Respondent(s): Thomas Wesley Reeder FH: 3824
Violations: A.C.A. § 17-42-311(a)(2), (6), 17-42-316(b)(1); Commission Rules 8.5(a),10.4(b), 10.7(b)(2), 10.8(b),(c), (e), 10.8(g)(2), 10.9(b),10.10(a), 10.21(a), 10.22(a), 10.23(a)
Sanctions: $4,100 in civil penalties; Respondent was immediately prohibited from conducting any property management activity. Respondent was required to pay for a forensic accountant to provide a written audit report of all the Respondent’s trust accounts within six months.
Synopsis: Respondent Property Manager Reeder managed a property belonging to the Complainants’ mother and failed to notify the Owner when the tenants stopped paying rent. Respondent Reeder paid the mortgage on the property on behalf of the Owner, even after the Owner’s funds were depleted. Respondent Reeder did not remove management fees when they were earned, thus comingling the firm’s funds with owner’s funds and failed to properly supervise the firm’s staff. Respondent Reeder also failed to keep proper records in accordance with Commission Rules.