No Problem?: Some Real Estate Brokers Accused or Convicted of Fraud Still Licensed in California

The Sacramento Bee in California found dozens of real estate professionals — people who have been charged with real estate-related crimes or sued by the state for fraud-related misdeeds, or who have pleaded guilty to such wrongdoing — who are still licensed and have no notations, flags, or disciplinary sanctions listed on their records with the Department of Real Estate (DRE). This means they are authorized to sell homes and originate mortgage loans. The number of alleged and admitted criminals still licensed by the state could be higher. Law enforcement agencies and prosecutors said they were unable to provide a list of all people charged with mortgage fraud over the past few years. So the Bee looked at 2010 news releases from the U.S. attorney’s office and the state attorney general’s office and past news reports to compile a list of people who had been charged with a real estate-related crime or sued by the state in recent years. The Bee then ran those names — about 260 — through the DRE’s licensee database and used other public records to confirm their identities. At least 45 of the accused or convicted wrongdoers were listed as licensed brokers or salespeople, and consumers would have no way of knowing of the accusations. Another dozen had their licenses suspended or revoked.