Colorado Regulators Seek License Surrender From Two Brokers Implicated In Alleged Mortgage Scam; Case Referral To Criminal Prosecutors A Possibility

In Colorado Springs, Colorado, The Gazette reports:

• A mortgage meltdown on a Colorado Springs street where five houses went into foreclosure amid allegations of fraud has resulted in disciplinary action against two Colorado Springs real estate agents. The Colorado Real Estate Commission voted to ask Stephen Teegardin, of Teegardin Realty & Investments, to surrender his license and pay a $25,000 fine for his "dishonest dealings" and "unworthiness or incompetency" in the Balsam Street sales, state regulators said Monday. The commission also asked for the license of his son, Robert B. Teegardin, and fined him $20,000.

• The Teegardins are accused of being key players in a mortgage fraud scam in which straw buyers were recruited and paid a kickback to buy houses at inflated prices that they never intended to live in. [... Agency investigations and compliance director Marcia] Waters said the case could be referred to the Fourth Judicial District Attorney's Office for consideration of criminal complaints once her agency's case is further along.

For more, see Two Springs real estate agents disciplined in fraud case.