Firm News

Park City Real Estate Agent Mike Dawson Guilty of Fraud
Dawson Ordered to Pay Punitive Damages

PARK CITY, UTAH - Long time Park City real estate agent Michael Dawson has been found guilty of defrauding the Park City Re/Max Brokerage that Dawson worked for in 2004-2005. Re/Max Mountain Properties filed the fraud lawsuit after Re/Max discovered that Dawson was pocketing commissions that belonged to Re/Max. Re/Max alleged in its suit that Dawson had diverted over $191,000.00 in gross commission income away from Re/Max and into Dawson's own pockets.

Dawson testified at trial that he had permission from Re/Max to act as his own broker on the transactions, and that Re/Max had previously agreed to allow him to pocket the commissions. In a memorandum decision issued this week, District Court Judge Bruce Lubeck found Dawson's testimony to be "incredible and unbelievable" and that Dawson's explanation was "fabrication at its worst." Judge Lubeck found Dawson to be "untruthful" and that it was "absolutely incredible" for Dawson to suggest that Re/Max knew and approved the diversion of gross commission income. After finding by clear and convincing evidence that Dawson breached his fiduciary duty to Re/Max and committed fraud, the Court ordered Dawson to pay Re/Max $50,000.00 in actual damages, and the Court ordered Dawson to disgorge all of the gross commission income he pocketed as punitive damages. Dawson was also ordered to reimburse Re/Max for its attoney fees.

Re/Max principal broker Ron Wilstein was pleased with the outcome. "It restores my faith in the legal system to know that dishonest agents and brokers can be brought to justice." Mr. Wilstein also admitted, "There have been times over the past two years that I wondered whether this lawsuit was worth it. I can now confirm that it was indeed worth the effort to bring this man to justice."
Re/Max lead counsel Joe Wrona agreed with Wilstein. "There are a small number of agents and brokers in Park City who think they can lie with impunity. But as Re/Max proved in this case, a liar will always get caught in the end."

A copy of the District Court Ruling in Re/Max Mountain Properties v. Dawson is attached.