Disciplinary Actions – March 2007-V37-3

MARIA B. ALLEN (Elizabeth, New Jersey) – By Consent, the Commission suspended the broker license of Ms. Allen for a period of three years effective November 20, 2006. Six months of the suspension are to be active with the remainder stayed for a probationary period of 30 months. The Commission found that Ms. Allen was convicted of Conspiracy to Distribute and Possess With Intent to Distribute Cocaine in federal district court in the year 2000 and failed the report the conviction within 60 days of final judgment as required by Commission rule. The Commission noted that Ms. Allen reported the conviction in 2006 of her own volition.

DEMONTE C. ALLEYNE (Charlotte) – The Commission revoked the broker license of Mr. Alleyne effective September 29, 2006. The Commission found that Mr. Alleyne, acting as a dual agent for property owners and buyers in a transaction, prepared contracts for a lease/option agreement in an incomplete manner, violating the specific use instructions for the various contract forms he used, and engaging in the unauthorized practice of law; failed to enter in a written buyers agency agreement and failed to present the Working With Real Estate Agents brochure to either party; failed to create and maintain records relevant to the transaction and produce them at the request of Commission staff; and, while representing that he was depositing funds into his trust account, converted $4,700 paid by the buyers to his own use.

DARYL H. BAKER (Charlotte) – By Consent, the Commission revoked the broker license of Mr. Baker effective October 1, 2006. The Commission found that Mr. Baker paid unlicensed individuals and firms for procuring buyers for properties for sale and for procuring tenants for properties belong to his investor clients. The Commission also found that Mr. Baker collected and held earnest money deposits, rents, appraisal fee monies, and tenant security deposits belonging to his clients and customers, but did not deposit these monies in a trust account or safeguard them in accordance with Commission rules.

SHARON O. BARNHARDT (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Barnhard for a period of six months effective July 1, 2006. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. Barnhardt listed and advertised a property as having 2,065 heated square feet when, in fact, the property had 1,766 heated square feet and 245 unheated square feet.

LOIS W. BLACK (Wadesboro) – By Consent, the Commission suspended the broker license of Ms. Black for a period of six months effective December 1, 2006. One month of the suspension was active with the remainder stayed for a probationary period of six months. The Commission found that Ms. Black served as listing agent for several properties where the purchase prices were inflated from the listing price after contract, while the seller received only the original list price, and failed to adequately review closing statements and contracts relating to the properties to the detriment of both sellers and buyers.

MICHAEL J. BONZAK (Hampstead) – By Consent, the Commission suspended the broker license of Mr. Bonzak for a period of 60 days effective March 1, 2007. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Bonzak, as broker-in-charge of a real estate brokerage firm, made no effort to oversee trust account procedures: transactions were not recorded with required information, journals did not include running balances and accounts were interest-bearing without proper authority.

LEX I. CARROLL (Kill Devil Hills) – By Consent, the Commission suspended the broker license of Mr. Carroll for a period of two years effective December 1, 2006. One year of the suspension is to be active with the remainder stayed. The Commission found that Mr. Carroll pled guilty on or about June 25, 2002 to two counts of violating the North Carolina Controlled Substances Act.

ARTHUR R. CARTER (Asheville) – By Consent, the Commission revoked the broker license of Mr. Carter effective December 31, 2006. The Commission found that Mr. Carter, as principal/qualifying broker and broker-in-charge of a real estate brokerage firm, failed to produce coherent records for the firm’s two trust accounts and converted trust account funds to pay firm operating costs. The Commission also found that Mr. Carter did not obtain written management contracts for rental properties managed on others’ behalf. Mr. Carter neither admitted nor denied the Commission’s findings.

RACHAEL DOMINESSY (Swansboro) – By Consent, the Commission revoked the broker license of Ms. Dominessy effective October 1, 2006. The Commission found that Ms. Dominessy, broker-in-charge of a real estate brokerage firm, transferred client and tenant monies from the firm’s trust accounts into the firm’s operating accounts without authority and that there was a shortfall in the trust accounts. Ms. Dominessy neither admitted nor denied the Commission’s findings and conclusions but nevertheless agreed to the revocation of her real estate broker license based upon them.

JEFFREY L. ECLEBERRY (Charlotte) – The Commission accepted the voluntary surrender of the broker license of Mr. Ecleberry for a period of three years effective January 11, 2007. The Commission dismissed without prejudice allegations that Mr. Ecleberry had violated the Real Estate Law and Commission rules. Mr. Ecleberry neither admitted nor denied misconduct.

