Disciplinary Actions – Feburary 2012-V42-3

ADVANTAGE TRAINING SYSEMS, INC. (Horse Shoe) – The Commission accepted the permanent voluntary surrender of the sponsor approval of Advantage Training Systems effective December 31, 2011. The Commission dismissed without prejudice allegations that Advantage Training Systems violated provisions of the Real Estate License Law and Commission rules. Advantage Training Systems neither admitted nor denied misconduct.

EDWARD B. ANDERSON (Marion) – By Consent, the Commission suspended the broker license of Mr. Anderson for a period of two years effective April 1, 2011. Six months of the suspension were active with the remainder stayed for a probationary period of three years. The Commission found that Mr. Anderson, also licensed by the North Carolina Appraisal Board, consented to a three-year suspension of his appraiser certificate effective February 1, 2010, with one year active on certain conditions, in connection with several appraisals he performed involving vacant lots.

JAMES M. BEATY (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Beaty for a period of two years effective December 1, 2011. The Commission then stayed the suspension for a probationary period of two years subject to certain conditions. The Commission found that Mr. Beaty, on March 31 and April 1, 2011, in two separate cases, pled guilty to and was convicted of Driving While Impaired, Level 2, in Mecklenburg County and, in both cases, given suspended sentences with probation and ordered to obtain substance abuse assessment, attend AA meetings, and pay fines and court costs. The Commission also found that Mr. Beaty was convicted of Driving While Impaired on two prior occasions in July, 1993 and June, 2007.

CASEY REID BRAWLEY (Charlotte) – The Commission accepted the voluntary surrender of the broker license of Mr. Brawley for a period of five years effective January 11, 2012. The Commission dismissed without prejudice allegations that Mr. Brawley violated provisions of the Real Estate License Law and Commission rules. Mr. Brawley neither admitted nor denied misconduct.

HEATHER LYNNE BROOKS (Greensboro) – By Consent, the Commission suspended the broker license of Ms. Brooks for one year effective January 1, 2012. The Commission found that Ms. Brooks accepted receipt of earnest money totaling $1,000; instead of depositing the money in her trust account as required, she deposited it into her operating account. The Commission also found that within three days of receipt, Ms. Brooks spent a portion of the earnest money deposit; it took her approximately one year to refund the earnest money deposit from her personal funds.

THURSDAY BROWN-RICE (Summerfield) – By Consent, the Commission reprimanded Ms. Brown-Rice effective September 1, 2011. The Commission found that Ms. Brown-Rice agreed to become broker-in-charge for a licensed firm, but took no part in supervising the licensed firm and instead allowed the qualifying broker to operate the firm.

PATRICIA N. CLARK (Lewiston Woodville) – By Consent, the Commission revoked the broker license of Ms. Clark effective November 16, 2011. The Commission found that Ms. Clark, acting as broker-in-charge of her sole proprietorship, failed to maintain and retain her trust account records in compliance with the Real Estate License Law and Commission rules and failed to safeguard the funds she collected on behalf of others, and her liabilities sometimes exceeded the funds on hand in her account.

CLC REALTY, INC. (Gastonia) – By Consent, the Commission suspended the firm license of CLC Realty for a period of 12 months effective November 1, 2011. The Commission then stayed the suspension for a probationary period of 24 months effective November 1, 2011, subject to certain conditions. The Commission found that CLC Realty failed to keep complete records of trust account funds and that the records did not provide a clear audit trail. The Commission also found that CLC Realty failed to reconcile its trust account records to the records provided by the bank. The Commission noted that CLC Realty has since accurately reconstructed its trust account records from available sources to conform to Commission rules and has identified ownership of all funds deposited into the trust account.

NORRIS V. CLIFTON (Sugar Mountain) – The Commission accepted the voluntary surrender of the broker license of Mr. Clifton for a period of one year effective December 1, 2011. The Commission dismissed without prejudice allegations that Mr. Clifton had violated provisions of the Real Estate License Law and Commission rules. Mr. Clifton neither admitted nor denied misconduct.

BERNARD CRIPE (Raleigh) – By Consent, the Commission reprimanded Mr. Cripe effective December 1, 2011. The Commission found that Mr. Cripe, acting as broker-in-charge of a real estate brokerage firm, sold lots and houses in a subdivision with private streets and but failed to provide purchasers with the subdivision street disclosure statement required by law.

HEIDI JEANETTE EBBERT (Charlotte) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Ebbert effective November 16, 2011. The Commission dismissed without prejudice allegations that Ms. Ebbert had violated provisions of the Real Estate License Law and Commission rules. Ms. Ebbert neither admitted nor denied misconduct.

