You may have a case against the Broker. We would need to review your documents, and correspondence. This seems strange. What reason did the Broker tell you specifically how he was going to spend the money?.

You'd better deal with this quickly before he disappears with your scammed money. There is no legitimate reason for him to need such money, and he is not supposed to take money without clear and specific documentation of purpose and records of use. Therefore, you are dealing with someone not playing by the rules, and probably in personal financial difficulty. If serious about getting legal counsel to help you in this, feel free to contact me.

This is almost certainly a violation of Department of Real Estate regulations for brokers and could easily cost this guy his license, or at minimum get him a lengthy suspension. It is also almost certainly actionable (civil) fraud and breach of the broker's fiduciary duty to his client.

If the guy disappears, which is possible, or turns out to be broke or even bankrupt, you still have a remedy, as there is a DRE "victims of fraud fund" (they call it the Recovery Account)which could reimburse all or a substantial part of the lost money on the strength of a default judgment against the broker.

The following is from the DRE's Web site: "In general, the requirements for payment from the Recovery Account include obtaining a final civil judgment or arbitration award, or a criminal restitution order against the licensee. The judgment, award or order must be based on intentional fraud or conversion of trust funds in connection with a transaction requiring a real estate license. The victim must make a reasonable search for the licensee's assets, and, if any, a reasonable effort to collect on the judgment, arbitration award or restitution order from those assets to satisfy the judgment. In addition, the victim must name as a defendant and make a reasonable effort to collect from all other parties involved in the transaction that may be liable to and able to pay the victim."

I have successfully obtained compensation for clients from the victims of fraud fund, and as I now (and usually) have several clients in Southern California (including Irvine, Riverside and downtown L.A.), I could take this case quickly and economically. Please contact me directly for a more in-depth discussion.