Disciplinary Actions – October 2013-V44-2

CYNTHIA MARGET ARMOUR (Raeford) – The Commission revoked the broker license of Ms. Armour following a hearing and effective July 26, 2013. The Commission found that Ms. Armour failed, within a reasonable time, to account for or remit monies coming into her possession which belonged to others; failed to maintain and deposit in a trust or escrow account all money received by her as a real estate licensee; failed to properly maintain trust account records sufficient to identify the ownership of all funds belonging to others; failed to retain records of all transactions conducted in her capacity as a real estate broker; and failed to designate a broker to serve as broker-in-charge of her sole proprietorship before it began conducting business.

ATM PROPERTY MANAGEMENT (New Bern) – By Consent, the Commission revoked the firm license of ATM Property Management effective August 1, 2013. The Commission then reduced the revocation to a two-year stayed suspension on certain conditions. The Commission found that the qualifying broker and broker-in-charge of ATM Property Management failed to reconcile its trust accounts for approximately one year; failed to abide by the Real Estate License Law and Commission rules for trust account recordkeeping by not maintaining an accurate accounting of trust account liabilities; and failed to fund the account for tenant security deposits due to circumstances beyond its control. The Commission noted that ATM Property Management has repaid all monies owing to the tenant security deposit account and the trust accounts are in substantial compliance with the Real Estate License Law and Commission rules.

LOUIS B. BALDWIN, JR. (Winston-Salem) – By Consent, the Commission suspended the broker license of Mr. Baldwin for a period of one year effective August 1, 2013. The Commission then stayed the suspension for a probationary period through and including July 31, 2015. The Commission found that Mr. Baldwin, acting as owner, qualifying broker, and broker-in-charge of a real estate brokerage firm, failed to supervise a bookkeeper in a branch office of the firm who inadvertently used monies held in trust on behalf of landlord clients and their tenants, to pay operating expenses of the firm between 2008 and 2010, and failed to adequately review the trust account records, and therefore did not discover the problem. The Commission noted that Mr. Baldwin has fully funded the trust accounts, no consumers were harmed, and Mr. Baldwin has hired a CPA to perform monthly reconciliations of the trust accounts.

TERRY K. BARBOUR (Atlantic Beach) – By Consent, the Commission suspended the broker license of Mr. Barbour for a period of one year effective February 1, 2013. The Commission found that Mr. Barbour engaged in homeowner association and property management through a firm with which he was not affiliated and then later through his own sole proprietorship where he failed to designate himself as broker-in-charge, failed to obtain written property management agreements, and failed to establish trust accounts. The Commission also found that Mr. Barbour admitted to having converted to his personal use at least eight time share exchange weeks that belonged to other individuals and the homeowner’s association for which he was the manager.

BEAUFORT REALTY, INC. (Beaufort) – By Consent, the Commission reprimanded Beaufort Realty effective April 1, 2013. The Commission found that Beaufort Realty’s trust account records were not in compliance in that trial balances and reconciliations were not regularly performed, and journals and ledgers did not balance with bank statements.

GODFREY GRAY BELL (Greenville) – By Consent, the Commission suspended the broker license of Mr. Bell for a period of four years effective June 1, 2013. One year of the suspension is active with the remainder stayed effective June 1, 2014 under certain conditions. The Commission found that Mr. Bell in 2011 pled guilty to misdemeanor larceny and was ordered to surrender his insurance broker’s license and that Mr. Bell failed to disclose his conviction and disciplinary action within the 60 days permitted by Commission rule.

KELVIN A. BELL (Durham) – The Commission found that after revoking Mr. Bell’s license in 2007, he continued to engage in real estate brokerage. The Wake County District Attorney’s Office, with the cooperation of the Commission, prosecuted Mr. Bell criminally for unlicensed brokerage activity. Mr. Bell pled guilty to a misdemeanor and was placed on unsupervised probation. Despite his criminal conviction, the Commission found that Mr. Bell continued his unlicensed brokerage activity and brought a civil action for injunctive relief against Mr. Bell to discontinue his unlicensed brokerage activity.  A Wake County Superior Court entered an Order and Permanent Injunction against Mr. Bell.

