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

BISSELL-HAYES, INC. (Charlotte) By Consent, the Commission reprimanded Bissell-Hayes, Inc. effective October 1, 1993. The Commission found that the corporation had allowed one of its agents to engage in real estate brokerage after her license had expired. The Commission noted that Bissell-Hayes, Inc. had cooperated with the Commission's investigation.

PATRICK H. BURNS, JR. (Raleigh) The Commission revoked Mr. Burns' broker license effective August 27, 1993. The Commission found that Mr. Burns had listed a property for sale and had misrepresented to the owner that he would hold an option money deposit for him in trust. The Commission further found that Mr. Burns had failed to deposit and maintain all escrow funds in a trust or escrow account, had failed to properly account for and remit trust monies, had commingled trust monies with his own funds and had converted trust monies to his own use. The Commission also found that Mr. Burns had allowed a shortage to occur in his trust account and had written checks on his trust account which were returned by the bank for insufficient funds. In addition, the Commission found that Mr. Burns had failed to keep adequate records of his brokerage activities.

ROYA A. CAMPBELL (Charlotte) - By Consent, the Commission reprimanded Ms. Campbell effective August 12, 1993. The Commission found that Ms. Campbell had continued to act as a salesman after her license had expired. The Commission noted that Ms. Campbell's failure to renew her license was due to an oversight.

CEPCO, Inc. (Sneads Ferry) - By Consent, the Commission revoked the corporate real estate broker license of CEPCO, Inc. effective August 19, 1993. The Commission found that CEPCO, Inc. had operated without a broker-incharge and had employed persons who were not licensed as brokers or salesmen to show and sell lots owned by a development company. The Commission further found that the, corporation had violated the Interstate Land Sale Full Disclosure Act by not preparing or distributing proper Property Reports to purchasers of the lots. The Commission also found that CEPCO, Inc. had misrepresented to purchasers the future use of neighboring properties, had accepted partial payment toward the purchase of a lot in violation of a Temporary Restraining Order (TRO), had failed to disclose the TRO to the purchasers and had subsequently failed to account to them for the funds. In addition, the Commission found that the corporation had made false representations to lending institutions providing consumer financing to purchasers and had failed to make its trust account and transaction records available for inspection by the Commission's investigator.

HERBERT B. CONNER (Charlotte) By Consent, the Commission reprimanded Mr. Conner effective September 1, 1993. The Commission found that Mr. Conner, as broker-in-charge of his licensed corporation, had advertised that a property which he had listed for sale could very easily be reconverted to use as a duplex when, in fact, its use as a duplex was prohibited by local zoning ordinance.

CONNER REALTY, INC. (Charlotte) By Consent, the Commission reprimanded Conner Realty, Inc. effective September 1, 1993. The Commission found that the corporation had advertised that a property it had listed for sale could very easily be reconverted to use as a duplex, when, in fact, its use as a duplex was prohibited by local zoning ordinance.

NANCY W. DARDEN (Creedmoor) By Consent, the Commission reprimanded Ms. Darden effective March 26, 1992. The Commission found that Ms. Darden, who was not a member of a Multiple Listing Service, had written a listing agreement on a Multiple Listing Service form. The Commission further found that the form had falsely indicated that the listing would be placed in the Multiple Listing Service.

LARRY E. DAVIS (Chapel Hill) - By Consent, the Commission suspended Mr. Davis' broker license for 12 months effective July 16, 1993. One month of the suspension is to be active and the remaining period stayed for a probationary term of 11 months upon Mr. Davis' fulfillment of various conditions. The Commission found that Mr. Davis, as an officer and director of a licensed real estate corporation where he was responsible for trust account records, had failed to retain records sufficient to verify and explain entries or to create a clear audit trail - including failure to properly maintain journals and ledgers or to perform monthly reconciliations and trial balances. The Commission also found that Mr. Davis had allowed trust monies to be deposited into an interest-bearing trust account without proper authorization from the parties.

SOLOMON R. ELLIS, JR. (Research Triangle Park) - By Consent, the Commission reprimanded Mr. Ellis effective August 12, 1993. The Commission found that Mr. Ellis, as principal broker and broker-in-charge of a licensed corporation, had allowed a broker associated with the corporation to engage in real estate brokerage after the broker's license had expired.

