ALJDEC decisions subject to certification as final
22F-314-REL · Department of Real Estate · 2022-07-28
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
In the Matter of the Real Estate License of:
AHMAD T. SOUGHAR, holder of license number SA683811000,
Respondent
No. 22F-314-REL
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: July 8, 2022
APPEARANCES: Respondent Ahmad T. Soughar appeared on behalf of himself. Assistant Attorney General Lynette Evans appeared on behalf of the Arizona Department of Real Estate.
ADMINISTRATIVE LAW JUDGE: Velva Moses-Thompson
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FINDINGS OF FACT
1. Respondent Ahmad T. Soughar holds license number SA683811000 issued by the Arizona Department of Real Estate (Department).
2. At all times relevant to this matter, Mr. Soughar was employed as a real estate salesperson for eXP Realty.
3. In September of 2021, Mr. Soughar attempted to purchase a home located at 637 Dawn Circle, Mesa, Arizona (the Property). Joseph R. Galea and Sandra J. Crawford were the sellers of the Property.
4. DocuSign is a digital signature program that allows individuals and organizations to electronically sign documents. DocuSign users must create a user session to send and sign documents. After the user session is completed, DocuSign generates a certificate of completion that shows the signers, the senders, and the recipients of documents during a session. DocuSign assigns a different envelope ID to each user session. See id.
5. On September 23, 2021, Mr. Soughar sent a written purchase contract to Joseph R. Galea and Sandra J. Crawford (the sellers) through DocuSign. However, the contract did not include Mr. Soughar’s signature. See Exhibit 6, pg. 10, line 453.
Mr. Soughar had only initialed the contract. The purchase contract was created in a DocuSign session with an envelope ID ending in 586F. See Exhibit 13. The certificate of completion showed “AS” for Mr. Soughar’s signature with an envelope ID ending in 586F. See id.
6. The sellers observed that Mr. Soughar had not signed the purchase contract and decided not to execute the contract.
7. Mr. Soughar later noticed that he failed to sign the purchase contract.
8. On September 28, 2021, Mr. Soughar signed the purchase contract with a backdate of September 23, 2021.
9. On September 28, 2021, Mr. Soughar created a new signing session through DocuSign. Mr. Soughar uploaded the backdated purchase contract into the new signing session. After Mr. Soughar uploaded the backdated purchase contract into the new signing session, a new envelope ID was created. The new signing session had an envelope ID ending in DC17”. See id.
10. On September 30, 2021, Mr. Soughar added his signature to the certificate of completion that was generated from the September 23, 2021 signing session, with an envelope ID ending in 586F.
11. At all times relevant to this matter, Beth Adams was the Designated Broker for eXP Realty.
12. On September 28, 2021, the broker of the company who represented the sellers called Ms. Adams and reported that Mr. Soughar had represented that he had signed a contract with the sellers. Ms. Adams inquired about the transaction with
Mr. Soughar.
13. Mr. Soughar told Ms. Adams that he originally sent the purchase contract without his signature, but noticed the error and corrected it the same night.
14. On September 28, 2021, Mr. Galea called Ms. Adams. Mr. Galea notified Ms. Adams that the purchase contract that Mr. Soughar sent to him on September 23, 2021 did not bear Mr. Soughar’s signature. See Exhibits 2 and 3. Mr. Galea stated that he requested that the title company cancel escrow on September 24, 2021, prior to escrow opening on September 29, 2021. Mr. Galea told Ms. Adams that he believed that Mr. Soughar signed the contract on September 28, 2021, and not September 23, 2021. See id.
15. On September 28, 2021, Ms. Adams inquired with Mr. Soughar by e-mail whether he had a copy of the purchase contract because the sellers were claiming that they cancelled the contract. See Exhibit 3.
16. On September 30, 2021, Mr. Soughar responded that all parties signed the contract. Mr. Soughar sent Ms. Adams a certificate of completion that represented that all parties had signed the contract on September 23, 2021. See Exhibit 3.
17. Ms. Adams subsequently inquired with Mr. Soughar whether the certificate of completion that Mr. Soughar sent to her was from the original signing session.
See Exhibit 3. Mr. Soughar sent Ms. Adams a second certificate of completion representing that all parties had signed the contract and that Mr. Soughar had provided a second DocuSign signature dated September 23, 2021 at 9:41:02 p.m. See id.
