TREC revokes license of sales agent convicted in charity fraud and tax case

The Texas Real Estate Commission on May 5 adopted a proposal for decision revoking the sales agent license of Miguel Angel Gutierrez after enforcement staff told commissioners he pleaded guilty to federal felony charges involving charity fraud and false tax returns.

Commission enforcement director Malcolm Malloy told the commission that Gutierrez pleaded guilty to two felony counts — conspiracy to commit wire fraud and filing a false tax return — arising from conduct the indictment traced to 2012–2021. Malloy said federal filings show nearly $4 million in donated funds intended for disadvantaged youth were diverted for personal vacations, business ventures and family expenses and that false returns caused an approximate $250,000 tax loss to the government. He said Gutierrez was sentenced in early 2024 and that the sentence was subsequently revised to five years of probation.

"These crimes go directly related to brokerage activity," Malloy said during the meeting, arguing the offenses involved fraud and misuse of funds that affect consumer protection and public trust. "Staff recommends the adoption of this proposal for decision and the revocation of Mr. Gutierrez's sales agent license."

After discussion limited to the record, Commissioner Lerner moved to adopt the proposal for decision. Commissioner Pena seconded the motion. The chair called for a voice vote; the motion carried. The commission approved the proposal for decision, and the license will be revoked per the adopted order.

The enforcement director said the commission's action follows its statutory responsibility to determine whether a licensee remains fit to hold a license regardless of outcomes in parallel criminal proceedings. Malloy noted that the respondent submitted character letters and testified, but that the federal conviction and the commission's consumer-protection mandate supported revocation.

The commission record will reflect the proposal for decision adopted at the public meeting. Enforcement staff made the presentation and the commission voted in open session to adopt the PFD and revoke the license; counsel handling the case remained available for follow-up questions, the chair said.

The revocation is final as to the commission's licensing action; any collateral or related federal matters remain with the courts and federal prosecutors. The commission did not announce further penalties beyond the licensing revocation at the meeting.