illinois department of financial and professional regulation...prosecutions, hector rodriguez –...

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Illinois Department of Financial & Professional Regulation, Division of Real Estate Real Estate Administration and Disciplinary Board

OPEN Minutes Date: September 12, 2019 Call to Order: 9:40 a.m. –Laurie Murphy – Chairperson Location: IDFPR – Division of Real Estate

100 W Randolph, 9th Floor, Room 258 Chicago, IL 60601 And Via Interactive Video Conference at IDFPR 320 W. Washington, 2nd Floor, Room 258 Springfield, IL 62786

Board Member(s) Present: Denise Akason, Joe Castillo, David Maloof, Carol Meinhart,

Michael Oldenettel, Tammy Owens, Everett Ward, Norm Willoughby

Board Member(s) Absent: Joe Cohen, Laura Ellis, Dennis Hiffman, Suzanne Martinez, Nykea

Pippion-McGriff, Michael Prodehl, Gabriela Roman Division Staff Present: Gabriela Nicolau – Deputy General Counsel, Adrienne Levatino –

Associate General Counsel, Ericka Johnson – Chief of Prosecutions, Hector Rodriguez – Chief of Audits and Investigations, Donielle Philpott – Policy Manager, Susan Sigourney – Board Liaison, Debra Malinowski - Board Liaison

Guest(s) Present: Larry Toban – Real Estate Institute, Mike Fair – Your House

Academy, Rocky Esposito- AHI Real Estate, Tina Stepaniak -Chicago Association of Realtors, Edward Williams – Attorney

Illinois Department of Financial and Professional Regulation Division of Real Estate

JB PRITZKER

Governor DEBORAH HAGAN

Secretary

MARIO TRETO JR. Acting Director

Division of Real Estate

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Topic Discussion Action Call to Order Chairperson Laurie Murphy opened the meeting. The meeting was

called to order at 9:40 am.

Approval of Open Minutes

The Board reviewed the Open Minutes from the August 8, 2019 Real Estate Administration and Disciplinary Board meeting.

Motion made by Willoughby, seconded by Ward to approve the Open Minutes. Motion carried.

Public Comments The Guests introduced themselves. There were no public comments

Licensing Report

The 2019 Licensing Report for activity conducted in August was presented and discussed. A copy of the report is attached to and made a part of these minutes.

Education Report The 2019 Education Report through the month of August was presented and distributed. A copy of the report is attached to and made a part of these minutes.

Complaints Report The 2019 Complaints Report through the month of August was presented and distributed. A copy of the report is attached to and made a part of these minutes.

Audits Reports

The 2019 Audits Report for activity conducted in August was presented and distributed. A copy of the report is attached to and made a part of these minutes.

Investigations Report The 2019 Investigations Report through the month of August was presented and distributed. A copy of the report is attached to and made a part of these minutes. Mr. Rodriguez mentioned that a Division investigator transferred to another state agency. This now leaves three vacancies. The Division currently has two job postings for the real estate investigator position. One position will be for the Springfield location and the other will be for the Chicago location.

Prosecutions Report

The 2019 Prosecutions Report through the month of August was presented and distributed. A copy of the report is attached to and made a part of these minutes. Ms. Johnson mentioned the Prosecutions unit has one vacancy. An attorney position will be posted on September 13, 2019.

Real Estate Recovery Fund Report

The Real Estate Recovery Fund Report for the 2020 Fiscal Year through August 2019 was presented and distributed. A copy of the report is attached to and made a part of these minutes.

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Topic Discussion Action Chairperson Murphy explained that the expenditure of $906.00 from the Recovery Fund was a statutory transfer that occurs through the State Treasury.

Formal Hearing Schedule Guests and Board Members received a schedule of the upcoming formal hearings. A copy of the report is attached to and made a part of these minutes. Ms. Johnson mentioned that the Division is negotiating settlement agreements with Wong’s attorney.

Old Business

Chairperson Murphy mentioned that the Division received confirmation that PSI will start administering the new national exam, the updated state exam using the pool of questions that were reviewed by the SME group in July and the separation of the national and state exam questions, effective December 1, 2019. PSI is working in conjunction with the Division on a communication piece to provide all licensed Illinois Educational Providers.

