A local real estate corporation is in hot water with state officials after it allegedly failed to return security deposits to tenants.

Pennsylvania Attorney General Gerald Pappert announced yesterday at a press conference in State College that his office filed a lawsuit against S.C. Sun Corporation, 422 Clay Ave., on behalf of Penn State students and other downtown renters for violating the Landlord Tenant Act.

The suit demands that the realty company pay four complainants, who leased separate properties, a total of $8,090 in restitution.

State law requires that landlords provide tenants whose leases expire the full amount of their security deposits or a partial deposit return and a list of expenses detailing the withheld balance.

Rental companies must provide the deposit within 30 days of a tenant moving out or turning in his or her keys. If the deadline is not met, twice the original deposit's amount must be returned.

Tim Shirey, investigating agent for the State College Bureau of Consumer Protection office, said tenants began lodging complaints against the realty group about two years ago.

S.C. Sun Corporation owns about 30 properties throughout State College. Most are Victorian-style buildings clustered between the 400 and 500 blocks of West College Avenue that contains two to three apartment units each.

Representatives from S.C. Sun Corporation did not return phone calls placed yesterday for comment about the case.

Four students registered complaints filed as part of the civil suit, but Shirey said there were probably more who did not report a problem.

Shirey said the case is medium-sized in relation to other litigation the agency handles but added that it is very important because it sets a statewide example for other real estate agents to follow.

"We are here to monitor them, and we are going to bring litigation against them if they do not follow the law," Shirey said. "This is not just a problem with Penn State, but it is a problem with every college town. It exists everywhere."

Shirey said although most real estate agents in State College follow the rules, the ones that do not must be held accountable.

Barb Petito, spokeswoman for the Office of Attorney General, said Pappert was present at the conference to voice a growing concern over landlords taking advantage of tenants, especially students.

"Part of the attorney general's job is to make announcements to the public," Petito said. "We will enforce these laws."

Young people moving far away from their college towns after their leases expire makes pursuing financial compensation from real estate agents inconvenient for many, Petito said. She added that some real estate agents take advantage of that fact.

Under the rules of the Consumer Protection Law, the attorney general has the right to sue for civil damages on behalf of consumers.

Michelle Myers, a recent Penn State graduate, is named as a victim in the lawsuit.

Myers said she rented from S.C. Sun Corporation from August 2002 to August 2003. After having considerable trouble getting her deposit back, she lodged a complaint with the local Bureau of Consumer Protection office.

"All I wanted to do was get my money back," Myers said. "I didn't mean to get involved in a big lawsuit."

She also took matters into her own hands, threatening to sue the realty group if it did not return her money. She was financially compensated in December.

"Suddenly, they were willing to get me my money back," she said, adding that she requested her name be taken off the lawsuit last week.