Valley property managers ordered to 'cease and desist'

PHOENIX - The Arizona Department of Real Estate filed a cease and desist order against two local property management companies in the Valley.

An audit by the Department last month showed a shortage of $794,791.70 in the broker’s trust account.

The money is held for fees, down payments and rental payments.

The licensed company is Primary Residential Management.

Their bank statements show Snowball Investments, LLC dba (doing business as) Primary Residential Management, LLC, Investor Trust.

Both are named in the order.

One of their clients notified ABC15 that the company manages about 650 properties in the Valley. Many of their clients do not know their money is gone or that their property is not being managed.

The Department of Real Estate told ABC15 that they do not have a client list, and that they do not notify clients individually. Their notification process is to post the order on their website and send alerts to licensed brokers.

Records indicate that Snowball Investment, LLC is not a licensed entity.

Furthermore, the Department of Real Estate found the paperwork for Primary Residential Management filed incorrectly.

Read the complete Cease and Desist Order on the Department of Real Estate’s website.