Nevada sues to close LV real estate operation

Thursday, June 7, 2001 | 11:35 a.m.

The Nevada Attorney General's office sued to shut down a Las Vegas property management company and revoke its president's license for allegedly mismanaging the funds of property owners.

Deputy Attorney General Wallace Hammons, on behalf of the Real Estate Division in the Department of Business and Industry, sued John Hanley, president of Owners Management Inc. doing business as Classic Management & Sales, and Terri Hanley, its secretary and treasurer, in Clark County District Court.

The suit alleges they failed to properly balance the company's accounts and failed to account for more than $110,000 in alleged missing funds. The suit said the defendants manage 97 properties and their responsibilities include entering into lease agreements with clients, collecting from them security and cleaning deposits, monthly rents, paying monthly expenses and remitting the difference to the 97 property owners on a monthly basis.

The state seeks the appointment of a receiver to safeguard about $40,000 in rents Classic expects to receive over the next 10-15 days after the state received complaints from more than 40 property owners saying they've not been paid rents since April.

The defendants could not be reached for comment on the allegations.