December 10th 2024.
CBZ Management, the owner of a number of rundown apartment buildings in Denver and Aurora, has taken legal action against the Colorado Attorney General's Office. Their goal is to stop the execution of investigative subpoenas which requested records pertaining to their ownership practices.
On Friday, the companies, along with several subsidiary companies that own their 11 properties in Colorado, filed a lawsuit in Denver District Court. They are seeking a court order to prevent the AG's office from enforcing the subpoenas that were sent in September. These subpoenas are part of an investigation into possible violations of the state's laws on consumer protection and safe housing.
The companies are also requesting a protective order to ensure that any personal or financial information obtained through the subpoenas is not made public. The subpoenas were quite extensive, covering a wide range of records from CBZ and its companies. This included basic information about which properties each company owns, as well as details on how they handle maintenance requests, security deposits, and apartment advertisements. Some former tenants have claimed that they reported CBZ to the AG's office for insurance fraud.
In their legal filings, the companies' lawyers pointed out that the AG's office has not provided a clear explanation as to why they believe CBZ and its companies have violated the state's laws. They also argue that the subpoenas are overly burdensome and too broad in scope. Despite multiple attempts to reach out for comment, the companies' attorneys did not respond. The AG's office also declined to comment.
CBZ and its companies have been facing numerous complaints from tenants and investigations by municipal health inspectors due to the unsafe conditions of their properties. The company has recently tried to shift the blame for these issues onto a Venezuelan gang. One of their buildings in Aurora was ordered to be closed in August for being uninhabitable, and two more have been taken over by creditors. Another property, the Edge of Lowry apartments, is scheduled to close next year after further legal action by city officials. Additionally, the company owes tens of thousands of dollars in fines to the city of Denver for the poor condition of their properties.
The AG's investigation into CBZ and its companies was first reported by The Denver Post last month, along with other media outlets in Colorado. The Post obtained copies of the subpoenas through a public records request, which is what CBZ is now disputing in court.
In their lawsuit, the companies expressed their frustration with the release of the subpoenas to the media and their concerns about the potential release of records obtained through the subpoenas. They argue that this could put individuals at risk. However, according to the lawsuit, the attorney general's office has agreed to allow the companies to redact personal information such as birth dates, social security numbers, and home addresses from the records.
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