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.

IDA L. ALEXANDER (Durham) - By Consent, the Commission revoked Ms. Alexander's broker license effective June 1, 1997. The Commission found that Ms. Alexander had failed to properly handle and maintain the rental monies and tenant security deposits she received while acting as a rental property manager. The Commission also found that Ms. Alexander had commingled her own monies with the funds of others, had engaged in deficit spending, and had converted trust monies to her own use. The Commission further found that Ms. Alexander had failed to maintain records of all receipts and disbursements of trust monies in such a manner as to create a clear audit trail, and that her trust account was short. Ms. Alexander neither admitted nor denied any misconduct.

REDDITT ALEXANDER (Durham) By Consent, the Commission revoked Mr. Alexander's broker license effective June 1, 1997. The Commission found that Mr. Alexander had failed to properly handle and maintain the rental monies and tenant security deposits he received while acting as a rental property manager. The Commission also found that Mr. Alexander had commingled his own monies with the funds of others, had engaged in deficit spending, and had converted trust monies to his own use. The Commission further found that Mr. Alexander had failed to maintain records of all receipts and disbursements of trust monies in such a manner as to create a clear audit trail, and that his trust account was short. Mr. Alexander neither admitted nor denied any misconduct.

APPLE REALTY 2000, INC. (Charlotte) - The Commission accepted the voluntary surrender of Apple Realty 2000, Inc.'s corporate real estate broker license for two years effective March 1, 1997. The Commission dismissed without prejudice charges that Apple Realty 2000, Inc. had violated the Real Estate License Law and the rules of the Commission in the conduct of a real estate brokerage business.

JO ANNE BAGGERLY (Burlington) - By Consent, the Commission suspended Ms. Baggerly's salesman license for one year effective April 1, 1997. The Commission then stayed the suspension for a probationary term of one year. The Commission found that Ms. Baggerly, while licensed only as a salesman, had operated a rental business and an unlicensed corporation.

SCOTT C. BORTZ (Charlotte) - By Consent, the Commission suspended Mr. Bortz' salesman license for four years effective August 1, 1997. Nine months of the suspension are to be active and the remaining period stayed for a probationary term of 39 months, upon certain conditions. The Commission found that while he was employed at a previous employer in the early 1990's and licensed only as a salesman, Mr. Bortz had received direct commission payments. The Commission further found that on one occasion, Mr. Bortz had signed his supervising broker's name on a check request form, without authority, in order to receive payment of one commission. The Commission noted that Mr. Bortz has paid his previous employer all commissions referred to above.

TONY CARR a/k/a MOHAMMAD HOSSAIN BAGHALZADEH (Charlotte) - The Commission revoked Mr. Carr's salesman license effective August 1, 1997. The Commission found that Mr. Carr had obtained a real estate license by making false statements about his employment history and failing to disclose his actual name on his license application. The Commission further found that prior to his licensure, Mr. Carr had held himself out as a licensee, and had falsely denied to the Commission staff his past conduct.

RAYMOND D. COLLINS, JR. (Winston-Salem) - By Consent, the Commission suspended Mr. Collins' broker license for six months effective June 11, 1997. The Commission then stayed the suspension for a probationary term of two years. The Commission found that Mr. Collins, while acting as a dual agent, in a negligent attempt to help a tenant obtain a permit, had placed the landlord's signature on a lease without authority and when the lease form did not reflect the final agreement of the parties. The Commission further found that a proper lease was never completed and that a dispute had arisen concerning responsibility for the tenant's fix-up expenditures and liability to the landlord for rents due on the premises. The Commission noted that Mr. Collins has paid all of these sums to resolve the dispute.

FRANK R. DAVIDSON (Charlotte) - The Commission revoked Mr. Davidson's broker license effective June 30, 1997. The Commission found that Mr. Davidson had failed to account for and remit trust monies received in connection with his management of rental properties and in connection with two sales transactions he had handled for one of his property management clients. The Commission also found that Mr. Davidson had commingled trust monies with his personal funds and had converted trust monies to his own use. The Commission further found that Mr. Davidson had failed to maintain records of all transactions conducted in his capacity as a real estate broker.

HARRY R. DOCKERY (Murphy) - By Consent, the Commission suspended Mr. Dockery's broker license for one year effective July 1, 1997. The Commission then stayed the suspension for a probationary term of one year. The Commission found that Mr. Dockery had listed a property for sale at a price set by the sellers based on an appraisal of the property which the sellers had obtained, instead of doing further research to determine the property's real market value. The Commission also found that Mr. Dockery had contracted to purchase the property himself at a price lower than the listing price, and that before he closed on his purchase, Mr. Dockery had offered the property for sale at a price that was higher than the sellers' listing price. The Commission further found that when Mr. Dockery then received two offers to purchase the property, he had failed to disclose the offers to the sellers, had accepted the higher offer, and had made a significant profit. The Commission noted that Mr. Dockery had cooperated with its investigation and had taken the necessary steps to correct his mistakes.

