KINGMAN - Debra Suzanne Sixta and Mohave Integrity Real Estate Services have been issued a cease and desist order from the Arizona Department of Real Estate for "trust account irregularities," according to documents filed Sept. 15.
The order prohibits Sixta, designated broker for Mohave Integrity Real Estate Services, from engaging in any rental or leasing activity and property management.
Real estate department staff conducted an investigation and audit of Sixta in January and found that she had submitted insufficient documentation to determine compliance with statutory requirements.
Specifically, no receipts or disbursement journals were provided; client ledgers showed income and expenses, but no ending balance; and Sixta did not provide reconciliations of bank balance to owner and tenant liabilities.
Contacted by the Daily Miner on Friday, Sixta said the cease and desist order is being appealed by her lawyer on Tuesday.
"It's erroneous. It's not true," she said before abruptly hanging up.
In May, Sixta wrote to the department and said she's had five property managers in the last few years and that basic accounting practices are "a tangled mess." One employee embezzled about $8,000 in cash receipts for property management and was subsequently prosecuted, convicted and incarcerated.
She acknowledged that property management trust accounts were not in balance and the deficit was between $19,000 and $29,000.
According to the 11-page order, funds from the accounts were commingled and used for purposes other than those allowed by law, including payroll, commissions, monthly payments to the IRS, bonuses to unlicensed employees and general operating expenses.
Sixta submitted additional financial documents to the department. However, dates of deposits were not included and she didn't submit bank reconciliations for June and July, along with owner balances and prepaid rental reports.
The real estate department's audit review found that Sixta failed to maintain all monies held on behalf of clients and tenants in broker trust accounts, resulting in a shortage of nearly $49,000 as of July.
The order further states that Sixta submitted false or misleading information when applying for a license renewal and failed to exercise reasonable supervision and control over Mohave Integrity Real Estate Services.
The department does not have authority to take custody of any trust funds held by Sixta and her company. She is encouraged to make arrangements for disposition of those funds and to communicate those arrangements with clients as soon as possible.