The Reno Gazette-Journal has published a lengthy essay that highlights the weak punishment meted out to real estate licensees who facilitate short sale fraud.
In this case, real estate broker Kyle Krch of Krch Realty and his agent Michael Harding were fined by the Nevada Real Estate Commission. For 39 violations, Krch was fined $102,000 plus over $10,000 in fees for failing to “represent his distressed sellers and provide them a written disclosure about his financial interest with the investment group buying their properties.” Michael Harding has to pay $23,000 plus $3,167 in costs.
The article suggests that the punishment was not enough because neither licensee will have his license suspended.
So far, there is no indication that Washoe County District Attorney’s office or the Nevada Attorney General have any interest in prosecuting.