Attorney General Todd Rokita sues Anderson apartment owners for allegedly abandoning tenants, forcing families to fend for themselves

Submitted by Office of the Attorney General

Indiana 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 such extreme disrepair as to render them entirely unlivable.

The defendants allegedly responsible for the abandonment 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,” Rokita said. “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.”

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 lawsuit, filed by the Consumer Protection Division through its Homeowner Protection Unit, alleges that defendants thereafter walked away from the 129-unit complex and allowed its physical condition to totally deteriorate. As early as February 2021, utilities were shut off due to alleged nonpayment of utility charges to the City of Anderson.

The lawsuit likewise alleges that after being notified of at least 21 units not meeting Section 8 Housing Quality Standards by the Anderson Housing Authority, defendants canceled their Section 8 contract and began evicting HUD-subsidized tenants from the property. Bingham Square Apartments has since been plagued by fires, flooding, utility outages, break-ins, and criminal trespassers.

The lawsuit likewise alleges that Madison Square Apartments experienced a similar fate.

After receiving $3.4 million for the purchase and rehabilitation of this property, defendants allegedly abandoned tenants by the fall of 2022 – leaving behind an unsecured leasing office full of sensitive tenant information, including dozens of uncashed checks from years prior.

Trespassers are alleged to have taken hold of the property, cutting out electric meters in several buildings, stripping copper wire, and causing unsafe conditions wherein standing water was in contact with live electrical wires.

By May 2024, the defendants allegedly owed as much as $925,380 in unpaid utilities to the City of Anderson – a cost that will be borne by other ratepayers. Both properties were alleged to have been in the control of Gary Plichta and Property Resource Associates LLC, a company based in Florida.

The lawsuit demands a jury trial, costs of prosecution, and other damages against the defendants for multiple violations of the Deceptive Consumer Sales Act, Home Loan Practices Act, and the Uniform Business Organizations Act.

“Our office intends to hold these defendants to account for the devastation they have caused to the City of Anderson and its constituents,” Rokita said.

The mission of the Homeowner Protection Unit is to protect the rights of all individuals involved in the housing market, including tenants, homeowners, and aspiring homeowners, by investigating and redressing deceptive acts in connection with mortgage lending and violations of relevant state and federal laws.

Hoosiers are encouraged to contact the Office of the Indiana Attorney General about any suspected scams or scam attempts. Consumers can file a complaint by visiting indianaconsumer.com or calling 1-800-382-5516.