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Disciplinary Actions – 2008-V39-2

THOMAS A. ADAM (Wilmington) – By Consent, the Commission suspended the broker license of Mr. Adam for a period of 90 days effective May 1, 2008. Thirty days of the suspension were active with the remainder stayed for a probationary period of one year. The Commission found that Mr. Adam, as broker-in-charge of a real estate brokerage firm, certified to the Commission that the declaration of experience of a broker associated with the firm was correct and true when, in fact, it was not. The Commission further found that Mr. Adam failed to make an adequate inquiry into the broker’s experience.

SCOTT H. ASHCRAFT (Wilmington) – By Consent, the Commission suspended the broker license of Mr. Ashcraft for a period of one year effective September 1, 2008. The Commission then stayed the suspension for a probationary period of one year on certain conditions. The Commission found that Mr. Ashcraft, licensed in 2004, failed to activate his license in 2005 upon association with a real estate brokerage firm and worked on inactive status until February 2007. The Commission also found that Mr. Ashcraft, while on inactive status in 2006, failed to disclose to his buyer client that he was acting as a dual agent in a transaction, failed to give agency disclosure to his buyer client at first substantial contact, failed to obtain written agency disclosure, failed to obtain a signed buyer agency agreement, and failed to obtain a signed property disclosure from the buyer. The Commission noted that the transaction failed to close.

MICHAEL WINSLOW ATKINSON (Hatteras) – By Consent, the Commission suspended the broker license of Mr. Atkinson for a period of two years. Forty-five days of the suspension were active from September 1, 2008 to October 16, 2008 and the remainder stayed for a probationary period of two years under certain conditions. The Commission found that Mr. Atkinson was convicted in 1990 of transporting an open container of alcohol but did not disclose the conviction on his 1998 license application. The Commission also found that Mr. Atkinson was convicted in February 2007 of transporting an open container of alcohol and unsafe movement and in March 2007 of Possession of Drug Paraphernalia, both in Dare County. The Commission further found that Mr. Atkinson was convicted in federal district court in November 2007 of Driving Under the Influence and Disorderly Conduct. The Commission noted that Mr. Atkinson timely reported this conviction to the Commission.

BALLANTYNE MARKET CENTER T/A KELLER WILLIAMS (Charlotte) – By Consent, the Commission reprimanded Ballantyne Market Center effective September 1, 2008. The Commission found that (following discovery of embezzlement by an unlicensed office administrator) Ballantyne Market Center failed to adequately reconcile its trust accounts, failed to identify disbursements correctly on journals, and had an overage of approximately $52,000 in its trust account. The Commission noted that Ballantyne Market Center deposited funds to cover the embezzled money and transferred the account to a new bank.

SELINA C. BROOKS (Hubert) – By Consent, the Commission suspended the broker license of Ms. Brooks for a period of 12 months effective February 1, 2008. One month was active with the remainder stayed for a probationary period of 12 months on certain conditions. The Commission found that Ms. Brooks, as broker-in-charge of a real estate brokerage firm office, failed to reconcile the firm’s trust account records with bank statements and transferred client monies from trust accounts without authority. The Commission also found that Ms. Brook’s trust account records revealed a shortfall in the trust account of more than $25,000. The Commission noted that Ms. Brooks replaced the missing money.

BRUCE HARRIS REAL ESTATE, LLC (Burlington) – By Consent, the Commission suspended the firm license of Bruce Harris Real Estate for a period of two years effective June 20, 2008. The Commission then stayed the suspension for a probationary period of one year on certain conditions. The Commission found that Bruce Harris Real Estate’s trust account books and records failed to conform to the minimum standards of the Commission’s rules, and that the liabilities exceeded funds on deposit. The Commission also found that Bruce Harris Real Estate failed to fully document deposits and disbursements and maintain a running balance in the trust account journal. The Commission noted that Bruce Harris Real Estate has brought the account and records into compliance.

GEORGE I. CANADA (Greensboro) – By Consent, the Commission revoked the broker license of Mr. Canada effective July 24, 2008. The Commission found that Mr. Canada failed to respond to a buyer’s attempts to contact him about the refund of a $1,000 earnest money deposit following termination of a contract to purchase, failed to respond to letters of inquiry from the Commission and failed to produce trust account records requested by the Commission. The Commission also found that Mr. Canada admitted to converting the earnest money to cover operating expenses, but did eventually repay the earnest money deposit.

DEVERSE CHAM, JR. (Rocky Mount) – By Consent, the Commission reprimanded the broker license of Mr. Cham effective April 1, 2008. The Commission found that Mr. Cham failed to ensure that the conduct of a provisional broker he supervised in a transaction was fair and honest. The Commission found that the provisional broker, acting as both buyer agent and loan officer in a transaction, created a false verification of rent in order to assist the buyer client in qualifying for a loan and negotiated a higher interest rate for the buyer client in order to receive higher income when the loan closed, thereby not acting in the best interest of the buyer client.

