An Eagle Mountain mayoral candidate whose real estate license was revoked Wednesday is the latest political figure in the city to find himself embroiled in controversy.

Richard Culbertson's license was yanked by Utah's Real Estate Commission after an investigation found that Culbertson committed real estate fraud on four properties, according to real estate division director Derek Miller.

Culbertson also has been ordered to pay a $40,000 administrative penalty to the Division of Real Estate, which is part of the state Department of Commerce.

The case will now be referred to the U.S. Attorney's Office, Utah Attorney General's Office and the Utah County Attorney's Office for further investigation, Miller said.

"This is what I call classic mortgage fraud," Miller said. "We get complaints weekly about these kinds of things going on."

Miller says Culbertson is cooperating in an investigation into a larger mortgage fraud ring in Eagle Mountain and Utah County in which false identities are being used, property values are being inflated and documents are being forged.

Culbertson admitted to using the identity of another person to buy his own home and three other properties, Miller said. Culbertson also artificially inflated the value of the properties — including his own home — to obtain money in excess of the sales price for his personal benefit, Miller said.

While Culbertson does not deny his actions, the mayoral candidate says he believed at the time that his actions were "completely ethical and legal," but he has "accepted responsibility in order to protect the people I deeply care about and willingly accept the consequences, whatever that may be."

As Eagle Mountain's campaign season has become heated, Culbertson has defended three bankruptcy filings. The candidate says his history has been flaunted and distorted because he and two colleagues have focused their campaigns on holding city developers to their promises and not accepting developer contributions.

"From the moment we took that position, a massive effort was undertaken to destroy our credibility with the voters by operatives of land speculators," Culbertson said in a statement to the Deseret Morning News. "I have had my life investigated back to my birth with the intent to destroy me and those I've campaigned with ... There are forces here that rival the politics of Chicago and New York City."

Culbertson said he does not plan to withdraw from the election.