TONYA W. BELL (New Bern) – By Consent, the Commission revoked the broker license of Ms. Bell effective August 1, 2013. The Commission then reduced the revocation to a two-year stayed suspension on certain conditions. The Commission found that Ms. Bell, acting as broker-in-charge of a property management firm, failed to reconcile her trust accounts for approximately one year; failed to abide by the Real Estate License Law and Commission rules for trust account recordkeeping by not maintaining an accurate accounting of trust account liabilities; and failed to fund the account for tenant security deposits due to circumstances beyond her control. The Commission noted that Ms. Bell has repaid all monies owing to the tenant security deposit account and the trust accounts are in substantial compliance with the Real Estate License Law and Commission rules. The Commission further noted that Ms. Bell had completed the 12-hour Broker-in-Charge Course.

BRYANT H. BRANTLEY (Mount Airy) – By Consent, the Commission reprimanded Mr. Brantley effective November 1, 2013. The Commission found that Mr. Brantley, acting as broker-in-charge and qualifying broker of a real estate brokerage firm, was responsible for supervising a provisional broker who failed to record all information on a HUD-1 statement.

TERESA L. BROCK (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Brock for a period of six months effective October 1, 2013. The Commission then stayed the suspension for a probationary period of six months. The Commission found that Ms. Brock, acting as broker-in-charge and qualifying broker of a real estate brokerage firm, provided property management services to clients but failed to maintain trust account records in compliance with the Real Estate License Law and Commission rules. The Commission noted there was no evidence that client funds were misappropriated or missing and Ms. Brock has completed the 12-hour broker-in-charge course.

JOSEPH JAMES BURKE (Clayton) – By Consent, the Commission suspended the prelicensing, postlicensing, mandatory continuing education (Update Course and Broker-in-Charge Annual Review), and elective course instructor approval for a period of one year effective July 1, 2013. The Commission then stayed the suspension for a probationary period through and including June 30, 2015. The Commission found that Mr. Burke, who is also a licensed real estate broker, made inappropriate comments during an Update Course class that were offensive to some members of the class.

CALLOWAY HOMES, INC. (Pineville) – The Commission accepted the permanent voluntary surrender of the firm license of Calloway Homes effective October 10, 2013. The Commission dismissed without prejudice allegations that Calloway Homes violated provisions of the Real Estate License Law and Commission rules. Calloway Homes neither admitted nor denied misconduct.

LUCINDA D. CARTER (Asheville) – The Commission suspended the broker license of Ms. Carter for a period of three years effective January 19, 2011. Two years of the suspension were active with the remainder stayed for a probationary period of one year under certain conditions. The Commission found that Ms. Carter acted as agent for the owner/landlord of a rental property and received from tenants all the rents and security deposits for the property, but failed to obtain a management agreement in writing for brokerage services between herself and the owner/landlord, failed to identify a bank account jointly controlled with the owner/landlord as a trust account, and failed to properly account for the funds in the account. The Commission finally found that Ms. Carter failed to retain transaction records and failed to produce documents for inspection by the Commission staff. Ms. Carter appealed the Commission final decision to Superior Court in Madison County. On April 25, 2013, the Commission’s decision was affirmed by the court.

NEVILLE EVANSON CHARLES (Elon) – The Commission revoked the broker license of Mr. Charles effective August 23, 2013 following a hearing. The Commission found that Mr. Charles, who managed eight rental units, failed to maintain compliant trust account records, failed to readily identify and safeguard client funds, and spent client funds for personal expenses.

FRANCINE LEE CHRISTIANO (Wilmington) – By Consent, the Commission suspended the broker license of Ms. Christiano for a period of two years effective December 1, 2012. Four months of the suspension were active with the remainder stayed for a probationary period ending December 1, 2014. The Commission found that Ms. Christiano, acting as a provisional broker and buyer’s agent for a client, entered into an oral agreement to manage property for the buyer without informing her broker-in-charge. The Commission also found that Ms. Christiano negotiated a lease and collected a $650 tenant security deposit that she forwarded to the owner and three $650 rental payments, which she deposited into her own personal checking account. The Commission noted that Ms. Christiano later paid the the money to the firm, who reimbursed the property owner.

