Disciplinary Actions – May 2008-V39-1

ANGEL ASSOCIATES, INC. (Kernersville) – By Consent, the Commission reprimanded Angel Associates effective March 1, 2008. The Commission found that Angel Associates, a real estate brokerage firm providing homeowner association management services, failed to enter into formal management agreements for those services, failed to designate accounts as trust or escrow accounts, and failed to perform monthly reconciliations, keep ledgers or maintain deposit or check information as required by Commission rules. The Commission also found that Angel Associates failed to timely provide the associations with a periodic accounting of the monies maintained for them when requested to do so. The Commission noted that no shortages or overages were found in the accounts.

GEORGE N. ANGEL (Kernersville) – By Consent, the Commission suspended the broker license of Mr. Angel for a period of one year effective March 1, 2008. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Angel, qualifying broker and broker-in-charge of a real estate brokerage firm providing homeowner association management services, failed to enter into formal management agreements for those services, failed to designate accounts as trust or escrow accounts, and failed to perform monthly reconciliations, keep ledgers or maintain deposit and check information as required by Commission rules. The Commission also found that Mr. Angel failed to timely provide the associations with a periodic accounting of the monies maintained for them when requested to do so. The Commission noted that no shortages or overages were found in the accounts.

CARROLL C. ANDERSON (Wadesboro) – By Consent, the Commission suspended the broker license of Ms. Anderson for a period of two years effective November 15, 2007. Three months of the suspension were active with the remainder stayed for a probationary period of 21 months. The Commission found that Ms. Anderson, broker-in-charge of her sole proprietorship failed to adequately review closing statements and contracts while acting as listing agent in 2000 and 2001 for several properties whose sales involved purchase money second notes and payments to third parties for non-existent improvements. The Commission also found that Ms. Anderson, acting as listing agent for the sale of a commercial property in 2002, represented to the buyer that the property had all required certificates, gasoline tanks and restaurant equipment, when, in fact, the prior business had closed and the buyers were unable to operate the business without making considerable improvements to the property before the required permits and certificates could be issued. Finally, the Commission found that in 2004 an employee of Ms. Anderson embezzled approximately $4,000 in cash from rental receipts and that Ms. Anderson had failed to balance and reconcile monthly either of her two trust accounts. The Commission noted that the employee repaid the funds and Ms. Anderson has subsequently had her trust accounts audited and reconciled and instituted new procedures including third party audits to put the accounts in order.

LEAH GAIL AUTRY (Southport) – By Consent, the Commission suspended the broker license of Ms. Autry for a period of 30 days effective April 1, 2008. The Commission found that Ms. Autry in 2005 prepared and signed a quitclaim deed conveying an interest in property she knew she did not have in order to assist the grantee in attempting to claim title to the property.

JOSEPH E. BARLOW (Shelby) – By Consent, the Commission suspended the broker license of Mr. Barlow for a period of one year effective January 17, 2008. Ninety days of the suspension were active with the remainder stayed for a probationary period of nine months. The Commission found that Mr. Barlow failed to disclose prior misdemeanor convictions relating to driving and alcohol in a passenger area on his 1998 license application. The Commission also found that Mr. Barlow was subsequently convicted in Georgia of offenses for driving while impaired and did not report certain of the convictions in a timely fashion.

JAMES K. BARNHILL (Charlotte) – By Consent, the Commission revoked the broker license of Mr. Barnhill effective February 1, 2008. The Commission found that Mr. Barnhill, during 2004-2007, as a rental agent, did not deposit rents and security deposits for his landlord clients in trust accounts or account for and remit them promptly. The Commission also found that Mr. Barnhill did not make his trust account records available for inspection by the Commission.

ANAELENY ALONZO BARRERA (Burlington) – The Commission accepted the voluntary surrender of the broker license of Ms. Barrera effective February 18, 2008 for an indefinite term. The Commission dismissed without prejudice allegations that Ms. Barrera violated provisions of the Real Estate License Law and Commission rules. Ms. Barrera neither admitted nor denied misconduct.

TROY D. BILEK (Matthews) – By Consent, the Commission suspended the broker license of Mr. Bilek for a period of two years effective April 1, 2008. One year of the suspension is to be active with the remainder stayed for a probationary period of two years under certain conditions. The Commission found that during 2003 and 2004 Mr. Bilek, a salesperson at the time, represented the buyers in the purchase of a property and then listed the property for sale for a significantly higher price. Mr.Bilek told the buyer agent that the property value increase was due largely to improvements made by the seller. In fact, the improvements had been made prior to the purchase of the property by the sellers.

