• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Proposed Changes In The Law

Status
Not open for further replies.
I never dreamed I would see the day when the United States Government would agree to use “TORTURE” as a method of interrogation, but they have. Last fall I read that the government off Israel was proposing a law to allow “Light Torture” methods. The reason I mention this, in light of this discussion of standard 3 reviews, is that I wonder if some of the state appraisal boards decided to use torture to make people talk if any of us would have to think about it and weigh both sides of the argument before we make up our minds.
I hesitated to mention this because I know a state appraisal board in a nearby state that might take the hint. “Ve have vays to make you tock.” I can see it now: The victim is chained to the rack, the board of inquisition asks, “So comrade, tell us why you didn’t use the comp from down the street.” If that doesn’t work, they can hang the victim from the ceiling by his feet and dip his head in a barrel of water for a few minutes. Just look at the high rate of convictions this method could achieve not to mention the money and time saved. One or two days at the most and the board would have a signed confession. Ten years ago this would have sounded silly, but today, it is not so funny. Maybe it has merit. I would like to hear some other opinions before I make up my mind.
 
Brad

I wish you the best in trying to get anyone to say why they think the exemption is a good idea, except for vague references to the five reasons I presented in my prior post on the subject. If you can get a well reasoned, insightful and definitive answer from someone supporting the position, I would love to see it as well.

I have been trying to get someone to debate the issue for almost four years. No one wants to debate the merits, they just say they need it because the investigators job is different than an appraisers job. One deputy director even said debating it would not change anything.

Regards

Tom Hildebrandt GAA
 
Here you go guys and gals. The first motion (we believe in the U.S.) appealing an Appraisal Boards discussion. Just keep watching, it is just starting to get good. Now we will see what a real judge says about these shenanigans



IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS
COUNTY DEPARTMENT, CHANCERY DIVISION

STEPHEN J. VERTIN, )
Plaintiff-Respondent )
v. )
)

No.
OFFICE OF BANKS AND REAL ESTATE, REAL )
ESTATE APPRAISAL DIVISION, WILLIAM A. )
DARR, as Commissioner, and THE REAL ESTATE)
APPRAISAL BOARD,)
)
Defendants )

COMPLAINT FOR ADMINISTRATIVE REVIEW

NOW COMES STEPHEN VERTIN, by and through his attorneys, Law Offices of Eugene T. Sherman, and for his complaint for administrative review pursuant to the Real Estate Appraiser Licensing Act (225 ILCS 457, et seq.) and the Administrative Review Law (735 ILCS 5/3-101, et seq.), states as follows:

1. At all times pertinent, Plaintiff, STEPHEN VERTIN (“Vertin”), was duly licensed certified real estate appraiser, said license having been issued by the Illinois Department of Professional Regulations.

2. At all times pertinent, Defendant, Office of Banks and Real Estate of the State of Illinois (“OBRE”), was an Illinois agency, and the Real Estate Appraisal Division a division thereof.

3. At all times pertinent, Defendant, WILLIAM A. DARR (“Commissioner”), has been the Commissioner of OBRE.

4. At all times pertinent, the Real Estate Appraisal Board (the “Board”) has consisted of individual members, and has served as a tribunal and/or arm of OBRE to conduct hearings relating to OBRE matters.

5. On July 22, 1999, OBRE filed a thirteen count complaint alleging generally that Vertin and a co-respondent, Katherine Raila, were negligent and/or deficient in conducting numerous appraisals to the extent that disciplinary action was warranted.

6. Prior to the institution of these proceedings, Vertin has never been disciplined in connection with his real estate appraiser license.

7. After pre-hearing discovery and investigation, a hearing took place before the Board on or about the dates April 10, 2001, through April 11, 2001, in Chicago, Illinois.

8. By way of decision and 20-day notice mailed July 17, 2001, the Board made findings of fact, conclusions of law and recommendations to the Commissioner.

9. After briefing and consideration of Vertin’s motion for reconsideration which constituted exhaustion of Vertin’s administrative remedies, the Commissioner entered an order dated March 1, 2002, which adopted the Board’s findings of fact and conclusions of law, and reprimanded Vertin and ordered that Vertin pay a $10,000.00 find. (A copy of said order is attached hereto as Exhibit “A”).

