Rhode Island License Law

A Rhode Island broker who knowingly participates in a scheme to flip properties at inflated values using fraudulent appraisals may be charged with:

AOnly a license violation resulting in a fine
BMortgage fraud, a criminal offense under both state and federal law✓ Correct
CBlockbusting under the Fair Housing Act
DA RESPA violation only

Explanation

Participating in a property flipping scheme with fraudulent appraisals constitutes mortgage fraud, a serious criminal offense under both Rhode Island state law and federal law, in addition to being a license law violation.

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