What Happens if a Real Estate Agent Is Accused of Fraud in Illinois?

 Posted on February 26, 2026 in Professional License Defense

If a real estate agent is accused of fraud in Illinois, they may face a license investigation and possible discipline. This can be frightening, especially when your career, income, and reputation are at risk.

Even a complaint can create stress and uncertainty. It is important to remember that an accusation does not mean you did anything wrong. You still have the right to defend yourself. Our Rockford, IL real estate license defense lawyer helps agents understand the process and take steps to protect their professional license.

What Is Considered Real Estate Fraud in Illinois?

Real estate fraud usually involves claims that an agent was dishonest or gave false information during a transaction. The Illinois Real Estate License Act of 2000, under 225 ILCS 454, requires agents to act honestly and treat clients fairly.

Fraud accusations may involve claims that an agent misled a client, failed to share important facts, or handled money improperly. Sometimes these complaints come from misunderstandings, mistakes, or disputes between parties.

Common examples include:

• Giving incorrect information about a property
• Failing to disclose known problems
• Providing false or incomplete paperwork
• Mishandling client or escrow funds

Even if the issue was unintentional, regulators may still review the situation.

What Happens After a Fraud Complaint Is Filed Against a Real Estate Agent?

When someone files a complaint, the Illinois Department of Financial and Professional Regulation may open an investigation. Their goal is to decide whether any licensing rules were broken.

Investigators may review contracts, emails, and financial records. They may also ask you to submit a written response or explanation. This part of the process can feel stressful, but it also gives you a chance to explain what happened.

Can You Lose Your Real Estate License if You Are Accused of Fraud?

Yes, it is possible. Under 225 ILCS 454/20-20, the state can suspend, place conditions on, or revoke a real estate license if it finds a violation.

Losing your license can prevent you from working as an agent. However, discipline is not automatic. The outcome depends on the facts, the evidence, and how the case is handled.

Hiring an experienced attorney and responding properly can help protect your license.

Can Real Estate Fraud Allegations Lead to Criminal Charges in Illinois?

In some cases, fraud allegations may also lead to criminal charges. Criminal charges may happen if authorities believe there was intentional deception. These charges can lead to serious penalties. However, many cases remain license investigations and do not become criminal cases. Understanding the situation early can help you make informed decisions.

What Should You Do if You Are Accused of Real Estate Fraud?

Being accused of fraud is an extremely stressful situation. Taking the right steps can help protect your career.

You should consider:

• Keeping all emails, contracts, and records
• Avoiding discussions about the complaint without legal advice
• Responding carefully to investigators
• Contacting a license defense lawyer quickly

These steps can help you protect yourself during the investigation.

How Can a License Defense Lawyer Help You?

A license defense lawyer can review the complaint and explain your legal options. They can help you prepare a response and make sure your rights are protected.

A lawyer can also represent you during hearings and communicate with regulators on your behalf. This can help reduce stress and help you avoid mistakes that could affect your case. Having legal guidance can make the process easier to manage and help protect your future.

Schedule a Free Consultation With Our Chicago, IL Real Estate License Defense Attorney

Being accused of fraud can leave you feeling worried about your career and everything you have worked to build. At The Law Offices of Joseph J. Bogdan, Inc., we understand how serious these allegations are. Attorney Bogdan has over 20 years of legal experience and brings a unique background as both an attorney and a registered pharmacist. His experience as an expert witness in professional cases gives him valuable insight into license investigations.

Our firm is committed to protecting your license and helping you move forward. If you are facing a fraud accusation, contact us by calling 630-310-1267 to schedule a free consultation. Our Rockford, IL real estate license defense lawyer is ready to help you understand your options and protect your career.