FRANCIS A. FIEDOR (Raleigh) – By Consent, the Commission reprimanded Ms. Fiedor effective December 1, 2011. The Commission found that Ms. Fiedor sold lots and houses in a subdivision with private streets and failed to provide purchasers with the subdivision street disclosure statement required by law.

GRANDFATHER GOLF & COUNTRY CLUB, INC. (Linville) – By Consent, the Commission reprimanded Grandfather Golf & Country Club effective November 16, 2011. The Commission found that Grandfather Golf & Country Club, acting as broker and agent for nine to 20 residential rental properties, procured tenants and collected rents and deposit monies for landlord clients without a broker-in-charge and without a license on active status.

CAROLYN W. GRANT (Raleigh) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Grant effective November 1, 2011. The Commission dismissed without prejudice allegations that Ms. Grant had violated provisions of the Real Estate License Law and Commission rules. Ms. Grant denied misconduct.

CATHERINE M. GREER (Asheville) – The Commission accepted the permanent voluntary surrender of the broker license and instructor approval of Ms. Greer effective December 31, 2011. The Commission dismissed without prejudice allegations that Ms. Greer violated provisions of the Real Estate License Law and Commission rules. Ms. Greer neither admitted nor denied misconduct.

GUERRA, INC. (Raleigh) – The Commission accepted the permanent voluntary surrender of the firm license of Guerra, Inc., effective December 15, 2011. The Commission dismissed without prejudice allegations that Guerra, Inc., had violated provisions of the Real Estate License Law and Commission rules. Guerra, Inc., neither admitted nor denied misconduct.

NUVIA GUERRA (Raleigh) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Guerra effective December 15, 2011. The Commission dismissed without prejudice allegations that Ms. Guerra had violated provisions of the Real Estate License Law and Commission rules. Ms. Guerra neither admitted nor denied misconduct.

DALE A. HAMLIN (Hendersonville) – By Consent, the Commission suspended the broker license of Mr. Hamlin for a period of three years effective February 1, 2012. Six months of the suspension are active with the remainder stayed for a probationary period of 30 months. The Commission found that Mr. Hamlin in 2005 failed to disclose 6% referral fees paid to him by a builder to whom he referred six buyers.

JUAN M. JACKSON (Raleigh) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Jackson effective December 1, 2011. The Commission dismissed without prejudice allegations that Mr. Jackson violated provisions of the Real Estate License Law and Commission rules. Mr. Jackson neither admitted nor denied misconduct.

ALLEN C. JOHNSON (Little River, South Carolina) – By Consent, the Commission revoked the broker license of Mr. Johnson effective December 1, 2011. The Commission found that Mr. Johnson accepted loans totaling $165,000 from certain individuals to purchase foreclosed residential properties, make improvements to them, resell them, and then repay the loans according to signed promissory notes, but Mr. Johnson failed to repay the loans and thus breached his contractual obligation.

CYNTHIA L. KUSCHE (Oak Ridge) – By Consent, the Commission suspended the broker license of Ms. Kusche for a period of one year effective September 1, 2011. Two months of the suspension were active with the remainder stayed for a probationary period ending September 1, 2012. The Commission found that Ms. Kusche, as qualifying broker and broker-in-charge of a real estate brokerage firm, failed to maintain her trust account in accordance with Commission rules and failed to place all rents in a designated trust account, failed to provide a journal to the Commission after agreeing to do so, failed to have all information on deposit tickets, and engaged in deficit spending. The Commission noted that Ms. Kushce no longer performs property management and no longer holds trust monies.

GEOFFREY LOWEL LAMB (Concord) – The Commission actively suspended Mr. Lamb’s broker license effective January 1, 2012 for a period of 18 months, through and including June 30, 2013, followed by a probationary period of three years through and including June 30, 2016. The Commission found that Mr. Lamb made false representations calculated to deceive and mislead consumers into paying money to Mr. Lamb for loan modification and foreclosure relief services in violation of state law. The Commission also found that Mr. Lamb advertised experience in short sales in excess of the period of time during which he could lawfully practice real estate brokerage.

LANDO REALTY, INC. (Charlotte) – By Consent, the Commission suspended the firm license of Lando Realty for a period of one year effective December 1, 2011. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Lando Realty failed to ensure all agency agreements were reduced to writing and failed to maintain its  trust accounts in accordance with Commission rules. The Commission also found that Lando Realty failed to maintain journals or ledgers, failed to reconcile accounts monthly, and maintained personal funds over the maximum allowed. The Commission finally found that Landon Realty did not accurately disburse maintenance fees and developed a significant overage of $13,000.

