorney general’s office would not comment on the case, citing a state statute that says “all information or evidence provided to the attorney general shall be confidential and shall not be made public unless in the judgment of the attorney general the ends of justice and the public interest will be served by the publication thereof.” 

Assistant Attorney General Lianne Kiddo said Tuesday she has been assigned to the case, but was “not authorized to speak on behalf of this office.” 

The Maricopa Police Department previously told InMaricopa.com it was investigating the case. 

The publication requested records last month concerning the investigation. Police released a single report dated April 24. 

According to the report, a city resident and owner of a rental property managed by Maricopa Properties went to local authorities after the business informed her it would no longer manage her property or collect rents. The resident, Tina McFadden, obtained a copy of the Arizona Department of Real Estate report and presented it to police. 

A police officer told McFadden that if she became aware of additional victims, she should tell them to contact the department. 

The Arizona Department of Real Estate 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.”

The order alleged 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.

***ADVERTISEMENT***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.

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.