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 thefollowing Disciplinary Action summaries.

ELIZABETH A. ANDERSON (Winston-Salem) - By Consent, the Commission suspended Ms. Anderson's broker license for 13 months effective September 1, 1994. One month of the suspension is to be active and the remaining period stayed for a probationary term of one year upon condition that, during the period of suspension and probation, she complete the Commission's Trust Account Short Course. The Commission found that Ms. Anderson, as broker-in-charge of a licensed real estate corporation, had closed a trust account in November 1992 when the corporation discontinued operations, even though the account still contained two deposits, and had deposited the remaining ftinds into a separate operating account. The Commission noted that Ms. Anderson subsequently remitted the remaining funds in July 1993 and November 1993.

NANCY L. BARNUM (Carrboro) -By Consent, the Commission reprimanded Ms. Barnum effective June 15, 1994. The Commission found that Ms. Barnum, as listing agent in a real estate transaction, had inaccurately advertised the acreage of a property in the local Multiple Listing Service, in promotional brochures and on a sign at the property. The Commission noted that the area of the lot had been reduced as a result of a recombination of a subdivision and that although Ms. Barnum knew of the recombination and resulting change in acreage, she had made an error in her advertising prior to the sale of the property.

WILLIAM E. BAUGHN, JR. (Thomasville) - By Consent, the Commission suspended Mr. Baughn's broker license for 30 days effective May 12, 1994. The Commission then stayed its Order for a probationary term of one year. The Commission found that Mr. Baughn had made a negligent omission of a material fact in a real estate transaction by failing to inform buyers of a lot and house which he had listed for sale about the possible relocation of the highway where the lot and house were located.

BAXTER B. BENSON, 11 (Raleigh) -By Consent, the Commission suspended Mr. Benson's broker license for five years effective July 14, 1994. If the period of supervised release ordered in connection with Mr. Benson's criminal conviction is terminated prior to the end of his license suspension, the Commission will stay its Order for a probationary term of one year. The Commission found that Mr. Benson had been convicted of violating 18 U.S.C. Section 1344 and was sentenced to a term of twelve months' imprisonment followed by a five-year term of supervised release and had also been ordered to pay restitution. The Commission noted that Mr. Benson had already made partial restitution.

BERMUDA PROPERTIES, INC. (Winston-Salem) - By Consent, the Commission suspended the corporate real estate broker license of Bermuda Properties, Inc. for 13 months effective September 1, 1994. One month of the suspension is to be active and the remaining period stayed for a probationary term of one year. The Commission found that the corporation's broker-in-charge had closed a trust account in November 1992 when the corporation discontinued operations, even though the account still contained two deposits, and had deposited the remaining funds into a separate operating account. The Commission noted that the broker-incharge subsequently remitted the remaining funds in July 1993 and November 1993.

HIRAM D. BRINEGAR (Charlotte) -The Commission revoked Mr. Brinegar's broker license effective May 24, 1994. The Commission found that Mr. Brinegar had acted for himself as a real estate broker without the knowledge and consent of his broker-incharge. The Commission further found that Mr. Brinegar had failed to deposit and maintain funds of others in a trust or escrow account, had failed to account for or remit an earnest money deposit to his brokerin-charge or to the parties to a real estate transaction, and had made a misrepresentation of material fact by misrepresenting the disposition of earnest money to the seller and other interested persons in a real estate transaction.

JOSEPH TAYLOR BUSH (Mars Hill) - By Consent, the Commission reprimanded Mr. Bush effective June 20, 1994. The Commission found that Mr. Bush, as principal broker and broker-in-charge of a licensed real estate corporation, had paid brokerage fees in three real estate transactions to a person not a party to the transactions and not licensed by the Real Estate Commission.

CAROLINA GRAND REALTY, INC. (Mars Hill) - By Consent, the Commission reprimanded Carolina Grand Realty, Inc. effective June 20, 1994. The Commission found that the corporation had paid brokerage fees in three real estate transactions to a person not a party to the transactions and not licensed by the Real Estate Commission.