JO-ANN C. LAVECCHIA (Gastonia) – By Consent, the Commission suspended the broker license of Ms. Lavecchia for a period of 12 months effective November 1, 2011. The Commission then stayed the suspension for a probationary period of 12 months beginning November 1, 2011, subject to certain conditions. The Commission found that Ms. Lavecchia, acting as broker-in-charge of a real estate brokerage firm between 1991 and 2003, failed to keep complete records of trust account funds and that the records did not provide a clear audit trail. The Commission also found that Ms. Lavecchia failed to reconcile trust account records to the records provided by the bank. The Commission noted that Ms. Lavecchia has since accurately reconstructed trust account records from available sources to conform to Commission rules and has identified ownership of all funds deposited into the trust account.

SCOTT L. LEREW (Wake Forest) – By Consent, the Commission reprimanded Mr. Lerew effective December 1, 2011. The Commission found that, during 2005-2008, Mr. Lerew listed and sold lots and houses in a subdivision with private streets and failed to provide purchasers with the subdivision street disclosure statement required by law. The Commission noted that the North Carolina Department of Transportation subsequently took over maintenance of the subdivision streets.

GEORGE K. LWIN (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Lwin for a period of one year effective December 1, 2011. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Lwin failed to ensure all agency agreement were reduced to writing and failed to maintain his firm’s trust accounts in accordance with Commission rule. The Commission also found that Mr. Lwin failed to maintain journals or ledgers, failed to reconcile accounts monthly, and maintained personal funds over the maximum allowed. The Commission finally found that Mr. Lwin did not accurately disburse maintenance fees and developed a significant overage of $13,000.

SALLY J. MASS (Franklin) – By Consent, the Commission suspended the broker license of Ms. Mass for a period of 36 months effective February 1, 2011. One year of the suspension was active with the remainder stayed for a probationary period of 24 months commencing February 1, 2012. The Commission found that Ms. Mass listed and sold lots in a subdivision developed by an entity owned and controlled by Ms. Mass and failed to provide purchasers with the disclosure required by law that the streets were privately owned, failed to fulfill promises to purchasers that the streets would be paved, failed to follow the approved subdivision plan, and violated sedimentation and erosion control regulations. The Commission also found that Ms. Mass used a credit card belonging to the firm for personal expenses without authority.

MARGARET M. MCPHAIL (Raleigh) – By Consent, the Commission reprimanded Ms. McPhail effective February 1, 2012. The Commission found that Ms. McPhail in 2006 purchased a residential property for which a former client provided approximately $11,145 for a down payment and closing costs; she closed on the property in her name only; and the former client resided in the property and made mortgage payments although the former client believed his name was supposed to be on the deed as well. The Commission also found that Ms. McPhail purported to have entered into a lease/purchase agreement with the former client but could not produce any written agreement to that effect. The Commission finally found that Ms. McPhail eventually evicted the former client/tenant from the property for failure to pay rent or purchase the house from her.

JOHN KEVIN NEDLEY (Winnabow) – By Consent, the Commission suspended the broker license of Mr. Nedley for a period of six months effective January 2, 2010. The Commission then stayed the suspension for a probationary period of six months. The Commission found that Mr. Nedley sold his personal residence representing that it had 1,711 square feet of heated living area and attic space finished as a fourth bedroom, but failed to obtain a permit for the finishing of the attic space and the alteration was not done to applicable building codes. The Commission also found that the buyer discovered this only after realizing that the tax records showed only 1,379 square feet of living area and that an estimate obtained by the buyer suggests it would cost approximately $6,600 to bring the property to code.

DIANE W. PACE (Cary) – By Consent, the Commission suspended the broker license of Ms. Pace for a period of five years effective April 1, 2011. The Commission found that Ms. Pace was convicted in 2010 in U.S. District Court of one count of Conspiracy to Commit Mail Fraud, six counts of Mail Fraud and Aiding and Abetting, and one count of conspiracy to Commit Money Laundering. The Commission also found that Ms. Pace was sentenced to six months of house arrest without electronic monitoring, placed on probation for a term of four years per count, to run concurrently, and ordered to perform 200 hours of community service and to pay restitution.

OMEGA PROPERTY GROUP, INC. (Raleigh) – The Commission accepted the permanent voluntary surrender of the firm license of Omega Property Group effective November 1, 2011. The Commission dismissed without prejudice allegations that Omega Property Group had violated provisions of the Real Estate License Law and Commission rules. Omega Property Group denied misconduct.

NICKY S. O. RAMPHIR (Cornelius) – By Consent, the Commission suspended the broker license of Mr. Ramphir for a period of six months effective December 1, 2011. The Commission found that Mr. Ramphir sold a renovated property for which he had contracted with an unlicensed individual to install a new HVAC system; the system failed shortly after closing and was not covered by the home warranty sold with the property because its installation was unpermitted. The Commission noted that the buyers of the home still have an unpermitted HVAC unit, but that it does function as intended.

