Apartment Complex Owner with $10,000 Water Bill May Be Facing Bigger Problems

When we first met Windwood Gardens apartment manager Donna Bryant she was worried her tenants would have their water cut off. That all changed when the City of Pickens decided to work with the property owner and give him 30 days to pay off a $10,000 water bill. Click here to see a copy of the water bill

"I just feel bad for these tenants out here," Bryant said. "They pay their rent faithfully and the owner needs to step up and take care of them. It's his job."

We took a harder look at the management company and learned the owner, Kevin Flessner of Sarasota, Florida, is being sued for millions for mortgage fraud. See lawsuit here

"According to the complaint that we have it was an elaborate scheme which involved several people," said News Channel 7 legal expert attorney Ken Anthony. "It looks like it involved some attorneys or some title insurance agents as well and it was a concerted effort to deceive the lender."

Anthony said the lawsuit claims Kevin Flessner and others deceived Imperial Capital Bank. He told us the bank says Flessner got more money than originally agreed upon to buy apartment complexes in Oklahoma and South Carolina. We found one of them is Hillandale Apartments on Poinsett Highway in Greenville which went into foreclosure. In the lawsuit the bank says Flessner's original deal was to buy Hillandale Apartments for $ 2.6 million dollars. But the suit claims he tricked the bank into lending him a million dollars more by using a fake contract. And if that's what he did...

"He's able to buy the original property from the original owner for the full price," said Anthony. "He's borrowed the full price which the bank would not have loaned him if they had known the truth and he's gotten some additional money that he's put into his pocket or used to buy another complex or used for some purpose."

Anthony said Flessner fought back in a counter suit.

"He claims that the problem came when the bank was holding money that was supposed to be used for repairs and then didn't release that money and that kept him from making the payments and caused him to lose the properties in foreclosure," said Anthony.

Bryant said she didn't have a clue about the legal action taken against her boss.

"I don't know anything other than this company here," she said.

Worried residents wonder what's next.

"If there's people paying rent our money's going somewhere it's not going on the bill," said tenant Martha Paredes.

"I'm scared because I have no way to get out of here," said tenant Rose Burner. "I have no one to turn to, no one to help me."

Anthony said tenants in South Carolina are protected even if a property is taken over by a bank.

"The good news for the tenants is the bank has to honor the leases that they have signed," said Anthony. "The bank has more money than he does so the bank will have an interest in keeping the property up and keeping the bills paid."

The property is another problem. Tenants at Windwood Gardens told us the owner doesn't keep up the grounds or make repairs. Documents obtained by News Channel 7 show the Oklahoma apartment complex listed in the lawsuit was declared "Dilapidated" in December of last year. See the photos below.

Source: City of Oklahoma

The city council in Oklahoma City issued a citation and it was cleaned up in January. The document indicates the property is owned by Archway Apartment SG LLC at the same address used by the City of Pickens for the water bill.

We have asked Flessner and his attorney listed in the lawsuit for comment but so far have not received a response.

The City of Pickens tells us Kevin Flessner has made a $2500 payment on the past due water bill.

Anthony tells us the pending lawsuit against Flessner and the other defendants could take a year to resolve.