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Reports of CitiApartments Bouncing Checks

bounce_no_bounce2Over the last couple weeks, we've heard from tenants who had to beg and plead to get CitiApartments to refund their security deposit, only to have CitiApartments' check bounce. Eve Batey at the SF Appeal has some great reporting on this story here, here, and here.

That's right, it now seems that CitiApartments is the corporate equivalent of the deadbeat whose picture is taped to the cash register at the corner store.

What does this mean?

If you're still waiting for your deposit:

  • This is just further evidence that CitiApartments is irresponsibly refusing to pay its tenants the money they are owed.
  • California law requires that CitiApartments refund the security deposits that are due before it pays any other creditor.  This means CitiApartments must pay its tenants before it distributes money to its owners or related companies, before it pays its mortgage, even before it pays its utilities.  That CitiApartments is bouncing checks to tenants suggests that it is illegally distributing money to its owners or paying other creditors before it refunds security deposits to its tenants.

If you received a check from CitiApartments:

  • If you're able to get a check from CitiApartments, cash it at the bank listed on the check rather than depositing it into your own account.  You can go into any branch of CitiApartments' bank and cash the check.  Be sure you have your ID with you.  And if more than one name appears on the check, all of the payees must be present and have their IDs with them.  It's a hassle, yes, but this is the only way you can be sure the check doesn't bounce after you deposit it.
  • You can ask that CitiApartments' bank pay you in the form of a cashier's check or money order.  This will cost you a few dollars, but it will protect you while you transport the money to your bank to deposit.

If CitiApartments bounced your check:

  • It's against the law to bounce a check in California, and you have rights.
  • Marin County's District Attorney has an excellent website that describes the law, your rights, and how to exercise your rights.  Click here for the website.

We asked San Francisco District Attorney Kamala Harris to investigate what appears to be a widespread pattern of criminal activity by CitiApartments.  California's Penal Code states:

Any person who for himself or as the agent or representative of another or as an officer of a corporation, willfully, with intent to defraud, makes or draws or utters or delivers any check, or draft or order upon any bank or depositary, or person, or firm, or corporation, for the payment of money, knowing at the time of such making, drawing, uttering, or delivering that the maker or drawer or the corporation has not sufficient funds in, or credit with said bank or depositary, or person, or firm, or corporation, for the payment of such check, draft, or order and all other checks, drafts, or orders upon such funds then outstanding, in full upon its presentation, although no express representation is made with reference thereto, is punishable by imprisonment in the county jail for not more than one year, or in the state prison.  (Penal Code section 476a, subd. (a)).

It appears that CitiApartments is violating this law.  We hope that the District Attorney's office will investigate this apparent criminal activity and prosecute the offenders.  Here is a copy of our letter to District Attorney Harris:

 

Kamala Harris CitiApartments Letter