ELIZABETH B. HAYES (Charlotte) By Consent, the Commission reprimanded Ms. Hayes effective October 1, 1993. The Commission found that Ms. Hayes, as broker-in-charge of an office, had failed to ascertain whether the license of an agent affiliated with the office had been renewed. The Commission noted that Ms. Hayes had cooperated with its investigation.

DRUCILLA H. HEARN (Kinston) The Commission accepted the permanent voluntary surrender of Ms. Hearn's broker license effective July 16, 1993. The Commission dismissed without prejudice charges that Ms. Hearn had violated the provisions of the Real Estate License Law and Commission rules pertaining to handling of trust monies and trust account recordkeeping. Ms. Hearn neither admitted nor denied any misconduct.

EDMUND V. HOLCROFT (Raleigh) The Commission revoked Mr. Holcroft's broker license effective November 1, 1993. The Commission found that Mr. Holcroft had failed to deposit and maintain rental funds and security deposits of others in a properly designated trust or escrow account, had commingled trust monies with his own funds and had converted trust monies to his own use, which led to a shortage in his trust account. The Commission further found that Mr. Holcroft had failed to keep adequate records of the funds he collected including failure to maintain proper journals and ledgers or to perform monthly reconciliations, had failed to properly account for and remit certain tenant security deposits in a timely manner, had failed to properly account for certain rental proceeds and to correct his accounting practices when informed of his violations by the Commission staff.

CORNELIUS R. JONES (Greensboro) - The Commission revoked Mr. Jones' salesman license effective October 1, 1993. The Commission found that Mr. Jones had acted outside the supervision of his broker-in-charge, had failed to remit a rental security deposit to his broker-in-charge, and had failed to deposit and maintain rental funds in a trust or escrow account. The Commission further found that Mr. Jones had failed to refund or otherwise account for the rental security deposit when the new tenants discovered that Mr. Jones had misrepresented the availability of the property.

E.J. ROBESON KIRKPATRICK (Asheville) - By Consent, the Commission suspended Mr. Kirkpatrick's broker license for two years effective August 1, 1993. Twelve months of the suspension are to be active and the remaining period stayed for a probationary term of twelve months. The Commission found that Mr. Kirkpatrick had acted as a general contractor even though he did not have a general contractor's license.

JAMES W. LEWIS (Chapel Hill) - By Consent, the Commission reprimanded Mr. Lewis effective October 1, 1993. The Commission found that Mr. Lewis was an officer and director of a licensed real estate corporation which had trust account records that were insufficient to verify and explain entries or to create a clear audit trail.

MAGNOLIA PROPERTIES, INC. (Chapel Hill) - By Consent, the Commission suspended the corporate real estate broker license of Magnolia Properties, Inc. for 12 months effective October 1, 1993. The Commission then stayed its Order for a probationary term of 12 months upon the corporation's fulfillment of various conditions. The Commission found that the corporation had failed to retain adequate trust account records in such a manner as to create a clear audit trail - including failure to properly maintain journals and ledgers or to perform monthly reconciliations and trial balances. The Commission also found that Magnolia Properties, Inc. had allowed trust monies to be deposited into an interest-bearing trust account without proper authorization from the parties.

CONNIE S. PETTIT-MUNDEN (Raleigh) - By Consent, the Commission reprimanded Ms. Pettit-Munden effective August 17, 1993. The Commission found that Ms. Pettit-Munden, as the listing agent for a property, had falsely represented to another agent that it would be futile for the agent to submit an offer to purchase the property because a higher offer had already been submitted, and that the sellers' tax problems with the IRS might cause a problem in selling the property.

DANNY L. RAYMER (North Wilkesboro) - By Consent, the Commission suspended Mr. Raymer's broker license for two years effective December 1, 1993. Forty-five days of the suspension are to be active and the remaining period stayed for a probationary term. The Commission found that Mr. Raymer had failed to disclose a material fact concerning the water system serving a property which he had listed for sale. Mr. Raymer did not admit any misconduct but did not contest the Commission's findings.

REALTY SPECIALISTS, INC. (North Wilkesboro) - By Consent, the Commission reprimanded Realty Specialists, Inc. effective October 1, 1993. The Commission found that the listing agent for a property listed by the corporation had failed to disclose a material fact concerning the water system serving the property. Realty Specialists, Inc. did not admit any misconduct but did not contest the Commission's findings.

