Property manager defrauds HOAs and bank out of $2.1M, uses money to gamble, feds say
While managing HOAs and properties in Utah, a man defrauded tenants, a Las Vegas bank and others of more than $2.1 million over a span of five years, federal prosecutors said.
Blake Floyd Cozzens, of Cedar City, used the money belonging to two HOAs, his tenants and property owners he managed to benefit himself from January 2020 to January 2025, according to prosecutors.
He also defrauded a California corporation, which offers real estate-related services, out of $210,000 and scammed a Las Vegas bank out of $1,395,673.58 to go gambling at casinos, prosecutors said.
On March 27, Cozzens, 35, pleaded guilty to wire fraud and bank fraud in connection with his schemes, according to a news release by the U.S. Attorney’s Office for the District of Utah.
His guilty plea came a few days after prosecutors said he was charged by felony information on March 24.
Cozzens’ defense attorney, Matt A. Munson, didn’t immediately return McClatchy News’ request for comment March 28.
In a statement Cozzens filed in court, before pleading guilty, he acknowledged that as a property manager, it was his responsibility to protect “funds belonging to the HOAs, property owners, and tenants.”
Instead of safekeeping the money, he stole $510,000 from the Cedarbend HOA and $25,000 from the Artisan Park HOA. Both homeowners associations are located in Cedar City, according to his statement.
“I also obtained other funds from property owners and tenants, including from accounts I owned or controlled containing security deposits and prepaid rent,” Cozzens wrote.
He also said he managed funds for Velocity Holdings, a technology company that he acknowledged stealing $51,300 from.
Another company, the California corporation AppFolio Inc., which assists in real estate management, was listed as the next victim in Cozzens’ statement.
According to prosecutors, Cozzens “submitted fraudulent deposits to an online application” offered by AppFolio, defrauding the corporation of $210,000.
AppFolio is based in the Santa Barbara area.
“Cozzens fraudulently obtained at least $772,966 from HOAs, property managers, tenants, and (AppFolio),” the U.S. Attorney’s Office said.
Cozzens also acknowledged in his statement that he scammed JPMorgan Chase Bank.
Cozzens said he “obtained seven cashier’s checks from JPMorgan Chase Bank totaling $1,414,000,” then took the checks to Las Vegas casinos to receive credits for gambling.
Afterward, Cozzens insisted to the bank that he lost the cashier’s checks, prosecutors said.
But that was a lie, according to prosecutors.
As a result, the bank stopped “payments to the casinos,” causing “the bank to lose $1,395,673.58,” prosecutors said.
Cozzens has agreed to pay the victims he defrauded restitution as part of his plea agreement, the U.S. Attorney’s Office said.
His sentencing hearing is scheduled for June 11, according to prosecutors.
Cedar City is located in southwestern Utah and is about a 170-mile drive northeast from Las Vegas, Nevada.
This story was originally published March 28, 2025 at 12:51 PM with the headline "Property manager defrauds HOAs and bank out of $2.1M, uses money to gamble, feds say."
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