GWEN LEE CHUBIRKO (Kannapolis) – By Consent, the Commission suspended the broker license of Ms. Chubirko for a period of two years effective June 1, 2013. The Commission then stayed the suspension for a probationary period ending May 31, 2018. The Commission found that Ms. Chubirko signed certain documents that were filed in the local Register of Deeds’ office that related to her own properties and were designed to circumvent the collection of valid debt.

BERNARD JONATHAN COLLIER (Fayetteville) – By Consent, the Commission revoked the broker license of Mr. Collier effective August 8, 2013. The Commission found that Mr. Collier failed to account for owner funds to an owner client, who then terminated her property management agreement with Mr. Collier and requested the security deposit collected by Mr. Collier be sent to the new property manager for the owner. The Commission also found that Mr. Collier failed to turn over the tenant security deposit or respond to the property owner and failed to respond to three Letters of Inquiry or emails from the Commission.

CROSSROADSCAROLINAREALTY LLC (Jacksonville) – The Commission accepted the permanent voluntary surrender of the firm license of CrossroadsCarolinaRealty LLC effective October 10, 2013. The Commission dismissed without prejudice allegations that CrossroadsCarolinaRealty LLC violated provisions of the Real Estate License Law and Commission rules. CrossroadsCarolinaRealty LLC neither admitted nor denied misconduct.

JOSEPH C. CRUMPLER, SR. (Indian Land, South Carolina) – By Consent, the Commission reprimanded Mr. Crumpler effective May 1, 2013. The Commission found that Mr. Cumpler, who conducts real estate brokerage in both North Carolina and South Carolina, owned and leased a residential home to a tenant who, upon termination of the lease, complained to the Commission that Mr. Crumpler’s itemizations and deductions from the Tenant Security Deposit was incorrect and that the matter was resolved through the South Carolina judicial system.

JOHN N. DUNCAN, III (Beaufort) – By Consent, the Commission reprimanded Mr. Duncan effective April 1, 2013. The Commission found that Mr. Duncan’s trust account records were not in compliance in that trial balances and reconciliations were performed infrequently, and journals and ledgers did not balance with bank statements.

EGENESIS REALTY EXECUTIVES, INC. (Fayetteville) – By Consent, the Commission revoked the firm license of Egenesis Realty Executives effective August 8, 2013. The Commission found that Egenesis Realty Executives failed to account for owner funds to an owner client, who then terminated her property management agreement with Egenesis Realty Executives and requested the security deposit collected by Egenesis Realty Executives be sent to the new property manager for the owner. The Commission also found that Egenesis Realty Executives failed to turn over the tenant security deposit or respond to the property owner and failed to respond to three Letters of Inquiry or emails from the Commission.

FIRST PROPERTIES OF THE CAROLINAS, INC. (Charlotte) – By Consent, the Commission permanently revoked the firm license of First Properties of the Carolinas effective May 1, 2013. The Commission then amended the revocation and instead imposed a one-month stayed suspension of the firm’s license subject to certain conditions, which if violated, would result in the revocation of the firm’s license. The Commission found that First Properties of the Carolinas, a property management firm, allowed its broker-in-charge to embezzle nearly $100,000 of client funds in trust accounts, which funds have since been repaid in full. The Commission also found that First Properties of the Carolinas facilitated the loss of client funds by its failure to ensure the maintenance of trust account records in compliance with the Real Estate License Law and Commission rules.

MICHELLE WITHROW FOX (Clayton) – By Consent, the Commission reprimanded Ms. Fox effective October 1, 2013. The Commission found that Ms. Fox, acting as broker-in-charge and qualifying broker of a property management firm, began managing property on behalf of a landlord client and failed to create an addendum to the lease agreement and to maintain a photographic record of the rental property’s condition as promised to the landlord client. The Commission also found that Ms. Fox charged the client a 10% service fee for any services procured on the client’s behalf, but failed to clearly provide for such a fee in the management agreement. The Commission noted that Ms. Fox has revised the firm’s agreements to accurately reflect all fees; that Ms. Fox has eliminated a lease provision contrary to the Tenant Security Act; and that Ms. Fox has resolved inaccuracies in the firm’s trust records and accounts.

