Former Colorado Springs property manager gets probation for stealing from tenants
A former Colorado Springs property manager who pleaded guilty to stealing from dozens of landlords and tenants will spend the next four years on probation and pay a tentative restitution of more than $200,000.
Holly Dalton pleaded guilty to theft in October after investigators found she used her business, Encore Properties, to steal from 15 landlords and 27 tenants. She was sentenced to four years of supervised economic crime probation.
Police said Dalton used a lapping scheme to steal deposit and rent money. Lapping is when an employee steals a payment from one customer and then uses cash from another customer to offset the missing funds, according to accountingtools.com.
During sentencing Monday, Dalton was ordered to turn over records within 60 days and pay back a restitution of $220,000. She’s also not allowed to work in real estate or property management, and she has to complete 100 hours of community service. She’ll also submit to random drug testing and write letters of apology to all of the victims.
However, the amount of restitution may change as Dalton’s attorney filed an appeal. She has paid $10,000 of restitution so far. The other circumstances of her probation won’t change. A judge said Dalton only avoided jail time because all but one of her victims said they just wanted their money back.
One victim spoke in court Monday and said Dalton took paperwork, keys, and inspections from a property, causing the current managers to “take tenants’ words” for lease information. The victim also said deposits at the property had to be doled out from managers’ personal accounts because Dalton had taken the deposits.
Dalton said she takes responsibility and that she’s sorry for the people who were affected. When the Judge Theresa Cisneros asked where the money went, Dalton said the business started having problems and that there were issues with employees that she trusted.
Last month, Dalton was awarded a $15,000 settlement from the city of Colorado Springs after being assaulted by another inmate while she was in a court holding cell.
