The Utah Real Estate Commission said Monday that it has revoked the real estate license of a Utah County broker accused of 44 violations in mortgage-fraud scheme.
The commission approved the order against Ronald K. Clarke, who was accused of falsifying property values and other violations involving the Provo Riverbottoms development.
"Brokers like Mr. Clarke give the rest of our honest, hard-working real estate licensees a black eye, so we are happy he can no longer conduct real estate deals in Utah," said Mark Steinagel, director of the Utah Division of Real Estate, in a news release. "We hope this sends a strong message that Utah is taking action against those who commit mortgage fraud."
Clarke was cited for inflating property sale values with false appraisals, in some cases by more than a $1 million per transaction over the actual sale price he reported to the Wasatch Front Multiple Listing Service, the commission said in the news release. The first transaction took place in October 2005, and the incidents continued until March 2006.
Clarke admitted to 11 incidents of inflating prices. His aim was to create false comparable sales for a partnership that included Bradley Kitchen, David Bolick, Steven Cloward and Jeffery David Garrett.
The five men conspired to obtain fraudulent loans on homes in the Provo Riverbottoms, for which they grossly inflated market values with false appraisals, the commission said. The loans were secured with the good credit of straw buyers and amounted to a total of at least $18 million, which was divided among the participants.
Clarke pleaded guilty to one count of wire fraud in August and faces up to 20 years in prison, but prosecutors recommended a lesser sentence for his cooperation in the case. The other four men also pleaded guilty in the multimillion-dollar scheme.
The commission's order to revoke Clarke's real estate license prohibits him from reapplying for a new license for five years after he has completed his prison term and probation. Additionally, the order imposed a $22,000 civil penalty and required Clarke to appear at a hearing before the commission if he ever wants to seek to reapply for a real estate license in Utah.
E-mail: jlee@desnews.com