New Business

Chairperson Murphy mentioned that the amendments made to the Real Estate License Act went into effect August 9, 2019. The Division along with industry stakeholders are working diligently on drafting the Rules for the amendments to the Real Estate License Act. The Department will put out a publication in the next couple of weeks that provides information on the important changes in the Act which will include how the Department is going to handle the post license education transition for new brokers getting their initial license within the license term that expires on April 30, 2020. Chairperson Murphy will provide the Board the publication once it’s available and a copy of the “red line” version of the Public Act 101-0357. Chairperson Murphy mentioned the Division is revamping the current 90-hour pre-license course to meet the requirements of the new 75-hour pre-license course. The Division will continue to honor the current 90-hour pre-license course until the new 75-hour course is available. The Division is also developing three new 15-hour post license courses and the Residential Leasing Agent 8-hour continuing education curriculum. There will also be a transition period for the current 6-hour continuing education requirement to the new 8-hour continuing education requirement for Residential Leasing Agents. The Board discussed the new advertisement requirements for “Teams”. Chairperson Murphy asked the Board to forward her any comments and/or suggestions regarding the new changes to the Real Estate Licensing Act.

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Topic Discussion Action Public guest Mr. Fair, mentioned that he has attended several meetings where the industry has shown a concern on regulations for wholesalers. The Board had a discussion on this topic. The Board also discussed Section 5-70 (l) of the Real Estate License Act regarding managing brokers completing the pre-license 45-hour brokerage administration and management course shall satisfy the 12-hour broker management continuing education requirement for the license term in which the course is taken. Chairperson Murphy mentioned that she will follow-up with Mr. Reed for further discussion on this topic.

Motion to go into Closed Session

Roll Call Vote: Denise Akason, yes Joe Castillo, yes David Maloof, yes Carol Meinhart, yes Michael Oldenettel, yes Tammy Owens, yes Everett Ward, yes Norm Willoughby, yes

A motion made by Akason seconded by Ward to go into Closed Session for purposes of reviewing Closed Minutes and for deliberations pursuant to Section 2 (c) (4) and (15) of the Open Meetings Act at 10:15 a.m. Motion carried by roll call vote.

Closed Session

The August 8, 2019 closed minutes were reviewed by the Board. The Board reviewed the Consumer Complaints Review and Case File Review Committee’s reports for: August 14, 2019 20 Cases Recommended for Closure by Investigations 10 Cases Referred to Prosecutions by Investigations 19 Cases for Closure by Prosecutions 10 Complaints Referred to Investigations 3 Complaints Recommended for Closure September 4, 2019 20 Cases Recommended for Closure by Investigations 10 Cases Referred to Prosecutions by Investigations 11 Case for Closure by Prosecutions 20 Complaints Referred to Investigations 6 Complaint Recommended for Closure The Board deliberated on pending enforcement actions.

5

Topic Discussion Action Motion to go into Open Session Approval of August 8, 2019 Closed Minutes Recommendations

6 Cases were deliberated during Closed Session. DRE v. Allison McGowan Case #2018-11672 DRE v. Kent Madison Case #2018-11590

A motion made by Castillo, seconded by Ward to go into Open Session at 11:43 a.m. Motion carried. Motion made by Owens, seconded by Meinhart to approve the August 8, 2019 Closed Minutes. Motion carried. Motion made by Akason, seconded by Willoughby to approve the Board’s recommendations in Closed Session. Motion carried. The Board recommends an indefinite suspension for a minimum of 6 months, and to impose a $1000.00 fine, upon the license of Allison McGowan. The Board recommends adopting in part the recommendation of the Administrative Law Judge that shall receive no discipline, and to impose a $1,000.00 administrative fee, upon the license of Kent Madison.