JAMES R. BOYD (Washington) – The Commission accepted the voluntary surrender of the broker of license of Mr. Boyd for a period of one year effective April 1, 2008. The Commission dismissed without prejudice allegations that Mr. Boyd violated provisions of the Real Estate License Law and Commission rules. Mr. Boyd neither admitted nor denied misconduct.

ROGER B. BYRD (Raleigh) – By Consent, the Commission suspended the broker license of Mr. Byrd for a period of six months effective May 1, 2008. The Commission found that Mr. Byrd was accused in four cases by the State of North Carolina of rigging bids in foreclosure auctions and judicial sales of real estate in order to depress the prices realized in those sales for Mr. Byrd’s and his client’s or confederate’s benefit. The Commission also found that in each case the court found a factual basis for the State’s allegations, and that one or more of the respondents consented to the imposition of an injunction preventing him from future violations of the laws, and that in one case Mr. Byrd consented to pay compensatory damages and costs to the State of North Carolina. Mr. Byrd neither admitted nor denied the Commission’s findings and conclusions.

VICTOR G. BYRD (Raleigh) – By Consent, the Commission suspended the broker license of Mr. Byrd for a period of 12 months effective May 1, 2008. The Commission found that Mr. Byrd was accused in four cases by the State of North Carolina of rigging bids in foreclosure auctions and judicial sales of real estate in order to depress the prices realized in those sales for Mr. Byrd’s and his client’s or confederate’s benefit. The Commission also found that in each case the court found a factual basis for the State’s allegations and that one or more of the respondents consented to the imposition of an injunction preventing him from future violations of the laws, and that in one case Mr. Byrd consented to pay in excess of $69,000 in compensatory damages and costs to the State of North Carolina. Mr. Byrd neither admitted nor denied the Commission’s findings and conclusions.

DWIGHT D. COX (Durham) – By Consent, the Commission revoked the broker license of Mr. Cox effective May 1, 2008. The Commission found that Mr. Cox in 2004 and 2005 assisted a buyer to obtain a residence by purchasing the as is property and making a false promise to the lender that he would occupy it as his own dwelling and subsequently reselling it to the buyer to whom he secretly loaned the down payment without informing the buyer’s lender and without reporting the transaction on the closing statement. The Commission also found that Mr. Cox, in August and November 2007, failed to respond to two letters of inquiry from the Commission’s Legal Division in connection with a complaint on a separate matter.

JAMES D. DUNKLE (Harbinger) – By Consent, the Commission suspended the broker license of Mr. Dunkle for a period of one year effective April 1, 2008. Six months of the suspension are active with the remainder stayed for a probationary period of six months on certain conditions. The Commission found that Mr. Dunkle was convicted on or about August 20, 2007 of Driving While Impaired, and was also convicted of DWI prior to being licensed as a real estate agent, in 1998 and again in 2002. The Commission noted that Mr. Dunkle disclosed the first two convictions in his license application and timely reported the 2007 conviction.

JOHN M. DWELLE, JR. (Charlotte) – By Consent, the Commission reprimanded Mr. Dwelle effective March 1, 2008. The Commission found that Mr. Dwelle, who conducts property management services through his licensed firm, failed to fully disclose that repair services for clients’ properties would be performed by a company he owned. The Commission also found that Mr. Dwelle failed to maintain trust account records in accordance with Commission rules and had an overage in the trust account. The Commission noted that Mr. Dwelle altered his management agreement to disclose his ownership of the company providing repair services.

DWELLE REALTY COMPANY, INC. (Charlotte) – By Consent, the Commission reprimanded Dwelle Realty Company effective March 1, 2008. The Commission found that Dwelle Realty Company, a property management firm, failed to fully disclose that repair services for clients’ properties would be performed by a company owned by the firm’s broker-in-charge. The Commission also found that Dwelle Realty Company failed to maintain trust account records in accordance with Commission rules and had an overage in the trust account. The Commission noted that Dwelle Realty Company altered its management agreement to disclose the broker-in-charge’s ownership of the company providing repair services.

FAYETTEVILLE’S PROPERTY CENTER, LLC (Fayetteville) – By Consent, the Commission revoked the firm license of Fayetteville’s Property Center effective March 1, 2008. The Commission found that Fayetteville’s Property Center, acting as rental agent for owners of rental property, failed to deposit and maintain rents and deposit monies in a trust account, issued rent checks to landlord clients which were returned by the bank unpaid due to insufficient funds, and failed to keep complete and accurate trust account records in accordance with Commission rules.