JEFFREY D. CHURCH (Mooresville) – By Consent, the Commission suspended the broker license of Mr. Church for a period of one year effective June 19, 2008. Thirty days of the suspension were active with the remainder stayed for a probationary period of 11 months. The Commission found that Mr. Church plead guilty to and was convicted on or about August 6, 2007 of the misdemeanor offense of Possession of Drug Paraphernalia. The Commission noted that Mr. Church reported the conviction to the Commission on October 5, 2007.

ROBERT A. COOPER (Raleigh) – By Consent, the Commission suspended the broker license of Mr. Cooper for 12 months effective June 15, 2008. The Commission found that Mr. Cooper and other respondents were accused by the State ofNorth Carolina of making agreements with competing bidders in foreclosure and judicial sales of real estate in order to depress the prices realized in those sales for his clients’ or confederates’ benefit. The Commission also found that the court found a factual basis for the State’s allegations, and in that one case Mr. Cooper consented to pay in excess of $17,000 in compensatory damages and restitution and costs to the State of North Carolina. Mr. Cooper neither admitted nor denied the Commission’s findings and conclusions.

SAMUEL CRAIG (Raleigh) – By Consent, the Commission reprimanded Mr. Craig effective July 1, 2008. The Commission found that Mr. Craig, in order to remove the provisional status from his broker license, certified to the Commission on its website on March 28, 2007 that he possessed four years’ full-time real estate brokerage experience within the past six years, when, in fact, his broker license was on inactive status until he activated it on April 29, 2005.

RODNEY S. DAW (Raleigh) – By Consent, the Commission revoked the broker license of Mr. Daw effective July 21, 2008. The Commission found that Mr. Daw and other respondents were accused by the State of North Carolina of entering into agreements with bidders in foreclosures and judicial sales of real estate, which had the effect of suppressing the prices obtained in those sales; that in each case the court found a factual basis for the State’s allegations; that in each case one or more of the respondents consented to the imposition of an injunction preventing future conduct in violation of the law; and that Mr. Daw entered into an agreement with the Attorney General’s office to pay in excess of $229,999 in compensatory damages and restitution to the State.

JAMES V. DEBLOSSIO (Port Wentworth, Georgia) – By Consent, the Commission permanently revoked the broker license of Mr. DeBlossio effective July 1, 2008. The Commission found that between 2002 and 2003, Mr. DeBlossioparticipated in a mortgage fraud scheme in the Charlotte area, was found guilty in June 2007 in U. S. District Court of one count of mortgage fraud conspiracy and one count of bank fraud, and in May 2008 was sentenced to five years of probation with one year to be under home confinement.

DAVID BARRY DEFRAVIO (Waxhaw) – By Consent, the Commission suspended the broker license of Mr. DeFravio for a period of one year effective July 1, 2008. One month of the suspension was active with the remainder stayed for a probationary period of 11 months. The Commission found that Mr. DeFravio was convicted of Second Degree Trespass and Resisting Arrest on July 18, 2007, which he timely reported. The Commission also found that Mr. DeFravio failed to report a 1998 conviction for Assault on a Female as required by Commission rules.

DIRECT MANAGEMENT & REALTY, INC. (Charlotte) – By Consent, the Commission revoked the firm license of Direct Management & Realty effective May 15, 2008. The Commission found that Direct Management & Realty, as property manager for several properties, failed repeatedly to provide rent proceeds, management statements and invoices or receipts for repairs purportedly conducted and also had at least one check written from its trust account returned for insufficient funds.

STEPHEN E. DUBOSE (Waynesville) – By Consent, the Commission reprimanded Mr. DuBose effective July 1, 2008. The Commission found that Mr. DuBose acted as a broker in the sale of three residential lots, and failed to discover prior to closing that the subdivision containing the properties had not been approved by local government and two of the properties were too small under the applicable zoning regulations. The Commission noted that Mr. DuBose, after closing, assisted the parties involved in conveyances among the owners to correct the zoning violation and the subdivision was subsequently approved.

FREDERICK B. ELZIE, III (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Elzie for a period of 12 months effective January 1, 2008. Six months of the suspension were active with the remainder stayed for a probationary period of 12 months on certain conditions. The Commission found that Mr. Elzie, acting as rental agent for residential rental property belonging to landlord clients and as its broker-in-charge from May 2005 to January 2006, failed to deposit and maintain rents and monies collected for clients in a trust account, failed to always designate trust account records as “trust” or “escrow”, did not reconcile trust account records with bank statements, and the trust account records did not provide a clear audit trail.

JOHN E. FORREST (Vanceboro) – By Consent, the Commission suspended the broker license of Mr. Forrest for a period of one year effective July 1, 2008. Two months of the suspension were active with the remainder stayed for a probationary period of one year. The Commission found that Mr. Forrest was convicted of four criminal offenses prior to licensure but did not report them on his 1993 and 1996 license applications. The Commission also found that Mr. Forrest was convicted in November 2007 of Open Burning When Prohibited in Craven County, which he timely reported to the Commission.

