Mara Group Inc and Paulino H41663LA

DIANE LEE, Counsel (SBN 247222)

Department of Real Estate

320 West 4th Street, Suite 350

FILED

Los Angeles, California 90013

MAY 1 2 2020

Telephone:

(213) 576-6982

DEPT. OF REAL ESTATE

(Direct)

(213) 576-6907

By _Song

BEFORE THE DEPARTMENT OF REAL ESTATE

STATE OF CALIFORNIA

In the Matter of the Accusation of

No. H- 41663 LA

MARA GROUP, INC.; and

ELENA MARA PAULINO, individually

ACCUSATION

and as designated officer of Mara Group, Inc.

Respondents.

The Complainant, Veronica Kilpatrick, a Supervising Special Investigator of the

State of California, acting in her official capacity, for cause of Accusation against Respondents

MARA GROUP, INC. ("MGI") and ELENA MARA PAULINO ("PAULINO"), individually

and as designated officer of Mara Group, Inc., is informed and alleges as follows:

The Complainant, Veronica Kilpatrick, acting in her official capacity

as Supervising Special Investigator of the State of California, makes this Accusation.

All references to the "Code" are to the California Business and Professions

Code, and all references to "Regulations" are to Title 10, Chapter 6, California Code of

Regulations unless otherwise specified.

Accusation re: Mara Group, Inc. and Elena Mara Paulino

N a. From on or about June 27, 2014 to June 26, 2018, Respondent MGI was

licensed by the Department Real Estate as a real estate corporation (license no 01954678).

During its entire time of licensure, MGI's designated officer was PAULINO. PAULINO was

also the chief executive officer ("CEO") and 100 percent shareholder of MGI. MGI's fictitious

business name was "Prestige Properties - Desert Cities" from on or about October 27, 2014 to

June 27, 2018.

b. Respondent PAULINO is presently licensed and/or issued by the Department

of Real Estate as a real estate broker (license no. 01151769). PAULINO was originally

licensed as a real estate broker on or about May 28, 2008. Previously, PAULINO had a real

estate salesperson license. PAULINO's fictitious business names were "Elite Group

Mortgage" from on or about February 9, 2009 to April 8, 2012, "Elite Rentals & Property

Management" from on or about February 9, 2009 to April 8, 2012, and "Prestige Properties-

Desert Cities" from on or about March 25, 2019 to November 24, 2019.

Whenever acts referred to below are attributed to MGI and/or PAULINO, those

acts are alleged to have been done by MGI and/or PAULINO, acting by

itself/himself/themselves, or by and/or through one or more agents, associates, affiliates, and/or

co-conspirators.

5 .

At all times mentioned, in the County of San Bernardino, MGI and PAULINO

were engaged in the business of a real estate broker conducting licensed activities within the

23 meaning of Code section 10131(b) ("[lleases or rents or offers to lease or rent, or places for

rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the

sale, purchase, or exchanges of leases on real property, or on a business opportunity, or collects

rents from real property, or improvements thereon, or from business opportunities").

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Accusation re: Mara Group, Inc. and Elena Mara Paulino

(Trust Fund Audit)

On or about June 27, 2019, the Department of Real Estate completed an audit

examination of the books and records of MGI to determine whether MGI and PAULINO

UT handled and accounted for trust funds and conducted their real estate activities in accordance

with the Real Estate Law and Regulations. The audit examination covered a period of time

beginning on March 1, 2016 and ending on February 28, 2019. The audit examination revealed

violations of the Code and the Regulations set forth in the following paragraphs, and more fully

discussed in Audit Report LA180079 and the exhibits and work papers attached to said audit

report.

Trust Accounts

At all times mentioned, in connection with the activities described in Paragraph

5, above, MGI and PAULINO accepted or received funds including funds in trust ("trust

funds") from or on behalf of actual or prospective parties, such as sellers and buyers of real

property, and thereafter made deposits and/or disbursements of such funds. From time to time

herein mentioned, during the audit period, said trust funds were deposited and/or maintained

by MGI and PAULINO in the trust accounts as follows:

"Mara Group, Inc."

*#****5782

Wells Fargo Bank

57125 Twentynine Palms Hwy.

Yucca Valley, CA 92284

"Mara Group, Inc."

*#* ***5790

Wells Fargo Bank

57125 Twentynine Palms Hwy.

Yucca Valley, CA 92284

(B/A 1)

(B/A 2)

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Accusation re: Mara Group, Inc. and Elena Mara Paulino

"Anele Group, Inc.

DBA Prestige Properties

Rentals"

*$***#**$1057

Wells Fargo Bank

57125 Twentynine Palms Hwy.

Yucca Valley, CA 92284

"Anele Group, Inc.