CONDOMINIUM MANAGEMENT SERVICES, INC. (Charlotte) - The Commission accepted the voluntary surrender of Condominium Management Services, Inc.'s corporate real estate broker license effective July 18, 1994. The Commission dismissed without prejudice charges that the corporation had violated provisions of the Real Estate License Law and Commission rules. Condominium Management Services, Inc. neither admitted nor denied any misconduct.

DONALD G. COX (Charlotte) - By Consent, the Commission suspended Mr. Cox's broker license for one year effective June 1, 1994. The Commission then stayed its Order for a probationary term of one year. The Commission found that Mr. Cox had allowed his broker license to expire in June 1991 and had engaged in brokerage on a full-time basis until April 1994. The Commission noted that Mr. Cox had disclosed his conduct to the Commission and had cooperated with its inquiry.

LOUIS D. CRITTENDEN (Chapel Hill) - By Consent, the Commission reprimanded Mr. Crittenden effective July 15, 1994. The Commission found that when Mr. Crittenden had listed two subdivision lots with the Multiple Listing Service, he had incorrectly stated the location of the lots in the subdivision.

BETFY H. DEARMIN (Banner Elk) - By Consent, the Commission revoked Ms. Dearmin's salesman license effective July 13, 1994. The Commission found that Ms. Dearmin, while licensed as a salesman, had operated a brokerage business and that she had failed to deposit and maintain all of the firm's trust monies in a trust or escrow account. Ms. Dearmin neither admitted nor denied any misconduct.

HELEN V. HORN (Raleigh) - By Consent, the Commission suspended Ms. Horn's salesman's license for 90 days effective July 15, 1994. The Commission then stayed its Order for a probationary term of 90 days upon condition that, during the period of probation, she complete the Commission's Trust Account Short Course. The Commission found that Ms. Horn had engaged in property management activities without adequate supervision of her broker-in-charge. The Commission further found that prior to August 1993, Ms. Horn had failed to properly designate the trust or escrow account, had failed to promptly remove management fees from the account and had instead paid the fees directly from the account for her personal expenses. The Commission also found that beginning in August 1993, Ms. Horn failed to maintain trust account ledger cards for each owner or property, had failed to properly reference transactions on trust account deposit tickets and check stubs, had failed to consistently caic~late trust account running balances accurately, and had failed to perform trust account trial balances and bank reconciliations, which resulted in an overage in the firm's trust account.

KENNETH W. HORN (Raleigh) - By Consent, the Commission suspended Mr. Horn's broker license for 90 days effective July 15, 1994. The Commission then stayed its Order for a probationary term of 90 days upon condition that, during the period of probation, he complete the Commission's Trust Account Short Course. The Commission found that Mr. Horn had failed to adequately oversee the proper handling of trust monies and records of the property management firm where he was broker-in-charge and had instead allowed a salesman under his supervision to undertake the management activities. The Commission further found that Mr. Horn had failed to maintain trust account ledger cards for each owner or property, had failed to properly reference transactions on trust account deposit tickets and check stubs, had failed to consistently calculate trust account running balances accurately, and had failed to perform trust account trial balances and bank reconciliations, which resulted in an overage in the firm's trust account.

JOHN K. MARKS (Greensboro) - By Consent, the Commission suspended Mr. Marks' broker license for one year effective May 1, 1994. The Commission then stayed its Order for a probationary term of one year upon condition that Mr. Marks successfully complete the Commission's Trust Account Short Course. The Commission found that Mr. Marks had failed to comply with all of its rules concerning trust account recordkeeping, and that the trust accounts which he maintained in connection with his property management functions contained a substantial overage. The Commission noted that no client was prejudiced by Mr. Marks' actions.

