Property Manager ran off with Security Deposists

[Carter Bushman]

Quick question for y'all.

A friend of mine is renting a townhouse in Provo, UT. He just found out that the man hired by the property management ran off to Russia with all the rents collected that month as well as all the security deposits. True Story.

My question is, when this happens is the landlord still legally required to still refund the security deposits as my buddy moves out? They were refundable.

I would think they would be but I wanted to ask some brighter minds.

Thanks!