DBA Elite Rentals & Property Management

Rental Account"

*#*#****#1577

Wells Fargo Bank

$7125 Twentynine Palms Hwy.

Yucca Valley, CA 92284

General Funds Accounts

(B/A 3)

(B/A 4)

At all times mentioned, in connection with the activities described in Paragraph

5, above, MGI and PAULINO also maintained receipts and disbursed funds for general

business activities through the following bank accounts:

16 "Mara Group, Inc."

*#***#5774

Wells Fargo Bank

57125 Twentynine Palms Hwy.

Yucca Valley, CA 92284

(G/A 1)

"Elena M. Paulino

DBA Anele Group, Inc."

******9680

Wells Fargo Bank

$7125 Twentynine Palms Hwy.

Yucca Valley, CA 92284

(G/A 2)

"Mara Group, Inc.

DBA Prestige Properties

Payroll Funding Account"

**#*# #5667

Wells Fargo Bank

57125 Twentynine Palms Hwy.

Yucca Valley, CA 92284

(B/A 3)

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Accusation re: Mara Group, Inc. and Elena Mara Paulino

In the course of activities described in Paragraphs 5 and 7, above, and during the audit

w examination period in Paragraph 6, above, Respondents MGI and PAULINO acted in violation

of the Code and the Regulations as set forth below:

(a)(1) Permitted, allowed, or caused the disbursement of trust funds from the

trust accounts B/A 1 and B/A 2 where the disbursement of funds reduced the total of aggregate

funds in B/A 1 and B/A 2, combined, to an amount which, on February 28, 2019, was at least

456,541.01 less than the existing aggregate trust fund liability to every principal who was an

owner of said funds, without first obtaining the prior written consent of the owners of said

funds, in violation of Code section 10145 and Regulations section 2832.1. MGI's real estate

license was expired during part of the audit period, June 27, 2018 through February 28, 2019.

(a)(2) Permitted, allowed, or caused the disbursement of trust funds from the

trust accounts B/A 1 and B/A 2 where the disbursement of funds reduced the total of aggregate

funds in B/A 1 and B/A 2, combined, to an amount which, on June 26, 2018, was at least

$387,060.39 less than the existing aggregate trust fund liability to every principal who was an

owner of said funds, without first obtaining the prior written consent of the owners of said

funds, in violation of Code section 10145 and Regulations section 2832.1.

(b) MGI conducted licensed activities, including, but not limited to, managed

properties for others, solicited listings of real property for rent, solicited for prospective tenants,

negotiated leases and property management agreements, collected rents, and disbursed trust

funds for compensation, while its license was expired on or about June 28, 2018 through at

least February 28, 2019, in violation of Code section 10130. MGI's real estate license expired

on June 27, 2018.

columnar record in chronological order of all trust funds received, deposited, and disbursed

from B/A 1 and B/A 2 both from March 1, 2016 to June 26, 2018 and from June 27, 2018 to

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Accusation re: Mara Group, Inc. and Elena Mara Paulino

February 28, 2019, in violation of Code section 10145 and Regulations section 2831. MGI's

real estate license expired on or about June 26, 2018.

(d) Failed to maintain an accurate and complete separate record for each

beneficiary or transaction, thereby failing to account for all trust funds received, deposited, and

disbursed from B/A 1 and B/A 2 both from March 1, 2016 to June 26, 2018 and from June 27,

2018 to February 28, 2019, in violation of Code section 10145 and Regulations section 2831.1.

(e) Failed to maintain a monthly reconciliation of all the separate records to the

control record of all trust funds received and disbursed for B/A 1 and B/A 2 both from March

1, 2016 to June 26, 2018 and from June 27, 2018 to February 28, 2019, in violation of Code

section 10145 and Regulations section 2831.2.

(f)(1) Failed to designate B/A 1 and B/A 2 as trust fund accounts, in violation of

Code section 10145 and Regulations section 2832.

(f)(2) Failed to name MGI as the trustee of B/A 3 and B/A 4 when B/A 3 and

B/A 4 were used for the handling the receipts and disbursements of trust funds in connection

with property management activities, in violation of Code section 10145 and Regulations

section 2832.

(g) Permitted Jessica Paulino ("Jessica"), an unlicensed and unbonded person,

to be an authorized signatory on B/A/1, B/A 2, and B/A 4, in violation of Code section 10145

and Regulations section 2834.

(h) Permitted Janemarie Nicole Paulino aka Janemarie Nicole-Paulino Ofahulu

("Janemarie"), an unlicensed and unbonded person, to be an authorized signatory on B/A/1,

B/A 2, B/A 3, and B/A 4 from at least March 1, 2016 to September 24, 2017, in violation of

Code section 10145 and Regulations section 2834. On or about September 25, 2017, Janemarie

obtained a real estate license (license no. 02029947).

