From Mar. 2004 HIREC Bulletin:

What is RICO...

RICO’s support is vital for boards and commissions

The Regulated Industries Complaints Office (RICO) is a

division of the state Department of Commerce and Consumer

Affairs (DCCA). RICO is one of the three main agencies that

provide support to the state’s professional boards, commissions

and programs. RICO works closely with the Professional and

Vocational Licensing (PVL) division and the Office of

Administrative Hearings (OAH). The Real Estate Branch is part

of PVL.

RICO’s primary office is in Honolulu, 235 S. Beretania Street,

9th floor. There are offices on the Neighbor Islands in Lihue,

Wailuku, Kona and Hilo. RICO staff includes 19 field investigators,

10 attorneys, 10 intake staff, and 17 support staff.

What does RICO do? RICO provides consumer education

and information, prior complaints history, administers the state

“lemon law program,” and handles complaints investigation and

enforcement for the 45 professions and vocations that are regulated

in Hawaii.

RICO receives information to initiate case investigations from

consumers, the Real Estate Commission, licensees, media reports,

advertisements, and anonymous tips. Once information is received,

the intake section performs a review to determine possible licensing

law violations based on the information submitted. Not all

information submitted results in a formal case being created. For

formal cases, the next step is referral to the field investigation

section.

After the investigation is completed, some cases are referred

to the legal section for further review and negotiation depending

on the specific circumstances. A small percentage of cases in

legal proceed to a hearing, and if a settlement agreement or

disciplinary action is determined, the case is presented to the Real

Estate Commission and a Commission Order issued.

The RICO intake section is called the Consumer Resource

Center. All information is reviewed to determine whether there is

sufficient cause to create a case for further investigation.

Alternative dispute resolution opportunities are considered.

Documents to support a possible violation(s) are obtained from

the complainant. Many complaints are actually closed in the

Consumer Resource Center and are not reflected in the Prior

Complaints History data base. Other complaints become formal

cases that are referred to field investigation.

The field investigator will conduct a thorough document

collection and review to build the case. In certain cases, an expert

must review the facts of the case to render a professional opinion.

Subpoenas may be issued, witnesses interviewed, and an

investigative report prepared. Some of the field investigation cases

then proceed to the legal section.

The RICO legal section evaluates the factual, legal and

evidentiary issues of the matter. A petition may be filed, a

settlement agreement may result, or a disciplinary action may ensue

against the license of the respondent. Unlicensed actions are heard

in circuit court.

The Office of Administrative Hearings will conduct the actual

prehearing or hearing, where testimony and exhibits of the case

are presented. The Hearings Officer will prepare a recommended

order after all testimony is heard and all evidence presented.

The Hearings Officer’s recommended order is then forwarded

to the Real Estate Commission or the board for that particular

profession or vocation. The Commission may reject or accept the

recommended order or settlement agreement. Sanctions include

revocation, suspension, or restriction of the respondent’s license,

fines (up to $5,000 per violation), restitution to the affected

consumer, continuing education.

In FY 2003, RICO received 2,100 complaints for all license

types. Seventy-two of these complaints related to real estate. The

2003 numbers reflect a drop from 107 real estate cases in 2002,

which appears to be consistent across all license types.

The most common type of violations found include:

.. Failing to comply with laws and rules (includes failing

to timely file paperwork)

.. Failing to properly supervise

.. Misrepresentation

For general RICO information log onto www.hawaii.gov/dcca/rico  .

Prior complaints information may be obtained at www.ehawaii.gov/dcca/cms