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Administration Director Mary Frances Whitley to Retire

Mary Frances “Fran” Whitley, Director of Administration for the Real Estate Commission, will retire January 1, 2015 after 36 years of service.

Whitley joined the staff of the Commission (then known as the Real Estate Licensing Board) in 1978 as an administrator with financial oversight responsibilities.  She soon took on the responsibilities of Financial Officer, and in 1987, was named the Director of Administration.

Whitley received her Bachelor of Science degree from Atlantic Christian College. In 2007, she received the Old North State Award for dedication and service beyond expectation and excellence to the State of North Carolina.

As Director of Administration, Whitley has managed the Commission’s finances, personnel, information technology, publications, and information services.

One of Whitley’s responsibilities has been the annual renewal of real estate licenses. She has seen the number of license renewals grow from fewer than 25,000 to about 100,000 in recent years.

Whitley also oversaw the development of the Commission’s first Web site.  Most recently, she played a key role in the creation of the design and features of the Commission’s new award-winning Web site, including easier navigation, improved search functions, and display on mobile devices.

Whitley has always managed the Commission’s data and recalls when licensee records were housed in file drawers within the Commission’s offices. Since that time, she has overseen the maintenance of Commission records from paper files to microfilm to microfiche to digital storage to cloud storage. Utilizing changing technology, she has kept the Commission’s record keeping systems functional and efficient.

Whitley has been a dedicated member of the Association of Real Estate License Law Officials (ARELLO®) and in 2006 was elected its President. She has twice received an ARELLO® Presidential Award for her outstanding leadership and service.

Whitley is a member of the Board of Directors for The American Red Cross of Eastern North Carolina. She is a member of the Board of Advisors for Project Enlightenment, an early childhood education and intervention program of the Wake County School System, which focuses on building children’s strengths in order to help them succeed in school and life.

The Commission congratulates Mrs. Whitley on her long and distinguished career, with many thanks for her service to licensees, the Commission, and to citizens of this State.

This article came from the October 2014-Vol45-2 edition of the bulletin.

Thomas R. Lawing, Jr., Elected Chairman; Cindy Chandler, Vice Chair

Thomas R. Lawing, Jr., of Charlotte, has been elected Chairman and Cindy S. Chandler of Charlotte, Vice Chairman, of the North Carolina Real Estate Commission effective August 1, 2014, it was announced by Miriam J. Baer, Executive Director.

Lawing is a second-generation Certified Property Manager and President of T. R. Lawing Realty, a family-owned residential property management company serving the Charlotte region since 1957.

He is a past president and REALTOR® of the Year of both the North Carolina Association of REALTORS® (NCAR) and the Charlotte Regional REALTORS® Association (CRRA) and a past director of the National Association of REALTORS® (NAR).

Active in civic affairs, Lawing is a past chair of the Church Council at Hawthorne Lane United Methodist Church, a past president of the Charlotte West Rotary Club, a Co-Captain with the Wells Fargo Championship & Chiquita Classic and an Eagle Scout.

Chandler, owner of The Chandler Group, a commercial real estate consulting and training firm, has been in real estate for more than 30 years in the areas of investment real estate, syndication, strategic planning, management, marketing and education.

She is a 2011 recipient of the Billie J. Mercer Excellence in Education Award of the Real Estate Commission and is the author of The Insider’s Guide to Commercial Real Estate, published by Dearborn/Kaplan Publishing.

A past regional vice president of the National Association of REALTORS®, Chandler was also Chair of the Mecklenburg County Zoning Board of Adjustment and Charlotte Chapter President of Commercial Real Estate Women (CREW).

Chandler is a past president of the North Carolina Association of REALTORS® and the North Carolina Real Estate Educators Association and a past Vice Chair of the Charlotte-Mecklenburg Planning Commission.

This article came from the October 2014-Vol45-2 edition of the bulletin.

Disciplinary Actions – October 2014

KIMBERLY E. ABRAHAM (Bradenton, Florida) – By Consent, the Commission reprimanded Ms. Abraham effective August 13, 2014. The Commission found that Ms. Abraham, a North Carolina and Florida real estate broker, voluntarily placed her Florida license on inactive status in or around August 2008; and that despite her Florida license being inactive, beginning in 2009 and continuing through 2013, Ms. Abraham represented to the Commission that she had a current, active out-of-state license on her annual renewal form in order to maintain the active status of her North Carolina license.