HARDISON REALTY COMPANY (Carolina Beach) - By Consent, the Commission revoked the corporate real estate broker license of Hardison Realty Company effective July 11, 1997. The Commission found that Hardison Realty Company had failed to properly maintain trust monies on deposit and also had failed to maintain trust account records as required by Commission rule.

ESSEE J. HEBERT (Cary) - The Commission revoked Ms. Hebert's salesman license effective June 30, 1997. The Commission found that Ms. Hebert had failed to disclose the malfunction of the septic system to tenants in her rental property, had failed to correct the septic system malfunction or to vacate the property, and had rented the property to new tenants after being instructed by the Health Department to correct the problem or vacate the property because it was a health hazard. The Commission further found that Ms. Hebert had failed to account for and remit a tenant security deposit received from a tenant in her rental property.

ROBERT R. HEBERT (Sneads Ferry) - By Consent, the Commission revoked Mr. Hebert's broker license effective September 1, 1997. On September 1, 1999, upon application and payment of the applicable fee, Mr. Hebert shall be issued a real estate salesman license if certain conditions are met. On or after September 1, 2001, Mr. Hebert may apply for the reinstatement of his broker license. The Commission found that Mr. Hebert had allowed a corporation to operate without a real estate firm license. The Commission also found that as of October 11, 1996, a shortage existed in the firm's trust account, and numerous trust account checks had been returned unpaid for insufficient funds. Mr. Hebert was unable to provide the Commission with complete copies of the firm's trust account records.

DAMIEN M.L. HERRERA (Fayetteville) - By Consent, the Commission suspended Mr. Herrera's salesman license effective May 1, 1997, until September 11, 1999. If Mr. Herrera furnishes to the Commission satisfactory written proof of his release from supervised probation prior to September 11, 1999, the Commission shall stay the remaining portion of his suspension, reinstate his license, and place Mr. Herrera on probation until September 11, 1999. The Commission found that Mr. Herrera had been convicted of one count of access device fraud and that he had failed to report this conviction to the Commission.

EUGENE P. HOLZ (Atlantic Beach) - By Consent, the Commission suspended Mr. Holz' broker license for two years effective September 1, 1997. The Commission then stayed the suspension for a probationary term of two years, upon certain conditions. The Commission found that as an agent for two real estate firms, and in one instance as seller of his own property, Mr. Holz had participated in a "time share trade-in scheme" that involved misrepresenting the nature of earnest money deposits and concealing from lenders certain material facts. The Commission noted that Mr. Holz had not originated this sales scheme and that he was involved in only a few transactions. Mr. Holz denied any misconduct.

CLETUS HUDSON (Siler City) - By Consent, the Commission suspended Mr. Hudson's broker license effective May 14, 1997. The Commission then stayed the suspension for a probationary term of two years. The Commission found that Mr. Hudson had brokered a transaction using a listing agreement that he had not properly or adequately completed.

CEILE J. JAMES (Raleigh) - By Consent, the Commission reprimanded Ms. James effective September 1, 1997, as a result of improper telephone calls which arose from matters unrelated to real estate transactions. The Commission noted that Ms. James voluntarily disclosed this matter to the Commission and had cooperated with its inquiry.

DUDLEY MCGOUGH (Jacksonville) - The Commission accepted the voluntary surrender of Mr. McGough's broker license for one year effective August 27, 1997. The Commission dismissed without prejudice charges that Mr. McGough had violated provisions of the Real Estate License Law and the rules of the Commission in connection with his conduct as a real estate broker. Mr. McGough neither admitted nor denied any misconduct.

BRADLEY B. MINSHEW (North Topsail Beach) - By Consent, the Commission suspended Mr. Minshew's broker license for one year effective August 1, 1997. The Commission then stayed the suspension for a probationary term of one year. The Commission found that Mr. Minshew, while broker-in-charge of a real estate office, had failed to maintain the trust account records in the manner and form required by Commission rule.

ERICA L. NORTON (Charlotte) The Commission accepted the voluntary surrender of Ms. Norton's salesman license for three years effective August 14, 1997. The Commission dismissed without prejudice charges that Ms. Norton had violated provisions of the Real Estate License Law. Ms. Norton neither admitted nor denied any misconduct.

OLE HERITAGE REALTY, INC. (Zebulon) - By Consent, the Commission suspended the corporate real estate broker license of Ole Heritage Realty, Inc. effective August 13, 1997. The Commission then stayed the suspension for a probationary term of one year. The Commission found that while Ole Heritage Realty, Inc. was brokering a home built by one of its principals, an agent of the corporation had promised a HOW 10 year warranty, but that the agent and the corporation had failed to pay the warranty premium at closing. The Commission further found that Ole Heritage Realty, Inc. could not later secure a warranty for the property because HOW was in receivership and the home was occupied.

EDITH A. RAETHER (North Topsail Beach) - The Commission accepted the voluntary surrender of Ms. Raether's salesman license for two years effective September 1, 1997. The Commission dismissed without prejudice charges that Ms. Raether had violated the Real Estate License Law and the rules of the Commission.