EXECUTIVE REALTY, INC. (Fayetteville) – By Consent, the Commission revoked the firm license of Executive Realty effective January 1, 2007. The Commission found that Executive Realty, as broker and rental agent for the owners of rental real estate, failed to keep complete and accurate records of the funds of others in its possession, did not create a clear audit trail or identify with certainty the ownership of monies, and failed to account for monies to landlord clients.

1ST CHOICE PROPERTIES OF THE TRIAD, INC. (Greensboro) – By Consent, the Commission revoked the firm license of 1st Choice Properties of the Triad effective November 20, 2006. The Commission found that 1st Choice Properties of the Triad failed to produce full and accurate trust account records for Commission review, converted monies belong to real estate clients to its own use and failed to maintain client monies in a trust account.

DONELL FULLER (Fayetteville) – By Consent, the Commission revoked the broker license of Mr. Fuller effective January 1, 2007. The Commission found that Mr. Fuller, as a broker-in-charge and rental agent for the owners of rental real estate, failed to keep complete and accurate records of the funds of others in his possession, did not create a clear audit trail or identify with certainty the ownership of monies, and failed to account for monies to landlord clients.

GMD PROPERTIES, INC. (Kill Devil Hills) – The Commission accepted the voluntary surrender of the firm license of GMD Properties for a period of three years effective February 1, 2007. The Commission dismissed without prejudice allegations that GMD Properties violated provisions of the Real Estate License Law and Commission rules. GMD Properties neither admitted nor denied misconduct.

MICHAEL W. HEAD (Wilmington) – The Commission accepted the voluntary surrender of the broker license of Mr. Head for a period of one year effective November 27, 2006. The Commission dismissed without prejudice allegations that Mr. Head had violated provisions of the Real Estate License Law and Commission rules. Mr. Head neither admitted nor denied misconduct.

ALAN T. HILL (East Bend) – By Consent, the Commission suspended the broker license of Mr. Hill for a period of three years effective December 14, 2006. Two years of the suspension are to be active with the remainder stayed for a probationary period of one year. The Commission found that Mr. Hill disclosed that he had been convicted of certain criminal offenses on his 1997 license application, but failed to disclose misdemeanor convictions related to driving. The Commission also found that Mr. Hill failed to report in a timely manner subsequent convictions for Felony Possession of Cocaine (2002), and Misdemeanor Possession of Drug Paraphernalia, Resisting a Public Officer, Felony Possession of Cocaine and Misdemeanor Possession of a Schedule IV Controlled Substance, all in 2003.

WILLIAM ROBERT HUTCHINS (Raleigh) – By Consent, the Commission revoked the broker license of Mr. Hutchins effective January 1, 2007. The Commission found that on November 15, 2006, Mr. Hutchins reported to the Real Estate Commission that on August 30, 2006, he was convicted in district court of the criminal offense of prostitution. The Commission also found that Mr. Hutchins declined to provide the Commission’s representatives with a response to a Letter of Inquiry about the matter.

CATHY H. JACKSON (Wadesboro) – By Consent, the Commission accepted the voluntary surrender of the broker license of Ms. Jackson for a period of two years effective December 1, 2006. The Commission dismissed without prejudice allegations that Ms. Jackson had violated provisions of the Real Estate License Law and Commission rules. Ms. Jackson neither admitted nor denied misconduct.

EVAN N. KELLEY, JR. (Sapphire) – The Commission accepted the voluntary surrender of the broker license of Mr. Kelley for a period of two years effective the November 21, 2006. The Commission dismissed without prejudice allegations that Mr. Kelley had violated provisions of the Real Estate License Law and Commission rules. Mr. Kelley neither admitted nor denied misconduct.

TERRENCE LLEWELLYN (Charlotte) – By Consent, the Commission revoked the broker license of Mr. Llewellyn effective January 15, 2007. The Commission found that Mr. Llewellyn, acting on his own account as buyer and borrower, submitted erroneous information about his income in applying for mortgage loans in two real estate transactions. The Commission noted that Mr. Llewellyn satisfied the lender concerning the matter after the lender discovered the erroneous information.

L’ORANGE I, LLC (Charlotte) – By Consent, the Commission permanently revoked the firm license of L’Orange effective January 10, 2007. The Commission found that L’Orange, a real estate brokerage firm, failed to produce transaction and trust account records when requested to do so by the Commission.