APS REALTY GROUP INC. (Winston-Salem) – By Consent, the Commission suspended the firm license of APS Realty Group for a period of one year effective May 1, 2014. The Commission then stayed the suspension for a probationary period ending May 1, 2015. The Commission found that APS Realty Group, a real estate brokerage firm, contracted to manage a property for a landlord-client who lived out of the country; that APS Realty Group entered into a one-year lease agreement with a tenant on behalf of its landlord-client and that, shortly thereafter, APS Realty Group deducted $572 from rental proceeds to cover the cost of unapproved repairs in violation of the property management agreement with the landlord-client. The Commission also found that APS Realty Group executed a “Release and Termination of Lease Contract” with the tenant in violation of the property management agreement; that APS Realty Group used rental proceeds to pay the attorney who had drafted the tenant release agreement; that APS Realty Group refunded the tenant security deposit to the tenant without its landlord-client’s approval; and that after termination of the lease agreement in June 2013, the tenant remained in the property until the end of July 2013, without paying rent.

HAL G. BARNES (Fort Lauderdale, Florida) – By Consent, the Commission reprimanded Mr. Barnes effective June 18, 2014. The Commission found that Mr. Barnes, who resides in Florida and maintains a license there, was placed on inactive status in Florida August 2008 when his affiliation with a real estate firm ended; and that, despite being inactive, beginning in 2009 and continuing through 2013, Mr. Barnes misrepresented to the Commission that he had a current, active out-of-state license on his annual renewal form in order to maintain the active status of his North Carolina license.

CHESLEY G. BOWENS, JR. (Raleigh) – By Consent, the Commission suspended the broker license of Mr. Bowens for a period of one year effective May 1, 2014. The Commission then stayed the suspension for a probationary period of one year. The Commission found that Mr. Bowens, acting as broker-in-charge of his sole proprietorship, between 1987 and 2011, was convicted of multiple offenses that he failed to disclose on two separate license applications, and which he failed to report to the Commission after licensure. The Commission also found that Mr. Bowens failed to report at least four civil judgments at the time of his 1995 application for a real estate salesperson license.

NICOLE ANN BULLARD (Fuquay Varina) – The Commission accepted the permanent voluntary surrender of the broker license of Ms. Bullard effective April 16, 2014. The Commission dismissed without prejudice allegations that Ms. Bullard violated provisions of the Real Estate License Law and Commission rules. Ms. Bullard neither admitted nor denied misconduct.

RONALD G. CAMERON (Waynesville) – By Consent, the Commission suspended the broker license of Mr. Cameron for a period of three months effective June 1, 2014. The Commission found that Mr. Cameron listed for sale his personal residence and advertised it has having 2,600 square feet including 600 square feet of heated space with garage doors; that the space had been used as a garage, office and spare bedroom; and that Mr. Cameron disputed the action taken against his license

CYNTHIA R. CARSWELL (Gastonia) – By Consent, the Commission revoked the broker license of Ms. Carswell effective July 1, 2014. The Commission found that Ms. Carswell agreed to the terms of a Consent Order issued September 8, 2011, which revoked her broker license unless, by July 1, 2012, she made full payment of $10,000 owed to a consumer as reimbursement of a down payment in a failed transaction, in which case the revocation would be reduced to a one year stayed suspension; that when Ms. Carswell failed to satisfy the terms of the 2011 Consent Order, having made only partial repayment, she was notified that her license was subject to revocation; that Ms. Carswell notified the Commission that her pending bankruptcy action prohibited her from complying with the 2011 Consent Order and that she had renegotiated a payment plan that would satisfy the terms of the 2011 Consent Order, but over a longer period of time.; that Ms. Carswell agreed to the terms of a second Consent Order issued  June 14, 2012, which extended her repayment deadline to July 1, 2014, and which Ms. Carswell failed to fulfill.

CHANTICLEER PROPERTIES LLC (Pinehurst) – By Consent, the Commission reprimanded Chanticleer Properties effective August 1, 2014. The Commission found that a local attorney created a listing agreement for Chanticleer Properties so that its agents could sell townhouses for a builder; that the listing agreement did not contain the required anti-discrimination provision; and that the listing agreement was signed by both Chanticleer Properties and the builder. Chanticleer Properties neither admitted nor deined, but did not object to the Commission’s findings.