JOHN MARKS & ASSOCIATES, INC. (Greensboro) - By Consent, the Commission suspended the corporate real estate broker license of John Marks & Associates, Inc. for one year effective May 1, 1994. The Commission then stayed its Order for a probationary term of one year. The Commission found that John Marks & Associates, Inc. had failed to comply with all of the Commission's rules concerning trust account recordkeeping, and that the trust accounts which the corporation maintained in connection with its property managemen functions contained a substantial overage. The Commission noted that no client was prejudiced by the corporation's actions.

VnLLIAM B. MCGUIRE, JR. (Charlotte) - By Cons ent, the Commission reprimanded Mr. McGuire effective June 1, 1994. The Commission found that Mr. McGuire, while he was broker-in-charge of a real estate office, had failed to ascertain that one of the licensees affiliated with the firm had failed to renew his real estate license for three consecutive years. The Commission further found that Mr. McGuire, on seven occasions during the three-year-period, had compensated the licensee whose license had expired. The Commission noted that Mr. McGuire had cooperated with the Commission's investigation of this matter.

MCGUIRE PROPERTIES, INC. (Charlotte) - By Consent, the Commission reprimanded McGuire Properties, Inc. effective June 1, 1994. The Commission found that McGuire Properties, Inc. had affiliated a broker in a capacity requiring a current real estate license even though the broker's license had not been renewed for three years. The Commission further found that McGuire Properties, Inc. had compensated the broker for his real estate services. The Commission noted that McGuire Properties, Inc. had cooperated with the Commission's investigation of this matter.

DOROTHY S. MORRIS (Chapel Hill) - By Consent, the Commission suspended Ms. Morris' broker license for one year effective June 15, 1994. The Commission then stayed its Order for a probationary term of six months. The Commission found that Ms. Morris had prepared an informational flyer and otherwise advertised a property as having 600 more heated square feet than its actual heated square footage.

BARBARA JEAN ORR (Atlantic Beach) - The Commission accepted the permanent voluntary surrender of Ms. Orr's broker license effective July 15, 1994. The Commission dismissed without prejudice charges that Ms. Orr had violated provisions of the Real Estate License Law and Commission rules while she was engaged in the real estate property management business. Ms. Orr neither admitted nor denied any misconduct.

WILLIAM PARKER (Rocky Mount) - By Consent, the Commission revoked Mr. Parker's broker license effective July 15, 1994. Mr. Parker may not reapply for licensure before January 1996. The Commission found that Mr. Parker, who controlled his firm's trust and operating accounts although he was not broker-in-charge, had failed to deposit and maintain trust monies in a trust or escrow account, had converted trust monies to his own use, had commingled trust monies with his own funds, and had issued checks on the firm's trust account which were returned unpaid by the bank due to insufficient funds,

SAMUEL T. PEACE, JR. (Henderson) - By Consent, the Commission reprimanded Mr. Peace effective May 12, 1994. The Commission found that Mr. Peace had failed, in a real estate transaction, to deposit earnest money within three banking days of acceptance of an offer to purchase. The Commission further found that Mr. Peace had failed to maintain this deposit in his escrow account after a dispute arose between the seller, whom Mr. Peace represented, and the buyer, who was Mr. Peace's son. The Commission noted that Mr. Peace subsequently restored the earnest money to his trust account.

VERNON E. POTrER, JR. (Sanford) - By Consent, the Commission revoked Mr. Potter's broker license effective July 14, 1994. The Commission found that Mr. Potter, as a rental manager for residential rental properties, had commingled rental escrow monies with his own funds. The Commission further found that Mr. Potter had failed to properly account for or remit security deposits and rent monies and had failed to keep adequate records of the trust account sufficient to create a clear audit trail. Mr. Potter neither admitted nor denied any misconduct.

