For 9 months Jayson Costa says he regularly processed loans for the now-defunct Crisp & Cole Realty. And Costa made thousands of dollars in commissions from those loans. But there was a problem.
Costa was not licensed to work as a loan officer as required by the California Department of Real Estate.

Under questioning by Michael Rich, counsel for the Department of Real Estate, Costa admitted he continued to work for the once-powerful Bakersfield duo.

Asked by Rich if David Crisp and Carl Cole both knew he had no license, Costa said "Yes."

"Carl gave me 60 days, he said to get a license within 60 days (after starting work at Crisp & Cole)", said Costa.

The testimony is important because the California Department of Real Estate contends Crisp & Cole deceived lenders out of millions of dollars
by submitting fraudulent documents and using unlicensed employees.

Crisp and Cole could lose their licenses if the state charges hold up.

Costa says he eventually got his license but it was too late by then, as the state had begun an investigation, said Costa.

In other testimony, Joe Carrillo, senior deputy commissioner of the Department of Real Estate testified the FBI secretly recorded a conversation he had with Carl Cole.

Carrillo says he went to interview Cole about his responsibilities with
the realty company as the designated broker. Carrillo says he was "wired-up" by the FBI to record the conversation.

And we now know how this investigation started. Under cross examination by David Crisp who is acting as his own lawyer, Carrillo
said Bakersfield appraiser Gary Crabtree filed a complaint with the Department of Real Estate.

Crabtree says he found violations with 3-4 Crisp & Cole properties and submitted his findings to the state.

The state rested its case on Monday. Crisp & Cole now get a chance to present witnesses on their behalf.