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Disciplinary Actions – May 2005-Vol36-1

JAY B. ANGEL d/b/a ANGEL REALTY ASSOCIATES (Hendersonville) – By Consent, the Commission revoked the broker license of Mr. Angel effective May 1, 2005. The Commission found that Mr. Angel, as broker-in-charge and sole proprietor of a real estate firm, failed to maintain his trust account records in compliance with the Real Estate License Law and Commission rules including failing to reconcile his trust account on a monthly basis, deposit funds in a timely manner and maintain either ledgers for each transaction or a personal funds ledger. The Commission also found that Mr. Angel used trust funds to pay office rent with a resultant shortage in the trust account of $1,235.24, failed to use written listing agreements for his seller clients in certain transactions, and failed to use dual agency agreements when required.

GEORGE R. BERRY (Franklin) – The Commission accepted the voluntary surrender of the salesperson license of Mr. Berry for one year effective March 30, 2005. The Commission dismissed without prejudice allegations that Mr. Berry had violated provisions of the Real Estate License Law and Commission rules. Mr. Berry neither admitted nor denied misconduct.

DORA ANN BLASCHIK (Dillsboro) – By Consent, the Commission reprimanded Ms. Blaschik effective February 24, 2005. The Commission found that Ms. Blaschik failed to report to the Commission a fine imposed upon her as a licensed auctioneer by the North Carolina Auctioneer Board.

VERA G. BESCHER (Corolla) – The Commission revoked the broker license of Ms. Bescher effective March 8, 2005. The Commission found that Ms. Bescher, as principal and broker-in-charge of a real estate firm that managed residential rental properties for owners, made false promises regarding the dispositions of monies entrusted to her by an owner, failed to account for and remit monies coming into her possession belonging to landlord clients and tenants, failed to deposit and maintain client and tenant monies in a trust account, commingled money belonging to others with her own money, and failed to maintain a trust account and records as broker-in-charge.

NORMAN Y. CHAMBLISS, III (Rocky Mount) – By Consent, the Commission suspended the broker license of Mr. Chambliss for a period of two years effective March 1, 2005. Six months of the suspension are to be active with the remainder stayed for a probationary period of 18 months. The Commission found that Mr. Chambliss on October 19, 2004 in the U.S. District Court for the Eastern District of North Carolina, pleaded guilty to and was convicted of the criminal offenses of obstruction of justice and aiding and abetting the commission of a crime, for which he was sentenced to two years’ supervised probation, fined $20,000 and restricted by the court in his right to move about and associate with other persons.

ELIZABETH M. GREEN (Charlotte) – By Consent, the Commission suspended the salesperson license of Ms. Green for a period of one year effective May 1, 2005. One month is to be active with the remainder stayed for a probationary period of one year. The Commission found that Ms. Green engaged in soliciting and conducting business on behalf of another firm before leaving her supervising broker to work for the other firm.

SHARON E. HOGAN (Chapel Hill) – By Consent, the Commission suspended the broker license of Ms. Hogan for a period of six months effective March 1, 2005. One month of the suspension was active with the remainder stayed for a probationary period of one year. The Commission found that Ms. Hogan failed to disclose a pending misdemeanor driving while impaired charge on her February, 2001 salesperson application and her June, 2001 broker application. The Commission also found that Ms. Hogan was convicted of the offense in October, 2001, but did not report her conviction to the Commission until March, 2004.

MICHAEL A. HUDSPETH (Statesville) – By Consent, the Commission  revoked the salesperson license of Mr. Hudspeth effective April 14, 2005. The Commission found that Mr. Hudspeth, between 2000 and 2004 and by and throughHudspeth, Inc., an unlicensed corporation, performed real estate brokerage services for a fee without being licensed by the Commission in that he had allowed his license to remain on inactive status since 1993.

ROYAL M. JONES (Highlands) – The Commission suspended of the broker license of Mr. Jones for a period of one year effective December 22, 2004. The Commission found that Mr. Jones, a broker-in-charge of a real estate firm and a licensed appraiser in North Carolina and Georgia, failed to disclose that disciplinary action had been taken against him by the Georgia Real Estate Appraisers Board revoking his license in 2001 and that the North Carolina Appraisal Board suspended his license and ability to instruct prelicensing or continuing education courses for a period of one year in 2001. The Commission also found that Mr. Jones failed to disclose the discipline by the North Carolina Appraisal Board on his applications to the Commission for renewal of his license to operate a private real estate school and for the renewal of his approval as a continuing education instructor.

MICHAEL D. KAIZAR (Wilmington) – By Consent, the Commission revoked the broker license of Mr. Kaizar effective February 10, 2005. The Commission found that Mr. Kaizar engaged in real estate brokerage activities, including rental property management, at a time when his broker license was expired. The Commission also found that Mr. Kaizar collected funds on behalf of his clients and failed to adequately account for and remit those funds, failed to keep adequate records of the funds to be held in trust for others and could not produce all required trust account records upon request.

MARVIN A. KENNEDY (Greensboro) – By Consent, the Commission suspended the broker license of Mr. Kennedy for a period of three years effective March 1, 2005. The Commission found that Mr. Kennedy, as broker-in-charge of a licensed real estate firm engaged in vacation rental management, failed to implement a trust account record keeping system in the manner required by Commission rules.

DUANE A. MARSHALL (Wendell) – By Consent, the Commission revoked the salesperson license of Mr. Marshall effective March 1, 2005. The Commission found that Mr. Marshall, in the U.S. District Court for the Eastern District of North Carolina, pleaded guilty to and was convicted of the criminal offense of unauthorized use of an access device. The Commission also found that Mr. Marshall failed to report his conviction to the Commission in a timely manner.