RICHARD E. PUGH (Charlotte) - By Consent, the Commission revoked Mr. Pugh's broker license effective May 23, 1994. The Commission found that Mr. Pugh had made a false statement on his application for reinstatement of his real estate license; namely, Mr. Pugh answered "no" to the application question regarding criminal convictions when, in fact, he had been convicted of the crimes of embezzlement and obtaining property by false pretense. The Commission further found that since the reinstatement of his broker license, Mr. Pugh has twice been found in violation of his probation which resulted from these convictions.

ALAN C. ROBBINS (Chapel Hill) -By Consent, the Commission suspended Mr. Robbins' broker license for one year effective June 15, 1994. The Commission then stayed its Order for a probationary term of six months. The Commission found that Mr. Robbins had made an error in computing the heated living area when he prepared the comparative market analysis on a property which his real estate firm had listed for sale, and that as a result, the firm had advertised the property as having 600 more heated square feet than its actual heated square footage.

SAMUEL J. ROBERSON (Banner Elk) - By Consent, the Commission revoked Mr. Roberson's broker license effective July 13, 1994. The Commission found that Mr. Roberson, while employed as the broker-incharge of a real estate company, had failed to deposit and maintain trust monies in a trust or escrow account. Mr. Roberson neither admitted nor denied any misconduct.

T14EODORE S. ROYALL, JR. (Durham) - By Consent, the Commission suspended Mr. Royall's broker license for two years effective May 15, 1994. Five months of the suspension are to be active and the remaining period stayed for a probationary term of two years. The Commission found that Mr. Royall had allowed bank service charges to partially deplete a trust account in which he maintained a tenant security deposit for a property he managed; however, Mr. Royall had subsequently forwarded the full amount of the security deposit to the property owner. The Commission further found that Mr. Royall had collected management fees which were paid to a corporation which he owned but which was not licensed by the Commission, and that he had failed to deposit another tenant security deposit into a trust or escrow account but had instead deposited it into an operating account of his licensed real estate corporation. The Commissioh also found that when his management duties were terminated, he wrote a check drawn on his personal account to cover the tenant security deposit and that the check was returned unpaid by the bank due to insufficient funds. The Commission noted that Mr. Royall ultimately paid the fees.

ROYALL COMMERCIAL PROPERTIES, INC. (Durham) - By Consent, the Commission suspended the corporate real estate broker license of Royall Commercial Properties, Inc. for six months effective May 15, 1994. The Commission then stayed its Order for a probationary term of two years. The Commission found that the owner of Royall Commercial Properties, Inc. had allowed bank service charges to partially deplete a trust account in which it maintained a tenant security deposit for a property which it managed, but that it had subsequently forwarded the full amount of the security deposit to the property owner. The Commission further found that the corporation's owner had collected a tenant security deposit which he improperly put into an operating account of Royall Commercial Properties, Inc.

THEODORE STEVENS (Greensboro) - The Commission suspended Mr. Stevens broker license for two years effective June 1, 1994. Six months of the suspension are to be active and the remaining period stayed for a probationary term of eighteen months. The Commission found that Mr. Stevens, in a real estate transaction involving his corporation's property, had directed an assistant to alter letters, without the author's knowledge or consent, in connection with two properties for which Mr. Stevens was seeking low-income housing tax credits. The Commission further found that Mr. Stevens had made a misrepresentation of a material fact in representing the zoning letters as genuine.

KENNETH G. THOMAS (Southern Pines) - By Consent, the Commission suspended Mr. Thomas's broker license for 60 days effective July 15, 1994. The Commission then stayed its Order for a probationary term of one year upon condition that, during the period of probation, he complete the Commission's Trust Account Short Course. The Commission found that Mr. Thomas had failed to deposit trust monies into a trust or escrow account and had instead commingled trust monies with company funds by depositing trust monies into an operating account belonging to the licensed real estate corporation where he was principal broker and brokerin-charge. The Commission noted that Mr. Thomas subsequently remitted the money and that no loss to anyone resulted from his actions. The Commission further found that Mr. Thomas had failed to maintain adequate trust account records and that an overage occurred in the escrow account.

