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 tbe following Disciplinary Action summaries.

TAMMY T. AIKEN (Gastonia) - By Consent, the Commission suspended Ms. Aiken's salesman license for two years effective February 15, 1993. One year of the suspension is to be active and the remaining period stayed for a probationary term of one year. The Commission found that Ms. Aiken had engaged in property management activities without the supervision of her broker-in-charge in violation of Commission rule. The Commission further found that Ms. Aiken had set up her own trust account to handle the property management funds she collected, had failed to keep adequate records of the funds she collected including failure to keep transaction ledgers or journals, had failed to reconcile internal trust account records to bank records on a monthly basis and had failed to properly account for and remit rental proceeds in a timely manner. The Commission also found that Ms. Aiken had deposited rental proceeds into an interest-bearing trust account without the written authorization of the parties.

LESTER E. ALFORD, JR. (Gastonia) By Consent, the Commission suspended Mr. Alford's broker license for three months effective February 15, 1993. The Commission then stayed its Order for a probationary term of six months. The Commission found that Mr. Alford, as broker-in-charge of a licensed real estate corporation office, had failed to personally and actively supervise the property management activities of a salesman who was under his supervision including the salesman's handling and accounting for the funds of others. The Commission further found that Mr, Alford had allowed improper advertising practices; namely, advertising property management services when the corporation did not engage in the property management business.

LATEEF A. ANIMASHAUN (Greensboro) - The Commission revoked Mr. Animashaun's salesman license effective January 13, 1993. The Commission found that Mr. Animashaun had been convicted of a criminal offense involving moral turpitude which could reasonably affect his performance in the

real estate business; namely, importing heroin into the United States, and possession of heroin with the intent to distribute it.

WILLIAM C. BAUGHAM (Goldsboro) - By Consent, the Commission revoked Mr. Baugham's broker license effective March 1, 1993. The Commission found that Mr. Baugham, while employed as a property manager at a real estate firm, had failed to deposit and maintain rental funds and security deposits of others in a trust or escrow account and had failed to account for and remit the funds he collected to the firm's clients. Mr. Baugham neither admitted nor denied any misconduct.

BETTER HOMES ASSOCIATES OF GASTONIA, INC. (Gastonia) - By Consent, the Commission suspended the corporate real estate broker license of Better Homes Associates of Gastonia, Inc. for three months. The Commission then stayed its Order for a probationary term of six months. The Commission found that Better Homes Associates of Gastonia, Inc. had allowed a salesman to engage in property management activities including the handling and accounting for the funds of others without the supervision of her broker-incharge. The Commission further found that the corporation had allowed improper advertising practices; namely, advertising property management services when it did not engage in the property management business.

JOHN C. BLACKWELDER (Statesville) - By Consent, the Commission suspended Mr. Blackwelder's broker license for one year effective April 1, 1993. Ninety days of the suspension are to be active and the remaining period stayed for a probationary term of nine months upon Mr. Blackwelder's fulfillment of various conditions. The Commission found that Mr. Blackwelder, while acting as broker of accommodation of a property management firm, had failed to adequately supervise an unlicensed bookkeeping employee and to account for and remit rental funds to the firm's clients.

JAMES B. BRAITHWAITE (Kitty Hawk) - By Consent, the Commission suspended Mr. Braithwaite's broker license for one year effective April 5, 1993. The Commission then stayed its Order for a probationary term of one year. The Commission found that Mr. Braithwaite had failed to examine the trust account records of the real estate firm where he was broker-in-charge,

which resulted in the firm's inability to determine whether it had properly accounted for all trust monies when the firm sold its business to another broker.

CHARLES F. CLARK (Burlington) - By Consent, the Commission suspended Mr. Clark's broker license for six months effective April 1, 1993. The Commission then stayed its Order for a probationary term of six months. The Commission found that Mr. Clark had prepared an offer to purchase for a lot in a subdivision which was not approved by municipal authorities on a contract form which did not comply with Commission rules.

