Disciplinary Action

Penalties for violations of the Real Estate License Law and Commission Rules vary depending upon the particular facts and circumstances present in each case. Due to space limitations in the Bulletin, a complete description of such facts cannot be reported in the following Disciplinary Action summaries.

STEPHANIE S. AREY (Charlotte) - By Consent, the Commission suspended Ms. Arey's broker license for one year effective July 1, 1992. Sixty days of the suspension are to be active and the remaining period stayed for a probationary term of one year. The Commission found that Ms. Arey, as broker-in-charge of a real estate firm, had failed to adequately supervise a salesman who had listed a condominium for sale and subsequently had leased it on two occasions without the owner's knowledge or permission. The Commission further found that the salesman had failed to properly account for or remit to Ms. Arey rents and other monies collected.

THOMAS W. BALLOU (Newport) - By Consent, the Commission revoked Mr. Ballou's broker license effective July 15, 1992. The Commission found that Mr. Ballou and his corporation had violated the county's subdivision regulation by entering into a contract to sell a lot in a new section of a subdivision which he had developed but which had not been approved. The Commission also found that when the transaction could not be completed, Mr. Ballou was unable to refund the clients' earnest money because he had used it to replace trust monies that he had converted in other transactions. Mr. Ballou neither admitted nor denied any misconduct.

JAMES E. BODY (Charlotte) - By Consent, the Commission suspended Mr. Body's broker license for one year effective July 1, 1992. The Commission then stayed its Order for a probationary term of one year. The Commission found that Mr. Body had paid a "finder's fee" to an unlicensed corporation and its unlicensed representative. Mr. Body neither admitted nor denied any misconduct.

JAMES R. CREECH, III (Carolina Beach) - By Consent, the Commission suspended Mr. Creech's salesman license for 18 months effective October 15, 1992. Three months of the suspension are to be active and the remaining period stayed for a probationary term of 15 months. The Commission found that Mr. Creech had authorized a contractor to make cosmetic repairs to a property to conceal structural defects and subsequently had failed to inform buyers that the structural defects existed. Mr. Creech neither admitted nor denied any misconduct.

VICTORIA L. (HAYES) EDGAR (Charlotte) - By Consent, the Commission revoked Ms. Edgar's salesman license effective July 1, 1992. The Commission found that Ms. Edgar had listed a condominium for sale and then on two occasions had leased it without the owner's knowledge or permission. The Commission further found that Ms. Edgar had failed to properly account for or remit to her broker-in-charge rents and other monies collected. Ms. Edgar neither admitted nor denied any misconduct.

GORDON B. JONES (Kitty Hawk) By Consent, the Commission suspended Mr. Jones' broker license for one year effective June 1, 1992. The Commission then stayed its Order for a probationary term of eighteen months. The Commission found that Mr. Jones had commingled trust monies in operating accounts under his control at two different real estate firms. The Commission also found that he had allowed unlicensed employees at one firm to wrongfully expend trust monies, which led to a trust account shortage.

NANCY M. KAFINA (Carolina Beach) - By Consent, the Commission revoked Ms. Kafina's broker license effective July 9, 1992. The Commission found that Ms. Kafina, as broker-in-charge of a real estate firm, had failed to maintain adequate records of trust or escrow funds and had converted trust monies to her own use. Ms. Kafina neither admitted nor denied any misconduct.

EDWRITH H. KEITH (Knightdale) By Consent, the Commission reprimanded Mr. Keith effective June 16, 1992. The Commission found that Mr. Keith had failed to deposit and maintain an earnest money deposit in a trust or escrow account, had failed to reconcile internal trust account records to bank records on a monthly basis, and had failed to obtain his clients' and customers' permission before depositing their funds into an interest-bearing trust account.

MID-ATLANTIC RESORTS, INC. (Grandy) - By Consent, the Commission reprimanded and fined Mid-Atlantic Resorts, Inc., $2,000 effective June 10, 1992. The Commission found that MidAtlantic Resorts, Inc., developer of High Dunes time share project, had used unlicensed persons to conduct sales without the knowledge of the project broker.