BRIAN CINC (Winston-Salem) – By Consent, the Commission suspended the broker license of Mr. Cinc for a period of one year effective May 1, 2014. The Commission then stayed the suspension for a probationary period ending May 1, 2015. The Commission found that Mr. Cinc, acting as qualifying broker and broker-in-charge of a real estate brokerage firm, contracted to manage a property for a landlord-client who lived out of the country; that Mr. Cinc and his firm entered into a one-year lease agreement with a tenant on behalf of their landlord-client and that, shortly thereafter, Mr. Cinc deducted $572 from rental proceeds to cover the cost of unapproved repairs in violation of the property management agreement with the landlord-client. The Commission also found that Mr. Cinc executed a “Release and Termination of Lease Contract” with the tenant in violation of the property management agreement; that Mr. Cinc used rental proceeds to pay the attorney who had drafted the tenant release agreement; that Mr. Cinc refunded the tenant security deposit to the tenant without his landlord-client’s approval; and that after termination of the lease agreement in June 2013, the tenant remained in the property until the end of July 2013 without paying rent.

DAN RYAN BUILDERS-NORTH CAROLINA LLC (Raleigh) – By Consent, the Commission reprimanded Dan Ryan Builders effective August 1, 2014. The Commission found that a listing agent for a real estate brokerage firm signed a listing agreement with Dan Ryan Builders to market and sell new houses on townhouse lots in a subdivision; that the listing agent provided a purchase contract drafted by Dan Ryan Builders to a buyer and the buyer’s agent for a property in the subdivision; that the contract contained an addendum given to the listing agent by Dan Ryan Builders disclosing that the streets were “public”; that the developer had also placed street signs in the neighborhood which indicated that the streets were “public”; that the listing agent also provided a plat map of the lot location, provided by Dan Ryan Builders, which indicated that the street was “private”; that, after the property closed, it was determined that some of the streets in the subdivision were “public” and some, including the street where the property which had closed was located, were “private”. The Commission noted that Dan Ryan Builders, after discovering the street disclosure discrepancy, issued the proper “private” street disclosure form with its contracts. Dan Ryan Builders neither admitted nor denied, but did not object to the Commission’s findings.

MICHELLE SIZEMORE DAVIS (Sanford) – By Consent, the Commission suspended the broker license of Ms. Davis for a period of two years effective March 1, 2014. Three months of the suspension were active with the remainder stayed for a probationary period ending February 28, 2016. The Commission found that Ms. Davis acted as a dual agent in selling her own home and failed to obtain a written Buyer’s Agency agreement or written consent for Dual Agency; that after closing, the buyer discovered evidence of mold and ordered a home inspection; and that testing revealed a significant infestation of black mold which rendered the basement of the home uninhabitable.

ROBERT M. DAVIS (Charlotte) – The Commission accepted the permanent voluntary surrender of the broker license of Mr. Davis effective April 16, 2014. The Commission dismissed without prejudice allegations that Mr. Davis violated provisions of the Real Estate License Law and Commission rules. Mr. Davis neither admitted nor denied misconduct.

DAVID ROBERT DICECCO (Charlotte) – The Commission accepted the voluntary surrender of the broker license of Mr. DiCecco for a period of five years effective April 1, 2014. The Commission dismissed without prejudice allegations that Mr. DiCecco violated provisions of the Real Estate License Law and Commission rules. Mr. DiCecco neither admitted nor denied misconduct.

BENJAMIN EDWARDS FALCON (Asheville) – By Consent, the Commission suspended the broker license of Mr. Falcon for a period of two years effective July 1, 2014. Six months of the suspension is active with the remainder stayed for a probationary period ending July 1, 2016 on certain conditions. The Commission found that in November 2013 Mr. Falcon pled guilty to felony sale of marijuana; and was sentenced to between 8 and 19 months imprisonment (suspended), 72 hours of community service, and ordered to pay $1,224.50. The Commission noted that Mr. Falcon self-reported the criminal conviction to the Commission on January 7, 2014.

