Judge suggests Dacono outlet mall settlement

PHOENIX — An Arizona administrative-law judge has recommended nearly $5.3 million in restitution and fines for the fourth and final defendant in an apparent real estate scam case stemming from a failed shopping-mall project in Dacono.

The Arizona Corporation Commission is scheduled to consider the recommendation in Charles Ray Stedman’s case at its Dec. 18 to 19 meeting.

Nearly a year ago, the commission accused Stedman, Wendell “Ted” Decker, Keith “Skip” Davis and Charles Testino of fraud, selling unregistered securities and being unregistered dealers. The case centered on property in Dacono and a now nine-year effort to turn it into the Dacono Factory Stores.

In 1996, after four years of development work — including arranging a tax-benefit package from the city of Dacono — Decker and Stedman had exhausted their own funds, say commission documents. They brought in Davis and Testino to sell promissory notes for a 10 percent commission and equity interest in the project.

Over a four-year period, 124 promissory notes were sold to 110 investors (mainly in Arizona), totaling nearly $5.3 million. By Stedman’s hearing on June 25, the total due to investors had climbed to more than $22 million, documents say.

Stedman could not be reached for this article.

The commission will make the final decision on the case.

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