Posted 10:00 PM 7/10/2013 : Rathbun Realty ordered to pay up
TUCSON - A one-time major player in Tucson property management has been ordered to pay 300 creditors a total of nearly 1 million dollars.
That's the result of a settlement hearing in U-S Bankruptcy Court. Judge Eileen Hollowell ordered that George and Bette Glover re-pay the property owners a total of $950,000. few creditors in court declined comment. Rathbun closed its Tucson office last year and filed for Chapter 7 bankruptcy. In March, the Arizona Depart of Real Estate revoked its license. This came after the company reported that nearly one million dollars had been stolen from trust accounts by a former employee. Most of the money was in rental payments tenants made that Rathbun was supposed to give to the property owners, but did not.
Isaac Rothschild, the attorney for the Chapter 7 trustee, told the News 4 Tucson Investigators, "We're optimistic there will be a distribution. I'm not comfortable saying they will receive most of the money they are owed."
Rothschild said the money that will be paid to the creditors will come from the sale of properties owned by the Glovers, who could not be reached for comment.
It could take a long time for the property owners to be paid what they have long been owed. The few creditors who were at the bankruptcy hearing declined comment.
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