The California Department of Real Estate (CDRE) has entered into a settlement with agent education and training firm Real Estate Trainers Inc. (RETI) and its former president Lance McHarg, according to an announcement on Tuesday.
According to the CDRE, McHarg took the state’s real estate license exam numerous times without achieving a passing score. After concluding an investigation, the agency said it found that McHarg had “subverted exam content for the purpose of including this information in educational materials offered by RETI intended for students preparing to take the State’s real estate license exam.”
“The subversion of real estate license examination content is something DRE takes very seriously,” Jeff Oboyski, the CDRE’s assistant commissioner, said in a statement. “Ensuring that those who attempt to compromise the integrity of our real estate license exams are held accountable for their actions underscores DRE’s commitment to consumer protection.”
As a result of the settlement, McHarg and RETI will be required to pay $60,000 in monetary penalties, damages and the costs incurred by the CDRE’s investigation and litigation.
In addition, McHarg has been barred from applying for or having any type of participation in an examination for a California real estate license. He is also barred from holding a real estate license, or holding any position of “employment, instructor, management, control or ownership in a real estate business or a business that offers pre-license, continuing education or any type of real estate license exam preparation courses” for three years.
McHarg’s former firm — as well as all of its officers, directors, instructors and any other affiliated persons — is also barred from applying for or participating in any examination for a California real estate license.
Additionally, it may not offer any type of real estate license exam preparation course or pre-license courses that use questions copied or subverted from DRE license exams for three years. RETI must also remove McHarg as an instructor, officer, director agent, associate, independent contractor, employee or affiliate of the company.
RETI and McHarg did not immediately return HousingWire’s request for comment.
English