The Colorado Real Estate Commission on Dec. 2 adopted the administrative law judge's findings in part and moved to issue a final agency order in the contested case RC2023-0010, ending years of review of conduct by respondent licensee Rachel Justman.

The commission voted to adopt the ALJ's findings on counts alleging violation of a prior final agency order and duties to landlords, a failure to disclose an affiliate business relationship, and "unworthiness" to act as a broker. Commissioners agreed the record did not support a violation for converting or diverting client funds (count 2) based on the ALJ's credibility determination.

In an emotional statement to the panel, the respondent told commissioners she was "sincerely sorry for the impact of those choices" and asked for a penalty short of permanent revocation so she could continue serving clients while correcting errors. "I'm not asking to be excused. I'm asking for the opportunity to continue in this profession," she said. Her attorney, Andrew Pipes, argued the designated-brokerage business model used by the respondent was legal and that revocation would be disproportionate.

The Division's counsel urged the panel to overturn the ALJ on the diversion claim and to impose the disciplinary penalty the ALJ recommended, saying the respondent's prior probation and other licensing violations made revocation appropriate. "License revocation is a severe sanction, but egregious conduct warrants severe sanctions," counsel told the commission.

After discussion, a motion carried to modify the ALJ's initial decision as stated in petitioner exceptions, adopt the ALJ's findings of fact in their entirety for counts 1, 3, 5 and 6, and to direct the adjudicatory council to draft a final agency order reflecting that determination. The commission delegated authority to Melissa Phipps to sign the order on the commission's behalf.

By adopting the ALJ's conclusions on the established counts and declining to sustain the diversion count, the commission left in place fines and sanctions described in the administrative record and instructed staff to prepare a final agency order to be mailed to the parties.

What happens next: The commission's delegated staff will draft the final agency order reflecting the commission's adopted findings and recommended sanctions and mail the order to the parties. The order will explain the specific fines and effective sanctions and provide appeal rights.