AMY JO RAWSON (Charlotte) – By Consent, the Commission reprimanded Ms. Rawson effective December 1, 2011. The Commission found that during 2010 the North Carolina Appraisal Board suspended the certification of Ms. Rawson, a certified appraiser and licensed real estate broker, for making an incorrect representation in an appraisal in violation of the Uniform Standards of Professional Appraisal Practice.

TERRY L. ROBERTS (Lewisville) – By Consent, the Commission revoked the broker license of Mr. Roberts effective November 16, 2011. The Commission found that Mr. Roberts became broker-in-charge of a company which he converted to an LLC but failed to apply for a firm license with the Commission. The Commission also found that Mr. Roberts placed security deposits, rental proceeds and other trust monies into a bank account undesignated as a trust escrow account, failed to maintain ledger sheets in compliance with Commission rules, and failed to reconcile his accounts or perform monthly trial balances. The Commission finally found that the trust accounts had overages and shortages due to multiple violations of Commission rules as to trust accounting.

ERVIN D. SKEEN (High Point) – By Consent, the Commission suspended the broker license of Mr. Skeen for a period of three years effective November 1, 2011. One month of the suspension was active with the remainder stayed for a probationary period of thirty-six months beginning December 1, 2011 and ending November 30, 2014. The Commission found that Mr. Skeen, acting as owner and broker-in-charge of a real estate brokerage firm, failed to supervise an individual to whom he gave dominion and control of trust accounts and who converted money belonging to the firm’s clients and tenants to personal use. The Commission also found that Mr. Skeen failed to properly maintain trust account books and records as he was required to do as broker-in-charge and failed to safeguard and account for the funds of others in his custody.

THE SKEEN GROUP, INC. (High Point) – By Consent, the Commission suspended the firm license of The Skeen Group for a period of three years effective December 1, 2011. The Commission then stayed the suspension for a probationary period of thirty-six months beginning December 1, 2011 and ending November 30, 2014. The Commission found that The Skeen Group, a real estate brokerage firm, failed to supervise an individual who had been  given dominion and control of trust accounts and who converted money belonging to the firm’s clients and tenants to personal use. The Commission also found that The Skeen Group failed to safeguard and account for the funds of others in its custody.

SHIRLEY S. TRUELL (Winston-Salem) – By Consent, the Commission revoked the broker license of Ms. Truell effective January 11, 2012. The Commission found that Ms. Truell, acting as broker-in-charge of a real estate brokerage firm, failed to maintain the trust account records of the firm in accordance with the Real Estate License Law and Commission rules and failed to reconcile the trust accounts on a monthly basis. The Commission also found that liabilities of Ms. Truell’s trust accounts exceeded the funds on hand by $112,000 and that the trust accounts have since been fully funded.

KIRK W. WAGENSELLER, III (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Wagenseller for a period of 48 months effective January 1, 2011. One year of the suspension was active with the remainder stayed for a probationary period of three years. The Commission found that Mr. Wagenseller, acting as broker for the owners of a condominium unit, procured purchasers who desired to lease it for a time before closing and, although aware that tenant occupancy required permission from the homeowner’s association, leased it without the required permission. The Commission also found that Mr. Wagenseller, in order to reduce the amount of fines imposed for leasing the unit, provided the homeowner’s association with a copy of a deed conveying the unit which had been altered to make it appear that the deed had been recorded in June 2009 when, in fact, it was recorded in August 2009. Finally, the Commission found that Mr. Wagenseller, during a meeting of the homeowners’ association and before witnesses residing at the condominium complex, shouted coarse remarks directed at the president of the association.

KAYE C. WALLER (Gastonia) – By Consent, the Commission suspended the broker license of Ms. Waller for a period of 12 months effective November 1, 2011. The Commission then stayed the suspension for a probationary period of 12 months beginning November 1, 2011. The Commission found that Ms. Waller, acting as broker-in-charge of a real estate brokerage firm between 2003 and 2010, failed to keep complete records of trust account funds and that the records did not provide a clear audit trail. The Commission also found that Ms. Waller failed to reconcile trust account records to the records provided by the bank. The Commission noted that Ms. Waller has since accurately reconstructed trust account records from available sources to conform to Commission rules and has identified ownership of all funds deposited into the trust account.

TERRI PEARSON WILLIAMS (Wilmington) – By Consent, the Commission reprimanded Ms. Williams effective December 1, 2011. The Commission found that Ms. Williams, acting as manager of a homeowner’s association, collected dues money from homeowners but did not deposit the money in an escrow account within three banking days following its receipt. The Commission also found that Ms. Williams did not account for the money to the homeowner association accurately within 90 days of its receipt and allowed payments from the owners to accumulate for months before attempting to make any disposition of the money.

This article came from the Feburary 2012-Vol42-3 edition of the bulletin.