FOURTH DEVELOPMENT COMPANY D/B/A AL WILLIAMS PROPERTIES (Atlantic Beach) – By Consent, the Commission reprimanded Fourth Development Company effective October 1, 2014. The Commission found that Fourth Development Company, a real estate brokerage firm, listed a property, which went under contract for purchase as a short sale; that the buyer’s agent requested the rental schedule for the unit from the firm managing the property and requested that the advanced rents be given to the buyer at closing; that closing on the property did not occur as scheduled because the property was being foreclosed; that the buyers then went under contract with the new owner and the buyer’s agent again requested that advance rents be given to the buyers at closing; that on the day before closing, the firm managing the property notified the listing agent that there were no advanced rents to be given to the buyers, but did not notify the buyer’s agent; that the property closed without any advanced rents being reflected on the HUD-1 statement; that the buyer’s assumed that the advanced rental deposits were still in the firm’s trust account; and that, after closing, the buyers realized there were no advanced rental deposits available to them. The Commission also found that Fourth Development Company failed to enter into a new listing agreement with the new owner of the property.

KAREN H. GRACE (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Grace for a period of ten months effective May 1, 2014. The Commission found that Ms. Grace, acting as qualifying broker and broker-in-charge of a real estate brokerage firm, entered into numerous property management agreements with landlord clients through the firm when, in fact, the firm was controlled by another individual. The Commission also found that Ms. Grace failed to remit collected rents to her clients and failed to keep trust account records in compliance with Commission rules.

  1. ANTHONY HAWKINS (Raleigh) – By Consent, the Commission suspended the prelicensing and postlicensing courses’ instructor approval issued to Mr. Hawkins for one year effective February 1, 2014. The Commission found that Mr. Hawkins in August 2013 taught the 30-hour postlicensing course, “Contracts and Closings”, and during the conduct of the course made inappropriate comments and behaved inappropriately in response to various questions raised by students.

HERITAGE REALTY ASHE INC (Jefferson) – By Consent, the Commission reprimanded Heritage Realty Ashe effective August 1, 2014. The Commission found that Heritage Realty Ashe was the listing firm for a property; that the listing agent for Heritage Realty knew that the home on the property was “owner built” and the MLS listing advertised that it contained one bedroom and one bath with a septic system; that no septic or building permits were pulled for verification; and that, after closing, it was determined that the home was not built to code and that it lacked the proper building and septic permits.

ASHLEE AMELIA HOOKS (Oak Ridge) – The Commission accepted the voluntary surrender of the broker license of Ms. Hooks for a period of two years effective August 13, 2014. The Commission dismissed without prejudice allegations that Ms. Hooks violated provisions of the Real Estate License Law and Commission rules. Ms. Hooks neither admitted nor denied misconduct.

JENNIFER M. JOHNSON (Apex) – By Consent, the Commission suspended the broker license of Ms. Johnson for a period of 18 months effective July 1, 2014. The Commission then stayed the suspension for a probationary period of 18 months. The Commission found that Ms. Johnson, on or about December 5, 2012, was convicted of Misdemeanor Attempted Larceny after attempting to shoplift clothing from a department store. The Commission noted that Ms. Johnson notified the Commission within 60 days of the conviction as required by Commission rules.

GLENN EMERSON MAGILL, III (Nags Head) – By Consent, the Commission suspended the broker license of Mr. Magill for a period of one year effective July 1, 2014. The Commission found that Mr. Magill’s real estate license was issued in November 2012, but never placed on active status because Mr. Magill has never affiliated with a broker-in-charge; that in November 2012, Mr. Magill began managing rental properties on behalf of an unlicensed property management firm; and that Mr. Magill conducted business, including advertising rental properties on the unlicensed firm’s Web site and collecting tenant security deposits and rental payments without the supervision of a broker-in-charge. The Commission noted that Mr. Magill no longer performs property management services on behalf of others.

ELIZABETH ANN MASSEY (Cornelius) – By Consent, the Commission reprimanded Ms. Massey effective September 10, 2014. The Commission found that Ms. Massey, on February 20, 2014, pleaded guilty in District Court to one count of misdemeanor larceny, was sentenced to one year of unsupervised probation, ordered to pay a $1,000 fine, and was banned from all TJ Maxx and Marshall’s stores in the state of North Carolina. The Commission noted that Ms. Massey reported the criminal conviction to the Commission on April 14, 2014.