6

Topic Discussion Action

DRE v. Tarrena Parks Case #2018-11728 DRE v. Gohar Rathore Case #2018-11764 DRE v. Denise Ann Reibel Case #2018-11768 DRE v. Kelle Brown Case #2018-11289

The Board recommends adopting in part the recommendation of the Administrative Law Judge that shall receive no discipline, and to impose a $1,000.00 administrative fee, upon the license of Tarrena Parks. The Board recommends adopting in part the recommendation of the Administrative Law Judge that shall receive no discipline, and to impose a $1,000.00 administrative fee, upon the license of Gohar Rathore. The Board recommends adopting in part the recommendation of the Administrative Law Judge that shall receive no discipline, and to impose a $1,000.00 administrative fee, upon the license of Denise Ann Reibel. The Board recommends adopting the recommendation of the Administrative Law Judge that shall receive no discipline, and to impose a $75.00 administrative fee

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Topic Discussion Action The Board signed 6 Findings of Facts, Conclusions of Law and Recommendations to the Director Orders

13 Consent Orders and Non-Disciplinary Orders were reviewed and discussed in Closed Session. The Board received a report of the final actions by the Director on the following 15 Consent Orders previously signed by the Board: Stacy Smith 2019-00264 Sandra Gibbs 2018-10495 Geraldine Blair 2018-11265

upon the license of Kelle Brown. DRE v. Allison McGowan #2018-11672 DRE v. Kent Madison #2018-11590 DRE v. Tarrena Parks #2018-11728 DRE v. Gohar Rathore #2018-11764 DRE v. Denise Ann Reibel #2018-11768 DRE v. Kelle Brown #2018-11289 The Board signed 6 recommendations. Motion made by Akason seconded by Willoughby to ratify the actions of Consumer Complaint Review (CCR) and Case File Review Committee (CRC). Motion carried. The Board signed 10 Consent Orders and Non-Disciplinary Orders.

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Topic Discussion Action Linda Flajnik-Peter 2018-11371 Anton Ketchmark 2018-11511 Leslie Pancer 2018-11725 Joshua Pinto 2018-11741 Pradip Shah 2018-11801 Tom Sizopoulos 2018-11806 Andy Quiroz 2004-60409 Jonathan Valdivia 2007-60525 Laurence Hundman 2018-09268 Sylena Price 2018-11749 Natasha Jones 2018-10429 Nick Patterson order includes 3 cases 2015-00027 2016-11570 2017-00431

Adjournment Next meeting scheduled for October 10, 2019 in Chicago and via Interactive Video Conference in Springfield.

There being no further business to discuss motion made by Ward, seconded by Akason to adjourn at 11:45 a.m. Motion carried.

PROFESSION SPONSOR CHG. INITIAL LIC. RENEWALS ACTIVERE Managing Broker 85 33 51 15,252 RE Leasing Agent 30 118 4 3,391 Real Estate Broker 559 518 13 53,635 RE Branch Office 21 8 2 1,217 Real Estate Broker Corporation 5 5 9 3,546 Real Estate Broker Partnership 0 0 0 30 RE Limited Liability Firm 4 15 5 1,871 RE Education Provider (new) 0 5 0 54 RE Pre-Lic Instructor 0 2 31 219 RE Pre-Lic Course 0 26 0 328 RE CE Instructor 0 3 2 266 Real Estate CE Course 0 50 0 424 TOTAL 704 783 117 80,233

LICENSE REPORTCALENDAR YEAR 2019

AUGUST

MANAGING BROKER 2019

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

INITIAL LIC. 7 43 14 38 56 77 30 33 RENEWALS 3 2,906 2,972 7,187 1,677 74 85 51 SPONSOR CHG. 133 110 116 135 140 104 107 85 TOTAL ACTIVE 16,314 16,353 16,377 16,449 16,498 15,362 15,172 15,252

MANAGING BROKER 2018

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

INITIAL LIC. 32 28 63 47 33 94 25 49 29 38 17 22 RENEWALS 24 11 16 21 23 23 16 6 8 7 3 4 SPONSOR CHG. 118 124 111 113 132 101 114 87 77 125 104 99 TOTAL ACTIVE 16,077 16,120 16,193 16,277 16,006 16,111 16,139 16,196 16,236 16,273 16,295 16,317

14,500

15,000

15,500

16,000

16,500

17,000

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

ACTIVE MANAGING BROKERS

2018

-

2,000

4,000

6,000

8,000


MANAGING BROKER

INITIAL LIC.