FREEDOM REALTY OF FAYETTEVILLE, INC. (Fayetteville) – By Consent, the Commission revoked the firm license of Freedom Realty effective August 14, 2008. The Commission found that Freedom Realty, acting as a rental manager for a property, failed to account to the owner for a deposit paid by the tenant and for rent collected on the tenant’s behalf. The Commission also found that Freedom Realty failed to produce transaction and trust account documents for inspection.

JAMES TERRY GARRETT, JR. (Charlotte) – By Consent, the Commission suspended the broker license of Mr. Garrett for a period of five years effective September 1, 2008. Three years of the suspension are active with the remainder stayed for a probationary period of two years. The Commission found that Mr. Garrett timely disclosed his conviction on June 15, 2007, relating to his participation in the sale of securities for which he was placed on five years probation, to be terminated no sooner than payment of restitution and two years probation. The Commission noted that Mr. Garrett has paid the restitution.

GOLD PROPERTY MANAGEMENT, INC. (New Bern) – By Consent, the Commission revoked the firm license of Gold Property Management effective July 25, 2008. The Commission found that Gold Property Management’s liabilities for monies belonging to clients and tenants exceeded the funds on deposit in the firm’s trust accounts by more than $160,000. The Commission also found that Gold Property Management failed to maintain a complete journal of trust account transactions, maintained no running balance of funds on hand in the trust accounts and  no accurate ledgers. The Commission further found that Gold Property Management was unable to identify the liability to clients and tenants, failed to reconcile the trust account records with bank statements, issued checks drawn on the trust accounts which were returned unpaid because of insufficient funds, and used tenant security deposit money to fund shortfalls.

CESAR G. GORDOLA (Winston-Salem) – By Consent, the Commission revoked the broker license of Mr. Gordola effective July 15, 2008. The Commission found that Mr. Gordola failed to deposit and maintain certain client monies in a trust account and failed to keep accurate ledgers and journals of the monies deposited into or paid from his trust accounts. The Commission also found that Mr. Gordola commingled the funds of others in his possession with his own money, failed to make his trust account records available to the Commission for inspection, failed in certain transactions to keep complete and accurate copies of agency disclosures, agency contracts and other transactional documents, and failed in certain transactions to provide buyers and sellers with accurate closing statements.

CARLA ALBENDIA GRIFFIN (Huntersville) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Griffin effective June 1, 2008. The Commission dismissed without prejudice allegations that Ms. Griffin had violated provisions of the Real Estate License Law and Commission rules. Ms. Griffin neither admitted nor denied misconduct.

ELIZABETH A. GRILLO (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Grillo for a period of 15 months effective July 1, 2008. The Commission then stayed the suspension for a probationary period of 15 months on certain conditions. The Commission found that Ms. Grillo listed a .18-acre lot, misrepresenting on the MLS system R10 zoning for single family residential use based upon the county tax records. The misrepresentation was discovered after closing, when the buyer attempted to build a residence on the lot, and the buyer spent $15,000 to have the property rezoned.

SHARON A. HARGETT (Raleigh) – By Consent, the Commission reprimanded Ms. Hargett effective July 1, 2008. The Commission found that Ms. Hargett, in order to remove the provisional status from her broker license, certified to the Commission on its website on May 22, 2006 that she possessed four years’ full-time real estate brokerage experience within the past six years, when, in fact, she had held a full-time job not related to real estate since 1987, had devoted an average of only 10 to 15 hours a week to real estate, and was unable to supply adequate evidence and documentation that she had sufficient experience to remove the provisional status from her broker license.

ANTHONY T. HARRELSON (Richmond, Virginia) – By Consent, the Commission permanently revoked the broker license of Mr. Harrelson effective July 21, 2008. The Commission found that Mr. Harrelson, on or about August 14, 2007, was convicted of Bank FraudMoney Laundering and Aggravated Identity Theft in the United States District Court for the Eastern District of Virginia and is currently serving a term of imprisonment for these convictions.

BRUCE HARRIS, JR. (Burlington) – By Consent, the Commission suspended the broker license of Mr. Harris for a period of two years effective June 20, 2008. The Commission then stayed the suspension for a probationary period of one year on certain conditions. The Commission found that Mr. Harris’s trust account books and records failed to conform to the minimum standards of the Commission’s rules, and that the liabilities exceeded funds on deposit. The Commission also found that Mr. Harris failed to fully document deposits and disbursements and maintain a running balance in the trust account journal. The Commission noted that Mr. Harris brought the account and records into compliance.

BRUCE HARRIS, SR. (Burlington) – By Consent, the Commission suspended the broker license of Mr. Harris for a period of two years effective June 20, 2008. The Commission then stayed the suspension for a probationary period of one year on certain conditions. The Commission found that Mr. Harris’s trust account books and records failed to conform to the minimum standards of the Commission’s rules, and that the liabilities exceeded funds on deposit. The Commission also found that Mr. Harris failed to fully document deposits and disbursements and maintain a running balance in the trust account journal. The Commission noted that Mr. Harris brought the account and records into compliance.

