Vinci

The Real Estate Commissioner of the State of California (Commissioner) appeals from a judgment directing payment of $15,000 to Robert and Margaret Vinci out of the Real Estate Education, Research and Recovery Fund (Bus. & Prof. Code, § 10470 et seq.). We affirm.

The relevant facts and chronology are as follows: In 1979 Eugene Kennedy met the Vincis in the course of selling a home belonging to Margaret Vinci’s brother. Kennedy falsely represented to the Vincis that he was a licensed real estate broker and the owner of Dynamic Realty Company. In reality, he was licensed as a real estate salesperson and as such was not authorized to engage in many of the activities of a licensed broker.

Upon learning of the Vincis’ interest in investing money, Kennedy told them of the lucrative possibilities involved in short term swing loans secured by trust deeds on real property. The Vincis made inquiries of the Better Business Bureau which informed them that no complaints had been lodged against either Kennedy or “his company.” Moreover, the Vincis discussed the matter with real estate brokers who told them that short term swing loans were “normal practice.” Eventually, the Vincis…