Bulletin 2005 V36-2

Disciplinary Actions

SUSAN L. BECK (Sylva) – By Consent, the Commission permanently revoked the broker license of Ms. Beck effective July 1, 2005. The Commission found that Ms. Beck failed to turn over earnest money deposits received from several clients to her broker-in-charge and failed to deposit these funds into a trust account or properly account for the funds to her clients. The Commission also found that Ms. Beck made changes to various offers to purchase without the knowledge or permission of her clients and attempted to obtain an advance commission by creating a false contract. The Commission also found that Ms. Beck in January 2005 pleaded guilty in Cherokee County to attempted common law forgery, and received a 30-day jail sentence, which was suspended for an 18-month period of supervised probation.

GARY L. BOLING (Supply) – By Consent, the Commission accepted the voluntary surrender of the salesperson license (inactive) of Gary Boling for one year effective May 1, 2005. Mr. Boling denies any misconduct in connection with the surrender of his license. The Commission has dismissed any case against Mr. Boling.

PETRA M. BOTTOMLEY (Raleigh) – By Consent, the Commission suspended the broker license of Ms. Bottomley for a period of six months effective June 11, 2005. The Commission then stayed the suspension for a probationary period of six months. The Commission found that Ms. Bottomley failed to report a conviction of driving while impaired at a time when she held a salesperson license and later on her application for a broker license. The Commission noted that Ms. Bottomley voluntarily reported the conviction after learning in the Update course that she was required to do so.

TONNITTE G. BROWN (Research Triangle Park) – By Consent, the Commission reprimanded Ms. Brown effective July 11, 2005. The Commission found that Ms. Brown, as broker-in-charge of her own real estate office, allowed another broker, not affiliated with her firm, to act under her name as a buyer agent in a real estate transaction. The transaction was concealed from the firm with which the other broker was affiliated. The Commission also found that the buyer never signed a buyer agency agreement with Ms. Brown, her firm, the other broker or any other licensee and that Ms. Brown allowed the other broker to conduct all brokerage activities yet claim on the purchase contract that Ms. Brown was the buyer agent in the transaction.

VELMA G. BURGESS (Charlotte) – The Commission revoked the broker license of Ms. Burgess effective April 18, 2005. The Commission found that Ms. Burgess failed to provide the Commission supporting documentation of a trust account deposit, failed to appear at a scheduled meeting with the Commission’s auditor, and failed to respond within 14 days of receiving a Letter of Inquiry from the Commission. The Commission also found that Ms. Burgess failed to account for and remit monies coming into her possession which belonged others, mishandled trust monies, failed to property identify the owners of the money in her trust account, failed to retain transaction records and failed to properly maintain a trust account and records as broker-in-charge.

REBECCA J. CORDELL (Banner Elk) – By Consent, the Commission revoked the broker license of Ms. Cordell effective June 8, 2005. The Commission found that Ms. Cordell, as broker-in-charge of a real estate firm engaged in vacation rentals, failed to maintain the firm’s trust account journal and ledgers as required by Commission rules, and, for over three years, to conduct monthly trust account reconciliations.

MARGARET I. CROSBY (Charlotte) – By Consent, the Commission suspended the broker license of Ms. Crosby for a period of one year effective June 1, 2005. The Commission then stayed the suspension for a probationary period of two years. The Commission found that Ms. Crosby failed to fulfill a promise to purchasers of a property she had listed that she would repair a broken and discolored concrete driveway and walkway. The Commission noted that Ms. Crosby later reimbursed the purchasers for the repairs.

SHERI C. FEARING (Greenville) – By Consent, the Commission suspended the salesperson license of Ms. Fearing for a period of 90 days effective January 1, 2006. Thirty days of the suspension are to be active with the remainder suspended until November 19, 2006 or until such time that Ms. Fearing completes her criminal probation. The Commission found that Ms. Fearing failed to disclose to the Commission on her 1995 salesperson license application convictions for underage purchase and possession of beer/wine in 1987 and 1988, disorderly conduct in 1991 and Level 5 DWI in 1992. The Commission also found that Ms. Fearing was convicted of Level 4 DWI while licensed and for this offense was placed on unsupervised probation until November 19, 2006. The Commission noted among other things that Ms. Fearing reported this conviction to the Commission as required.

JEFFREY L. GATES (Mebane) – The Commission revoked the salesperson license of Mr. Gates effective August 1, 2005. The Commission found that Mr. Gates failed to disclose on his 2001 application for reinstatement of his salesperson license that he had been convicted of criminal offenses including writing worthless checks during 1996 and 1997; assault inflicting serious injury during 1997; assault on a child under 12 years of age during 2000; and violating his probation during 2001. The Commission also found that Mr. Gates failed to report the convictions for writing worthless checks and assault while licensed as a salesperson.