CHARLENE M. MCILNAY (Blowing Rock) – By Consent, the Commission suspended the broker license of Ms. McIlnay for a period of six months effective March 1, 2005. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. McIlnay failed to maintain her rental trust account in compliance with the Real Estate License Law and Commission rules. The Commission noted that Ms. McIlnay’s sales trust account was in compliance and that she has since sold the rental business to another licensed broker.

BENJAMIN D. MCCUBBINS, III (Cornelius) – By Consent, the Commission suspended the broker license of Mr. McCubbins for a period of six months effective November 1, 2005. Three months of the suspension are to be active with the remainder stayed for a probationary period of one year. The Commission found that Mr. McCubbins, who also holds a real estate appraisal certification from the North Carolina Appraisal Board, was reprimanded by the Board for renewing his license with a check that was subsequently dishonored. The Commission also found that Mr. McCubbins was negligent in the preparation of a particular appraisal and in oversight of another appraisal.

JOSEPH J. MERTES (Cornelius) – The Commission accepted the voluntary surrender of the broker license of Mr. Mertes for a period of one year effective March 24, 2005.  The Commission dismissed without prejudice allegations that Mr. Mertes had violated provisions of the Real Estate License Law and Commission rules. Mr. Mertes neither admitted nor denied misconduct.

NORTH BEACH REALTY, INC. (Corolla) – The Commission revoked the firm license of North Beach Realty effective March 8, 2005. The Commission found that North Beach Realty, a real estate firm that managed residential rental properties for owners, made false promises regarding the dispositions of monies entrusted to it by an owner, failed to account for and remit monies coming into its possession belonging to landlord clients and tenants, failed to deposit and maintain client and tenant monies in a trust account and commingled money belonging to others with its own money.

ONE SOUTH LUMINA HOMEOWNERS ASSOCIATION (Wrightsville Beach) – The Commission accepted the voluntary surrender of the firm license of One South Lumina Homeowners Association for a period of one year effective March 1, 2005. The Commission dismissed without prejudice allegations that One South Lumina Homeowners Association violated provisions of the Real Estate License Law and Commission rules. One South Lumina Homeowners Association neither admitted nor denied misconduct.

BEVERLY A. RIDINGS (Fletcher) – By Consent, the Commission suspended the salesperson license of Ms. Ridings for a period of six months effective March 14, 2005. One month of the suspension was active with the remainder stayed for a probationary period of five months. The Commission found that Ms. Ridings failed to report to the Commission a conviction in April 2000 for Driving While Impaired, but did report the conviction in April 2003 after learning of the reporting requirement in a continuing education class. The Commission also found that Ms. Ridings was convicted of Driving While Impaired in January 2004 and reported the second conviction in April 2004.

RUTH KEITH REALTY, INC. (Creedmoor) – By Consent, the Commission suspended the firm license of Ruth Keith Realty for a period of three years effective March 1, 2005. The Commission then stayed the suspension for a probationary period of three years. The Commission found that Ruth Keith Realty, through its broker-in-charge and a salesperson under his supervision, participated in selling a residential property by falsifying the closing statement to show a larger sales price than actually paid by means of a false second mortgage from the seller.

ALICE M. SOLES (Carolina Beach) – By Consent, the Commission suspended the broker license of Ms. Soles for a period of one year effective April 14, 2005. The Commission then stayed the suspension for a probationary period of 18 months. The Commission found that Ms. Soles, as broker-in-charge of a real estate firm, failed to conduct monthly reconciliations of the firm’s rental escrow accounts, thus allowing another licensee to mishandle trust funds. The Commission noted that Ms. Soles funded the resulting shortage in the escrow account.

ARMINA D. SWITTENBERG (Thomasville) – By Consent, the Commission accepted the permanent voluntary surrender of the broker license of Ms. Swittenberg effective March 23, 2005.  The Commission dismissed without prejudice allegations that Ms. Swittenberg had violated provisions of the Real Estate License Law and Commission rules. Ms. Swittenberg neither admitted nor denied misconduct.

MARGARET H. TURNER (Wilmington) – By Consent, the Commission suspended the salesperson license of Ms. Turner for a period of six months effective March 1, 2005. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. Turner failed to disclose a pending misdemeanor driving while impaired charge on her December 2001 application for licensure.

JACK R. WATTS (Fayetteville) – By Consent, the Commission reprimanded Mr. Watts effective March 1, 2005. The Commission found that Mr. Watts, as a broker affiliated with a real estate firm, listed several lots in a subdivision for his seller client and advertised one within the subdivision as “horses in back yard” when restrictive covenants prohibited horses from being kept in the subdivision. Facilities to board horses were available adjacent to the subdivision.

BRIAN H. WEAVER (Creedmoor) – By Consent, the Commission suspended the salesperson license of Mr. Weaver for a period of three years effective March 1, 2005. Six months of the suspension are to be active with the remainder stayed for a probationary period of 30 months. The Commission found that Mr. Weaver, acting as a listing agent in a transaction, participated in selling a residential property by means of a false closing statement and other documents to show a larger sales price than actually paid by means of a false second mortgage from the seller.

HERMAN H. WEAVER, JR. (Creedmoor) – By Consent, the Commission revoked the broker license of Mr. Weaver effective March 1, 2005. The Commission found that Mr. Weaver, while acting as broker-in-charge of a real estate firm, participated in causing a closing statement in a residential sales transaction to falsely show a second deed of trust to the seller when he knew that the parties had no intent that any such debt ever be paid or constitute part of the purchase price. Effective April 1, 2005, Mr. Weaver’s salesperson license may be reinstated upon certain conditions.

This article came from the May 2005-Vol36-1 edition of the bulletin.