WINNIFRED A. REED (Charlotte) By Consent, the Commission suspended Ms. Reed's broker license for one year effective October 1, 1993. The Commission then stayed its Order for a probationary term of one year. The Commission found that Ms. Reed had continued to engage in real estate brokerage for three years after her license had expired. The Commission noted that Ms. Reed had voluntarily disclosed her conduct to the Commission and had cooperated with its investigation.

THOMAS J. RODDEN (Archdale) By Consent, the Commission revoked Mr. Rodden's broker license effective July 16, 1993. The Commission found that Mr. Redden had commingled rents and security deposits with his personal funds, had often failed to remit rental proceeds to a property owner in a timely manner, and had written checks on his escrow account which were returned by the bank for insufficient funds. The Commission noted that Mr. Rodden subsequently repaid one of the property owners in full.

BILLY L. ROMANS (Murphy) - By Consent, the Commission reprimanded Mr. Romans effective October 7, 1993. The Commission found that a salesman under Mr. Romans' supervision as broker-in-charge had failed to list a property with the Multiple Listing Service, in violation of a provision of the listing contract in question.

BENNETT S. ROSE, JR. (Columbia) The Commission accepted the permanent voluntary surrender of Mr. Rose's broker license effective October 7, 1993. The Commission dismissed without prejudice charges that Mr. Rose had violated provisions of the Real Estate License Law based upon a felony criminal conviction.

RTA ASSOCIATES, INC. (Research Triangle Park) - By Consent, the Commission reprimanded RTA Associates, Inc. effective August 12, 1993. The Commission found that RTA Associates, Inc. had allowed a broker associated with the corporation to engage in real estate brokerage after his license had expired.

STEVEN C. SEAMON (Raleigh) - By Consent, the Commission revoked Mr. Seamon's broker license effective August 1, 1993. The Commission found that Mr. Seamon had failed to properly account for rental proceeds to the property owner, that he had stopped making mortgage payments on properties which he managed despite his continued receipt of rent payments and that when he was served with foreclosure notice due to nonpayment, he had failed to inform the property owner. The Commission further found that Mr. Seamon had failed to make records available for inspection by the Commission's investigator and that he had engaged in real estate brokerage after his license had expired. Mr. Seamon neither admitted nor denied any misconduct.

EARL B. SEAY (Greenville) - By Consent, the Commission suspended Mr. Seay's broker license for three years effective October 7, 1993. The Commission then stayed its Order for a probationary term of three years. The Commission found that on April 21, 1982, Mr. Seay had been convicted of a criminal offense; namely, bank robbery. The Commission noted that Mr. Seay's 14-year prison sentence had been reduced by commutation orders issued by the Governor.

CATHERINE H. STELPFLUG (Chapel Hill) - By Consent, the Commission suspended Ms. Stelpflug's broker license for 12 months effective October 1 ~ 1993. The Commission then stayed its Order for a probationary term of 12  months upon Ms. Stelpflug's fulfillment of various conditions. The Commission found that Ms. Stelpflug, as principal broker and broker-in-charge of a licensed corporation, had allowed trust monies to be deposited into an interest-bearing trust account without the proper authorization of the parties; had failed to maintain trust account journals and ledgers or to perform monthly reconciliations and trial balances; and had failed to retain adequate records in such a manner as to create a clear audit trail.

FRED GERALD TEW (Murphy) - By Consent, the Commission reprimanded Mr. Tew effective October 7, 1993. The Commission found that Mr. Tew had failed to list a property with the Multiple Listing Service, In violation of a provision of the listing contract in question.

ELIZABETH B. WATTS (Statesville) By Consent, the Commission reprimanded Ms. Watts effective September 10, 1993. The Commission found that Ms. Watts had made a negligent omission of material fact concerning the number of lots she was conveying in connection with the sale of a property which she owned and had listed for sale. The Commission noted that Ms. Watts subsequently repaid the buyer for expenses which the buyer had incurred as a result of Ms. Watts' improper dealing.

ROBERT S. WEBSTER (Charlotte) By Consent, the Commission reprimanded Mr. Webster effective August 12, 1993. The Commission found that Mr. Webster, as the broker-in-charge of a real estate office, had continued to engage in real estate brokerage after his license had expired. The Commission noted that Mr. Webster's failure to renew his license was due to an oversight.