SEAN NICHOLAS MCGOVERN (Belville) – By Consent, the Commission suspended the broker license of Mr. McGovern for a period of four years effective July 1, 2014. One year of the suspension is active with the remainder stayed for a probationary period ending July 1, 2019 on certain conditions. The Commission found that on May 17, 2011 Mr. McGovern pled guilty in U.S. District Court to one count of “Conspiracy to Distribute and Possession With the Intent to Distribute More Than 100 Kilograms of Marijuana”; that Mr. McGovern was sentenced to 21 months of imprisonment and upon completion of that term, five years of supervised probation; and that Mr. McGovern failed to report his guilty plea to the Commission within 60 days of sentencing. The Commission noted that Mr. McGovern self-reported his guilty plea in October 2013, more than two years after sentencing.

JOHN A. MILLER (Wilmington) – By Consent, the Commission reprimanded Mr. Miller effective October 1, 2014. The Commission found that Mr. Miller was convicted of Misdemeanor Driving While Impaired on or about June 6, 2011, and again on November 28, 2011and that Mr. Miller self-reported these convictions to the Commission on March 7, 2014, after reading an excerpt from the February 2014 Bulletin reminding him of the Commission rule to report convictions within 60 days. The Commission noted that Mr. Miller has been on inactive status for a number of years, that he wishes to obtain active status now, and that he has completed all requirements imposed by the court for these convictions and has received numerous hours in substance abuse treatment.

JAMES WILLIAM PAYLOR (Atlantic Beach) – By Consent, the Commission reprimanded Mr. Paylor effective October 1, 2014. The Commission found that Mr. Paylor was a broker with a real estate brokerage firm that listed a property that went under contract for purchase as a short sale; that the buyer’s agent requested the rental schedule for the unit from the firm managing the property and requested that the advanced rents be given to the buyer at closing; that closing on the property did not occur as scheduled because the property was being foreclosed; that the buyers then went under contract with the new owner and the buyer’s agent again requested that advance rents be given to the buyers at closing; that on the day before closing, the firm managing the property notified Mr. Paylor that there were no advanced rents to be given to the buyers, but he failed to notify the buyer’s agent; that the property closed without any advanced rents being reflected on the HUD-1 statement; that the buyer’s assumed that the advanced rental deposits were still in the firm’s trust account; and that, after closing, the buyers realized there were no advanced rental deposits available to them. The Commission also found that Mr. Paylor failed to enter into a new listing agreement with the new owner of the property.

BROOKS LIVINGSTONE POOLE (Kinston) – By Consent, the Commission suspended the broker license of Mr. Poole for a period of two years effective August 1, 2014. Six months of the suspension are active with the remainder stayed for a probationary period ending August 1, 2016 on certain conditions. The Commission found that Mr. Poole was convicted on or about October 16, 2013 of three counts of misdemeanor possession of controlled substances and one count of misdemeanor possession of drug paraphernalia and sentenced to 120 days imprisonment (suspended), and placed on 18 months of supervised probation. The Commission also found that Mr. Poole failed to respond to four Letters of Inquiry sent by Commission staff, failed to fully respond to Commission staff’s requests by failing to report two of the four convictions and the resulting prison sentence (suspended), and failed to provide copies of any judgments and a detailed account describing the relevant facts and circumstances surrounding the convictions, as requested by Commission staff.

CHRISTY ESTHER QUICK (Cornelius) – By Consent, the Commission suspended the broker license of Ms. Quick for a period of three years effective June 1, 2014. The Commission then stayed the suspension for a probationary period ending June 1, 2017. The Commission found that Ms. Quick, acting as a provisional broker, hired a contractor to perform work on bank-owned properties listed by her firm; that Ms. Quick represented that the contractor had been paid when it had not; and that instead of paying the contractor’s invoices with the monies received as reimbursement from her owner clients, she converted the funds to her own personal use. The Commission noted that Ms. Quick has repaid a substantial portion of the original amount owed to the contractor and continues to make monthly payments to settle the debt.