CECIL B. HEAVNER (Smithfield) – By Consent, the Commission reprimanded Mr. Heavner effective June 10, 2008. The Commission found that in 2002, Mr. Heavner purchased property from a seller client of his firm, and agreed to share with the seller the profit from a subsequent resale within a stipulated period of time. The Commission further found that Mr. Heavner sold the property for a profit; however, a dispute arose concerning the disposition of the profits and Mr. Heavner did not make a timely accounting of the resale to his former client. The Commission noted that Mr. Heavner filed a court action to determine the appropriate disposition of the proceeds, and disbursed the funds to the seller’s bankruptcy estate in accordance with the court’s judgment.

RICHARD P. HESTER, JR. (Durham) – By Consent, the Commission suspended the broker license of Mr. Hester for a period of 30 days effective June 18, 2008. The Commission found that Mr. Hester, a certified residential real estate appraiser, affixed his signature and seal to an interim property inspection report requested by a lender for a construction loan draw to finance the purchase of a mobile home; he did not tell the lender he was unable to perform the inspection due to recent surgery and instead submitted required photographs taken by an employee of the mobile home manufacturer that were subsequently found not to be of the subject property. The Commission also found that the manufactured home dealer failed to complete the property owner’s home as required to receive the draw.

RONALD F. HILES (Sanford) – The Commission suspended the broker license of Mr. Hiles for a period of five years effective October 15, 2006. The Commission found that Mr. Hiles failed to properly account for money belonging to others in four separate transactions, failed to deposit the funds of others in a trust or escrow account, failed to make records available for Commission inspection, and commingled rent and repair money with his own.

OSCAR L. HINES, JR. (Goldsboro) – By Consent, the Commission suspended the broker license of Mr. Hines for a period of one year effective July 1, 2008. The Commission then stayed the suspension for a period of one year on certain conditions. The Commission found that Mr. Hines failed to renew his general contractor’s license and subsequently was disciplined by the Licensing Board for General Contractors for performing as a general contractor after the license’s expiration and failed to report this disciplinary action to the Commission.

JASON J. HOLT (Asheville) – The Commission revoked the broker license of Mr. Holt effective June 5, 2008. The Commission found that Mr. Holt, on or about January 3, 2007, plead guilty to and was convicted of the misdemeanor offense ofAssault on a Female and was sentenced to 150 days in prison, suspended for a probationary period of 12 months; and that on or about October 2, 2007, Mr. Holt plead guilty to and was convicted of the federal offense of Possession of Firearm by Felon and was sentenced to 25 months in prison and is currently serving that term in Florida. The Commission further found that Mr. Holt was previously disciplined in 1998 by the Commission for failing to disclose in his license application three prior convictions. The Commission noted that Mr. Holt reported the convictions in 2007 as required by Commission rule.

ALICE F. HOPE (Gastonia) – By Consent, the Commission reprimanded Ms. Hope effective August 1, 2008. The Commission found that Ms. Hope elected to remove the provisional status of her license certifying on May 1, 2006 that she possessed four years full-time experience as a real estate broker; while she had performed property management as a corporate employee during that time, her license has been on inactive status since April 1999 and, therefore, the work she performed did not qualify as the basis for removal of her provisional status.

IRENE E. HUGHES (Fayetteville) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Hughes effective June 1, 2008. The Commission dismissed without prejudice allegations that Ms. Hughes violated provisions of the Real Estate License Law and Commission rules. Ms. Hughes neither admitted nor denied misconduct.

IRONWOOD REALTY, INC. (Greenville) – By Consent, the Commission reprimanded Ironwood Realty effective June 19, 2008. The Commission found that Ironwood Realty acted as brokers for a community of patio homes within a larger subdivision where the roads in the rest of the subdivision were public, and failed to disclose to purchasers of the patio homes that the roads in their community were private.

JACKSONVILLE REALTY, INC. (Jacksonville) – By Consent, the Commission suspended the firm license of Jacksonville Realty for a period of three years effective April 1, 2008. The Commission then stayed the suspension for a probationary period through March 31, 2013 under certain conditions. The Commission found that Jacksonville Realty failed to adequately safeguard the funds of its clients held in trust and failed to supervise an unlicensed employee who was given access to the firm’s trust accounts and who, in 2003, converted approximately $150,000 in trust monies to her own use. The Commission also found that Jacksonville Realty appointed the employee as broker-in-charge of the property management office after she became licensed, and she converted approximately $500,000 to her own use between 2004 and 2007. The Commission noted that Jacksonville Realty fully funded the trust accounts and brought its books and records into compliance.

WENDY STEWART JAMISON (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Jamison for a period of six months effective June 1, 2008. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Ms. Jamison on or about October 10, 2007, plead guilty to and was convicted of Driving While Intoxicated. The Commission noted that prior to licensure as a real estate broker Ms. Jamison was convicted of certain criminal offenses which were disclosed at the time of her license application.