FOX RENTAL MANAGEMENT ASSOCIATES LLC (Clayton) – By Consent, the Commission reprimanded Fox Rental Management effective October 1, 2013. The Commission found that Fox Rental Management began managing property on behalf of a landlord client and failed to create an addendum to the lease agreement and to maintain a photographic record of the rental property’s condition as promised to the landlord client. The Commission also found that Fox Rental Management charged the client a 10% service fee for any services procured on the client’s behalf, but failed to clearly provide for such a fee in the management agreement. The Commission noted that Fox Rental Management has revised the firm’s agreements to accurately reflect all fees; that Fox Rental Management has eliminated a lease provision contrary to the Tenant Security Act; and that Fox Rental Management has resolved inaccuracies in the firm’s trust records and accounts.

PAULA L. K. GARCIA (Fayetteville) – By Consent, the Commission suspended the broker license of Ms. Garcia for a period of one year effective July 1, 2013. The Commission then stayed the suspension for a probationary period ending June 30, 2015. The Commission found that Ms. Garcia, who conducted property management as a sole proprietor, failed to obtain a firm license after forming her LLC and declaring herself broker-in-charge in 2008. The Commission also found that Ms. Garcia hired an accountant in 2012 to reconstruct her firm’s two trust accounts following a computer malfunction in 2009. The accountant found a $120,200 shortage in the tenant security deposit account, but was unable to reconstruct the second escrow account. The Commission noted that Ms. Garcia deposited $120,200 to fully fund the tenant security deposit.

BARBARA HUMPHREY GARRETT (Jacksonville) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Garrett effective October 10, 2013. The Commission dismissed without prejudice allegations that Ms. Garrett violated provisions of the Real Estate License Law and Commission rules. Ms. Garrett neither admitted nor denied misconduct.

GRAHAM GROUP REAL ESTATE & ASSOCIATES, INC. (Durham) – By Consent, the Commission revoked the firm license of Graham Group Real Estate & Associates effective October 10, 2013. The Commission found that Graham Group Real Estate &Associates misappropriated tenant security deposits and no longer has said deposits on hand. The Commission noted that, although the firm is more than $30,000 short in deposits that should be on hand, the firm has been making efforts to reimburse all clients at the time tenants relinquish the property.

REGINA GRIFFIN (Raleigh) – By Consent, the Commission revoked the broker license of Ms. Griffin effective September 1, 2013. The Commission found that Ms. Griffin, who resided in Raleigh, owned a house in Rocky Mount which she rented and, after missing payments on the property’s mortgage, obtained state and federal housing assistance from the North Carolina Housing Finance Agency for which Ms. Griffin qualified only by intentionally misrepresenting to the lender that she was owner-occupying the home.

JEFFREY BLAKE HAGERTY (Pineville) – The Commission accepted the voluntary surrender of the broker license of Mr. Hagerty for a period of two years effective September 4, 2013. The Commission dismissed without prejudice allegations that Mr. Hagerty violated provisions of the Real Estate License Law and Commission rules. Mr. Hagerty neither admitted nor denied misconduct.

VIOLET LOCKE HARRINGTON (Durham) – By Consent, the Commission suspended the broker license and the prelicensing, postlicensing, and continuing education instructor approval of Ms. Harrington for 18 months effective May 13, 2013. Two months of the suspension were active with the remainder stayed, and Ms. Harrington’s broker license, but not her instructor approvals, was placed on probation through and including November 13, 2014. The Commission found that Ms. Harrington, qualifying broker and broker-in-charge of a real estate brokerage firm, provided property management services to landlord clients and failed to keep certain money belonging to the clients and tenants in trust accounts controlled by the brokerage firm. The Commission also found that Ms. Harrington allowed some trust money to be under the dominion and control of an unlicensed person and firm, and failed to supervise the firm’s trust account as required as a broker-in-charge.

MARK B. HEIZER (Carrboro) – By Consent, the Commission reprimanded Mr. Heizer effective April 24, 2013. The Commission found that Mr. Heizer, acting as qualifying broker and broker-in-charge of a property management firm, instituted summary ejectment proceedings against a tenant who stopped payment on a rental check, but failed to follow statutory requirements in disposing of the former tenants’ abandoned property. The Commission noted that following the statutory procedures would have only slightly affected the disposition of the property in this case.

