Alaska License LawIntermediateAlaska Exam

An Alaska broker who accepts a listing on a property that the broker knows is involved in a fraudulent scheme is:

AProtected since the broker is just a neutral agent
BPotentially liable as a knowing participant in the fraudCorrect
CRequired only to disclose the issue to the Commission
DProtected if the fraud occurred before the listing was taken

Why Potentially liable as a knowing participant in the fraud Is Correct

Answer B: Potentially liable as a knowing participant in the fraud

A broker who knowingly participates in or assists with a fraudulent transaction may be held civilly and criminally liable along with the primary wrongdoers. 'I was just the broker' is not a defense if the broker had knowledge of the fraud.

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