DAVID P. JENNINGS (Wilmington) – By Consent, the Commission suspended the broker license of Mr. Jennings for a period of one year effective July 1, 2008. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Jennings was convicted in 2007 for misdemeanor drug possession and maintaining a vehicle for controlled substance and had failed to disclose on his 1994 salesperson’s license application and his 2004 broker’s license application a 1990 conviction for misdemeanor Larceny and a 1991 misdemeanor conviction for Resisting and Obstructing a Public Officer.

DUANE A. JORDAN (Yadkinville) – The Commission revoked the broker license of Mr. Jordan effective September 4, 2008. The Commission found that Mr. Jordan misrepresented to an investor that the principal amount of his investment was guaranteed and pursued that course of misrepresentation through documents and electronic communication. The Commission also found that Mr. Jordan failed within a reasonable time to account to the investor for the monies held on his behalf; failed to maintain and deposit into a trust or escrow account the monies received by him as a real estate agent from the investor; and failed to produce at the request of the Commission records relating to the monies held on behalf of the investor. The Commission further found that Mr. Jordan failed to respond to letters of inquiry from the Commission.

DELMIS JACK KEEN, JR. (Raleigh) – By Consent, the Commission suspended the broker license of Mr. Keen for a period of 42 months effective September 1, 2008. The Commission found that Mr. Keen, in Wake County District Court, pleaded guilty to and was convicted of the criminal offense of larceny; Mr. Keen purchased building material for personal use with funds belonging to a hotel organization which he had obtained from an employee there.

ALFRED S. KESLER (Murphy) – By Consent, the Commission reprimanded Mr. Kesler effective March 1, 2008. The Commission found that Mr. Kesler, acting as the agent for the sellers of a house and lot, prepared a real estate purchase contract on which he described the closing date to be “23 April and/or when buyer’s house is closed.” The Commission also found that the property did not close by April 23, the sellers sold the property to another purchaser and the original buyer disputed the meaning of the closing language Mr. Kesler prepared.

THEODORE A. KIMMEL (Asheville) – By Consent, the Commission suspended the broker license of Mr. Kimmel for a period of two years effective July 1, 2008. One year of the suspension is active with the remainder stayed for a probationary period of one year. The Commission found that Mr. Kimmel answered “no” to a question concerning criminal convictions on his 2005 license application, when, in fact, he had prior convictions in 1998, 2001 and 2002. The Commission further found that Mr. Kimmel was convicted on or about March 9, 2007 of multiple misdemeanors and, on or about May 15, 2007, was convicted of two criminal offenses, and did not report the convictions to the Commission as required.

JAMES M. KING (Charlotte) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. King effective June 19, 2008. The Commission dismissed without prejudice allegations that Mr. King had violated provision of the Real Estate Law and Commission rules. Mr. King neither admitted nor denied misconduct.

RAYMOND LAWRENCE (Cedar Point) – By Consent, the Commission suspended the broker license of Mr. Lawrence for a period of two years effective July 1, 2008. The Commission then stayed the suspension for a probationary period of two years. The Commission found that Mr. Lawrence, originally licensed on December 6, 1991, was convicted on November 29, 1993, of Misdemeanor Assault on a FemaleMisdemeanor Communicating Threats, and Felony Solicitation to Commit Murder, was sentenced to five years in prison and served 18 months for the felony, and was sentenced to two years in prison suspended to five years unsupervised probation for the misdemeanors.

WESLEY A. MARTIN (Johnson City, Tennessee) – By Consent, the Commission suspended the broker license of Mr. Martin for a period of six months effective July 1, 2008, after which it will be restored to him on provisional status on certain conditions. The Commission found that Mr. Martin certified to the Commission that he had four years of full-time, active experience as a real estate broker or salesperson when, in fact, his license was on active status for only eight months following licensing in 2000. The Commission also found that Mr. Martin, also licensed in California in May, 2004, could have had only two years and five months of qualifying experience at the time of his certification to the Commission.

DON W. MCNALLY (Fayetteville) – By Consent, the Commission suspended the broker license of Mr. McNally for a period of two years effective July 1, 2008. Six months of the suspension are active with the remainder stayed for a probationary period. The Commission found that Mr. McNally wrote a contract for his buyer-client, knowing his buyer-client wanted repairs made to the property, and failed to prepare a repair request agreement. The Commission also found that Mr. McNally knew his buyer-client wanted to take possession of the property prior to closing and failed to prepare a buyer possession before closing agreement, and permitted his buyer-client to take possession of the property prior to the closing. The Commission further found that Mr. McNally failed to respond in writing to three Letters of Inquiry from the Commission.

NORMAN MEHLMAN (Charlotte) – By Consent, the Commission revoked the broker license of Mr. Mehlman effective July 1, 2008, providing further that he may not seek license reinstatement for two years. The Commission found that Mr.Mehlman, acting as property manager for several owner-clients, failed repeatedly to provide rent proceeds, management statements and invoices or receipts for repairs purportedly conducted, and had at least one check which was written from his trust account returned for insufficient funds.

STANLEY G. MONTGOMERY (Greensboro) – By Consent, the Commission revoked the broker license of Mr. Montgomery effective March 11, 2008. The Commission found that Mr. Montgomery was convicted on or about December 9, 2004 of the federal criminal offense of conspiracy to commit loan fraud and was sentenced to three years of supervised probation.