18. Ms. Adams subsequently notified Mr. Soughar that the transaction would be cancelled because full delivery of the contract did not occur until September 28, 2021, after the sellers cancelled the contract.
19. On October 26, 2021, Ms. Adams severed Mr. Soughar’s license.
Mr. Soughar admitted the same day that he “doctored” the signing sessions and that his “ego got in the way...”
20. On or about October 27, 2021, Ms. Adams submitted a complaint to the Department alleging that Mr. Soughar altered transaction documents in his attempt to purchase the Property. Ms. Adams expressed in her complaint that Mr. Galea and his agent believed that Mr. Soughar had changed the DocuSign certificates of completion.
21. On October 29, 2021, the Department notified Mr. Soughar that Ms. Adams had filed a complaint with the Department alleging that Mr. Soughar had falsified a purchase contract. The Department requested Mr. Soughar’s response.
22. Mr. Soughar admitted that he falsified the purchase contract. Mr. Soughar also wrote, “My passions clearly got the better of me. I admit that it is inappropriate to backdate anything and will never do so again.”
23. A hearing was conducted on July 8, 2022.
24. At hearing, the Department presented the testimony of its Senior Investigator, Bret Bisenthal, and submitted Exhibits 1 through 13.
25. Mr. Biesenthal testified regarding his investigation of Ms. Adams’s complaint. Mr. Bisenthal explained that he subpoenaed records from DocuSign that showed the only purchase agreement containing Mr. Soughar’s signature was signed on September 28, 2021.
26. At hearing, Mr. Soughar did not dispute the Department’s allegations.
Mr. Soughar expressed regret over his actions. Mr. Soughar requested that the Department give him a second chance and he expressed that he would agree to be monitored as a real estate agent. Mr. Soughar also stated that an attorney advised him that the contract, which had only his initials, would have been binding on the sellers.
CONCLUSIONS OF LAW
The Commissioner has jurisdiction over Mr. Soughar and the subject matter in this case.
The Department bears the burden of persuasion. Ariz. Rev. Stat. § 41-1092.07(G)(2). The standard of proof is by a preponderance of the evidence.
See A.A.C. R2-19-119(A).
Ariz. Rev. Stat. section 32-2153 provides as follows:
A. The commissioner may suspend or revoke a license, deny the issuance of a license, issue a letter of concern to a licensee, issue a provisional license or deny the renewal or the right of renewal of a license issued under this chapter if it appears that the holder or applicant, within five years immediately preceding, in the performance of or attempt to perform any acts authorized by the license or by this chapter, has:
1. Pursued a course of misrepresentation or made false promises, either directly or through others, whether acting in the role of a licensee or a principal in a transaction.
* * *
B. The commissioner may suspend or revoke a license, deny the issuance of a license, issue a letter of concern to a licensee, issue a provisional license or deny the renewal or the right of renewal of a license issued under this chapter if it appears that the holder or applicant has:
* * *
3. Made any substantial misrepresentation.
* * *
7. Not shown that the holder or applicant is a person of honesty, truthfulness and good character.
* * *
4. The concern of the Department is essential and legitimate in light of
Mr. Soughar’s fraudulent activity in connection with a real estate transaction.
5. The undisputed evidence presented by the Department shows that
Mr. Soughar made substantial misrepresentations in an attempt to purchase real property.
6. Mr. Soughar expressed deep regret and strongly asserted that he would not falsify documents again. However, Mr. Soughar has the burden of proving, by a preponderance of the evidence, that he has resolved the issues that led to the commission of the fraudulent acts to establish that he has sufficient good character and reputation to satisfy the statutory requirement for licensure as a real estate salesperson. The preponderance of the evidence does not show that Mr. Soughar is a person of honesty, truthfulness, and good character.
7. The weight of the evidence shows that grounds exist to revoke
Mr. Soughar’s license pursuant to Ariz. Rev. Stat. §§ 32-2153(A)(1), (B)(3), and (B)(7).
8. Considering the facts and circumstances of this matter, Mr. Soughar’s
license should be revoked.
RECOMMENDED ORDER
Based upon the foregoing considerations, the undersigned Administrative Law Judge hereby recommends to the Arizona Department of Real Estate Commissioner that Mr. Soughar’s license be revoked.
Done this day, July 28, 2022.
/s/ Velva Moses-Thompson
Administrative Law Judge
Transmitted electronically to:
Louis Dettorre, Commissioner
Arizona Department of Real Estate
By Miranda Alvarez
Legal Secretary