Convicted Fraudsters Still Have Real Estate Licenses

So, whaddya gotta do to lose a real estate license? A Sacramento Bee investigation uncovered licensed real estate brokers who were suspected or even convicted of fraud, some of them even convicted for committing mortgage fraud.

Many suspected, convicted of fraud still have real estate licenses [The Sacramento Bee]

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  1. denros says:

    Working with realtors every day as I do, I have to say I’m not surprised at this. Not because all realtors are crooks (though a good percentage often act that way), but most realtor’s associations are corrupt; They’d probably only lose their license if they actually wronged another realtor who blew the whistle on them. I doubt most associations even do background checks when granting licenses.

    • ShruggingGalt says:

      There is a difference between a Realtorâ„¢ and a real estate agent. Fortunately they’re not as bad as Mon$ter Cab-lay when it comes to improper use of their trademark.

      But this is California, where you can get a contractors license under a new company name even if you owe lots of money for people you’ve bilked.

      • denros says:

        Yeah, I use the term interchangeably because in this market anyone who wants to sell knows they need the realtor designation, especially in this market. I was referring to the local associations which are usually mostly just superfluous clusterfucks which exist mostly to perpetuate the need for themselves.

    • jenjenjen says:

      I’d agree with that. My real estate agent wasn’t a “realtor” – he had a state license, but felt that the group in charge of the “realtor” brand was little more than a scam. I think personal word of mouth goes a long way in the real estate business – talk to someone who was happy with their person and go from there.

  2. intense_jack says:

    In Colorado we had a director in charge of these issues who was rabidly prusuing these fraudsters… then a few of our elected officials w/ mortgage broker buddies got involved and she lost her job. So sad… now there’s a ‘governing board’ that oversees the dept responsible for inquiry in to Mortgage Fraud and the process grinds on.

  3. 310Drew says:

    In Ohio it is a separate license to originate mortgages and sell real estate. That is the first thing California needs to change.

    Also in Ohio, you have to report any felony offenses you plead guilty to or were found guilty of to the Dept. of Real Estate but it does not necessarily mean you will lose your license. If you don’t report the felony and they find out about it your license is automatically gone with very little chance of getting it back.

  4. sqeelar says:

    From what just happened, there was one local Republican candidate who’s only campaign ads were paid for by the National Board of Realtors. Not only are they crooks, but are obviously politically connected to avoid major prosecution.

  5. suzieq says:

    When I was in California working for a mortgage broker and helping license all the loan reps, some of the reps couldn’t get licenses because they failed the background check because of DUIs or misdemeanors (one guy had a drunk in public on his record). It was really sad to see them work hard to pass the test, then get canned because they can’t be licensed.

    Granted, this was back in 2002, but things couldn’t have gone downhill that much since then. How in the world are they letting people convicted of fraud keep their licenses?

  6. Darkneuro says:

    A fraud conviction doesn’t mean a complaint to the real estate board for bad real estate practices.
    For someone to lose their license, they have to come up in front of the real estate board for review and the real estate board decides their license status. No complaint/no review? No problem!

  7. Fantoche_de_Chaussette says:

    Since when does being “suspected” of fraud mean that you should be punished?

    “Convicted” of fraud? OK, lose your license. But merely “suspected” of fraud? No way!

    Do we really believe that a mere accusation should be enough to ruin your life?

    • dpeters11 says:

      If they are suspected of fraud, their license should be suspended until they are cleared, then immediately reinstated if found innocent.

  8. sonneillon says:

    Take a class, pass a test, get E&O insurance your a Realtor. At least in many states. Realtor licenses are a dime a dozen.