WILLIE E. MOORE (Fayetteville) – By Consent, the Commission suspended the broker license of Mr. Moore for one year effective July 1, 2008. The Commission then stayed the suspension for a probationary period of one year on certain conditions. The Commission found that Mr. Moore, as broker-in-charge of a sole proprietorship, kept no journal, ledgers, or check stubs and performed no monthly reconciliations of his trust account. The Commission also found that Mr. Moore kept no operating account and used the trust account for general checking purposes. However, Mr. Moore had a limited number of transactions and no shortages were found.

JAMES LESLIE MOORING (Greenville) – By Consent, the Commission revoked the broker license of Mr. Mooring effective July 21, 2008. The Commission found that Mr. Mooring failed to disclose on his 2004 license application that he had been convicted in 1994 in the U.S. District Court of Arkansas, of one count of Felony Manufacture Of Marijuana and one count of Felony Possession With Intent To Distribute, for which he was sentenced to 120 months in prison with eight years supervised release. The Commission also found that he served approximately eight years and four months in prison before his release.

STACIE L. MORRIS (Cary) – By Consent, the Commission reprimanded Ms. Morris effective July 1, 2008. The Commission found that Ms. Morris, in order to remove the provisional status from her broker license, certified to the Commission on its website on April 25, 2006 that she possessed four years’ full-time real estate brokerage experience within the past six years, when, in fact, her broker license remained on inactive status from the date her license was issued, September 30, 2000, until September 25, 2006, which includes the time she certified four years’ full-time real estate experience.

KENNETH L. MURPHY, JR. (Durham) – By Consent, the Commission reprimanded Mr. Murphy effective July 1, 2008. The Commission found that Mr. Murphy, in order to remove the provisional status of his broker license, certified on the Commission’s website  on January 2, 2007 that he possessed four years of full-time real estate brokerage experience within the previous six years, when, in fact, he had only participated in 17 real estate transactions in the years 2003 to 2006, devoted an average of 15 to 25 hours per week to real estate activities, worked part time in another job unrelated to real estate, and was unable to supply adequate evidence and documentation that he had sufficient experience to remove the provisional status from his broker license.

NEW MILLENIUM REALTY, INC. (Charlotte) – By Consent, the Commission permanently revoked the firm license of New Millenium Realty effective April 16, 2008. The Commission found that New Millenium Realty, between 2002 and 2004, represented buyers who purchased new construction homes from a builder and that New Millenium Realty received numerous commission bonuses paid directly to the firm by the builder, which were not disclosed to the buyers, closing attorneys or lenders in the transactions.

ON-THE-STREET REALTY, INC. (Charlotte) – The Commission accepted the permanent voluntary surrender of the firm license of On-the-Street Realty effective June 19, 2008. The Commission dismissed without prejudice allegations that On-the-Street Realty violated provisions of the Real Estate Law and Commission rules. On-the-Street Realty neither admitted nor denied misconduct.

OLA M. OWOKONIRAN (Raleigh) – By Consent, the Commission suspended the broker license of Mr. Owokoniran for a period of six months effective July 1, 2008. The Commission then stayed the suspension for a probationary period of six months on certain conditions. The Commission found that Ms. Owokoniran, acting as buyer’s agent for a home built in 1905 and being sold “as is”, received a Lead Paint Addendum, and Property Disclosure Statement marked “no representation” for all questions, both signed by the sellers, but failed to obtain a copy of these documents signed by the purchaser. The Commission also found that, after the sale closed, the purchaser discovered that the house had lead paint and would not be suitable for renting or eligible for Section 8 tenants as had been intended.

PAUL A. PARKER (Salisbury) – By Consent, the Commission suspended the broker license of Mr. Parker for a period of one year effective June 18, 2008. Three months of the suspension were active with the remainder stayed for a probationary period of one year under certain conditions. The Commission found that Mr. Parker signed a closing statement that was not accurate in connection with the sale of three properties he owned.

CASSANDRA A. PHIPPS (Charlotte) – By Consent, the Commission reprimanded Ms. Phipps effective August 1, 2008. The Commission found that Ms. Phipps, acting as broker-in-charge of a real estate brokerage firm, engaged an unlicensed individual as an independent contractor to perform leasing services requiring a broker’s license, including soliciting clients for the firm and showing rental properties listed by the firm.

PHIPPS ENTERPRISE, INC. (Charlotte) – By Consent, the Commission reprimanded Phipps Enterprise effective August 1, 2008. The Commission found that Phipps Enterprise, a licensed real estate brokerage firm, engaged an unlicensed individual as an independent contractor to perform leasing services requiring a broker’s license, including soliciting clients for the firm and showing rental properties listed by the firm.

JAMES C. POAG III (Charlotte) – The Commission accepted the voluntary surrender of the broker license of Mr. Poag for a period of two years effective June 1, 2008.  The Commission dismissed without prejudice allegations that Mr. Poagviolated provisions of the Real Estate License Law and Commission rules.  Mr. Poag did not admit or deny misconduct.

