American Development Corporation was a management company with
approximately 110 employees and 1800 units under management.
They were responsible for operating low income residential properties
most of which were under the supervision of the Housing and Urban
Development Agency of the Federal Government.
Properties were located in Kansas City, MO; Denver, CO; San Antonio,
TX; Central Valley and Bay Area of California and the Los Angeles, CA area.
There were several owners of the properties, but most were owned by
partnerships of which the same individual was the General Partner.
As President, I changed the operating management of the company,
installing professional (CPM) regional managers and correcting the
relationships with the various HUD offices.
This change was required as the operating management when I was employed had
to be removed. We increased the occupancy in the LA area to
100% and substantially improved the occupancy in the Kansas City properties.
We found that the preceding operations had involved several
substantial defalcations and reported this fact to the U.S. Attorney’s
office in Los Angeles, CA and they and the FBI are investigating and
prosecuting the alleged suspects. Later,
I resigned my position with the company and continued as a consultant to the
owner of the company.
The owner of the management company was the former wife of the General
Partner. She had received her
stock as security for the unpaid loans made to her former husband through a
judicial foreclosure. Upon the
repurchase of the company by her former husband, I discontinued my
relationship with the owner and the company.
