Licensure Applications -- Disclosing a Record -- Part 1 -- The Cover Up is Worse than the Crime

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Professional license applications require potential licensees disclose prior criminal convictions or open criminal cases. Current licensees seeking an additional license must also answer these questions. This self reporting obligations establishes a base level of honesty, ethics, and moral turpitude Pennsylvania's licensing boards expect from their licensees.


Board investigations of licensee's criminal record (disclosed or not) takes time. In May 2013 Bryan Hawks applied for a real estate sales person license. He stated he did not have a criminal record. However, in April 2004 Hawes plead guilty in federal court to two counts of mail fraud. He was sentenced to jail and supervised release.


In 2017 Hawes' false answer on the Real Estate Commission application was discovered. Real Estate Commission prosecutors filed an Order to Show Cause for discipline, a hearing took place, and on May 11, 2018 the the Commission revoked Hawes' license concluding it was secured by fraud and deceit. Hawes appealed to the Commonwealth court, claiming the Commission abused its discretion. Haws claimed the documents upon which the Real Estate Commission relied were not competent evidence. Hawes produced a Pennsylvania State Police criminal background check showing no criminal record.


The Commonwealth court rejects Haws' contention, determining Hawes' $2 million dollars of fraud related restitution precluded Hawes from a reasonable basis to believe he did not possess a prior criminal record. Hawes' obligation to truthfully and honestly answer the application's criminal history inquiry is paramount to his fitness to hold the license. The Court explicitly emphasizes a conviction for federal mail fraud disqualifies Hawes from receiving a real estate license. The Court affirms the Real Estate Commission's obligation of protecting the public and the integrity of the profession.


The court also concludes a federal criminal conviction obviously is a conviction subject to disclosure and Hawes' failure to disclose such is knowing, intentional, and a fraudulent violation of section 604A of the Real Estate Commission Act. The Act, 63 P.S. § 455.522(a), requires an potential realtors to include such information of the applicant as the Commission shall require. Truthful and complete responses in conjunction with an applicant swearing that the information is true and complete allows for license revocation based upon an applicant's failure to disclose facts relevant towards consideration of his license.


As with all disciplinary actions, Hawes presented mitigation evidence regarding the performance of his duties as a realtor. Mitigation evidence included no complaints regarding his conduct as a licensee, his reputation in the community for being honest and trustworthy, and that he did not act in bad faith or with dishonesty in connection with any real estate license transaction.


Commonwealth Court rejects this mitigation evidence and affirms the Real Estate Commission's decision because Hawes obtain his license by failing to disclose his prior felony conviction. Haws failure to disclose a felony conviction is a very serious offense, akin to acting with dishonesty and a lack of moral turpitude. Hawes took away the Commission's opportunity to protect the public and examine whether Hawes would have received a license in the first place. Because Hawes' omission in disclosing his federal felony conviction and jail sentence constituted a false representation of which could not reasonably believe as true, the evidence before the Real Estate Commission was appropriate and the Commission acted within the scope of its authority under the enabling rules and statutes.


The moral of this case is quite simple. Be truthful honest and provide full and complete disclosure of any prior criminal convictions or pending criminal cases on every license application. Failure to do so will result in the license revocation upon discovery by any licensing board. Please call to discuss your license application and proper disclosure and explanation of any prior criminal offenses.

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