10. The March 1, 2002, order is erroneous, illegal and/or void, and/or should be reversed or remanded, for the following reasons:

1) its findings that Vertin violated U.S.P.A.P. Standards Rule 1-1(b), 1-1©, 2-5, and Illinois Statutes Compiled (1996) Ch. 225, sections 455/36.18a(7) and 455/36.21(a) in Counts 1-13 of the Complaint is against the manifest weight of the evidence and/or his violations were not established by sufficient evidence or by the appropriate standard of proof, particularly where the Board had no competent evidence and/or opinion testimony criticizing Respondent in his actions and Respondent was not culpable given the misconduct, if any, was that of co-respondent whom Vertin had no reason to doubt as to the veracity of information provided when certifying, and the underlying U.S.P.A.P. rule 2.5 is no longer in existence;

2) the decision was arbitrary, capricious and/or nor supported by the evidence;

3) the administration of discipline where respondent was not culpable is a violation of Respondent’s due process and/or equal protection rights under the U.S. Constitution, and equivalent provisions of the Illinois Constitution, both in the interpretation and application of pertinent U.S.P.A.P. and other rules or statutes;

4) one Board member, Andrew Brorsen, should have been disqualified and/or proofs reopened given Mr. Brorsen’s erroneous conduct and wrongful introduction of evidence or statements into the record; and

5) the discipline imposed was too severe given the lack of culpability on Respondent Vertin’s part, or the minimal misconduct and/or violation of rules which occurred, in consideration of all mitigating factors, including Vertin’s lack of disciplinary record.

11. Defendant(s) should be required to file an answer which includes all applicable transcripts, pleadings, evidence and other documentation which culminated in the March 1, 2002 order.

WHEREFORE, Respondent, STEPHEN VERTIN, requests that this Court reverse the March 1, 2002 order finding he violated applicable rules and/or statutes as to his discipline, remand this matter with directions for appropriate modification, and grant such other relief as is just and proper.
Respectfully submitted,

STEPHEN VERTIN


By: __________________________________
One of his Attorneys

Eugene T. Sherman
Law Offices of Eugene T. Sherman
70 W. Madison St., Suite 3700
Chicago, IL 60602
(312) 332-2200
Attorney Code 091
 
Stephen-- can you provide us some details of what they accused you of? That's great that someone is finally challenging their procedures. Thanks!

Pat
 
Steve: The charges, 1-1B & 1-1C, are highly subject determinations under the best of circumstances. Then the 2-5 charge is based on a rule that no longer exists. Just the charges alone reek of a witch-hunt. Why would they be filing charges in a calendar year after 2-5 has been rescinded? Even if 2-5 was a legitmate charge, it hurts their case by adding it in the bill. I still contend that if the estimated price is reasonable, then there is no basis for these charges. If they didn’t do a standard 3 review and raise serious questions about your price estimate, and I am sure they didn’t, then it is definitely a witch-hunt. I told you to send that campaign contribution. Are you involved in some kind of political activity like for instance being a Republican? Knowing Chicago like I do, this could be a contract job.
I took the AI’s USPAP course for the fifth time last year. After the first hour I thought about taping the discussion and use it for evidence if I am ever charged. USPAP is like a Liberal bible. It can say whatever you want it to say. Everything is relative as they say.
 
Regulars who have been on the forum for 3 or 4 years were appraised of the first part of what happened to me sometime back. However, there have been updates, that I have not been allowed to talk about. That is until this case reached the end of the OBRE process. It has reached the end and I am free to talk. My case is one of the reasons I am strongly supportive of forcing State's to do STD3 reviews. I will touch on some points some may know; however, I will start from the beginning for those unaware of what happened. This case took 8 years to go through the system. The hearing took two days and there are nearly 500 pages of transcript. I will attempt to capsulize events for readers sake.

In 1994 I contracted to appraise about 41 single family homes in a rural area of Illinois with FEMA for compensation to flood victims. I partnered with a woman named Kathy Raila. She had eight years experience, at the time, and was known as a good appraiser. She typically contracted with two past presidents of AI. However, I had had a working relationship with her for years and considered her a friend. She collected all of the data, measured, completed field work, etc. She brought back 25 sales claiming that was the extent of comparable data. You have to understand, this area of Illinois was along the Mississippi River and only had about 1,000 to 1,200 people living in what I would consider the market area. The area was so rural the properties did not even have common addresses. Because we had little data we put together supported paired sales adjustments (whether you agree with the process or not it is a legitimate way to make adjustments). There was never contention adjustments to the data were unsupported. There could not have been. The analysis was almost text book.

