Fraudulent Activity Down in Utah's Financial Institutions

Strategic Insights -

State regulators in Utah have reported a decline in fraudulent activity in the financial industry, which they attribute to the current economic downturn. With fewer people trying to take advantage of market conditions, complaints and enforcement actions have decreased significantly.

Key Takeaways:

  • The Utah Division of Real Estate received 675 complaints in the real estate section in fiscal 2008, compared to 440 in fiscal 2009.
  • In the mortgage lending realm, the division received 401 complaints in fiscal 2008, compared to 278 in fiscal 2009.
  • Enforcement actions by the division numbered 402 in fiscal 2008, then settled to 356 in fiscal 2009.
  • Fines in 2008 topped $418,000, more than twice 2009's total.
  • The division was approaching 47,000 licensees in 2007, a number that has settled back to 35,000 to date.
  • More than 5,600 new real estate types signed up in 2007, compared to 2,200 in 2009.
  • The numbers for the mortgage loan industry were more than 3,600 in 2007 compared with 1,000 in 2009.

Statistics:

  • 675 complaints in the real estate section in fiscal 2008
  • 401 complaints in the mortgage lending realm in fiscal 2008
  • 402 enforcement actions by the division in fiscal 2008
  • $418,000 in fines in 2008
  • 47,000 licensees in 2007
  • 35,000 licensees to date
  • 5,600 new real estate types signed up in 2007
  • 2,200 new real estate types signed up in 2009
  • 3,600 new mortgage loan industry registrations in 2007
  • 1,000 new mortgage loan industry registrations in 2009

Sources:

  • Standard-Examiner, "Fraudulent Activity Down in Utah's Financial Institutions" by Tim Gurrister, February 15, 2010
  • Utah Division of Real Estate
  • www.realestate.utah.gov

Note: The article provides specific names and stories of individuals involved in fraudulent activity, including Annagay Shorten, E-Money Solutions Mortgage, Benjamin Gale, Reed Smith, Cofrey Thornton, and Donald Sanders II. The Division of Real Estate's website is also mentioned as a source for summaries of disciplinary actions.