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You would think that a background check by the state Real Estate Commission would keep this type of person from getting a license. But we found that in many cases, there is no background check.

Linda is a real estate agent who got her state license earlier this year.On the job, she appears professional and sincere.

"I like to work as a buyers agent, which is the highest and best service you can get," Linda said. "I would represent you as though i were buying a home for myself."

But there is one person who would certainly never trust her manner or her word.

"This person embezzled a six-figure dollar amount of money from us through at least 20 different transactions," Todd Baur told 7News Investigates.

Baur owns a truck supply business, and Linda was his book keeper. Court records show that she owes him more than $100,000 in restitution after being convicted of felony theft. She was sentenced to four years in community corrections.

Records show that she applied for her real estate license in March 2000, just weeks before she was released from her criminal sentence.

The state license application asked her, in part, whether she had been convicted of any felony, misdemenor or theft related petty offense, or been charged with any felony, misdemeanor or theft-related petty offense.

In both cases, linda answered no.

"If someone has ... a criminal background, and certainly in areas that would relate to real estate practice, i think it's important we know that because they are going to be dealing with the public in a number of areas that involve trust and confidence and, in particular i think, the use of other people's money," said Colorado Division of Real Esate director Michael Gorham.

But how could Linda get by with this? Doesn't the Real Estate Commission conduct background checks?

"We do," Gorham said. "We actually have funds, the funding to run about two-thirds of the applications that come through right now."

You heard it right. One-third of the brokers who get a license are never checked for a criminal background. Obviously, the commission never got around to checking Linda.

"It looks like she says no to any criminal convictions," Gorham said after reviewing Linda's application. "There are some that could slip through the cracks, because we don't have the funds to process some of the applications."

Linda didn't want to talk about her conviction nor would she answer any questions about the apparently false responses on her license application.

She is one of 40,000 licensed real estate agents in Colorado. 7News Investigates has found that the state Real Estate Commission has no real idea how many have serious criminal backgrounds.

"These realtors have access to thier customers financial information, social security numbers," Baur said. "They're put in a position of trust."

More Information:

• Dec. 14, 2000: Real Estete Brokers With Felonies, Follow-Up

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