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State takes emergency action to shut down rental company

6:10 PM, Jan 5, 2010   |    comments
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"We very infrequently seek an emergency injunction," Colorado Division of Real Estate Director Erin Toll told 9Wants to Know. "It's only if it looks like there is going to be immediate harm to the public that we would use such a drastic measure."

The owner of Mile High Management has until Jan. 12 to respond to a preliminary and permanent injunction that would keep the company closed indefinitely, according to the Colorado Attorney General's office. The real estate division filed for those injunctions Dec. 21. A judge must give company owner Kevin Allen time to respond before ruling.

Mile High Management was not forced to shut down operations while a judge gave Allen time to answer the Dec. 21 allegations, but would be forced to stop operating immediately if a judge grants the emergency temporary restraining order.

After 9Wants to Know received nearly 50 complaints from people claiming to be victims of Mile High Management's rental policies, Toll said she felt Tuesday that the agency needed to act.

The Colorado Attorney General's office, acting on behalf of the Division of Real Estate filed for the emergency temporary restraining in Arapahoe District Court at 8:09 p.m. Tuesday.

In numerous complaints filed with the real estate commission, homeowners who entered into contracts with Mile High Management claim the property management company never paid homeowners rent money collected from tenants.

One tenant who said he contracted with Mile High Management to rent a home, told 9NEWS that representatives from Mile High Management called him Monday demanding he pay his rent immediately.

He told 9Wants to Know he became suspicious after seeing our investigation into the company last month and contacted the Division of Real Estate.

"In light of the information we learned today, mostly because of a 9NEWS report that aired a couple of weeks ago, we are seeking an emergency injunction which would be ex parte. We'd go into court and ask that Mile High be made to cease their activities immediately without a hearing," Toll said.

"It appears as though they are shaking down tenants to get as much money before the regulatory agency takes action," she said.

In late December the Real Estate Commission demanded Mile High Management (MHM) stop operating without a broker's license, according to the court filing that also lists numerous homeowners who complain the company collected money but did not forward some or all of the money to homeowners or landlords.

"The landlords' complaints received from March 2009 to October 2009 allege that MHM collected security deposits, rental payments and late fees from tenants, but failed to forward some or all of such funds to the landlords," according to the complaint e-filed Dec. 21 by the Attorney General's office in Arapahoe County District Court.

The Division of Real Estate provided 9Wants to Know with copies of 10 complaints by landlords and renters against Mile High Management or its owner Kevin Allen. The Arapahoe County District Attorney's office confirmed it also received complaints against the company that has also operated using the name Move in Colorado.

The commission's complaint alleged Mile High Management, Allen and his employees, Jennifer Allen and Sean O'Neill operated a real estate management company without the proper license from the real estate commission.

To file a complaint with the Division of Real Estate visit: http://www.dora.state.co.us/real-estate/Complaints/Complaints.htm. You can also call 303-894-2133.

Read the documents filed late Tuesday with Arapahoe County District Court.

-Kipp Affidavit.pdf
-Allen Motion for TRO.pdf

If you have information about Mile High Management or a tip for 9Wants to Know Investigator Jace Larson, e-mail him at jace.larson@9news.com or call 303-871-1432.

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