UPDATE: Maricopa Properties shut down for misuse of money

Maricopa Properties was forced to close its doors Monday by a cease and desist order from The Arizona Department of Real Estate that revealed multiple violations including the misuse of trust funds and faulty paperwork by owner Dawn Anderson.

The Southeast Valley Regional Association of Realtors canceled Maricopa Properties’ listings so they no longer are active in the Multiple Listings Service.

“The seller is free to do as they wish,” SEVRAR president Doug Adcox said Friday. “They can list with another Realtor or broker or do it themselves. The ball is in their court.”

A sign on the Maricopa Properties door tells owners and renters they are victims of fraud and to contact the police department at 520-568-3600 and reference Case No. 130424015 handled by Sgt. Stephen Judd.

Tina McFadden, a renter, said Friday she has been out to Maricopa Properties several times this week hoping to get some answers.

“All the money we had to pay upfront to get the key is gone,” she said. “Our security deposits are gone; we’re not getting those back unless there is some sort of victim recovery.”

She said other renters and owners she has talked are upset and she has seen some in tears.

“There are multiple levels of fraud and deceit here and I’ve seen people break down crying,” she said.

Unlike many other Maricopa Properties clients, McFadden knows who her owner is and has been in contact with him.

“Rent is due Tuesday and they don’t know who their renters are so they’re out money,” she said. “And they can’t get a hold of her (Anderson).”

An audit was conducted in March by the department 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 did not  return a phone call 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.

It also showed trust funds were being used for personal expenses including $220 in purchases at Turtle Bay Resort in Kahuku, Hawaii last September.

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.”

Glenn Marsh, a broker for All For 1 Real Estate LLC, said he has received calls from some of Anderson’s clients.

“Most of them are out of state and have no contact with the tenants that are in their homes,” Marsh said.

He said companies like All For 1 and Maricopa Properties are set up to collect the rent, take care of management issues and pay owners their checks.

“With Maricopa Properties being ordered to stop business, the owners are basically at a loss,” he said. “They don’t know who to contact or how to get their rent payment.”