The Summer of 1995 OBRE contacted Raila and me concerning the reports. I answered a list of their questions and about 3 months later OBRE asked for an informal hearing claiming they wanted to take my license. Most of the questions we answered in the first round were related to field work and Raila insisted she had done her job. I explained if that were the case we needed to defend ourselves. First we needed to return to the area to retrace her steps to see if there were truly any errors. We planned on riding down together but the day we were to leave Raila never showed. I went by myself. What I found was there were approximately 125 transactions rather than the 25 sales Raila claimed. My heart truly sank. You know that feeling you get right before something really bad happens. I collected the data (125 sales) and headed home. I hired the best lawyer I could and started hoping for the best. My first lawyer was a law professor at Loyola University and former head prosecutor for the Illinois Department of Professional Regulations. He claimed Standard 2.5 was illegal in Illinois and would never hold in a court of law. I may have settled this case early on but I was truly forced to fight it. I had a family to feed and my most marketable skill was appraising. I could not do it with out a licence. In the end I am glad I did not. I believe the process really made me a better appraisers and I now have a full understanding of how this system works. It is not what many imagine.

Lifted by this news that what OBRE was doing may be illegal, I went to the informal hearing. The OBRE produced County Assessor Record cards that appeared to be faxed. The cards claimed physical information in the comparables used in our reports was incorrect. This coupled with, Raila's no show and the 125 transactions seriously convinced me Raila knifed my back. But hang on it gets better. My first lawyer was really aggressive, in fact it was my opinion, to much so. He threaten the OBRE attorney she threaten him back and the next thing I know we were going to a formal hearing. Shortly after I hired a new lawyer. Five years later (late 1999), still no hearing, but a notice comes from OBRE, they are going to take me to task. They sent a 50 or 60 page indictment with about 250 counts. This was one month before the five year statue of limitations expired. Two years after that (near 2001) no news from OBRE and no formal hearing. I called Mike Greene out of frustration because after seven years the burden of the situation was proving to much. Believe this or not OBRE lost my case file. This case may never had been heard had I not contacted Mike. Soon after that a formal hearing was set.

In preparation for the case we started digging very deeply into the State's files and going over every accusation with a fine tooth comb. We started finding numerous errors in the State's evidence, i.e., we found out the County Assessor Record cards faxed to OBRE had correction tape over areas. These corrected areas were the areas OBRE claimed as false in our reports. In other words, the County was using the same cards throughout the years and as information was updated they would simply put correction tape over the old card. Since the reports were back dated OBRE was looking at updated data from 1995 when they should have been looking at data as of the date of appraisal, which was three years earlier. We found a number of addition and calculation errors done by the State. At the end of the day we discovered none of the data used in our reports proved false. It appeared all was accurate and verifiable. Had someone pulled the originals and examined the information thoroughly this fact would have been readily apparent sometime back. The facts and errors we discovered totally nullified at least 150 charges.

This really got us thinking about what really happened. I hired Robert Gorman, MAI, who was also one of the original members of the Illinois Board. In fact Bob was key in getting the original law passed in Illinois. Bob reviewed these reports, under STD3, to see if there were any violations. The long and short of it was Bob found no Standard violations and testified to the fact. Furthermore, the Appraisal Institute investigated this case for three years. The case was dropped. They saw no reason to keep the file open. This will be key later.

Several days before the hearing the State dropped 237 counts. After we had spent 100's of man hours looking into the charges. No doubt they found the same thing we did. The original work done by their investigators was full of errors. The State basically held on to 13 counts of Standard 1 and 2.5 violations.

The State of Illinois was claiming that because I did not have all of the transactions within the market (remember there were about 125,) and used only 25 sales, we used improper theory. The reason they claimed was inappropriate comparables. Our argument was we had 25 sales or 20 percent of the market data, our adjustments were well supported and we do not need every sale to provide a reasonable value conclusion under USPAP. I stand to this day all value conclusions were reasonable and supportable.