GAYLE S. RAY (Fayetteville) – By Consent, the Commission reprimanded Ms. Ray effective October 1, 2014. The Commission found that Ms. Ray represented a buyer who closed on a property in Raleigh in March of 2013; that Ms. Ray possessed a reasonable knowledge of the I-540 completion project which included various proposed routes for future highway construction; that the buyer discovered in the fall of 2013 that the proposed “Orange Route”, if built, would come to rest within a quarter of a mile from his front door; that the route was proposed by the North Carolina Department of Transportation (NCDOT) in 1996 and is still pending approval; that Ms. Ray did not disclose the proximity of the Orange Route to the property; and that the buyer did not order an appraisal. The Commission also found that NCDOT has still not decided which of the proposed various routes will be used and that the proximity of I-540 was not disclosed in the Residential Property Disclosure Statement, the MLS listing, or other marketing materials.

CARLA HINESLEY SEVILLA (Raleigh) – By Consent, the Commission reprimanded Ms. Sevilla effective August 1, 2014. The Commission found that Ms. Sevilla, on behalf of her real estate brokerage firm, signed a listing agreement with a builder to market and sell new houses on townhouse lots in a subdivision; that Ms. Sevilla provided a purchase contract drafted by the builder to a buyer and the buyer’s agent for a property in the subdivision; that the contract contained an addendum given to Ms. Sevilla by the builder disclosing that the streets were “public”; that the builder had also placed street signs in the neighborhood which indicated that the streets were “public”; that Ms. Sevilla also provided a plat map of the lot location, provided by the builder, which indicated that the street was “private”; that, after the property closed, it was determined that some of the streets in the subdivision were “public” and some, including the street where the property, which had closed was located, were “private”. The Commission noted that Ms. Sevilla, after noticing the street disclosure discrepancy, immediately informed the builder. Mr. Sevilla neither admitted nor denied, but did not object to the Commission’s findings.

PATRICIA MOORE SMITH (Atlantic Beach) – By Consent, the Commission reprimanded Ms. Smith effective October 1, 2014. The Commission found that Ms. Smith was the buyer agent for a property that went under contract as a short sale listing on or about May 27, 2013; that Ms. Smith requested a rental schedule for the property and requested that any advanced rents already paid to the previous owner be given to the buyer at closing; that on June 18, 2013, the property management firm tried to contact the closing attorney with these figures, however, the closing did not occur on this date due to the property being foreclosed on and the note sold; that the buyers then went under contract with the new owners of the property and Ms. Smith again requested the advanced rents be given to the buyers at closing; that on July 18, 2013, the day before closing, the property management firm told Ms. Smith that the correct amount would be forwarded to the closing attorney; that the property closed on July 19, 2013 without any advanced rents being reflected on the HUD-1 statement; that buyers and Ms. Smith were present at closing and buyers assumed that the advanced rental deposits were still in the property management firm’s trust account; and that after closing the buyers realized there were no advanced rental deposits available to them.

MARCUS SCARBOROUGH SPENCER (Durham) – By Consent, the Commission suspended the broker license of Mr. Spencer for a period of two years effective May 1, 2014. One year of the suspension is active with the remainder stayed as a probationary period on certain conditions. The Commission found that Mr. Spencer, acting as broker-in-charge of his sole proprietorship, timely reported to the Commission that on July 23, 2013, he was convicted of two counts of Possession With Intent to Sell/Distribute Marijuana in Brunswick County and was ordered to ;ay fines and court costs of $800 and placed on 24 months’ supervised probation. The Commission also found that Mr. Spencer was previously disciplined by the Commission for failing to report criminal convictions, including convictions in 1993, 1996, and 1998 and for which his real estate license was suspended for a period of two years which was stayed after a six-month active period.

LARRY A. STANLEY (Jefferson) – By Consent, the Commission reprimanded Mr. Stanley effective August 1, 2014. The Commission found that Mr. Stanley was the broker-in-charge of a real estate brokerage firm when the firm listed a property for sale; that the listing agent for the firm knew that the home on the property was “owner built” and the MLS listing advertised that it contained one bedroom and one bath with a septic system; that no septic or building permits were pulled for verification; and that, after closing, it was determined that the home was not built to code and that it lacked the proper building and septic permits.

