State Regulator Imposes Immediate License Suspension On Real Estate Broker/Property Manager For Escrow Account Violations; Accused Of Stiffing Landlords Out Of Collected Rent Proceeds, Failing To Account For Tenant Security Deposits, Nixing Cooperation w/ Investigators' Attempted On-Site Financial Audit Of Firm's Records

In Colorado Springs, Colorado, The Gazette reports:

• The Colorado Real Estate Commission has suspended the license of Colorado Springs real estate broker Holly Dalton, after finding evidence of alleged misconduct and license law violations.
  
  Dalton, who also is known as Holly Nuss, also faces revocation of her license and fines of up to $35,000 for allegedly failing to account for funds she received, converting, diverting and commingling funds, unworthy and incompetent practice, dishonest dealing and failure to meet record keeping requirements, the commission said [] in a news release.
  
  She is a broker of Colorado Springs property management firm Premiere Properties and Management LLC, which does business as Encore Properties LLC.
  
  Investigators with the Colorado Division of Real Estate received "numerous" complaints from property owners that hired Dalton to manage their properties, stating she failed to deliver monthly rental proceeds to them, failed to account for tenant security deposits and didn't respond to email or telephone messages, the release said.
  
  Investigators unsuccessfully attempted to conduct an on-site financial audit of Dalton's records, so the division subpoenaed the bank records of her business, which found "sufficient evidence to substantiate continued harm to Colorado consumers."
  
  Marcia Waters, director of the real estate division, sought immediate suspension of Dalton's license based on those findings, which was imposed unanimously, the release said. Dalton cannot perform any duties requiring a Colorado real estate license during the suspension.
  
  "The license law requires that all money received in connection with property management agreements, such as rents and security deposits, be placed in an escrow account," Waters said in the release. The Better Business Bureau of Southern Colorado revoked Encore's accreditation in April and warned consumers in October against doing business with the company based on 13 complaints it received in the previous 12 months.

Source: State suspends license of Colorado Springs real estate broker.