CHIQUITA HOLMES (Raleigh) – By Consent, the Commission revoked the broker license of Ms.  Holmes effective October 10, 2013. The Commission found that Ms. Holmes, qualifying broker and broker-in-charge of a real estate brokerage firm which provided property management services, failed to supervise an associated provisional broker who conducted the firm’s business and to oversee the trust account bookkeeping, thus allowing the firm to engage in deficit spending, or accumulate a shortage in both rental and tenant security deposit accounts totaling nearly $100,000.

KIM GROOMS KEATON (Greensboro) – The Commission accepted the voluntary surrender of the broker license of Ms. Keaton for a period of two years effective October 10, 2013. The Commission dismissed without prejudice allegations that Ms. Keaton violated provisions of the Real Estate License Law and Commission rules. Ms. Keaton neither admitted nor denied misconduct.

JAMES R. KLUTH (Charlotte) – By Consent, the Commission reprimanded Mr. Kluth effective October 1, 2013. The Commission found that Mr. Kluth, qualifying broker of a real estate brokerage firm, acting as listing agent in a transaction, was made aware of unspecified “structural issues” disclosed in an inspector’s report, but failed to disclose their existence to a subsequent buyer. The Commission noted that after the subsequent buyer hired a structural engineer and inspector who discovered the structural issues, the necessary repairs were successfully completed at the seller’s expense and the transaction closed.

MICHAEL DONALD LACHAPELLE (Charlotte) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. LaChapelle effective July 15, 2013. The Commission dismissed without prejudice allegations that Mr. LaChapelle violated provisions of the Real Estate License Law and Commission rules. Mr. LaChapelle neither admitted nor denied misconduct.

LAKE NORMAN CORNELIUS NC LLC (Cornelius) – By Consent, the Commission reprimanded Lake Norman Cornelius NC effective August 8, 2013. The Commission found that a provisional broker associated with Lake Norman Cornelius NC hired a contractor to perform work on bank-owned properties listed by the firm and represented that the contractor had been paid when it had not, and that the provisional broker, instead of paying the contractor’s invoices with the monies she received as reimbursement from the firm’s clients, converted the funds to her own personal use. The Commission also found that Lake Norman Cornelius NC failed to properly maintain or account for funds that came into its possession and released funds to the provisional broker in violation of the Real Estate Law and Commission rules.

LUXOR PROPERTIES (Charlotte) – By Consent, the Commission revoked the firm license of Luxor Properties effective October 10, 2013. The Commission found that Luxor Properties, a real estate brokerage firm which provided property management services, engaged in deficit spending since its licensing on July 25, 2012, and accumulated a shortage in both rental and tenant security deposit accounts totaling nearly $100,000.

LYRUBEC PROPERTIES LLC (Charlotte) – By Consent, the Commission reprimanded Lyrubec Properties effective May 1, 2013. The Commission found that the broker-in-charge of Lyrubec Properties, a property management firm, failed to properly supervise a broker associated with the firm; that a trust account audit of the firm’s records revealed that the firm’s trust account records were not maintained in compliance with Commission rules.

MAINSTREET HOMES LLC (Charlotte) – By Consent, the Commission revoked the firm license of MainStreet Homes effective August 8, 2013. The Commission found that Mainstreet Homes sought out property owners who were in financial distress and entered into leases with options to purchase their property; that Mainstreet Homes managed the properties and collected fees; and that Mainstreet Homes paid unlicensed persons compensation for producing buyers for these transactions.

IQRAA TAALIB DIN MADYUN (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Madyun for a period of nine months effective May 1, 2013. The Commission found that Mr. Madyun, acting as broker-in-charge of a property management firm, failed to properly supervise a broker associated with the firm; that a trust account audit of the firm’s records revealed that checks for the firm’s rental account were not designated trust or escrow; that Mr. Maydun and the broker associate failed to maintain duplicate copies of deposit slips for the maintenance account and the account did not balance; and Mr. Madyun and the broker associate engaged in deficit spending.

CURT STEVEN MCVEY (Graham) – By Consent, the Commission suspended the broker license of Mr. McVey for a period of six months effective June 1, 2013. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. McVey, acting as broker-in-charge and qualifying broker of a real estate brokerage firm, failed to properly supervise an unlicensed employee who converted in excess of $50,000 from trust accounts maintained by Mr. McVey.