RICHARD E. COATES (Sneads Ferry) - The Commission accepted the permanent voluntary surrender of Mr. Coates' broker license effective January 6, 1993. The Commission dismissed without prejudice charges that Mr. Coates had violated the provisions of the Real Estate License Law and Commission rules in various real estate transactions involving the sale of lots. Mr. Coates neither admitted nor denied any misconduct.

NORWOOD F. CRAWFORD (Sneads Ferry) - By Consent, the Commission suspended Mr. Crawford's broker license for 18 months effective January 6, 1993. Ten months of the suspension are to be active and the remaining period stayed for a probationary term of eight months. The Commission found that Mr. Crawford had failed to fulfill his responsibilities as principal broker of a licensed real estate corporation and had allowed the firm to engage in real estate activities without the supervision of a designated broker-in-charge.

SAMUEL L. CUNNINGHAM (La Grange) - By Consent, the Commission revoked Mr. Cunningham's broker license effective March 15, 1993. Mr. Cunningham will be issued a salesman license upon completion of an application and payment of the appropriate fee. On March 15, 1994, Mr. Cunningham will be issued a broker license upon fulfillment of various conditions. The Commission found that Mr. Cunningham had engaged in the unauthorized practice of law by drafting portions of an option contract and other contracts, had failed to maintain trust monies in a trust or escrow account, had failed to return an earnest money deposit for a period of one year even though it was not in dispute, and had failed to retain adequate trust account records in accordance with the License

Law and Commission rules and in such a manner as to create a clear audit trail.

BOBBY L. FERGUSON (Jacksonville)

The Commission suspended Mr. Ferguson's broker license for one year effective September 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 Mr. Ferguson had arranged for the buyers in a V.A.financed loan to pay discount points in violation of V.A. regulations, and had allowed contracts under his control to be altered without authorization from the parties. (Although this matter was originally heard by the Commission in 1985, publication of disciplinary action was delayed because the case has been under repeated appeal by Mr. Ferguson to the Wake County Superior Court. The Court upheld the Commission's final decision in the case, and the Commission's sanction was imposed upon the final expiration of all appeal periods.)

BRUCE F. HARRIS, SR. (Burlington) By Consent, the Commission suspended Mr. Harris' broker license for six months effective April 1, 1993. The Commission then stayed its Order for a probationary term of six months. The Commission found that Mr. Harris had negotiated on behalf of the property owners to sell a lot in a subdivision which was not approved by municipal authorities, and had allowed the use of an offer to purchase which was prepared on a contract form which did not comply with Commission rules.

JOYCE W. HOLLAND (Cary) - By Consent, the Commission suspended Ms. Holland's broker license for six months. One month of the suspension is to be active and the remaining period stayed. The Commission found that Ms. Holland had failed to adequately investigate problems with the septic system of a residential property which she had listed and to disclose any resulting information to the buyer. Ms. Holland was aware that the property had previously been used as a family care home, but that such use was discontinued because of problems with the septic tank. The Commission noted that Ms. Holland had included a condition on the contract that the home meet all requirements for group home use.

LESLIE B. JACKSON (Chapel Hill) The Commission revoked Ms. Jackson's broker license effective December 23, 1992, for failing to disclose a well's material defects to buyers and for misrepresenting the condition of the well

on property which she personally owned and had listed for sale with her company.

ROBIN A. KENNEDY (Apex) - By Consent, the Commission suspended Ms. Kennedy's salesman license for three years effective February 1, 1993. The Commission found that Ms. Kennedy had failed to properly account for or remit to her broker-in-charge a cash earnest money deposit she received from buyers in connection with their offer to purchase property and had failed to refund the money or otherwise account for it when the buyers' offer was not accepted. The Commission noted that Ms. Kennedy's broker-in-charge subsequently refunded the money to the buyers.

C. WAYNE KINSER (Asheville) - By Consent, the Commission suspended Mr. Kinser's broker license for two years effective March 15, 1993. Upon proof of his release from the probation imposed by a U.S. District Court in connection with his criminal conviction, any remaining period of suspension by the Commission shall be stayed for a probationary term. The Commission found that Mr. Kinser had been convicted of a criminal offense; namely, making illegal payments to a bank officer.