CAROL M. GERBRACHT (Durham) – By Consent, the Commission suspended the salesperson license of Ms. Gerbracht for a period of one year effective February 1, 2005. One month of the suspension was active with the remainder stayed for a probationary period of 23 months on certain conditions. The Commission found that Ms. Gerbracht, while acting as a buyer agent, assisted in obtaining the signatures of the sellers in a real estate transaction on false documents that inflated the actual sales price by means of a false second mortgage. The Commission noted that Ms. Gerbracht was inexperienced at the time of this transaction.

THOMAS D. HERMAN (Fleetwood) – By Consent, the Commission reprimanded Mr. Herman effective June 22, 2005. The Commission found that Mr. Herman, while licensed as a broker by the Commission and as a Registered Land Surveyor, consented to discipline by the North Carolina Board of Examiners for Engineers and Surveyors in 2003 and failed to report this sanction to the Commission in the time required by Commission rule.

HORACE C. HODGIN (Goldsboro) – By Consent, the Commission suspended the broker license of Mr. Hodgin for a period of two years effective June 1, 2005. The Commission found that Mr. Hodgin failed to take continuing education courses required by the Commission and conducted brokerage services knowing his license was on inactive status. The Commission also found that Mr. Hodgin failed to maintain his trust account records in compliance with Commission rules.

JACKSONVILLE REAL ESTATE ACADEMY (Jacksonville) – By Consent, the Commission suspended the license of the Jacksonville Real Estate Academy to teach prelicensing courses for a period of two years effective July 12, 2005. The Commission then stayed the suspension for a probationary period of two years. The Commission found that Jacksonville Real Estate Academy allowed a person not approved by the Commission as a real estate instructor to teach substantial portions of the salesperson prelicensing courses in excess of the number of hours permitted by Commission rule.

JAMES W. MANN (Charlotte) – By Consent, the Commission permanently revoked the salesperson license of Mr. Mann effective August 10, 2005. The Commission found that Mr. Mann, as a sales manager for a home building company, agreed to make the company’s inventory available for sale to promoters of various real estate investment groups, knowing at the time that the promoters used inflated appraisals and facilitated the use of inflated appraisals in various transactions. The Commission also found that Mr. Mann was paid by the promoters for his assistance and failed to disclose these payments to his employer or the lenders involved in the transactions in question.

KENNETH A. PEELE, JR. (Emerald Isle) – By Consent, the Commission accepted the voluntary surrender of the broker license of Mr. Peele for five years effective July 12, 2005. The Commission dismissed without prejudice allegations that Mr. Peele had violated provisions of the Real Estate License Law and Commission rules. Mr. Peele neither admitted nor denied misconduct.

HERBERT F. PERRY, JR. (Raleigh) – By Consent, the Commission revoked the salesperson license of Mr. Perry effective June 1, 2005. The Commission found that Mr. Perry accepted client funds to pay for repairs to the client’s property and deposited the funds into his personal accounts instead of turning them over to his broker-in-charge. The Commission also found that Mr. Perry accepted responsibility for various repairs in three other transactions, but failed to have the repairs performed after closing.

JEROME K. PERSON (Fayetteville) – The Commission revoked the broker license of Mr. Person effective May 1, 2005. The Commission found that between 1985 and 2002, Mr. Person was convicted of multiple criminal offenses including Driving While Impaired, Assault on a Court Security Officer, Public Disturbance and Violating a Domestic Protection Order by federal and state courts, and, his law license was suspended by the North Carolina State Bar.

AMY B. PHILLIPS (Charlotte) – By Consent, the Commission revoked the broker license of Ms. Phillips effective July 1, 2005. The Commission found that Ms. Phillips, acting as attorney-in-fact for the purchaser, had no agency relationship through her firm as defined by Commission rule with the parties in two sales transactions a month apart, yet received fees paid to her firm at closing of $26,800 for the first transaction and $40,000 for the second. The Commission also found that Ms. Phillips, again acting as attorney-in-fact for the purchase of a third property for the same buyer in October 2003 and for the purchase of three separate properties for other buyers in May 2004, executed documents certifying that each of the properties were to be the buyers’ principal residences, when those statements were false.

PROPERTY MANAGEMENT SERVICES, INC. (Summerfield) – By Consent, the Commission revoked the firm license of Property Management Services effective September 8, 2005. The Commission found that Property Management Services failed to maintain and retain records of management and other brokerage transactions sufficient to show the proper deposit and remittance of such funds and to verify the accuracy and proper use of the trust or escrow account, to account to the Commission for the money being held for others, and to make their trust account records available to the Commission upon request.

KARRIE K. ROBERTSON (Summerfield) – By Consent, the Commission revoked the broker license of Ms. Robertson effective September 8, 2005. The Commission found that Ms. Robertson, broker-in-charge of property management firm, failed to maintain and retain records of management and other brokerage transactions sufficient to show the proper deposit and remittance of such funds and to verify the accuracy and proper use of the trust or escrow account, to account to the Commission for the money being held for others, and to make their trust account records available to the Commission upon request.

AMY ROKOSKI (Wilmington) – By Consent, the Commission reprimanded Ms. Rokoski effective July 1, 2005. The Commission found that Ms. Rokoski, a salesperson with a real estate brokerage firm, acting upon instructions from her broker, assured potential buyers of a house owned by the United States Department of Veterans Affairs that the VA would repair defects in the house when, in fact, the VA would not correct the defects. Based upon these assurances, the buyers purchased the house.