RENEWALS

SPONSOR CHG.

2019

BROKER 2019

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

INITIAL LIC. 305 338 602 334 288 399 508 518 RENEWALS 44 34 50 59 99 31 17 13 SPONSOR CHG. 940 639 954 663 706 669 637 559 TOTAL ACTIVE 49,966 50,556 51,117 51,623 52,092 52,489 53,186 53,635

BROKER 2018

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

INITIAL LIC. 248 319 476 350 379 656 532 676 312 391 363 569 RENEWALS 21 5,638 7,047 22,392 6,927 885 288 111 77 53 53 40 SPONSOR CHG. 764 1,073 844 891 1,048 576 574 521 509 694 600 674 TOTAL ACTIVE 53,751 54,021 54,458 54,903 47,884 45,827 46,787 47,506 47,949 48,274 48,805 49,513

40,000

45,000

50,000

55,000

60,000


ACTIVE BROKERS2018

-

200

400

600

800

1,000


BROKER 2018

INITIAL LIC.

RENEWALS

SPONSOR CHG.

LEASING AGENT 2019

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

INITIAL LIC. 54 49 57 48 57 104 23 118RENEWALS 13 12 14 8 4 9 11 4 SPONSOR CHG. 70 43 45 30 60 36 36 30TOTAL ACTIVE 2,910 2,934 2,936 3,010 3,074 3,239 3,304 3,391

LEASING AGENT 2018

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

INITIAL LIC. 45 35 50 47 58 88 63 112 59 73 82 87RENEWALS 5 2 5 9 368 286 761 404 52 26 14 21 SPONSOR CHG. 40 55 41 53 33 50 80 44 28 30 29 29TOTAL ACTIVE 3,798 3,155 3,206 3,242 3,308 3,383 3,429 2,990 2,412 2,494 2,691 2,828

2,6002,8003,0003,2003,4003,600


ACTIVE LEASING AGENTS2019

0

20

40

60

80

100

120


LEASING AGENT 2019

INITIAL LIC.

RENEWALS

SPONSOR CHG.

2019 Real Estate Examination Pass Rates - Pass Rate

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Managing Broker 49% 43% 52% 49% 55% 43% 40% 55%Total Number Tested 53 61 52 59 65 35 52 44

Broker 43% 47% 50% 47% 45% 41% 43% 47%Total Number Tested 836 858 1069 1100 1072 953 869 942

Leasing Agent 52% 49% 50% 56% 50% 53% 48% 53%Total Number Tested 130 150 180 176 191 198 161 189

2018 Real Estate Examination Pass Rates - Pass Rate

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Managing Broker 67% 66% 70% 57% 67% 69% 64% 72% 70% 62% 40% 42% Total Number Tested 84 62 83 88 70 36 64 51 50 45 55 57

Broker 44% 43% 43% 42% 43% 38% 39% 40% 39% 47% 49% 47%Total Number Tested 946 975 1344 1104 1363 1076 1161 1145 880 962 902 896

Leasing Agent 52% 57% 55% 56% 50% 47% 54% 57% 61% 48% 51% 53%Total Number Tested 136 113 143 146 175 129 153 215 171 146 132 120

25%30%35%40%45%50%55%60%65%70%75%80%85%90%95%

100%


2019 Real Estate Examination Pass Rates

Managing Broker

Broker

Leasing Agent

Division of Real Estate2018 Education Report

2019(510)

