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They've instated new procedures prompted by a 7News Investigates "Ferrugia File" report. Our investigation found licensed agents who had pleaded guilty to felonies, including perjury, fraud, and embezzlement.

The computers at the Colorado Division of Real Estate can look up civil, traffic, domestic and, now, criminal records.

Carolyn Diomese-Wright is now charged with checking the criminal backgrounds of real estate agents, and the state Division of Real Estate has given her new tools to make sure the job is thorough.

"You can have this go through all the counties in Colorado," Diomese-Wright said. "We can look if they have any past criminal history. It's a tool to let us know where to look, like which county court to go to (and) then get more in depth."

The state Real Estate Division began it's new procedures in response to a 7News Investigates probe, which found agents convicted of felonies, including one who embezzled more than $100,000. That agent apparently lied on her state application, saying she had never been convicted of a crime.

After seeing the results of our investigation, the state agency admitted that it had not conducted proper background checks of colorado's 40,000 real estate agents.

"Certainly, in the cases you had in your story, we were suprised," said Michael Gorham, director of the Colorado Division of Real Estate.

But with the new system, they are now catching up with those who apparently don't qualify.

"It show the charges she had against her of theft," Diomese-Wright said, speaking about a real estate license applicant. "It shows how she pleaded. She pleaded guilty."

The new system allows the division to look at every applicant that comes in to see if, in fact, there has been a crime or criminal conviction.

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