TRINA DENISE RAMOSBARBOSA (Fayetteville) – By Consent, the Commission reprimanded Ms. Ramosbarbosa effective October 1, 2008. The Commission found that while Ms. Ramosbarbosa was the broker-in-charge of a real estate brokerage firm, the firm’s trust accounts showed evidence of deficit spending, charges for insufficient funds, and conversion of trust funds reportedly by an unlicensed bookkeeper.

GREGORY D. RANKIN (Charlotte) – By Consent, the Commission permanently revoked the broker license of Mr. Rankin effective October 1, 2008. The Commission found that Mr. Rankin was indicted on and pled guilty to charges relating to his conduct in a mortgage fraud scheme.

CYNTHIA E. RANSONE (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Ransone for a period of three years effective June 19, 2008. The Commission then stayed the suspension for a probationary period of three years under certain conditions. The Commission found that Ms. Ransone failed to report on her 1999 license application convictions in 1984 and 1991. The Commission also found that Ms. Ransone was convicted of Driving While Impairedon or about June 27, 2007 and timely reported this conviction to the Commission.

PATRICIA HUNTER RICH (New Bern) – By Consent, the Commission suspended the broker license of Ms. Rich for a period of 30 days effective August 1, 2008. The Commission then stayed the suspension for a probationary period of one year on certain conditions. The Commission found that Ms. Rich sold a property abutting a portion of a highway that was to be widened from two lanes to four and, although she received a portion of a survey from the listing agent showing the 200’ right-of-way for the road, did not provide it to the buyer and did not assure that the buyer understood that the property he purchased did not go all the way to the existing road and shoulder.

SABRA BRIGGS ROMEO (Charlotte) – By Consent, the Commission reprimanded Ms. Romeo effective September 1, 2008. The Commission found that (following discovery of embezzlement by an unlicensed office administrator) Ms. Romeo, acting as broker-in-charge of a real estate brokerage firm, failed to adequately reconcile the firm’s trust accounts, failed to identify disbursements correctly on journals, and had an overage of approximately $52,000 in its trust account. The Commission noted that the owners of Ms. Romeo’s firm immediately deposited funds to cover the embezzled money and transferred the account to a new bank.

DEBORAH R. SANDERS (New Bern) – By Consent, the Commission revoked the broker license of Ms. Sanders effective July 25, 2008. The Commission found that Ms. Sanders was the broker-in-charge of a real estate firm and that her liabilities for monies belonging to clients and tenants exceeded the funds on deposit in her firm’s trust accounts by more than $160,000. The Commission also found that Ms. Sanders failed to maintain a complete journal of trust account transactions, maintained no running balance of funds on hand in the trust accounts and  no accurate ledgers. The Commission further found that Ms. Sanders was unable to identify the liability to clients and tenants, failed to reconcile the trust account records with bank statements, issued checks drawn on the trust accounts which were returned unpaid because of insufficient funds, and used tenant security deposit money to fund shortfalls. The Commission further found that Ms. Sanders failed to deposit cash rent payments into trust accounts or otherwise account for them, failed to maintain a clear audit trail, and failed to safeguard or promptly account for monies belonging to their clients and tenants.

DAVID M. SCHATZ (Raleigh) – By Consent, the Commission reprimanded Mr. Schatz effective July 1, 2008. The Commission found that Mr. Schatz attempted to broker the sale of commercial parcels in 1999 and 2002, but failed to enter into a listing agreement with the sellers. The Commission also found that Mr. Schatz later sued for commissions based on “Commission Agreements” when the sellers eventually sold the properties independently.

VIRGINIA P. SCHLAGENTWEITH (Jacksonville) – By Consent, the Commission revoked the broker license of Ms. Schlagentweith effective September 1, 2008. The Commission found that Ms. Schlagentweith, acting as broker-in-charge of a sole proprietorship engaged in property management, held security deposits in her trust account and converted $12,000 of those trust account funds to her personal use.

RICHARD L. SHOCKLEY (Weddington) – By Consent, the Commission reprimanded Mr. Shockley effective July 1, 2008. The Commission found that Mr. Shockley, in order to remove the provisional status from his broker license, certified to the Commission on its website on May 24, 2006 that he possessed four years of full-time real estate brokerage experience within the past six years, when, in fact, his broker license was active for a period of three years and two months and had been inactive since January 2004.

MOTT E. SIMPSON (Monroe) – By Consent, the Commission reprimanded Mr. Simpson effective July 1, 2008. The Commission found that Mr. Simpson, a certified appraiser, employed a trainee who performed appraisals on several properties and, although the appraisals did not meet the standards required by the North Carolina Appraisal Board, Mr. Simpson signed off on the appraisals and submitted them to lenders. The Commission also found that Mr. Simpson entered into a consent order with the Appraisal Board in which Mr. Simpson agreed that his appraisal license would be suspended for one year, with four months to be active, and the remainder stayed under certain conditions. The Commission noted that Mr. Simpson completed the requirements.

