California Takes Actions to Protect Homeowners, Renters, and Investors (November 3, 2026)

Department of Real Estate Takes 39 Enforcement Actions in September
 

November 3, 2026

Sacramento, Calif. - The California Department of Real Estate (DRE) today announced it carried out 39 enforcement actions in September. The DRE uses enforcement as a key tool to investigate complaints, discipline licensees who violate the law, remove bad actors from the marketplace, and protect Californians against financial loss, scams, fraud, and improper dealings.

“Protecting Californians is at the heart of everything we do at the Department of Real Estate,” said DRE Commissioner Chika Sunquist. “Enforcement is one of the many tools we use to keep consumers safe, hold licensees accountable, and support the integrity of the real estate industry here in California.”

The most significant action DRE took in September was to revoke the license of Deividas Strole (Santa Clarita). Over the course of 19 months, Strole, an employee at a property management company, created and submitted thousands of fake work orders for approximately 1,100 rental units for payments from his company, totaling over $820,000. As a result, over $500,000 in trust funds were paid out to Strole and/or the contractors he hired for work that was not completed or was unnecessary.

Theft of trust funds from clients can mean that monthly rents do not cover actual repairs that need to be made, homeowners insurance coverage is at risk, and the property owner’s mortgage payments may be missed. DRE revoked Strole’s real estate salesperson license on September 30, 2026.

DRE oversight also led to license forfeitures after findings of trust fund improprieties. Following a DRE audit, the Department found that Daniel Saldana (Ontario), a broker officer with Allied Management Inc., failed to keep accurate and complete trust fund records, allowed an unlicensed and unbonded person to make withdrawals from the client trust fund account, failed to have the broker officer as a signer on the client trust fund account, and failed to notify DRE of a salesperson working for the broker. DRE also found that the broker failed to supervise the activities of the brokerage. This is an example of a breach of fiduciary duties by failing to follow basic and essential client trust fund handling requirements.

Tips for Consumers

• Approve and Verify Contractor’s Work: Consumers and property managers should review and approve work being done to their properties, request records to support the need for the repairs or improvements and verify that the work has been completed as agreed. Consumers can request detailed estimates, invoices, receipts, and proof of payments to ensure work is necessary and price is reasonable. Property managers should likewise verify that invoices and receipts are legitimate, costs are consistent with the work authorized, and repairs have been completed before approving payment. The best practice for property managers is to also keep clean, thorough record keeping, in the event proof of work is requested.
• Ask Questions: When hiring or working with a property manager, ask what education they have in client trust fund handling, whether client funds are placed in a designated trust account, and what practices they have in place to document transactions, reconcile records, and ensure the safety of trust funds.
• Always Verify a License: Scammers promote high-return real estate investments that are either nonexistent or misrepresented, which can lead to financial losses for consumers. Consumers can verify a real estate agent's license and review any past disciplinary action using the DRE’s online database.

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  The Department of Real Estate is the regulatory agency that enforces the Real Estate Law, Subdivided Lands Law, and Vacation Ownership and Timeshare Act. DRE oversees the licensure of approximately 434,000 licensees. The Department's mission is to safeguard and promote the public interests in real estate matters through licensure, regulation, education, and enforcement. Consumer protection is its highest priority. For more information, visit: www.dre.ca.gov.