ADE A. MACGREGOR (Chapel Hill) – By Consent, the Commission suspended the broker license of Mr. MacGregor for a period of two years effective April 1, 2007. The Commission found that Mr. MacGregor, as broker-in-charge and president of a real estate brokerage firm, was entrusted with earnest money and other funds belonging to clients and customers but failed to deposit and maintain the funds in a trust account, failed to create and keep proper records of the trust account, and failed to make the records available for inspection by the Commission.

MACGREGOR AND COMPANY REALTY, INC. (Chapel Hill) – By Consent, the Commission revoked the firm license of MacGregor and Company Realty effective January 15, 2007. The Commission found that MacGregor and Company Realty was entrusted with earnest money and other funds belonging to clients and customers but failed to deposit and maintain the funds in a trust account, failed to create and keep proper records of the trust account, and failed to make its records available for inspection by the Commission.

ANN H. MCCLURE (Waynesville) – By Consent, the Commission suspended the broker license of Ms. McClure effective January 30, 2007. One month was active with the remainder stayed for a probationary period of one year. The Commission found that Ms. McClure,  while acting as a broker in a transaction involving the listing and sale of her personal residence, failed to disclose to the purchasers the existence of an addition to the residence, existing structural and moisture damage to the residence, and the presence of associated mold resulting from the inadequate design and construction of the addition. The Commission noted that the purchasers were paid $120,827.16 in compensation relating to the condition of the residence and associated fees, costs and expenses. Ms. McClure neither admitted nor denied the Commission’s findings and conclusions.

LOLA H. MONROE (Greensboro) – By Consent, the Commission revoked the broker license of Ms. Monroe effective February 8, 2007. The Commission found that Ms. Monroe, a resident of Georgia and qualifying broker and broker-in-charge of a North Carolina real estate firm, permitted a previously revoked licensee to run the business. The Commission also found deficiencies in the firm’s trust account records including a lack of ledgers, running balances, accurate deposit records and monthly reconciliations, and that the firm had a shortage of at least $8,000.

P & M REALTY & CONSULTING COMPANY, LLC (Greensboro) – By Consent, the Commission revoked the firm license of P & M Realty and Consulting effective February 8, 2007. The Commission found that P & M Realty and Consulting had deficiencies in the firm’s trust account records including a lack of ledgers, running balances, accurate deposit records and monthly reconciliations. and that its accounts had a shortage of at least $8,000.

PATRICIA L. PARR (Greensboro) – By Consent, the Commission revoked the broker license of Ms. Parr effective November 20, 2006. The Commission found that Ms. Parr failed to produce full and accurate trust account records for Commission review, converted monies belonging to real estate clients to her own use and failed to maintain client monies in a trust account.

HOYLE PENEGAR (Monroe) – By Consent, the Commission suspended the broker of license of Mr. Penegar for a period of 90 days effective December 1, 2006. The Commission found that Mr. Penegar, during 2004, while a state-certified appraiser, valued a property and improvements at $160,000 without documenting in his appraisal report the basis for his opinion as required by the Uniform Standards of Professional Appraisal Practice and the rules promulgated by the North Carolina Appraisal Board. The Commission also found that on March 23, 2006, the Appraisal Board suspended the appraisal certificate of Mr. Penegar pending completion of certain professional appraisal education and that Mr. Penegar did not complete the education required and discontinued his appraisal practice.

DEAN D. PISTOR (Asheville) – By Consent, the Commission reprimanded Mr. Pistor effective January 1, 2007. The Commission found that Mr. Pistor, in his salesperson application, failed to disclose a 1989 conviction for impaired driving and in his broker application, a 1992 conviction for assault on a female, as required by Commission rule.

JOHANNA W. PROCK (Asheville) – By Consent, the Commission reprimanded Ms. Prock effective November 1, 2006. The Commission found that Ms. Prock failed to report 1995 convictions on her 2002 salesperson license application for misdemeanor Assault on a Government Official and Injury to Person Property and failed to disclose a 1996 conviction for Giving Fictitious Information to a Police Officer. The Commission noted that Ms. Prock subsequently reported the convictions of her own volition and cooperated with the Commission’s inquiry.

REAL ESTATE GROUP OF ASHEVILLE, INC. (Asheville) – By Consent, the Commission suspended the firm license of Real Estate Group of Asheville for a period of two years effective December 31, 2006. The Commission then stayed the suspension for a probationary period of two years on certain conditions. The Commission found that the firm’s qualifying broker/broker-in-charge, failed to produce coherent records for the firm’s two trust accounts and converted trust money to pay firm operating costs. The Commission also found that neither the qualifying broker nor the firm maintained written management contracts for certain rental properties managed on others’ behalf. Real Estate Group of Asheville neither admitted nor denied the Commission’s findings.