DENISON D. GARRETT (Greenville) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Garrett effective February 1, 2008. The Commission dismissed without prejudice allegations that Mr. Garrett violated provisions of the Real Estate License Law and Commission rules. Mr. Garrett neither admitted nor denied misconduct.

AMY PATRICIA GILBERT (Jacksonville) – The Commission revoked the broker license of Ms. Gilbert effective February 25, 2008. The Commission found that Ms. Gilbert, as broker-in-charge of a real estate brokerage firm, failed to maintain separately the funds of three property owner associations’ dues, instead depositing those funds into the firm’s rental trust account. The Commission also found that Ms. Gilbert converted trust money to her own use, failed to maintain and retain accurate records for the rental trust account, created false ledger accounts to record disbursements to her family members, and created false deposit entries to conceal her embezzlements. The Commission found further that Ms. Gilbert used trust money to pay the liabilities of the firm to other clients whose funds she embezzled, falsely inflated the balance, failed to perform accurate monthly reconciliations, and created false bank statements and false computer-produced reports to conceal her embezzlements from the account.  The Commission finally found that as of August 14, 2007, total liabilities of the firm’s trust accounts exceeded deposits on hand by $606,888.60, all due to the embezzlement of Ms. Gilbert.

CHARLES RYAN HOLT (Wilmington) – By Consent, the Commission revoked the broker license of Mr. Holt effective April 30, 2008. The Commission found that Mr. Holt, who owned and operated a corporation, failed to obtain a real estate license for the corporation while, through the corporation, acting as rental agent and broker for owners of residential real estate. The Commission also found that Mr. Holt failed to keep records that were adequate to safeguard monies collected for clients and their tenants and failed to create a clear audit trail, resulting in a trust account shortfall of not less than $50,000.

SHIRLEY A. KELLEY (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Kelley for a period of three months effective May 1, 2008. The Commission found that Ms. Kelley, broker-in-charge of a real estate brokerage firm, failed to adequately supervise agents under her supervision and failed to review closing statements and transactions records maintained by the firm.

KENNETH PAUL METCALF (Mars Hill) – The Commission accepted the voluntary surrender of the broker license of Mr. Metcalf for a period of three years effective April 17, 2008. The Commission dismissed without prejudice allegations that Mr. Metcalf violated provisions of the Real Estate License Law and Commission rules. Mr. Metcalf neither admitted nor denied misconduct.

ROGER KEITH MOORE (Highlands) – By Consent, the Commission revoked the broker license of Mr. Moore effective April 17, 2008. The Commission found that Mr. Moore, qualifying broker and broker-in-charge of a real estate brokerage firm, used earnest money deposits and other monies belonging to others without permission of the owners, converted funds entrusted to his care for his own use and benefit, and failed to safeguard the funds of others. The Commission also found that Mr. Moore was unable to account for and remit those monies promptly when called upon to do so, issued checks from a trust account with insufficient funds to pay the checks and had a shortfall in the trust account at the time of more than $124,000.

NANTAHALA REALTY COMPANY, INC. (Highlands) – By Consent, the Commission revoked the firm license of Nantahala Realty Company effective April 17, 2008. The Commission found that Nantahala Realty Company failed to safeguard the funds of others in its possession and was unable to account for and remit those monies promptly when called upon to do so. The Commission also found that Nantahala Realty Company issued checks from a trust account with insufficient funds to pay the checks and had a shortfall in the trust account at the time of more than $124,000.

DARREN K. PHILLIPS (Cary) – By Consent, the Commission revoked the broker license of Mr. Phillips effective May 1, 2008. The Commission found that Mr. Phillips was accused in four cases by the State of North Carolina of rigging bids in foreclosure auctions and judicial sales of real estate in order to depress the prices realized in those sales for Mr. Phillip’s and his client’s or confederate’s benefit. The Commission also found the court found a factual basis in each case for the State’s allegations and one or more of the Respondents consented to the imposition of an injunction preventing him from future violations of the laws, and that in one case Mr. Phillips consented to pay in excess of $90,000 in compensatory damages and costs to the State of North Carolina. Mr. Phillips neither admitted nor denied the Commission’s findings and conclusions.

KATHLEEN PRIMAVERA (Rockwell) – By Consent, the Commission suspended the broker license of Ms. Primavera for a period of 12 months effective February 1, 2008. One month of the suspension was active with remainder stayed for a probationary period of two years. The Commission found that Ms. Primavera, as listing agent for a property, presented an offer to purchase to her clients, which they accepted, and in which it was recited that $500 in earnest money had been received when this was not true at the time of acceptance. The Commission also found that Ms. Primavera, qualifying broker and broker-in-charge of a real estate brokerage firm, failed to reconcile the firm’s trust account records to bank statements on a monthly basis and failed to make complete and proper notations on trust account checks.