MARYROSE HASROUNI MESROPIAN (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Mesropian for a period of two years effective April 1, 2013. The Commission found that Ms. Mesropian, acting as a provisional broker, contracted in February 2010 to sell a property to buyers who lived out-of-state and frequently worked out of the country, but failed to make any disclosures about the property; that after the buyers purchased the property, Ms. Mesropian managed the property but failed to enter into a written property management agreement; that Ms. Mesropian received $5,000 from the buyers to make repairs, but failed to make an accounting of how the funds were spent; that Ms. Mesropian failed to deposit the tenant security deposit and rental proceeds in a trust account; that after Ms. Mesropian placed a tenant in the property, the tenant filed a complaint about the state of the house with the city’s code enforcement board; and that, in October 2010, the City of Charlotte ordered the property to be condemned.

N. H. MILLINGTON AND CO., LLC (Elon) – The Commission revoked the firm license of N. H. Millington and Co. effective August 23, 2013 following a hearing. The Commission found that N. H. Millington and Co., which managed eight rental units, failed to maintain compliant trust account records, failed to readily identify and safeguard client funds, and spent client funds for personal expenses.

CYNTHIA NIQUIPORO (Fayetteville) – By Consent, the Commission permanently revoked the broker license of Ms. Niquiporo effective August 8, 2013. The Commission found that Ms. Niquiporo placed a tenant in a client’s home but failed to enter into a written management agreement with the owners; that when the tenant failed to pay the first month’s rent, Ms. Niquiporo told the owners that she had evicted the tenant when she had not done so and instead allowed an additional tenant to occupy the home; that neighbors informed the owners that there were multiple tenants occupying the home; that Ms. Niquiporo had not forwarded any of the $4,000 in rental proceeds collected to the owner; and that Ms. Niquiporo failed to deposit funds in a trust account, have a licensed real estate firm through which she managed the property, or retain any records of her real estate transactions. The Commission also found that Ms. Niquiporo occupied a vacant home owned by another without entering into a lease agreement and without paying any rental proceeds.

NORTHSIDE REALTY, LLC (Mount Airy) – The Commission accepted the voluntary surrender of the firm license of Northside Realty effective October 10, 2013. The Commission dismissed without prejudice allegations that Northside Realty violated provisions of the Real Estate License Law and Commission rules. Northside Realty neither admitted nor denied misconduct.

HOLLY PASUT (Charlotte) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Pasut effective October 1, 2013. The Commission dismissed without prejudice allegations that Ms. Pasut violated provisions of the Real Estate License Law and Commission rules. Ms. Pasut neither admitted nor denied misconduct.

PHELCO PROPERTIES, INC. (Mooresville) – By Consent, the Commission revoked the firm license of Phelco Properties, Inc. effective May 8, 2013. The Commission found that the owner and broker-in-charge of Phelco Properties, which was primarily engaged in vacation rental management, sold the rental agreements, trust accounts, and other business assets belonging to Phelco Properties to several unlicensed individuals. The Commission also found that Phelco Properties had a $16,000 – $18,000 shortage in the firm’s trust account as of August 2011 when the business assets were sold to the unlicensed individuals.

GARY L. PHELPS (Mooresville) – By Consent, the Commission revoked the broker license of Mr. Phelps effective May 8, 2013. The Commission found that Mr. Phelps, primarily engaged in vacation rental management and as broker-in-charge of his own licensed real estate brokerage firm, sold his firm to several unlicensed individuals and together they formed a new unlicensed firm. The Commission also found that Mr. Phelps failed to perform the broker-in-charge duties as agreed and instead allowed his unlicensed co-owners to engage in vacation rental management since August 2011 and that Mr. Phelps admitted that he had a $16,000-$18,000 shortage in his trust account as of August 2011 when he transferred the money to the unlicensed firm.