KEN THOMAS REALTY AND ASSOCIATES, INC. (Southern Pines) -By Consent, the Commission suspended the corporate real estate broker license of Ken Thomas Realty and Associates, Inc. for 60 days effective July 15, 1994. The Commission then stayed its Order for a probationary term of one year. The Commission found that the principal broker and broker-in-charge of Ken Thomas Realty and Associates, Inc. had failed to deposit trust monies into a trust or escrow account and had instead commingled trust monies with company funds by depositing trust monies into an operating account belonging to the corporation. The Commission noted that the broker subsequently remitted the money and that no loss to anyone resulted from his actions. The Commission further found that the broker had failed to maintain adequate trust account records and that an overage had occurred in the corporation's account.

JAMES F. TINDELL (Banner Elk) -By Consent, the Commission revoked Mr. Tindell's broker license effective August 15, 1994. The Commission found that Mr. Tindell, as principal broker and broker-in-charge of a licensed real estate corporation, had expended trust monies for his personal expenses and had converted trust monies to his own use, which caused a shortage to occur in the corporation's trust account.

105 REALTY PLACE,.INC. (Banner Elk) - By Consent, the Commission revoked the corporate real estate broker license of 105 Realty Place, Inc. effective August 15, 1994. The Commission found that 105 Realty Place, Inc. had allowed a shortage to occur in its trust account due to conduct of the corporation's principal broker and broker-in-charge, who had converted trust monies to his personal use.

TOUCHBERRY & ASSOCIATES, INC. (Charlotte) - By Consent, the Commission revoked the corporate real estate broker license of Touchberry & Associates, Inc. effective July 13, 1994. The Commission found that Touchberry & Associates, Inc., which is currently under the control of a trustee in bankruptcy, had failed, prior to its bankruptcy, to maintain trust account records as required by Commission rules. The trustee in bankruptcy for Touchberry & Associates, Inc., on behalf of the corporation, neither admitted nor denied any misconduct.

BRANDON S. TRIVETT (Charlotte) - By Consent, the Commission revoked Mr. Trivett's salesman license effective August 1, 1994. The Commission found that Mr. Trivett, on at least four occasions, had filled out and signed sham real estate sales contracts which indicated to his employing firm that his sales performance was better than it really was. The Commission ftirther found that Mr. Trivett had failed to turn over earnest money checks to his brokerin-charge and in a separate transaction, had arranged to receive and did receive a commission without paying the money to his employing or supervising broker. Mr. Trivett neither admitted nor denied any misconduct.

COLA F. VAUGHAN (Nags Head) -By Consent, the Commission reprimanded Mr. Vaughan effective May 12, 1994. The Commission found that Mr. Vaughan had allowed his broker license to expire in June 1992 and had continued to engage in brokerage and to receive commissions until March 1994. The Commission noted that Mr. Vaughan had voluntarily informed the Commission after he discovered his failure to renew his license, and had ceased to act in a capacity for which a license is required.

ALTON G. WIDENHOUSE, JR. (Charlotte) - By Consent, the Commission revoked Mr. Widenhouse's broker license effective August 15, 1994. The Commission found that Mr. Widenhouse, as broker-in-charge of a licensed real estate corporation, had failed to maintain trust account records and to perform monthly trust account reconciliations as required by Commission rule. The Commission further found that Mr. Widenhouse's failure to meet his obligations as broker-in-charge had resulted in the corporation's inability to meet its escrow obligations at the close of its business in August 1993.

C. STEPHEN WILSON (Charlotte) -The Commission accepted the voluntary surrender of Mr. Wilson's broker license effective July 18, 1994. The Commission dismissed without prejudice charges that Mr. Wilson had violated provisions of the Real Estate License Law and Commission rules. Mr. Wilson neither admitted nor denied any misconduct.