Attorney General Todd Rokita is suing the owners of two Anderson apartment complexes for allegedly abandoning tenants, allowing Bingham Square Apartments and Madison Square Apartments to fall into extreme disrepair, rendering them unlivable.
The defendants in this case are PR Bingham LLC; PR Madison LLC; Property Resource Associates LLC; and Gary Plichta. “The way that hardworking Hoosiers are alleged to have been treated by these defendants is disgraceful,” Attorney General Rokita stated. “Not every investment in real property can be successful, but it’s unconscionable to simply abandon these properties and force stranded families to figure out how to fend for themselves after they paid their rent.”
According to the lawsuit filed by the Consumer Protection Division through its Homeowner Protection Unit, the defendants acquired Bingham Square Apartments in 2019 with a $2.7 million loan from Landmark Bank and $900,000 in TIF Bonds from the Anderson Redevelopment Commission. The suit alleges that after acquisition, the defendants neglected the 129-unit complex, leading to its deterioration. By February 2021, utilities were shut off due to nonpayment of utility charges to the City of Anderson.
Additionally, after being notified by the Anderson Housing Authority that at least 21 units did not meet Section 8 Housing Quality Standards, the defendants allegedly canceled their Section 8 contract and began evicting HUD-subsidized tenants. Since then, Bingham Square Apartments has faced fires, flooding, utility outages, break-ins, and criminal trespassers.
Madison Square Apartments reportedly experienced similar neglect. After receiving $3.4 million for purchase and rehabilitation, tenants were allegedly abandoned by fall 2022. An unsecured leasing office was left behind containing sensitive tenant information and dozens of uncashed checks from previous years.
Trespassers allegedly took control of Madison Square Apartments property as well—cutting electric meters from buildings, stripping copper wire—and creating unsafe conditions with standing water contacting live electrical wires. By May 2024, unpaid utilities owed by the defendants reached approximately $925,380—a cost expected to impact other ratepayers.
Both properties were under the control of Gary Plichta and Property Resource Associates LLC based in Florida. The lawsuit demands a jury trial along with prosecution costs and other damages against the defendants for multiple violations including those under the Deceptive Consumer Sales Act, Home Loan Practices Act, and Uniform Business Organizations Act.
“Our office intends to hold these defendants accountable for the devastation they have caused to the City of Anderson and its constituents,” said Attorney General Rokita.
The Homeowner Protection Unit aims to safeguard rights within housing markets by addressing deceptive acts related to mortgage lending as well as state and federal law violations.
Hoosiers are encouraged to report any suspected scams or scam attempts by contacting the Office of Indiana Attorney General via indianaconsumer.com or calling 1-800-382-5516.
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