Arizona Corporation Commission Closes Densco Case, Recovers $19.7M for Investors

AZ Corp Commission News

Filed March 6th, 2026

Detected March 17th, 2026

Summary

The Arizona Corporation Commission (ACC) has closed its civil case against Densco Investment Corporation after recovering nearly $19.7 million for defrauded investors. The ACC filed the complaint in 2016 for violations of the Arizona Securities Act, stemming from misrepresentations about real estate loans.

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What changed

The Arizona Corporation Commission (ACC) has approved the closure of the civil case Arizona Corporation Commission v. Densco Investment Corporation (Case No. CV2016-014142) following the recovery of $19,788,384 for investors. The original complaint, filed in 2016, alleged violations of the Arizona Securities Act due to false representations made by Densco regarding real estate loans, which had raised over $40 million from investors. An additional criminal restitution order for $16,946,384 is also assigned for collection.

This action signifies the successful conclusion of an enforcement action where over 63% of investor losses have been recovered. While no further immediate actions are required from regulated entities, this case serves as a reminder of the ACC's commitment to pursuing securities fraud and recovering funds for defrauded investors. Compliance officers should note the significant recovery achieved and the potential for substantial restitution orders in similar future cases.

What to do next

Review past investment recovery cases for lessons learned
Ensure disclosures regarding real estate loan collateralization and loan-to-value ratios are accurate and compliant with state securities laws

Penalties

Recovered $19,788,384 for investors; assigned a criminal restitution order for $16,946,384.

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If you are a member of the media, please email ngarcia@azcc.gov or call (602) 542-0728.

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ACC Votes to Close Civil Case After Collecting Over $19 million for Defrauded Investors

Mar 6, 2026, 11:16
by
Nicole Garcia Phoenix, Ariz. - The Arizona Corporation Commission (ACC) approved a request to terminate the Maricopa County Superior Court case of Arizona Corporation Commission v. Densco Investment Corporation (Densco) ** after recovering almost $19.7 million owed to investors.

In 2016, the Commission filed a complaint against Denso for violations of multiple sections of the Arizona Securities Act, seeking appointment of a receiver to manage Densco affairs following the sudden death of Densco’s owner and sole operator. Densco had raised over $40,000,000 from investors, all of which was loaned to real estate ventures. The investors were told that the maximum loan-to-value ratio was 70% and the loans were protected by first deeds of trust. This information turned out to be false. Some loans were at or exceeding 100% loan-to-value and some of the properties were not even secured with a deed of trust.

During the claims process, the Receiver identified 113 investors who were owed $31,446,001. Through coordinated efforts, the Commission and the Receiver successfully recovered $19,788,384 for the distribution to the investors. Additionally, the Commission is assigned a criminal restitution order for $16,946,384 for collection and distribution to investors. At this time, investors have had more than 63% of their losses returned to them.

All documents relating to this agenda item can be found in the Maricopa County Superior Court online docket at https://www.superiorcourt.maricopa.gov/docket/CivilCourtCases/ and entering case no. CV2016-014142.

For further questions regarding this matter, contact the Investigator on Duty at the Arizona Corporation Commission’s Securities Division at 602-542-0662, or email SecuritiesDiv@azcc.gov.

Arizona Corporation Commission
Phoenix Office
1200 W. Washington Street
Phoenix, AZ 85007