(i)(1) Commingled trust funds with MGI's general funds by transferring and

depositing trust funds back and forth between B/A 1 and MGI's general business accounts, G/A

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Accusation re: Mara Group, Inc. and Elena Mara Paulino

1, G/A 2, and G/A 3, in violation of Code sections 10145 and 10176(e) and Regulations section

2832.

(i)(2) Commingled trust funds with MGI's general funds by transferring and

depositing trust funds back and forth between B/A 2 and MGI's general business accounts, G/A

1, G/A 2, and G/A 3, in violation of Code sections 10145 and 10176(e) and Regulations section

6 2832.

(j) PAULINO commingled and converted trust funds totaling at least

$107,227.45 from B/A 1 and B/A, combined, as of June 26, 2018, in violation of Code sections

10145, 10176(e), and 10176(i)/10177(j) and Regulations section 2832. PAULINO deposited

and commingled trust funds with MGI's general business accounts, G/A 1, G/A 2, and G/A 3 to

pay for MGI's general business activities and pay for PAULINO's personal and financial

obligations.

(k) Used the unlicensed fictitious names, "Prestige Properties," "Prestige

Properties DC - Rentals," and "Elite Rentals & Property Management," to conduct licensed

activities, without holding a license bearing the fictitious business names, in violation of Code

section 10159.5 and Regulations section 2731.

(1) MGI engaged in the business of a real estate broker while not in good legal

standing with the Office of the Secretary of State from on or about October 2, 2017 to June 26,

|2018, in violation of Regulations section 2742(c). On or about October 2, 2017, the Franchise

Tax Board suspended MGI's corporate license.

(m) The overall conduct of PAULINO constitutes a failure on PAULINO's

part, as officer designated by a corporate broker licensee, to exercise the reasonable supervision

and control over the licensed activities of MGI to keep MGI in compliance with the Real Estate

Law, in violation of Code section 10159.2 and Regulation section 2725.

111

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Accusation re: Mara Group, Inc. and Elena Mara Paulino

10.

The conduct of Respondents MGI and PAULINO described in Paragraph 9,

above, violated the Code and the Regulations as set forth below:

PARAGRAPH

PROVISIONS VIOLATED

9(a)

Code section 10145 and Regulations section 2832.1

9 (b )

Code section 10130

9(c)

Code section 10145 and Regulations section 2831

19(d)

Code section 10145 and Regulations section 2831.1

19(e)

Code section 10145 and Regulations section 2831.2

19(f)

Code section 10145 and Regulations section 2832

9(g)

Code section 10145 and Regulations section 2834

9(h)

Code section 10145 and Regulations section 2834

19(1)

Code sections 10145 and 10176(e) and Regulations section 2832

Code sections 10145, 10176(e), and 10176(i)/10177(j) and Regulations

section 2832

9(k)

Code section 10159.5 and Regulations section 2731

9(1)

Regulations section 2742(c)

9(m)

Code section 10159.2 and Regulation section 2725

The foregoing violations constitute cause for discipline of the real estate license and license

rights of Respondents MGI and PAULINO under the provisions of Code sections 10176(e),

10177(d), 10177(g), 10177(h), and 10176(1)/10177().

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Accusation re: Mara Group, Inc. and Elena Mara Paulino

(COSTS)

w Code section 10106 provides, in pertinent part, that in any order issued in

resolution of a disciplinary proceeding before the Department of Real Estate, the Commissioner

may request the administrative law judge to direct a licensee found to have committed a

violation of this part to pay a sum not to exceed the reasonable costs of investigation and

enforcement of the case.

12.

Code section 10148(b) provides, in pertinent part, that the Commissioner shall

charge a real estate broker for the cost of any audit, if the Commissioner has found in a final

decision following a disciplinary hearing that the broker has violated Code section 10145 or a

regulation or rule of the Commissioner interpreting said section.

WHEREFORE, Complainant prays that a hearing be conducted on the

allegations of this Accusation and that upon proof thereof, a decision be rendered imposing

disciplinary action against the license and license rights of MARA GROUP, INC. and ELENA

MARA PAULINO under the Real Estate Law (Part 1 of Division 4 of the California Business

and Professions Code), for the cost of investigation and enforcement pursuant to Code section

10106 and as permitted by law, and for such other and further relief as may be proper under

other applicable provisions of law, including costs of audit pursuant to Code section 10148(b).

Dated at San Diego, California: _April 30

, 2020.

I Kubatack

Veronica Kilpatrick

Supervising Special Investigator

24 CC:

Mara Group, Inc.

Elena Mara Paulino

Veronica Kilpatrick

Sact

Enforcement

Audits - Zaky Wanis

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Accusation re: Mara Group, Inc. and Elena Mara Paulino