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.

JAMES C. ADAMS, JR. (Hickory) By Consent, the Commission suspended Mr. Adams' broker license for 12 months effective February 16, 1994. The Commission then stayed its Order for a probationary term of 12 months. The Commission found that Mr. Adams had engaged in commercial real estate brokerage for three and a half years after his real estate license had expired. The Commission noted that Mr. Adams had applied for reinstatement of his license upon discovering that it had expired, and that he had cooperated fully with the Commission's inquiry into the matter.

BERKELEY RESORTS MANAGEMENT CORP. (Banner Elk) - By Consent, the Commission reprimanded Berkeley Resorts Management Corp. effective April 1, 1994. The Commission found that the corporation had conducted its real estate brokerage operations for over four years without the actual supervision of a designated broker-in-charge at all times and had operated at times when there was no principal broker. Berkeley Resorts Management Corp. neither admitted nor denied any misconduct. The Commission noted that the corporation had cooperated with the Commission's investigation.

ERICK R. BOWEN (Gastonia) - By Consent, the Commission suspended Mr. Bowen's salesman license for three years and six months effective April 3, 1994. Two years and five months of the suspension are to be active and the remaining period stayed for a probationary term of one year and one month upon condition that, by the end of his active suspension, he has been released from supervised probation in connection with his criminal convictions. The Commission found that Mr. Bowen had been convicted of assault,

JOSEPH J. CHESSON (Wilson) - By Consent, the Commission suspended Mr. Chesson's broker license for one year effective February 10, 1994. Two months of the suspension are to be active and the remaining period stayed for a probationary term of one year. The Commission found that Mr. Chesson, while broker-in-charge of a real estate firm, had purchased a property listed by the firm at a price significantly below the list price and subsequently resold the property at a profit without adequately disclosing his role in the transaction to the firm's seller-client. The Commission noted that Mr. Chesson also entered into a settlement of the client's civil claims against him.

THE CHESSON AGENCY, INC. (Wilson) - By Consent, the Commission suspended the corporate real estate broker license of The Chesson Agency, Inc. for one year effective February 10, 1994. The Commission then stayed its Order for a probationa~y term of one year. The Commission found that representatives of The Chesson Agency, Inc. had failed to disclose to the firm's seller-client that the broker-in-charge, with the assistance of other agents in the firm, had purchased a property listed by the firm at a price significantly below the list price and subsequently resold the property at a profit without adequately disclosing his role in the transaction to the firm's seller-client. The Commission noted that the parties also entered into a settlement of the client's civil claims against them.

DEBRA A. COHEN (Banner Elk) By Consent, the Commission reprimanded Ms. Cohen effective April 1, 1994. The Commission found that Ms. Cohen had signed forms designating herself as project broker and broker-in-charge of a North Carolina time share project with two salesmen under her super-vision while residing in Florida. The Commission further found that Ms. Cohen had no intention of being physically present in North Carolina and that while she remained in Florida, three time share sales were made at the North Carolina project by salesmen who were supposed to be under her personal supervision.

TED M. DAVIS (Wilmington) - By Consent, the Commission revoked Mr. Davis' broker license effective April 1, 1994. The Commission found that Mr. Davis, as broker-incharge of a licensed real estate corporation, had failed to maintain all trust monies in a trust or escrow account. Mr. Davis neither admitted nor denied any misconduct.

TED M. DAVIS & ASSOCIATES, INC. (Wilmington) - By Consent, the Commission revoked the corporate real estate broker license of Ted M. Davis & Associates, Inc. effective April 1, 1994. The Commission found that the corporation had failed to maintain all trust monies in a trust or escrow account. Ted M. Davis & Associates, Inc. neither admitted nor denied any misconduct.

TERRY E. GARRISON (Henderson) - By Consent, the Commission suspended Mr. Garrison's broker license for six months effective April 15, 1994. The Commission then stayed its Order for a probationary term of two years. The Commission found that Mr. Garrison had allowed a shortage to occur in his trust account due to the failure of his unlicensed bookkeeper to collect the rent and to deposit rental funds into the trust account, and that although Mr. Garrison became aware of the shortage within six months after it occurred, he took no steps to rectify it for another year. The Commission further found that Mr. Garrison, as broker-in-charge of a property management company, had failed to cause the funds of others to be deposited and maintained in a trust or escrow account, had failed to reconcile ledgers, journals and check stubs to bank statements on a monthly basis, and had failed to maintain adequate trust account records. The Commission noted that no property owner suffered any monetary loss as a result of the shortage, that Mr. Garrison subsequently covered the shortage in full by making a deposit into the trust account, and that he cooperated fully with the Commission's investigation.

HARVEY W. GOUCH (Charlotte) By Consent, the Commission reprimanded Mr. Gouch effective March 9, 1994. The Commission found that Mr. Gouch, in the operation of a mobile home park which he owned, had failed to maintain tenant security deposits in a trust or escrow account.

