Tucson's Rathbun Realty has lost its license to operate.
Brokers George Glover and Cassandra Arnold were issued a cease-and-desist order last September by the Arizona Department of Real Estate for "trust account irregularities." In August, the company reported that between $1 million and $1.8 million had been stolen from trust accounts. The accounts are used to keep tenant deposits and rent payments separate from operating capital. The company managed nearly 800 rental homes in Tucson.
On Thursday the Arizona Department of Real Estate issued the commissioner's final order to revoke the licenses of the brokers and their two companies - Rathbun Realty Inc. and Rathbun Property Management - after a Feb. 5 decision by a judge to affirm the department's cease and desist order.
In the order, the commissioner stated Glover and Arnold "demonstrated negligence and incompetence in performing any act for which a license is required ... as evidenced by their failure to keep records, perform accountings, respond to complaints and respond to the department's request for documents."
Other factors in the decision to revoke the licenses included the brokers' failure to:
• Supervise staff.
• Respond to complaints and subpoenas.
• Provide documents to the Real Estate Department.
• "Protect and promote their clients' interests" by not paying money owed.
• Maintain client records and accountings.
Bette Glover, who started the company in 1974, had her brokers license revoked in 2006 for trust account irregularities.
In a September Arizona Daily Star article, Bette Glover said she was committed to paying back all of her clients. However, two weeks later the company filed for Chapter 7 bankruptcy.
Contact reporter Kimberly Matas at email@example.com or at 573-4191.