In an official filing, the State of Washington Department of Financial Institutions Division of Consumer Services confirmed that it has launched an investigation of Basin Brokerage and Freestand Financial, which is based in Arizona.

Both Gee, who could not be reached to comment, and Parker are named in the filing.

The state has alleged that the Washinton operation was unlicensed, broke mortgage laws and engaged in other “prohibited acts”, including “making a knowingly false statement to state banking, by obtaining property by fraud or misrepresentation.”

Parker is anxious to make his case to the state.

In both his response to the state and in the interview, Parker said Basin Brokerage was only a Web site, not a broker.  The actual brokerage was a net branch of Freestand Financial.

The state says Basin was also used in print advertisements and in the local telephone book. Basin was also involved in assisting at least seven buyers in obtaining mortgage loans. The transactions generated $20,204 in mortgage loan fees paid to Freestand Financial, the state said.

The state is attempting to remove Freestand Financial’s license and is contemplating fines of up to $35,400.

A story about the complaint was in the local press; Parker said it caused him embarrassment.

“I’ve been getting a lot of phone calls, and I’m trying to maintain my credibility,” he said. “I’m working to get this resolved.”