JEFFREY A. RAINES (Yadkinville) – The Commission accepted the three-year voluntary surrender of the broker license of Mr. Raines effective May 1, 2008. The Commission dismissed without prejudice allegations that Mr. Raines violated the Real Estate License Law and Commission rules. Mr. Raines neither admitted nor denied misconduct.

MYONG K. SILVERS (Raleigh) – By Consent, the Commission suspended the broker license of Ms. Silvers for a period of 12 months effective February 1, 2008. One month of the suspension was active with the remainder stayed for a probationary period of 12 months. The Commission found that Ms. Silvers, in each of three transactions, received commission payments from the parties which were not reported on the closing statement prepared for the transactions. The Commission also found that, in two transactions, the purchase prices recorded on the closing statements did not correspond to the purchase prices reflected on the contracts in Ms. Silvers’ files.

JOY S. RHODES (Holly Ridge) – By Consent, the Commission revoked the broker license of Ms. Rhodes effective April 17, 2008. The Commission found that Ms. Rhodes, broker-in-charge and qualifying broker of a real estate brokerage firm, failed to maintain all of the funds held for others in a trust account and failed to keep accurate journals and ledgers of the monies. The Commission also found that Ms. Rhodes failed to make accurate reconciliations of the records of trust monies with bank records and statements and created no clear audit trail showing ownership of the funds of others. The Commission also found that the funds of others exceeded the monies on deposit in the trust accounts.

SAND DOLLAR REAL ESTATE, INC. (Surf City) – By Consent, the Commission revoked the firm license of Sand Dollar Real Estate effective April 17, 2008. The Commission found that Sand Dollar failed to maintain all of the funds held for others in a trust account and failed to keep accurate journals and ledgers of the monies. The Commission also found that Sand Dollar failed to make accurate reconciliations of the records of trust monies with bank records and statements and created no clear audit trail showing ownership of the funds of others. The Commission also found that the funds of others exceeded the monies on deposit in the trust accounts.

JAMES S. SMITH (Long Beach) – By Consent, the Commission suspended the broker license of Mr. Smith for a period of two years effective February 18, 2008. One year of the suspension is to be active with the remainder stayed for a probationary period. The Commission found that Mr. Smith failed to disclose on his 1999 salesperson license application three 1984 misdemeanor convictions for carrying a concealed weapon, possession of beer/wine underage, and “drive after drink – provisional license”. The Commission also found that Mr. Smith, after he was licensed, failed to report to the Commission two 2005 misdemeanor convictions for Possession of Marijuana up to ½ Ounce and Possession of Drug Paraphernalia, for which Mr. Smith was sentenced to 45 days in prison, suspended for 24 months supervised probation.

IRENE BULLOCK STATON (Fayetteville) – By Consent, the Commission revoked the broker license of Ms. Staton effective March 1, 2008. The Commission found that Ms. Staton, acting as rental agent for owners of rental property, failed to deposit and maintain rents and deposit monies in a trust account, issued rent checks to landlord clients which were returned by the bank unpaid due to insufficient funds, and failed to keep complete and accurate trust account records in accordance with Commission rules.

MARY H. THOMAS (Cornelius) – By Consent, the Commission reprimanded Ms. Thomas effective April 1, 2008. The Commission found that Ms. Thomas, as qualifying broker and broker-in-charge of a real estate brokerage firm, failed to ensure that the firm’s bank accounts were designated trust or escrow, failed to ensure that deposit tickets, ledgers and checks sufficiently identified the required transaction information, failed to maintain a personal ledger, and failed to perform trial balances and reconciliation properly, resulting in an approximately $2,000 shortage in the trust account. The Commission noted that Ms. Thomas immediately deposited funds to remedy the shortage when it was discovered.

MARCIA WILLIAMS (York, SC) – By Consent, the Commission revoked the broker license of Ms. Williams effective January 17, 2008. The Commission found that Ms. Williams entered into an offer to purchase and contract with herself as the buyer and represented to the seller that she had deposited $500 earnest money in her brokerage firm’s trust account when she had not done so and failed to inform her broker-in-charge that the transaction existed. The Commission also found that Ms. Williams went to a new firm where she participated in at least three transactions through closing without submitting any files to her broker-in-charge until she attempted to receive commissions.

This article came from the May 2008-Vol39-1 edition of the bulletin.