JOHN M. SLAUGHTER (Supply) – By Consent, the Commission reprimanded Mr. Slaughter effective May 12, 2005. The Commission found that Mr. Slaughter failed to disclose several 1988 and 1989 misdemeanor convictions on his 2000 salesperson license application.

BRAD H. SPAHN (Charlotte) – By Consent, the Commission suspended the salesperson license of Mr. Spahn for a period of one year effective May 1, 2005. Thirty days of the suspension was active with the remainder stayed by a probationary period of 11 months. The Commission found that Mr. Spahn failed to disclose on his 2002 salesperson license application a conviction in 1995 and another in 2000 for driving under the influence and two worthless check convictions. The Commission noted that Mr. Spahn did disclose the convictions on his September 2004 broker license application and has cooperated with Commission inquiry into the matter.

DORIS Y. LOVE STAPLES (Rockingham) – By Consent, the Commission suspended the salesperson license of Ms. Staples for a period of one year effective March 1, 2005. Six months of the suspension were active with the remainder stayed for a probationary period of one year on certain conditions. The Commission found that Ms. Staples, acting as a dual agent, sold a property she had listed to a buyer without entering into a written agency agreement with either her buyer or seller clients. The Commission also found that Ms. Staples was aware that the seller was to pay certain concessions to the buyer and failed to assure that the concessions were disclosed to the lender and closing attorney, and to assure that they were set out on the closing statement.

THE EXECUTIVE GROUP (Charlotte) – By Consent, the Commission revoked the firm license of The Executive Group effective July 1, 2005. The Commission found that The Executive Group had no agency relationship as defined by Commission rule with either of the parties in two transactions a month apart, but received fees at closing of $26,800 for the first transaction and $40,000 for the second.

THE LODGING CENTER, INC. (Banner Elk) – By Consent, the Commission revoked the firm license of The Lodging Center effective June 8, 2005. The Commission found that The Lodging Center, as a licensed firm broker engaged in vacation rentals, failed to maintain the firm’s trust account journal and ledgers as required by Commission rules, and, for over three years, to conduct monthly trust account reconciliations.

BRENDA E. THIXTON (Jacksonville) – By Consent, the Commission suspended the broker license of Ms. Thixton for a period of two years effective July 12, 2005. The Commission then stayed the suspension for a probationary period of two years. The Commission found that Ms. Thixton, while not approved as a real estate instructor, taught substantial portions of the salesperson prelicensing courses in excess of the number of hours permitted by Commission rule. The Commission noted that Ms. Thixton subsequently obtained the necessary credentials to be approved and approved her to teach on a temporary basis.

ROGER D. THIXTON (Jacksonville) – By Consent, the Commission suspended its approval of Mr. Thixton to teach prelicensing courses and the Update continuing education course for a period of two years effective July 11, 2005. Six months of the suspension are to be active with the remainder stayed for a probationary period of 18 months. By Consent, the Commission also suspended the broker license of Mr. Thixton for a period of two years effective July 11, 2005. The Commission then stayed the suspension for a probationary period of two years. The Commission found that Mr. Thixton allowed a person not approved as a real estate instructor to teach substantial portions of the salesperson prelicensing courses Mr. Thixton offered through his school in excess of the number of hours permitted by Commission rule.  The Commission also found that Mr. Thixton offered an elective continuing education course in which he failed to deliver appropriate information to his students, deviated from the course plan and conducted the course in less than the allotted time.

UPLAND COMPANIES LLC D/B/A UPLAND REALTY (Asheville) – By Consent, the Commission suspended the firm license of Upland Companies for a period of three months effective June 1, 2005. The Commission then stayed the suspension for a probationary period of nine months on certain conditions. The Commission found that Upland Companies, a real estate brokerage company, acted as a buyer agent in a commercial real estate transaction without obtaining a written agency agreement with the buyer.

SHIRL WEBB-ALSTON (Raleigh) – By Consent, the Commission suspended the broker license of Ms. Webb-Alston for a period of one year effective August 1, 2005. One month of the suspension was active with the remainder stayed for a probationary period of one year. The Commission found that Ms. Webb-Alston, while affiliated with one real estate brokerage firm, undertook to act as a buyer agent in a transaction under the name of a different firm, without the permission of the firm with which she was then affiliated. The Commission also found that Ms. Webb-Alston failed to obtain a written buyer agency agreement and represented on the sales contract that another broker was the buyer agent.

JAMES M. WHATMORE (Asheville) – By Consent, the Commission suspended the broker license of Mr. Whatmore for a period of three months effective June 1, 2005. The Commission then stayed the suspension for a probationary period of nine months on certain conditions. The Commission found that Mr. Whatmore, principal broker and broker-in-charge of a real estate brokerage firm, acted as a buyer agent in a commercial real estate transaction without obtaining a written agency agreement with the buyer.