The proprietor of two Tennessee real estate management companies has been accused of collecting rent from tenants and failing to deliver the money to landlords, a charge that could result in the revocation of her license and potential legal trouble.

Marlene McGhee, the proprietor of Eagle Lane Realty and Eagle Lane Properties Management, has been accused of siphoning more than $30,000 from tenants and failing to deliver the rent to landlords who use her services, according to the Tennessee Real Estate Commission.

The commission has suspended the licenses associated with McGhee’s companies due to an insurance lapse unrelated to charges waged by her landlord clients and has been investigating multiple customer complaints, the agency told local media outlets this week.

“We trusted her to manage our properties,” said Sandra Meabon, the owner of a rental property in Memphis managed by McGhee, and one of at least four property owners currently lobbing complaints against the two companies. “We paid her. She was paid and she didn’t do that,” Meabon, who was only recently able to go inside her property, told WREG in Tennessee.

Meabon, who used Eagle Lane Realty to manage her Memphis property, said that McGhee collected over $30,000 in rent from her property over the course of a year but did not deliver rent from tenants for July and August of 2018.

TREC told Inman that its board unanimously voted to send McGhee an order giving her the chance to voluntarily revoke her real estate license, along with the licenses of her two companies. If McGhee does not comply, the board will have another meeting in 30 days.

It is unclear how many property owners McGhee may have duped, how much money she failed to deliver or how many buildings are involved in the investigation. McGhee did not immediately respond to Inman’s request for comment. At least two other property owners have been involved.

TREC also would not say whether the complaints would be passed on to local law enforcement.

According to Tennessee law, theft of between $1,000 and $10,000 can be charged as a Class D felony, punishable by between two and 12 years in prison and a fine of up to $5,000. It was unclear on Friday if any local law enforcement agencies have begun an investigation.

In the meantime, the Better Business Bureau also revoked Eagle’s accreditation and lowered the companies’ ratings to a D+.

“She basically stated that she wasn’t going to pay me anything until she heard the decision from the real estate commission,” Meabon said.

Local media, meanwhile, also uncovered that McGhee had filed for bankruptcy six times sine 2008. Along with the commission’s investigation, she is also being sued by several contractors and faces eviction from the home she currently rents.

Email Veronika Bondarenko

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×