The hearing comes. The State's witness never views the area or properties and testifies to outrageous things such as the royal use of "we" is misleading, it is a violation of USPAP to adjust over 25 percent, time adjustments can not be preformed in retrospect, etc. Judge Sullivan throws out the testimony of the State's expert because he does not comply with STD3. The witness had no ethical obligation to support any of his testimony. Why? Because he does not have to comply with 3. After the removal of the State's expert witness, there are no witnesses for the prosecution.

During this hearing it comes up AI dropped this same cases. The prosecution becomes furious that the AI information has come to the surfaces and starts objecting wildly. The judge denies his objections pointing out their side brought the issue up. Andy Bronson, MAI and Board Member than claims (out of the blue) the reason AI dropped the case is because AI dropped prosecution of all cases against all appraisers. He states they were no longer in the enforcement business. It floored everyone. Later on AI's attorneys wrote a letter to the judge stating this information was totally false. Now you know how our Board handles damage control.

Remember I told you the State's case was use of inappropriate comparable. Through it all the State did not bring in one sale. They claimed inappropriate sales but never showed better data. In fact they did not show any data. You know why? Because one of the properties appraised was a house with a church attached, the other had a commercial warehouse where the lady made pottery, three or four had numerous outbuildings, etc. There were no better sales. The State had selected the 13 goofiest properties to dwell on the fact adjustments were over 25 percent. In the process they seemed to have forgotten their original argument was best sales were not used.

In the end the State of Illinois had no witnesses and presented no evidence of any violations and fined me $10,000. If you doubt anything I am telling I have official transcripts of the case. Furthermore, they are part of public records. I would be glad to fax further details you can read yourselves


Steve Vertin, MAI
 
Steve: I love a good mystery. I see a pattern in this story. First: This other appraiser, Raila, goes into a town of 1,200 people, goes to the tax office apparently, and misses 100 out of 125 recent sales from this small rural area. How can you make a 500% error in sale count? That sounds fishy to me. Second: Then you are contacted by the OBRE concerning the problem concerning the non-reported sales. Who turned you in? Who else could have known the 100 sales were missed but Raila? What else could have triggered the inquiry? There is a missing link here. Somebody was tipped off by somebody. Third: Raila doesn’t show up for your trip to the area. Wonder why? Forth: Why isn’t Raila included in this action? What happened to Raila?
Here is the way I see it: Somebody is out to get old Steve and I think her name is Raila and associates. I also think old Raila is in bed, figuratively of course, with somebody on the OBRE. Clue # 1: Who on the OBRE said the AI dropped all pending ethics charges? If I were you, I would investigate the link between Raila and the MAI on OBRE that gave the incorrect information about the AI’s actions. I would find out who initiated the complaint and follow that thread. As we say in regression when the trend line starts forming: "Now I see it clearly!" Five will get you ten I am on the money.
 
Austin:

Leave it to you to ask such questions. I was trying to summarize the facts rather than write a novel in the above post. Of course there are parts missing, it was an eight year saga. The trial was two days and there were over 400 pages of transcripts. The questions you are asking me to answer are pure speculation on my part. I can not read minds. But that's OK. I like mysteries also. I do have some theories. Again, this is purely speculation on my part but this is what Bob Gorman and I believed happened. Let me repeat, we are only guessing, pure and simple.

Raila examined the data. She knew there were more than 25 sales. She had to. All of her notes indicated transfer numbers, grantors, grantees, etc. Later on her data proved to match public records. Furthermore, the State interviewed people at the court house and Raila signed in on the Court House guest book. She was there, that we have no doubt. We think she gathered what she believed to be the most comparable sales and discarded the rest. Why would she do that? Because she knew I was a picky reviewer and would have insisted she physically inspect the properties to make sure they were not truly comparable. This may not have been a big deal in an area with common addresses. Especially since you are looking at 25 sales in the area already. However, it would have been a time consuming endeavor when no such addresses existed. Furthermore, many of the homes, that sold were no longer there. They had been washed away by the flood or razed by FEMA. We were appraising purely based on paper to began with. The great flood of 1992-93 buried many of these little town along the Mississippi. In fact the subject properties were shambles. FEMA requested we base physical condition on owners descriptions of the property pre-flood. The purpose of the assignment was to compensate flood victims for their loss. She probably thought hell I would be spinning my wheels on half of this stuff that does not even look comparable on paper. Even so, I would have still made her look at the properties for locational indications. But lets make this clear USPAP does not require you to look at every sale. That was just how I would have preferred it to had been done. Furthermore she knew our agreement was to bring back all of the data. Our plan was to choose the most comparable sales (together) and if we needed to make a second trip we would do so. She most likely figured, I have eight years experience and can figure out what is most comparable and do the whole thing in one trip. She spent a week in the market if I recall. I think she probably thought she had a good handle on the deal and did not want to make extra work for herself especially if she believed there was little return for the effort.

