Action 9 investigates felon real estate agents

ORLANDO,Fla. — You trust real estate agents with the biggest purchase in your life, but a month-long Action 9 investigation found that in Florida there's a chance your licensed agent is a felon who committed financial crimes, and is still serving probation.

"He just told one lie after another," said Connie Mustipher, who claims a Florida real estate agent had a license to steal.

Garry Martin had offered to refinance her properties.

"I lost over $450,000," said an emotional Mustipher.

Martin is behind bars, guilty of a money-laundering conspiracy that cheated clients out of $5,000,000. 

Later Mustipher discovered Martin had a felony history as an agent in New York before he sold real estate in Florida.

'We do not do enough to screen and see who we allow in to do business in the state of Florida,' said Mustipher.

Real estate agents handle billions in property transactions, yet Action 9's investigation found that many have been convicted of financial or violent crimes.

Action 9 compared a list of licensed realtors against a criminal database to find agents licensed today have been found guilty of felony crimes -- 188 agents statewide and 31 in central Florida.

The search turned up a South Florida agent guilty of organized fraud and grand theft, an Orlando woman who altered financial documents to steal money, and a Miami man convicted of $100,000 grand theft.

'Why can't there be a screening board with complete access?" said Mustipher.

The Florida Real Estate Commission is supposed to protect home buyers, but Action 9 found out of 58,000 license applications only 194 have been denied since 2013.

Unlike some states, Florida regulators allow licensed felons on a case by case review.

Critics said that's too lenient.

"Crimes against trust in general, they have no business having a real estate license,'" said Florida Sen. Darren Soto.

Mustipher said she agrees that more should be done.

"I lost a lot. I lost a lot," she said.

The Florida Real Estate Commission had no direct response to the number of agents we discovered with felony records. It did say all applicants must disclose criminal histories and complete background checks. They did supply the following statement:

Hi, Todd-

Generally speaking, when the Department of Business and Professional Regulation (DBPR) is notified of a conviction, the Florida Real Estate Commission (FREC) handles each instance on a case-by-case basis. Real estate licensees in the state of Florida require licensure through the Florida Real Estate Commission (FREC). At the time of application, applicants are required to disclose prior criminal history, license discipline, application denial and judgments against the applicant. All applicants must meet the qualifications for practice as outlined in Florida Statute Section 475.17.

Following the application process, in order to be eligible to take the real estate examination, applicants are required by Florida law to complete a background check through an approved source. Florida Statute Section 475.175(1)(a) states: A person shall be entitled to take the license examination to practice in this state if the person: Submits to the department the appropriate signed or electronically authenticated application, digital fingerprint data and fee. The digital fingerprints shall be forwarded to the Division of Criminal Justice Information Systems within the Department of Law Enforcement for purposes of processing the fingerprints to determine if the applicant has a criminal history record. The fingerprints shall also be forwarded to the Federal Bureau of Investigation for purposes of processing the fingerprints to determine if the applicant has a criminal history record. The information obtained by the processing of the fingerprints by the Department of Law Enforcement and the Federal Bureau of Investigation shall be sent to the department for the purpose of determining if the applicant is statutorily qualified for examination.

As mentioned above, each application for licensure is considered on a case-by-case basis. Although the FREC has delegated the Department the authority to approve applicants with certain crimes, FREC has the authority to approve or deny applications that may require further review. Once licensed, a licensee must, within 30 days, notify the Department in writing of any plea or conviction in a criminal case pursuant to Florida Statute Section 455.227(1)(t). Failure to notify the Department could result in discipline of the license. Additionally, if the criminal charge was one involving fraudulent or dishonest dealing, a crime of moral turpitude or a crime related to the practice of real estate, per Florida Statute Section 475.25(1)(f), the license may be subject to discipline.

Best,

Chelsea Eagle

Office of Communications

Florida Department of Business and Professional Regulation

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