Commission Orders More than $7.2 Million in Restitution for Investors Defrauded by Commercial Real Estate Promoters

The Commission ordered respondents William M. Deegan of Scottsdale and his affiliated companies to pay $7,204,390 in restitution and a $100,000 administrative penalty for committing securities fraud in connection with a commercial real estate venture. The Commission found Mr. Deegan, a former securities salesman barred from the securities industry in 2004 for selling private investments not authorized by his securities dealer, controlled affiliated commercial real estate companies, Heartland Capital Partners, LLC, and Heartland Income Properties, LLC. Further, Deegan and Heartland Income Properties ignored a 2022 temporary cease and desist order issued by the Commission for fraudulently selling LLC interests in Heartland Income Properties while not registered.

Deegan and Heartland Income Properties failed to inform several investors about the Commission’s legal action. Heartland Capital Partners was also liable as a control person for the securities fraud violations. In settling this matter, the respondents admitted to the Commission’s findings only for the purposes of this proceeding but agreed to the entry of the consent order.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at edocket.azcc.gov and entering docket number S-21189A-22-0095.