State pulls the license of a Greeley real estate broker, suspends another

Staff Reports
February 29, 2008

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Staff reports

Two Greeley real estate brokers are facing career challenges today.

The state Department of Regulatory Agencies announced Thursday that the Division of Real Estate has taken enforcement actions against two real estate brokers involved in alleged mortgage fraud schemes in Greeley. The Division permanently pulled Tracy T. Todd's license and issued a 90-day suspension against Steve G. Boyer, according to a prepared release.

Todd is accused of offering to buy homes in Greeley at artificially inflated prices with the intent of receiving large sums of money back at closing, according to the release. A company called Medicine Creek Consulting, LLC owned by a business partner of Todd's, received the cash back at closing, the release stated.

In one instance, a home was on the market for nine months for $300,000, the release stated. Todd approached the buyer and offered $425,000 for the property, executing a commission agreement separate from the sales contract requiring a $135,000 "consulting fee" to be paid to Medicine Creek Consulting at closing, the release stated.

In another case, the release stated Todd contracted to buy a Greeley home for $425,000 that included a $72,250 consulting fee to Medicine Creek. The buyer was Todd's mother-in-law. Steve Boyer was the listing agent, the release stated. Boyer's suspension was a result of his participation in this transaction.

"This type of unscrupulous activity contributes to our high foreclosure rate by artificially inflating property values," said Erin Toll, director of the Colorado Division of Real Estate, in the release. "The Division of Real Estate is aggressively pursuing illegal activities that could lead to foreclosures, especially in Weld County, which has one of the highest foreclosure rates in the nation."