Pre-License Schools Licensed

(511) Pre-License

Branches Licensed

(512) Pre-License Instructors

Licensed

(513) Pre-License

Courses Licensed

(562) CE

Schools Licensed

(563) CE

Instructors Licensed

(564) CE Courses

Licensed

(515) Education Providers Licensed

Total # of Licenses Issued

# in Process

Pending Provider

Info

January 0 1 3 0 1 9 27 0 41 17 6February 1 6 1 3 0 3 9 0 23 7

March 0 13 1 0 0 1 1 3 19 123 39

April 0 0 3 25 0 3 138 10 179 237 78

May 0 0 1 59 0 6 66 3 125 36 36

June 0 0 2 43 0 3 84 10 127 228 47

July 3 175 5 89 26 264 61 61August 2 26 3 50 5 76 18 18

September

October

NovemberDecemberYTD Total 1 20 16 331 1 33 464 57 854 720 292

Total Active Licenses

53 213 262 477 34 414 1006

DRE Education's Issued Licenses DRE Education's Pipeline

Diane GreenNate Chandler Jeremy Reed

August 2019Complaint Report

Column1 New RE Complaints

New RE Complaints Assigned To

Investigations Complaints Closed At

Intake ReviewRE Matters Closed

At CCR

January 33 25 5 3

February 36 21 6 9

March 38 23 9 6

April 50 31 9 10

May 51 31 12 8

June 42 23 16 3

July 32 19 7 6

August 51 30 12 9

September

October

November

December

Total 333 203 76 54

August 2019Investigations Report

Column1Pending/Open RE Cases

pending CRC/ READ Approval

RE Cases 3 months or

less

RE Cases Over 3 months


RE Cases over 9

months

RE Cases over 12 months


New Assigned to Investiagations RE

Cases Received

RE Cases Referred to

ProsRE Cases Closed

January 500 14 25 39 119 91 178 48 16 0 18

February 501 26 31 45 94 97 189 45 22 4 16

March 499 17 30 57 72 99 195 46 23 13 14

April 506 44 35 56 57 96 216 46 22 5 17

May 487 46 37 62 49 85 205 49 25 19 24

June 471 51 40 59 63 58 190 61 28 13 33

July 442 52 33 67 70 34 166 72 23 20 33

August 405 60 28 65 68 27 155 62 16 28 27

September

October

November

December

Total 175 102 182

MONTHLY AUDIT REPORT

READ Board – September 12, 2019

Licensees that have not yet had an audit in the Chicago Area region are continuing to be assigned to the non-Chicago Area Region examiners. In the effort to accelerate the number of audits to be conducted, Brokerage Verification Reports are being mailed to these licensees. This report allows the examiner to assess the level of activity of the licensee then complete the audit process by mail or schedule an on-site audit. From the total number of first audits closed in August, 24 files were in this region. FIRST AUDITS COMPLETED

RESOLUTION TYPE: BROKERAGE VERIFICATION REPORT – NOT PRACTICING TOTAL COMPLETED: 3

An audit conducted by mail and the licensee has not performed licensed real estate activity within the past three years. RESOLUTION TYPE: BROKERAGE VERIFICATION REPORT – PRACTICING TOTAL COMPLETED: 8

An audit conducted by mail and the licensee has performed licensed real estate activity within the past three years. RESOLUTION TYPE: INSPECTED – NOT PRACTICING TOTAL COMPLETED: 0

An on-site audit has been conducted and the licensee has not performed licensed real estate activity within the past three years. RESOLUTION TYPE: INSPECTED – PRACTICING TOTAL COMPLETED: 17

An on-site audit has been conducted and the licensee has performed licensed real estate activity within the past three years. RESOLUTION TYPE: NOT INSPECTED TOTAL CLOSED: 4

This category is comprised of licensees not requiring an audit. This includes licensees that are out-of-state residents, deceased licensees, companies that are out of business (or license status has become “inactive”) or change of sponsorship. RESOLUTION TYPE: REFERRED TO SUPERVISOR TOTAL CLOSED: 0

This category is comprised of licensees that have either not responded to a Brokerage Verification Report after two attempts from the examiner or has failed to appear for the scheduled on-site audit after two attempts. RESOLUTION TYPE: SUPERVISOR REFERRAL TO PROSECUTION TOTAL CLOSED: 0

This category is comprised of licensees that have not responded to a Brokerage Verification Report after three attempts from the supervisor. In these instances, the licensee has either failed to notify IDFPR of their correct address or failed to respond. FOLLOW-UP AUDITS COMPLETED BY EXAMINER

First audits conducted wherein violations have been found are required to show compliance. Completed in August:

