tampabay.com

Fraud alleged at senior rentals

By KRIS HUNDLEY
Published February 18, 2006


The U.S. Securities and Exchange Commission filed an emergency federal civil action this week to halt alleged fraudulent securities offerings by the developer of a New Port Richey senior rental community.

Patrick B. Kirkland of Orlando and three of his corporations, Tropical Village Inc., Clarity Development Corp. and Senior Adult Living Corp., were subjects of the SEC action.

On Thursday, a federal judge in Tampa issued a temporary restraining order freezing Kirkland's assets and appointing a receiver for his corporations and four of his developments, including Sunset Bay Club Inc. in New Port Richey.

The SEC's complaint alleges that Kirkland and his companies raised at least $59-million from 115 investors by selling unregistered securities in the form of real estate investments in Florida, Georgia and Texas.

The properties were triplex apartments designed for shared senior rental living. The SEC alleges Kirkland misrepresented rental rates, occupancy and potential profits from the properties.

Kirkland's development in New Port Richey, Sunset Bay, has 12 buildings, each with four triplexes which sold for more than $700,000 per unit. The complex was completed in 2003.

California has issued two desist-and-refrain orders against Kirkland, who is the target of a separate criminal action by the Florida Office of Statewide Prosecutor. Kirkland did not return a call seeking comment.