Auctioneer License Defense
Representation Before the State Board of Auctioneer Examiners
The State Board of Auctioneer Examiners licenses auctioneers, apprentice auctioneers and auction companies and registers trading assistants in the Commonwealth. The Board enforces rules on escrow accounts, written contracts with consignors, recordkeeping and advertising that are designed to protect the money and property entrusted to auction professionals.
Complaints most often concern the accounting for auction proceeds, the handling of escrow funds, the terms of a consignment or the conduct of the sale itself. Because several grounds for discipline turn on records the licensee is required to keep, the quality of those records frequently determines the outcome.
Mimm Law, LLC represents auctioneers, auction companies and trading assistants before the Board at every stage, from the initial inquiry through final order.
Governing Law
- Board
- State Board of Auctioneer Examiners
- Statute
- Auctioneer Licensing and Trading Assistant Registration Act, 63 P.S. § 734.1 et seq.
- Regulations
- 49 Pa. Code Chapter 1
- Licensees
- Auctioneers, companies and trading assistants
- Renewal
- Biennial; licenses and registrations expire the last day of February in odd-numbered years
Who the Board Regulates
- Auctioneer license
- Apprentice auctioneer license
- Auction company license
- Special auctioneer license for an out-of-state auctioneer
- Trading assistant registration
- Trading assistant company registration
Grounds for Discipline
Section 20 of the Act (63 P.S. § 734.20) authorizes the Board to discipline a licensee or registrant for, among other things:
- Knowingly making a substantial misrepresentation, or making false promises intended to influence a person
- Continued or flagrant misrepresentation through agents or apprentices
- Conviction, within five years before the license then in force was issued, of forgery, embezzlement, obtaining money under false pretenses, extortion, conspiracy to defraud or a similar offense
- Failure to account for or remit money belonging to others within a reasonable time
- Misleading or untruthful advertising, or advertising that omits the required name and license number
- Incompetence, bad faith or dishonesty in the conduct of a sale
- Knowingly using false bidders, cappers or puffers, or bidding or purchasing at one's own auction
- Failure to maintain the required escrow account
- Paying an unlicensed person for services that require a license
- Discipline in another state, and violation of the Act or the Board's regulations
Sanctions the Board May Impose
The Board may refuse, suspend or revoke a license or registration and may impose a civil penalty of up to $10,000. The Board must suspend or revoke a license when a certified record of a conviction for forgery, embezzlement, false pretenses, extortion, conspiracy to defraud or a like offense is filed, and it may suspend a license pending trial after an indictment. After revocation, no new license or registration may be issued for at least five years, and after that only in the Board's discretion. For applicants, the Act's conviction bar is now applied through the two-stage "directly related" analysis of Act 53 of 2020. Unlicensed auction activity is also subject to civil penalties and to criminal prosecution.
In addition to the sanctions in the Board's own statute, Chapter 31 of Title 63 of the Pennsylvania Consolidated Statutes authorizes each licensing board to impose a civil penalty of up to $10,000 per violation and to assess the costs of investigation against a licensee found to have violated the law.
Obligations That Often Lead to Board Matters
Escrow Accounts
Money belonging to others must be deposited promptly in a separate custodial or trust account and fully accounted for at the conclusion of the transaction. Commingling and delayed remittance are each grounds for discipline.
Written Contracts and Records
A written contract with the consignor must be executed before the sale, written receipts must be provided, and records must be retained for at least two years and, if a complaint is made, until the complaint is finally resolved. These documents are usually the first items an investigator requests.
Apprentices and Companies
A sponsoring auctioneer must notify the Board within 10 days of a change in an apprentice's status, and an auction company must notify the Board within 30 days when its auctioneer of record departs. An apprentice must also notify the Board within 10 days of a change of sponsor, or the license is automatically cancelled, and an auction company license becomes invalid if its auctioneer of record leaves without a successor.
Matters We Handle
- Consumer complaints concerning auction proceeds
- Escrow account and recordkeeping issues
- Advertising and contract requirements
- Practice without a current license or registration
- Criminal charges and convictions affecting licensure
How We Can Help
Board Investigations
Upon receipt of a letter of inquiry, a subpoena or contact from an investigator, the firm evaluates the allegations, reviews the licensee's records, prepares a written response and attends any investigative interview. In some matters, an early, well-documented response may resolve the matter before formal charges are filed.
Formal Charges and Hearings
When the Commonwealth files an Order to Show Cause, the time to respond is short, and a respondent who misses the deadline may be held in default and the facts alleged deemed admitted. The firm prepares and files the answer, negotiates a consent agreement where one serves the client's interests, and tries the matter before the hearing examiner or the Board where it does not.
Applications and Reinstatement
For applicants whose history may raise questions, and for licensees seeking reinstatement after suspension, revocation or lapse, the firm assembles the application and supporting record and presents the matter to the Board.
Questions Licensees Ask
A consignor says I paid too little after the sale. What should I do?
Assemble the consignment contract, the clerking sheets, the escrow account records and the settlement statement before responding. Disputes over proceeds often turn on the documents, and a complete accounting presented early can help.
May my auction company pay a helper who is not licensed?
Only for work that does not require a license. The Act prohibits paying an unlicensed person for services that require licensure, and the prohibition applies to the company as well as the individual auctioneer.
Do online sales fall under the Board's jurisdiction?
They may. The Act regulates trading assistants and trading assistant companies that sell the property of others through online auction services, and it requires registration for that activity.
Should I speak with an investigator before I have counsel?
A licensee who receives a letter of inquiry, a subpoena or a telephone call from an investigator with the Bureau of Enforcement and Investigation should be courteous and should note the investigator's name and contact information, but should not give a substantive statement before obtaining advice. Anything said to an investigator may be included in the report reviewed by the prosecuting attorney and, later, by the Board. Counsel can determine what is being alleged, gather the relevant records and prepare a response that is accurate, complete and appropriately limited.
Must I report a criminal conviction, plea or ARD, or discipline in another state?
Yes. Pennsylvania law requires every licensee to notify the licensing board in writing within 30 days of discipline imposed by a licensing authority in another jurisdiction and of a finding of guilt, guilty plea, plea of nolo contendere, probation without verdict, disposition in lieu of trial or Accelerated Rehabilitative Disposition on a felony or misdemeanor charge. Some boards' regulations impose additional or earlier reporting duties, including, for nurses and massage therapists, a duty to report the filing of criminal charges within 30 days. A failure to report is itself a ground for discipline, and it is frequently charged alongside the underlying conduct.
Meet Your Attorney
Steven A. Mimm, Esq.
Founder, Mimm Law, LLC. Admitted in Pennsylvania (2008) and New Jersey (2022).
From 2014 to 2022, Attorney Steven A. Mimm served as a prosecuting attorney bringing disciplinary actions on behalf of the Bureau of Professional and Occupational Affairs before Pennsylvania's licensing boards. That experience informs how the firm evaluates evidence, negotiates with the Commonwealth and prepares cases for hearing. Where a licensee also faces criminal charges, the firm handles the licensing matter and coordinates with the licensee's criminal defense counsel.
Related: All Licensing Boards · Licensing and FAQs
Last reviewed September 2026. The information on this page is general in nature and is not legal advice. Contacting the firm does not create an attorney-client relationship.