The Arizona Corporation Commission (ACC) has voted to close its civil case against Densco Investment Corporation after recovering nearly $19.7 million for investors who were defrauded.
The case began in 2016 when the ACC filed a complaint against Densco for violating several sections of the Arizona Securities Act. The Commission sought to appoint a receiver to oversee Densco’s operations following the sudden death of its owner and sole operator. Densco had raised more than $40 million from investors, with all funds loaned to real estate ventures. Investors were told that loans would not exceed a 70% loan-to-value ratio and would be protected by first deeds of trust. However, these assurances proved false; some loans reached or exceeded 100% loan-to-value, and some properties lacked any deed of trust.
During the claims process, the court-appointed receiver identified 113 investors owed a total of $31,446,001. Working together, the ACC and the receiver recovered $19,788,384 for distribution to those investors. In addition, the Commission holds a criminal restitution order totaling $16,946,384 for further collection and distribution efforts. So far, over 63% of investor losses have been returned.
“All documents relating to this agenda item can be found in the Maricopa County Superior Court online docket at https://www.superiorcourt.maricopa.gov/docket/CivilCourtCases/ and entering case no. CV2016-014142,” according to information provided by the ACC.
For additional questions about this matter, individuals are encouraged to contact the Investigator on Duty at the Arizona Corporation Commission’s Securities Division at 602-542-0662 or email SecuritiesDiv@azcc.gov.