RESOLUTION TYPE: FOLLOW-UP – IN COMPLIANCE TOTAL COMPLETED: 18

RESOLUTION TYPE: FOLLOW-UP – REFERRED TO SUPERVISOR TOTAL COMPLETED: 5

RESOLUTION TYPE: FOLLOW-UP – ACKNOWLEDGEMENT PAGE ONLY TOTAL COMPLETED: 1

RESOLUTION TYPE: FOLLOW-UP – NO LONGER REQUIRED TOTAL COMPLETED: 2

AUDITS REFERRED TO SUPERVISOR – CLOSED

Licensees with remaining issues after an initial audit and follow-up or licensees that are unresponsive are referred to supervisor for review and further action. The following are files closed in August:

ACTION TYPE: ISSUES RESOLVED TOTAL COMPLETED: 1

ACTION TYPE: RETURNED TO EXAMINER WITH INSTRUCTION TOTAL COMPLETED: 2

August 2019Prosecutions Report

Column1Pending/Open

RE Cases

RE cases 3 months or

less

RE Cases over 3

months

RE Cases over 6

months



RE Cases over 24 months

New RE Cases Rec'd

Complaints filed

Informal Conferences

heldFormal

Hearings heldRE Cases Closed

CLOSED: Admin

CLOSED: Admin Warning Letter

CLOSED: CE Memo

Closed: Order

CLOSED: Consent Order

CLOSED: Non-Disc Order

CLOSED: Income tax Child support

Cases referred to General Counsel

January 858 324 361 115 10 32 16 81 8 4 2 49 7 0 0 1 8 4 29 0

February 622 103 273 189 13 29 15 36 14 10 2 272 9 4 128 4 109 0 18 0

March 600 65 303 90 95 28 19 40 44 8 0 62 5 1 21 2 11 0 22 0

April 453 72 109 129 96 29 18 38 6 7 3 185 3 3 22 6 138 0 13 0

May 519 124 65 184 96 30 20 99 3 4 0 33 1 0 0 1 0 0 24 3 4

June 453 118 53 117 36 109 20 36 5 4 0 102 8 2 3 27 40 10 9 0 3

July 383 92 83 53 26 111 18 73 4 7 3 143 21 3 0 66 1 1 45 0 6

August 353 117 48 34 27 109 18 66 17 9 5 96 18 8 4 14 10 1 40 0 1

September 0

October 0

November 0

December 0

Total 469 101 53 15 942 72 21 178 317 16 200 3

0

Real Estate Recovery Fund

FY2020 Beginning Balance Revenue Interest Transfers In Expenditures Transfers Out Sweeps/Borrowing Ending BalanceJuly 1,972,919.79$ 50,576.73$ 2,023,496.52$ August 2,023,496.52$ $47,646.87 906.00$ 2,070,237.39$ September -$ October -$ November -$ December -$ January -$ February -$ March -$ April -$ May -$ June -$ Total 98,223.60$ -$ -$ -$ -$ -$

* Statutory Transfers

READ Open Minutes September 12, 2019August 20192019 AUGUST DRE LICENSE REPORTLicense Report - 2019

2019 BROKERBroker

2019 LEASING AGENTLeasing Agent

2019 MANAGING BROKERSheet1

2019 Real Estate pass Real Estate percentagePass Rates

DRE Eduactional Report 2019 - AugDRE Education

Complaint Report August 2019Sheet1

Investigation Report August 2019Sheet1

Audit Report Cover -- 0819TOTAL COMPLETED: 17RESOLUTION TYPE: NOT INSPECTEDRESOLUTION TYPE: REFERRED TO SUPERVISORRESOLUTION TYPE: SUPERVISOR REFERRAL TO PROSECUTIONFOLLOW-UP AUDITS COMPLETED BY EXAMINERTOTAL COMPLETED: 18TOTAL COMPLETED: 5TOTAL COMPLETED: 1TOTAL COMPLETED: 2

AUDITS REFERRED TO SUPERVISOR – CLOSEDTOTAL COMPLETED: 1TOTAL COMPLETED: 2

Real Estate August 2019 Prosecution ReportSheet1

Recovery Fund Report FY20aFY2019

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