The Hawaii Real Estate Commission is conducting a formal disciplinary hearing against broker Hana, who is accused of commingling client funds with her personal funds. Hana argues that the HREC lacks authority to discipline her because she has already been acquitted of criminal charges arising from the same conduct. Which of the following best describes the HREC's authority in this situation under HRS Chapter 467?
Correct Answer
B) The HREC may proceed with the disciplinary hearing because administrative license discipline operates independently of criminal proceedings
Under HRS Chapter 467, the HREC's administrative disciplinary authority operates independently of criminal proceedings. A criminal acquittal does not bar the Commission from conducting its own disciplinary hearing, because administrative proceedings use a lower standard of proof (preponderance of the evidence) than criminal cases (beyond a reasonable doubt). The HREC may revoke, suspend, or otherwise discipline a licensee based on its own administrative findings regardless of the outcome of any criminal case.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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