RESIDENTIAL ASSET MANAGEMENT I, LLC (Charlotte) – By Consent, the Commission permanently revoked the firm license of Residential Asset Management effective January 10, 2007. The Commission found that a salesperson associated with Residential Asset Management paid unlicensed individuals for procuring buyers for property and failed to deposit client funds into the firm’s escrow account and instead deposited them into his personal account.

LISA A. SALOMON (Mooresville) – By Consent, the Commission suspended the broker license of Ms. Salomon for a period of two years effective December 5, 2005. One year of the suspension was active, with the remainder stayed for a probationary period of one year on certain conditions. The Commission found that during 1998, Ms. Salomon entered into an agreement with an investor to transfer real property into a corporation in which the investor would have a 50% interest, in exchange for a capital contribution to a proposed business venture. The Commission found that the investor made the capital contribution but that Ms. Salomon did not convey the property as she had promised, and instead conveyed it to her in-laws. The Commission also found that the investor sued Ms. Salomon, and the court set aside the conveyance as fraudulent.

KRISTA PAIGE HOFSTRA SANDS (Gastonia) – By Consent, the Commission suspended the broker license of Ms. Sands for a period of two years effective November 15, 2006. Forty five days of the suspension were active with the remainder stayed under certain conditions. The Commission found that Ms. Sands used her multiple listing service key to enter a property without permission of the owner as required by the multiple listing service. The Commission also found that during the time that Ms. Sands was in the home she took items of personal property from the home.

LEE S. SMITH, JR. (Asheville) – The Commission revoked the broker license of Mr. Smith effective December 14, 2006. The Commission found that Mr. Smith made false statements and provided false information to the Commission about his criminal convictions in connection with his broker and firm license applications and failed to report to the Commission the crimes of which he had been convicted. The Commission also found that Mr. Smith failed to report to the Commission within the required time approximately three convictions occurring after August 1, 1996, the effective date following which licensees are required to report any convictions of a criminal offense within 60 days of final adjudication.

SAMUEL I. SMITH (Kill Devil Hills) – The Commission accepted the voluntary surrender of the broker license of Mr. Smith for a period of three years effective February 1, 2007. The Commission dismissed without prejudice allegations that Mr. Smith violated provisions of the Real Estate License Law and Commission rules. Mr. Smith neither admitted nor denied misconduct.

TIMOTHY M. THOMAS (Surf City) – By Consent, the Commission suspended the broker license of Mr. Thomas for a period of six months effective November 20, 2006. The Commission then stayed the suspension for a probationary period of six months. The Commission found that Mr. Thomas failed to report a 1989 DWI conviction and two 1999 simple assault convictions on his 1999 salesperson license application. The Commission noted that Mr. Thomas disclosed them on his 2005 broker license application.

ROBERT A. VOLLES (Charlotte) – By Consent, the Commission permanently revoked the broker license of Mr. Volles effective January 10, 2007. The Commission found that Mr. Volles, as broker-in-charge in 2003 of a real estate brokerage firm, failed to supervise a salesperson associated with the firm who paid unlicensed individuals for procuring buyers for property and failed to deposit client funds into the firm’s escrow account and instead deposited them into his personal account. The Commission also found that Mr. Volles, as broker-in-charge in 2001 of a home building firm, participated in a transaction in which the closing statement indicated that the firm provided the buyer with owner financing in the amount of $100,000, when, in fact, the firm did not provide any financing. The Commission further found that, approximately one year after closing, Mr. Volles certified to the Mecklenberg County Register of Deeds that the buyer had repaid the owner financing in full, a statement which was false. Finally, the Commission found that Mr. Volles was broker-in-charge of a real estate brokerage firm from November 2002 to June 30, 2006, and Mr. Volles failed to produce transaction and trust account records when requested to do so by the Commission.

VERNIECEE WHITAKER (Winston-Salem) – The Commission revoked the broker license of Ms. Whitaker effective January 11, 2007. The Commission found that Ms. Whitaker, acting as a buyer’s agent, communicated to her buyer that the buyer’s offer to purchase a newly constructed house had been accepted by the seller when it had not, and provided the buyer with the keys from the lockbox, when no such authorization had been granted. The Commission also found that Ms. Whitaker faxed a forged contract to her broker-in-charge using a copy of the seller’s signature from another contract and, when asked to provide the original documents, eventually admitted there were none. The Commission noted that Ms. Whitaker’s firm reimbursed the buyer’s earnest money and moving expenses.

This article came from the March 2007-Vol37-3 edition of the bulletin.