Your second question was "what ever happened to Raila?". We do not know. After I got back from the trip I called three or four times a day for about a week. She never called back. Finally, I got in my car and drove over to her house. She had moved out. The place was vacant. She never showed at the informal hearing. She never showed at the formal hearing where they took her license, I suspect by default. Later on I had heard she got divorced and was drinking and drugging heavily. I knew she drank socially but I never saw her drunk or doing drugs. Let me make this clear, this woman was not some hippy from the streets when I knew her. She was a home owner and was always gainfully employed as an appraiser. Maybe something happened during her divorce. A lot a people get goofy through hardships. Again, I am just guessing. I suspect the State scared the crap out of her, she was getting a divorce and she knew she lied about the number of sales to me. She probably figured now's the time to blow town. Again, who knows.

As to Andy Bronson I do not know what that was about. However, as Tom H., has pointed out in numerous post, these hearing are adversarial. Bronson probably thought the state was looking pretty bad and he needed to do something. But again I am truly guessing. You have to remember this had been going on for 7 years. I personally spent $50,000 on this case. The State most likely had similar expenses on this case. They were not about to drop this thing in the eleventh hour. As you can see by the facts they were going to prosecutor under any circumstance. They constantly reminded us they had never lost a case. How does someone win all the time Austin?

Finally, I do not know who turned the reports in. As you well know that is always confidential information. But I doubt there was a Bronson/Raila conspiracy.


Steve Vertin
 
Steve,

Well!

In case you are wondering, if Bob Gorman thinks you are not at fault, that is good enough for me. While Andy Brorsen is a friend, Bob (also an acquaintance) no longer has any ax to grind, presuming, of course, that you are not paying him the big bucks to take your side. JUST KIDDING! Bob is an ethical guy.

Good luck with your case.

Brad Ellis, IFA,RAA
 
<span style='color:darkblue'>Amazing, Steve.

I took some notes while reading your posts. I may post some questions for you in a few days, and also some comments.

Sorry you had to go through all this. I am looking forward to seeing how your appeal goes and I am glad you are fighting back. Yes, your case will be precedent setting. Appraisers across the country have been needing this for years. Thanks for taking the bull(sh*t) by the horns.

After reading their proposed changes to IL law, I was convinced some at the OBRE are idiots, but now it sounds like they are probably also crooks. Those caught trying to burn down someone's house should get some time in prison; those caught attempting to unjustly burn down someone's livelihood should just have the key thrown away -- they should rot in prison. Someday someone with influence in Congress may come to understand this type activity (and Enron-type activity) for the serious criminal activity that it is. An oddity that will need to be addressed is the fact that sometimes such criminals are actually too stupid and morally bankrupt to understand they are criminals. It is primarily for this reason that the courts should exercise serious constraint: Capital punishment should be avoided, even though it's likely deserved.

I understand there will be a special news story (a looooong one) in the "Greensboro New & Record" on Sunday written by one of their best investigative reporters. It may shed a little light on the workings of the NCAB. Just in time too. I will be testifying as an expert witness next week for a very unjustly accused appraiser whose case has to do with the story. Such testifying is actually a risky thing to do in NC. Some at the NCAB are going to want revenge. The danger is increased since they are going to lose the case bigtime. They are wrong as hell. They are not going to lose the case because they are wrong as hell as they have never had a problem winning such cases in the past. They are going to lose because the hearing will not be held in front of them, but in front of a real judge, who is very likely neither an idiot nor a crook. I will post the article probably on Sunday afternoon.

Thanks for your posts, Steve.

Regards,

David C. Johnson, Raleigh, NC</span>
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Back
Top