JAMES E. KNOWLES, II (Charlotte) By Consent, the Commission revoked Mr. Knowles' broker license effective January 6, 1993. The Commission found that Mr. Knowles had failed to deposit and maintain rents in a trust or escrow account, and had failed to maintain adequate trust account records or to promptly make those records available for inspection by the Commission's investigator.

KIMBERLY A. MCDANEL (Duck) The Commission suspended Ms. McDanel's salesman license for one year effective March 1, 1993. The Commission then stayed its Order for a probationary term of one year. The Commission found that Ms. McDanel had engaged in real estate activities without the supervision of the brokerin-charge at the licensed real estate corporation where she was employed, had failed to properly account for and remit trust monies she collected and had converted trust monies to the corporation's use at the direction of the unlicensed owner of the corporation.

JOHN GRAY B. MYERS, III (Duck) The Commission suspended Mr. Myers' broker license for one year effective March 1, 1993. The Commission then stayed its Order for a probationary term of one year. The Commission found

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that Mr. Myers, as broker-in-charge of the office of a licensed real estate corporation, had failed to deposit and maintain trust monies in a trust or escrow account and had failed to keep adequate records and to reconcile rental trust account records to bank records on a monthly basis, which led to a shortage in the corporation's trust account. The Commission noted that the unlicensed owner of the corporation subsequently replaced the missing funds and that Mr. Myers subsequently updated the trust account records and repaid all funds due to property owners.

ARTHUR H. PATELOS (Goldsboro) By Consent, the Commission suspended Mr. Patelos' broker license for 90 days. The Commission then stayed its Order for a probationary term of one year upon condition that Mr. Patelos complete the Commission's Trust Account Short Course prior to May 1, 1993. The Commission found that Mr. Patelos, while employed as a property manager and broker-in-charge at a real estate firm, had failed to maintain proper trust or escrow account records, had failed to properly reconcile trust account records to bank records, and had allowed a shortage to occur in the firm's trust account. The Commission noted that after an independent audit revealed the shortage, Mr. Patelos replaced the missing funds.

ROBERT P. PROCTOR (Atlantic Beach) - The Commission accepted the permanent voluntary suffender of Mr. Proctor's broker license effective March 18, 1993, and dismissed without prejudice charges that Mr. Proctor had failed to properly maintain and account for trust monies he collected in his brokerage business. Mr. Proctor neither admitted nor denied any misconduct.

CATHERINE S. RUIZGOUBERT (Virginia Beach, VA) - By Consent, the Commission suspended Ms. Ruizgoubert's salesman license for two years effective April 1, 1993. Ninety days of the suspension are to be active and the remaining period stayed for a probationary term of two years. The Commission found that Ms. Ruizgoubert, as a rental manager and bookkeeper at a licensed real estate corporation, had failed to properly account for and remit rental proceeds in a timely manner. The Commission noted that Ms. Ruizgoubert did not convert trust monies to her personal use.

A SUN COAST COMPANY REALTY, INC. (Virginia Beach, VA) - By Consent, the Commission revoked the corporate real estate broker license of A Sun Coast Company Realty, Inc. effective March 10, 1993. The Commission found that the corporation, while engaging in property management, had failed to deposit and maintain trust monies in a trust or escrow account, had failed to keep adequate records of the funds it collected and had failed to properly account for and remit trust monies to its clients and tenants.

CHARLOTTE K. WELLS (Charlotte) By Consent, the Commission suspended Ms. Wells' broker license for six months effective February 10, 1993. Seventy 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. Wells had procured a notary acknowledgment to a deed knowing that the grantor had not signed the deed in the notary's presence.

JERRY S. WRIGHT, JR. (Kitty Hawk) - By Consent, the Commission suspended Mr. Wright's broker license for three years. Upon proof of his release from the probation imposed by a U.S. District Court in connection with his criminal conviction, any remaining period of suspension imposed by the Commission shall be stayed for a probationary term. The Commission found that Mr. Wright had been convicted of a criminal offense; namely, falsifying statements on a loan application.