KALISHA MONIQUE REED (Raleigh) – By Consent, the Commission suspended the broker license of Ms. Reed for a period of one year effective July 1, 2013. The Commission then stayed the suspension for a probationary period ending June 30, 2014. The Commission found that Ms. Reed, broker-in-charge of a property management firm, and a provisional broker under the supervision of Ms. Reed, failed to remit rental proceeds and tenant security deposits or provide an accounting for the funds in a timely manner to their landlord client for whom they had managed 70 properties. The Commission also found that Ms. Reed failed to maintain trust accounts in accordance with Commission rules and failed to properly supervise the provisional broker. The Commission noted that all documents and funds have been remitted to the landlord client.

RENT PURCHASE.COM, INC. (Pineville) – The Commission accepted the permanent voluntary surrender of the firm license of Rent Purchase.com effective October 10, 2013. The Commission dismissed without prejudice allegations that Rent Purchase.com violated provisions of the Real Estate License Law and Commission rules. Rent Purchase.com neither admitted nor denied misconduct.

GWENDOLYN L. ROBERTS (Charlotte) – By Consent, the Commission reprimanded Ms. Roberts effective July 1, 2013. The Commission found that Ms. Roberts, engaged in the property management business as broker-in-charge of her own sole proprietorship, managed one rental property without entering into a written property management agreement and 13 additional properties without a trust account. The Commission also found that Ms. Roberts deposited rents directly into the owners’ bank accounts and collected a $650 tenant security deposit that she deposited into the owner’s account. The Commission noted that Ms. Roberts did refund the tenant security deposit out of her own funds.

JUSTIN MICHAEL SANTINI (Charlotte) – By Consent, the Commission revoked the broker license of Mr. Santini effective November 1, 2013. The Commission found that Mr. Santini, owner of a real estate brokerage firm which provided property management services, failed to maintain the firm’s trust account records, thus allowing the firm to engage in deficit spending and accumulate a shortage in both rental and tenant security deposit accounts in excess of $75,000. The Commission noted that Mr. Santini advised the Commission that the trust accounts were to be fully funded in October.

RICHARD SCHWARTZ (Pineville) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Schwartz effective October 10, 2013. The Commission dismissed without prejudice allegations that Mr. Schwartz violated provisions of the Real Estate License Law and Commission rules. Mr. Schwartz neither admitted nor denied misconduct.

ELIZABETH J. SLADOJE (Charlotte) – By Consent, the Commission reprimanded Ms. Sladoje effective October 1, 2013. The Commission found that Ms. Sladoje, broker-in-charge of her own sole proprietorship, had operated an unlicensed real estate firm since 2005. The Commission also found that Ms. Sladoje listed a home for sale and, based on representations by the absent seller, advertised that the property was serviced by municipal water and sewer services without verifying this information; that, in fact, the property was serviced by a septic system; and that the buyer who purchased the property had to pay to connect to municipal sewer services.

JULIE EDWARDS VAN SLAMBROOK (Charlotte) – By Consent, the Commission revoked the broker license of Ms. Van Slambrook effective May 1, 2013. The Commission found that Ms. Van Slambrook, as bookkeeper and broker-in-charge of a property management firm, embezzled over the last two years or more nearly $100,000 of client funds held in trust at the firm and that Ms. Van Slambrook’s conversion of client funds was facilitated by her failure to maintain trust records in compliance with the Real Estate License Law and Commission rules.

ERIC P. SMART (Charlotte) – The Commission accepted the voluntary surrender of the broker license of Mr. Smart for a period of five years effective August 8, 2013. The Commission dismissed without prejudice allegations that Mr. Smart violated provisions of the Real Estate License Law and Commission rules. Mr. Smart neither admitted nor denied misconduct.

CARMEN SHOCKLEY SMITH (Mount Airy) – The Commission accepted the voluntary surrender of the broker license of Ms. Smith for a period of two years effective October 10, 2013. The Commission dismissed without prejudice allegations that Ms. Smith violated provisions of the Real Estate License Law and Commission rules. Ms. Smith neither admitted nor denied misconduct.

SOUTHEASTERN PROPERTY MANAGEMENT, INC. (Reidsville) – By Consent, the Commission revoked the firm license of Southeastern Property Management effective October 10, 2013. The Commission found that Southeastern Property Management’s trust account records revealed a shortage of $35,000. The Commission also found that Southeastern Property Management failed to comply with a Commission Consent Order dated November 14, 2012, requiring, among other conditions, that the firm prohibit Gloyd “Sonny” Vestal from having signatory or other authority to withdraw or manage funds of any trust account held or maintained by the firm and that numerous times since the issuance of the Consent Order, Gloyd “Sonny” Vestal has electronically transferred funds from an account managed by the firm and has had signatory authority over one or more accounts maintained by the firm.