BETTY B. RAY (Zebulon) - By Consent, the Commission suspended Ms. Ray's broker license for one year effective August 13, 1997. The Commission then stayed the suspension for a probationary term of one year, upon certain conditions. The Commission found that while she was licensed as a real estate broker and selling homes built by a partnership in which she was a partner, Ms. Ray had promised a HOW 10 year warranty but had failed to pay the warranty premium at closing. The Commission further found that Ms. Ray could not later secure a warranty for the property because HOW was in receivership and the home was occupied.

ANTHONY P. SPADAFORA (Carolina Beach) - By Consent, the Commission revoked Mr. Spadafora's broker license effective July 11, 1997. The Commission found that Mr. Spadafora, as broker-in-charge, had failed to properly maintain trust monies on deposit and also had failed to maintain trust account records as required by Commission rule.  

SPECTRUM RESORT PROPERTIES, INC. (Emerald Isle) - By Consent, the Commission reprimanded Spectrum Resort Properties, Inc. effective July 1, 1997. The Commission found that while acting as broker and property manager, Spectrum Resort Properties, Inc. had failed to assure that at all times its trust accounts contained sufficient monies to fund the corporation's trust account obligations. The Commission further found that Spectrum Resort Properties, Inc. had failed to keep proper records of its handling of the funds of others. The Commission noted that Spectrum Resort Properties, Inc. has taken steps to correct its funding and record-keeping deficiencies.

SUGAR MOUNTAIN SKI & COUNTRY CLUB, INC. (Banner Elk) - By Consent, the Commission suspended the corporate real estate broker license of Sugar Mountain Ski & Country Club, Inc. for one year effective August 13, 1997. The Commission then stayed the suspension for a probationary term of one year. The Commission found that prior to March 1996, Sugar Mountain Ski & Country Club, Inc. had failed to maintain records of its rental trust accounts in the manner required by Commission rules. The Commission noted that no money of others was lost as a result of the record-keeping problem; however, some funds were delayed and other funds were not adequately accounted for by the corporation.

GEORGE TATE, JR. (Chapel Hill) By Consent, the Commission revoked Mr. Tate's broker license effective May 14, 1997. The Commission found that Mr. Tate had undertaken to secure a loan for prospective buyers of a home and lot at a time when the buyers could not qualify for such loan. The Commission further found that Mr. Tate had assisted the buyers in misrepresenting material facts to the lender who lent them the funds to buy the home and lot.

PHILIP R. VERDOW (West End) The Commission revoked Mr. Verdow's salesman license effective August 1, 1997. The Commission found that Mr. Verdow had violated the Real Estate License Law and rules of the Commission by using a deceptive "time share trade-in scheme" and by receiving compensation for real estate sales while his license was on inactive status.

RICHARD L. VERDOW (Seven Lakes) - The Commission revoked Mr. Verdow's salesman license effective August 1, 1997. The Commission found that Mr. Verdow had violated the Real Estate License Law and rules of the Commission by using a deceptive "time share trade-in scheme," receiving compensation for real estate sales while his license was on inactive status, and using unlicensed or inactive salesmen to sell real property for compensation in a capacity requiring active licensure.

CHARLES D. WASHINGTON (Lewisville) - By Consent, the Commission suspended Mr. Washington's salesman license for 18 months effective September 1, 1997. The Commission found that in 1988, Mr. Washington had been convicted of the felony offense of embezzlement. The Commission further found that in 1996, Mr. Washington had been convicted of a simple worthless check charge. The Commission noted that Mr. Washington has paid the financial obligations arising from these offenses.

WILLIAM W. WATERS (Charlotte) - The Commission suspended Mr. Waters' broker license for two years effective April 30, 1997. Mr. Waters had appealed the Commission's order to Mecklenburg County Superior Court which affirmed the Commission's decision and order in its entirety. The Commission found that while he was engaged in the construction and sale of condominium properties through a corporation of which he was an officer, and as president of two homeowners' associations for the properties, Mr. Waters had manipulated and arranged the collection of assessment monies and the payment of common expenses for both associations in a way that benefited the construction company instead of the associations and the unit owners. The Commission also found that Mr. Waters had commingled the funds of the two associations and had failed to keep adequate and complete financial records to enable the associations to comply with the Condominium Act. The Commission further found that Mr. Waters had failed to create and maintain a separate reserve account for one of the associations, had failed to maintain the funds of the association in a designated trust or escrow account, and had failed to account for and remit the association's records and funds when he ceased to control the association.

JOAN P. WORRELL (Raleigh) By Consent, the Commission revoked Ms. Worrell's salesman license effective May 15, 1997. The Commission found that Ms. Worrell had failed to turn over to the lender or to her broker-in-charge monies she had received from the buyer of a residential property. The Commission further found that Ms. Worrell had endorsed the lender's name on a check payable to the lender toward the closing of the property, had deposited the check into her own account, and had used the funds to pay her own mortgage which was then in default. Ms. Worrell neither admitted nor denied any misconduct.