KARL P. NOONAN (Charlotte) - By Consent, the Commission suspended Mr. Noonan's broker license for one year effective July 1, 1992. Two months of the suspension are to be active and the remaining period stayed for a probationary term of 10 months. The Commission found that Mr. Noonan had failed to directly disclose to a participant in a sales transaction the amount of a "finder's fee" he was to receive from the seller. The Commission noted that the payment was disclosed on the settlement statement. Mr. Noonan neither admitted nor denied any misconduct.

GARY W. PENNY (Durham) - By Consent, the Commission suspended Mr. Penny's broker license for one year effective August 15, 1992. The Commission then stayed its Order for a probationary term of one year upon the condition that he complete the Commission's Trust Account Short Course on or before December 31, 1992. The Commission found that Mr. Penny had failed to maintain trust monies in a properly designated trust or escrow account and to keep accurate records of funds he collected. The Commission also found that, in a separate real estate transaction, he had failed to disclose material facts to a party involved in the transaction.

PENNY MANAGEMENT CORPORATION (Durham) - By Consent, the Commission suspended the corporate real estate broker license of Penny Management Corporation for one year effective August 15, 1992. The Commission then stayed its Order for a probationary term of one year. The Commission found that the corporation had failed to maintain trust monies in a properly designated trust or escrow account and to keep accurate records of funds it collected. The Commission also found that, in a separate real estate transaction, the corporation had failed to disclose material facts to a party involved in the transaction.

RAMON C. RODRIGUEZ, JR. (Fayetteville) - By Consent, the Commission revoked Mr. Rodriguez's broker license effective July 6, 1992. The Commission found that Mr. Rodriguez had failed to deposit and maintain trust monies in a trust or escrow account, had failed to account for and remit earnest money deposits, and had commingled trust monies with his own funds.

SIDNEY M. SALLING (Wilmington) The Commission revoked Mr. Salling's broker license effective July 1, 1992, for misrepresenting to sellers that he would obtain a release of liability when he purchased their former residence and assumed their loan. The Commission also found that Mr. Salling had recorded false deeds which purported to convey the sellers' subsequent residence to himself and then to another party.

SPRINGSTEED REALTY, INC. (Chaxlotte) - By Consent, the Commission suspended the corporate real estate broker license of Springsteed Realty, Inc., for one year effective July 1, 1992. The Commission then stayed its Order for a probationary term of one year. The Commission found that Springsteed Realty, Inc. had failed to supervise a salesman who had listed a condominium for sale and subsequently had leased it on two occasions without the owner's knowledge or permission. The ' Commission further found that the salesman had failed to properly account for or remit to her broker-in-charge rents and other monies collected. The principal broker of the corporation was unaware of the salesman's activities.

KEITH N. SUDDRETH (Lenoir) - By Consent, the Commission revoked Mr. Suddreth's broker license effective August 17, 1992. The Commission found that Mr. Suddreth had been convicted of criminal offenses which could reasonably affect his performance in the real estate business; namely, first-degree rape, second-degree burglary, assault with a deadly weapon inflicting serious injury, first-degree sexual offense, and first-degree kidnapping.

JAMES E. VAUGHAN, JR. (Duck) - By Consent, the Commission revoked Mr. Vaughan's broker license effective August 14, 1992. The Commission found that Mr. Vaughan and his property management corporation had failed to maintain trust monies in a trust or escrow account and had failed to promptly account for and remit earnest money deposits to his clients and tenants. The Commission also found that Mr. Vaughan had used trust monies for purposes other than those for which they were intended and had allowed a shortage to accrue in his trust account.

THOMAS N. VINCENT (WinstonSalem) - By Consent, the Commission accepted the permanent, voluntary surrender of Mr. Vincent's broker license effective July 10, 1992. The Commission dismissed without prejudice charges that Mr. Vincent had violated the Real Estate License Law based upon his federal criminal conviction for possession with intent to distribute marijuana. Mr. Vincent neither admitted nor denied any misconduct.