GENE D. THOMAS (Goldsboro) – By Consent, the Commission revoked the broker license of Mr. Thomas effective August 13, 2014. Mr. Thomas shall be ineligible to reapply for reinstatement five years from the date of revocation. The Commission found that Mr. Thomas was Executive Director of the Housing Authority for the City of Goldsboro (GHA); that the GHA received funds from the federal government through annual grants and other assistance; that beginning in August 2002, and continuing until June 2012, Mr. Thomas falsified GHA time sheets to reflect that a former employee worked 20 hours per week, when, in fact, that employee had resigned and did very little work for the GHA; that as a result of Mr. Thomas’ actions, federal funds were illegally converted; and that on April 8, 2014, Mr. Thomas pleaded guilty to one count of Unlawful Conversion of Federal Funds in the U.S. District Court.

MINDY S. WALLER (Wallace) – By Consent, the Commission suspended the broker license of Ms. Waller for a period of six months effective July 1, 2014. The Commission then stayed the suspension for a probationary period of six months. The Commission found that Ms. Waller listed a bank-owned property and received multiple offers on the property but failed to submit to her seller the highest written offer of $40,000, instead allowing her seller to accept an offer of $38,500.

ALFRED WILLIAMS IV (Atlantic Beach) – By Consent, the Commission reprimanded Mr. Williams effective October 1, 2014. The Commission found that Mr. Williams was Broker-in-Charge and Qualifying Broker for a real estate brokerage firm when it listed a property that went under contract for purchase as a short sale; that the buyer’s agent requested the rental schedule for the unit from the firm managing the property and requested that the advanced rents be given to the buyer at closing; that closing on the property did not occur as scheduled because the property was being foreclosed; that the buyers then went under contract with the new owner and the buyer’s agent again requested that advance rents be given to the buyers at closing; that on the day before closing, the firm managing the property notified the listing agent that there were no advanced rents to be given to the buyers, but did not notify the buyer’s agent; that the property closed without any advanced rents being reflected on the HUD-1 statement; that the buyer’s assumed that the advanced rental deposits were still in the firm’s trust account; and that, after closing, the buyers realized there were no advanced rental deposits available to them. The Commission also found that Mr. Williams failed to enter into a new listing agreement with the new owner of the property.

KEVIN A. WOLBORSKY (Raleigh) – By Consent, the Commission suspended the broker license of Mr. Wolborsky for a period of four months effective August 1, 2014. The Commission then stayed the suspension on certain conditions. The Commission found that Mr. Wolborsky represented a buyer who submitted an offer for a property and paid a $2,500 earnest money deposit; that after the Due Diligence period ended, the buyer’s financing fell through; that the seller terminated the contract and sent the buyer a Release Request for the earnest money deposit; that Mr. Wolborsky assisted the buyer in obtaining new financing and later submitted an offer to purchase another property upon pre-approval from the bank; that after the offer was submitted, the buyer signed the Release Request of the earnest money deposit and prepared a statement to the seller of the first property; that the statement contained inaccurate information and requested the return of the earnest money deposit due to the buyer’s financial troubles; that Mr. Wolborsky forwarded the buyer’s letter to the seller’s listing agent for delivery to the seller; and that ultimately the seller kept the earnest money deposit.

CHARLES GARY ZAHLER (Asheville)- Following a hearing, the Commission reprimanded Mr. Zahler effective August 5, 2014. The Commission found that Mr. Zahler, a licensed real estate broker listing his own property, failed to disclose to the buyer problems with the foundation, settlement and other issues affecting the property that had been revealed in a structural engineering report provided to Mr. Zahler prior to his purchase of the property in 1997; that in 1998, Mr. Zahler replaced an aluminum overhang with a new roof and had a new retaining wall constructed to support the new roof; that Mr. Zahler believed that the new retaining wall and re-poured concrete slab cured all of the settlement and foundation issues; that between 1998 and 2008, Mr. Zahler did not notice any indications of further settlement in the home; that an appraisal performed on the home in 2006 did not indicate any deficiencies or adverse conditions affecting the structural integrity of the property; that in 2007, the City of Asheville issued a Housing Certificate and determined that the property met the requirements for occupancy under the city’s  Housing Code; that when Mr. Zahler sold his property in 2008, he failed to provide the buyer with a copy of the 1997 engineering report or otherwise disclose the settlement and foundation problems revealed in the report; that in 2010, the same engineer who prepared the 1997 report inspected the property and found that several of the problems addressed in the 1997 report were still present.

This article came from the October 2014-Vol45-2 edition of the bulletin.