TONYA WHITLEY STOTT (Grimesland) – By Consent, the Commission revoked the broker license of Ms. Stott effective April 24, 2013. The Commission found that Ms. Stott leased her home to a tenant who paid her a $1,500 tenant security deposit, but after selling the home, Ms. Stott failed to transfer the tenant security deposit to the new owner or refund it to the tenant or otherwise account for the deposit and, thus, failed to comply with the Tenant Security Deposit Act.

SUN REALTY OF NAGS HEAD, INC. d/b/a THE OUTER BANKS SCHOOL OF REAL ESTATE (Nags Head) – By Consent, the Commission reprimanded Sun Realty of Nags Head effective October 10, 2013. The Commission found that Sun Realty of Nags Head, an approved real estate school, permitted an unlicensed student to register for and attend the 301 postlicensing course, failed to enter into an enrollment contract with the student, failed to produce the enrollment contract when requested to do so by Commission staff, and failed to submit to the Commission within seven calendar days following the course a report verifying the student’s completion of the course. The Commission also found that Sun Realty of Nags Head failed to have procedures in place sufficient to prevent such conduct by the director or to preserve the required records. The Commission noted that Sun Nags Realty of Nags Head has replaced the school director and has taken steps to correct the situation so that the events described do not repeat themselves.

THE MCVEY COMPANY, INC. (Graham) – By Consent, the Commission suspended the firm license of The McVey Company for a period of six months effective June 1, 2013. The Commission then stayed the suspension for a probationary period of one year. The Commission found that The McVey Company’s broker-in-charge and qualifying broker employed, but did not properly supervise, a former unlicensed employee who converted in excess of $50,000 from trust accounts maintained by the firm. The Commission noted that the broker-in-charge and qualifying broker voluntarily informed the Commission of the situation.

VESTAL PROPERTY MANAGEMENT, INC. ­­­­­(Greensboro) – By Consent, the Commission revoked the firm license of Vestal Property Management effective October 10, 2013. The Commission found that Vestal Property Management’s trust account records revealed a shortage of more than $57,000 as of May 31, 2013. The Commission also found that Vestal Property Management failed to comply with a Commission Consent Order dated November 14, 2012, requiring, among other conditions, that the firm prohibit Gloyd “Sonny” Vestal from having signatory or other authority to withdraw or manage funds of any trust account held or maintained by the firm and that numerous times since the issuance of the Consent Order, Gloyd “Sonny” Vestal has electronically transferred funds from an account managed by the firm and has had signatory authority over one or more accounts maintained by the firm.

W. F. BALDWIN & SON, INC. (Winston-Salem) – By Consent, the Commission suspended the firm license of W. F. Baldwin & Son for a period of three years effective August 1, 2013. The Commission then stayed the suspension for a probationary period of five years effective August 1, 2013. The Commission found that between 2008 and 2010 W. F. Baldwin & Son, a real estate brokerage and property management firm, failed to safeguard the funds held on behalf of landlord clients and their tenants by using the funds to pay operating expenses of the firm including bank fees.

TERASHA MARIE WEATHERSBE (Raleigh) – By Consent, the Commission suspended the broker license of Ms. Weathersbe for a period of three years effective July 1, 2013. One year of the suspension is active with the remainder stayed on certain conditions for a probationary period extending until July 1, 2016. The Commission found that Ms. Weathersbe, a provisional broker, was engaged in property management under the supervision of the broker-in-charge of a real estate brokerage firm; that Ms. Weathersbe and her BIC entered into an agreement to manage 70 properties; that Ms. Weathersbe failed to remit rental proceeds and tenant security deposits or provide an accounting for the funds in a timely manner to her landlord client. The Commission also found that Ms. Weathersbe failed to deposit a $4,000 cash rental payment to the trust account. The Commission noted that Ms. Weathersbe and her BIC replaced the funds.

This article came from the October 2013-Vol44-2 edition of the bulletin.