MEREDITH SLOAN (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Sloan for a period of two years effective July 1, 2008. Four months of the suspension are active with the remainder stayed for a probationary period. The Commission found that Ms. Sloan solicited owners of homes in pre-foreclosure for a program whereby her husband would purchase the property for an amount negotiated with the lender; Ms. Sloan would solicit and receive offers as the listing agent, her husband would then purchase the property for a lower negotiated amount and then sell the property on the same day to a third party for a higher amount. The Commission further found that Ms. Sloan failed to disclose these higher offers to her purported seller-clients and at least in one instance, the home was foreclosed on despite 24 offers having been made on the property.

BRIAN T. SMITH (Waxhaw) – By Consent, the Commission revoked the broker license of Mr. Smith effective May 15, 2008. The Commission found that Mr. Smith served as property manager for several properties for an owner-client and failed repeatedly to provide rent proceeds, management statements and invoices or receipts for repairs purportedly conducted and also had at least one check written from a trust account returned for insufficient funds.

DALLAS MABREY SMITH (Morehead City) – By Consent, the Commission suspended the broker license of Mr. Smith for a period of three years effective July 21, 2008. Six months of the suspension are active with the remainder stayed for a probationary period of 30 months on certain conditions. The Commission found that Mr. Smith, on or about October 11, 2007, was found guilty of knowingly writing bad checks over $200 to certain New Jersey casinos. The Commission noted that the conviction was not related to a real estate closing.

DEBORAH E. SMITH-JONES (Greensboro) – By Consent, the Commission suspended the broker license of Ms. Smith-Jones for a period of one year effective March 1, 2008. Three months of the suspension were active with the remainder stayed for a probationary period of nine months on certain conditions. The Commission found that Ms. Smith-Jones, who conducted property management services through a sole proprietorship, failed to perform monthly reconciliations of her trust accounts, failed to maintain a trust account journal, failed to properly identify tenants, remitters, dates and accurate balances in the property ledger, engaged in deficit spending, had no clear audit trail, failed to perform monthly trial balances, and, in May 2007, had a shortage in her trust account of over $700 and an overage in her security deposit account of $100.

JULIE ANNE STAMPER (Fayetteville) – By Consent, the Commission revoked the broker license of Ms. Stamper effective August 14, 2008. The Commission found that Ms. Stamper, acting as a rental manager for a property, failed to account to the owner for a deposit paid by the tenant and for rent collected on the tenant’s behalf. The Commission also found that Ms. Stamper failed to show up for three appointments with the Commission investigator and failed to produce transaction and trust account documents for inspection.

SCOTT A. STARNES (Charlotte) – By Consent, the Commission permanently revoked the broker license of Mr. Starnes effective June 2, 2008. The Commission found that Mr. Starnes, in providing property management services, paid owner proceeds late, failed to timely deliver management statements, and in several cases failed to enter into written property management agreements. The Commission also found that Mr. Starnes had checks drawn on his trust account returned for insufficient funds and had numerous electronic transfers from the rental trust account to the operating account, and numerous negative ledger balances.

RONNIE KNINO STOKES (Greensboro) – By Consent, the Commission reprimanded Mr. Stokes effective September 1, 2008. The Commission found that Mr. Stokes, in May, 2007, voluntarily and permanently surrendered his three insurance licenses due to financial mismanagement of his accounts.

BRIAN F. STRUM (Candler) – By Consent, the Commission suspended the broker license of Mr. Strum for a period of one year effective February 21, 2008. The Commission then stayed the suspension for a probationary period of 18 months under certain conditions. The Commission found that Mr. Strum was convicted on three separate occasions of Driving While Impaired, most recently in February 2005 and October 2006, with the latter conviction constituting a violation of his probation in the 2005 case. The Commission noted that Mr. Strum is fully compliant with a treatment program.

MARCELO TELLEZ (Apex) – By Consent, the Commission suspended the broker license of Mr. Tellez for a period of six months effective May 1, 2008. The Commission found that Mr. Tellez purchased a property from a seller without paying off the existing mortgage or notifying the lender, in violation of the due on sale clause in the mortgage, thus leaving the sellers with liability under terms of the existing note and deed of trust. The Commission noted that Mr. Tellez owns the property and had made all payments on the property to the date of the Commission’s order.

TAMI D. TILLEY (Durham) – By Consent, the Commission revoked the broker license of Ms. Tilley effective October 1, 2008. The Commission found that Ms. Tilley accepted earnest money from a buyer in a real estate transaction and errantly deposited the money into her personal account. The Commission noted that Ms. Tilley replaced the funds with two money orders of her own. Ms. Tilley neither admitted nor denied misconduct.

JONATHAN B. WILLIAMS (Greenville) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Williams effective June 1, 2008. The Commission dismissed without prejudice allegations that Mr. Williams violated provisions of the Real Estate License Law and Commission rules. Mr. Williams neither admitted nor denied misconduct.

This article came from the October 2008-Vol39-2 edition of the bulletin.