ALYCE FAYE GRANT (New Bern) - By Consent, the Commission reprimanded Ms. Grant effective March 10, 1994. The Commission found that Ms. Grant, as a real estate salesman, had advertised the square footage of a house inaccurately when she listed it for sale in the local Multiple Listing Service.

HASSELL M. HAIRSTON (Charlotte) - By Consent, the Commission suspended Mr. Hairston's broker license for 30 days effective January 1, 1994. The Commission found that Mr. Hairston, as a former partner and broker-in-charge of a real estate partnership, had failed, when the partnership dissolved, to transfer funds held by him in escrow to the company which was taking over the management of property owned by one of his former clients, even though the owner-client had requested the transfer in writing. The Commission noted that Mr. Hairston had transferred the escrow monies within two weeks after the owner-client had filed a complaint against him, but that he had failed to make his property management records available for inspection by the Commission. Mr. Hairston contended that the records inadvertently had been discarded when the partnership's office furniture was sold.

DAVID L. HARMAN (Graham) - By Consent, the Commission suspended Mr. Harman's broker license for three years effective February 15 , 1994. Eighteen 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. Harman had failed to disclose to certain purchasers of properties in a subdivision which his firm had listed that a major thoroughfare was proposed to be built directly abutting the subdivision which would extend over a nearby interstate. The Commission further found that Mr. Harman had answered inquiries about plans for the proposed road construction and extension by falsely representing that he was unaware of future road plans. Mr. Harman neither admitted nor denied any misconduct.

JOHN 1. HARRIS (Cary) - By Consent, the Commission suspended Mr. Harris' broker license for one year effective January 7, 1994. One month of the suspension is to be active and the remaining period stayed for a probationary term of eleven months. The Commission found that Mr. Harris had misrepresented the terms and conditions of a VA loan to a party in a 1983 real estate transaction in Kinston, North Carolina, and that as a result, the party was held liable when subsequent owners of the parties' property defaulted on the loan.

THE HIGHLANDS AT SUGAR RESORT, INC. (Banner Elk) - By Consent, the Commission fined The Highlands at Sugar Resort, Inc. $1,500 effective April 1, 1994. The Commission found that The Highlands at Sugar Resort, Inc. had allowed three time share sales at its registered time share project after the project broker had left the state of North Carolina. The Highlands at Sugar Resort, Inc. neither admitted nor denied any misconduct.

THOMAS G. HOLIAN (Kitty Hawk) - By Consent, the Commission suspended Mr. Holian's salesman license for two years effective March 15, 1994. The Commission then stayed its Order for a probationary term of two years. The Commission found that Mr. Holian had been disciplined by the North Carolina Licensing Board for General Contractors for ~umerous violations of state law, including obtaining building permits upon the false representation to county officials that he was a licensed contractor at times when his contractor license was expired. The Commission further found that Mr. Holian had admitted giving false statements, under oath, to the Board concerning judgments and liens against him on three separate license renewal applications.

THOMAS B. HUMINIK (Charlotte) By Consent, the Commission suspended Mr. Huminik's salesman license for twelve months effective June 1, 1994. Six months of the suspension are to be active and the remaining period stayed for a probationary term of one year. The Commission found that Mr. Huminik had made a false statement on his application for real estate licensure; namely, Mr. Huminik answered "no" to the application question regarding criminal convictions when, in fact, he had been convicted of the crime of smuggling goods into the United States.

SHERRY C. JONES (Asheville) - By Consent, the Commission reprimanded Ms. Jones effective April 15, 1994. The Commission found that as broker-in-charge of a real estate firm, Ms. Jones had failed to ascertain that a broker associated with the firm had not renewed his license. As a result, the broker engaged in real estate brokerage for a .1 4-month period after the broker's license had expired.

THOMAS A. JONES (Asheville) By Consent, the Commission reprimanded Mr. Jones effective April 15, 1994. The Commission found that Mr. Jones had continued to engage in real estate brokerage for approximately 14 months after his license had expired.

ELLIOT L. LAMBERT (Greensboro) - By Consent, the Commission suspended Mr. Lambert's broker license for three years effective March 15, 1994. Nine months of the suspension are to be active and the remaining period stayed for a probationary term of two years and three months. The Commission found that Mr. Lambert had engaged in the unauthorized practice of law by drafting additional terms to a standard lease form, combining it with an option contract form, and using the forms for a purpose for which they were not designed and for which they are not properly used. The Commission further found that the option form contained a provision concerning payment of a commission on the transaction to Mr. Lambert's licensed real estate corporation. The Commission also found that Mr. Lambert had accepted from the tenants/buyers in the transaction approximately $2,500 which he falsely represented to them would be used to pay off their debts, had failed to deposit and maintain those funds in a trust or escrow account, and had failed to keep records of the receipt of the funds. The Commission noted that Mr. Lambert eventually repaid the funds to the tenants/buyers.

LAMBERT REALTY COMPANY, INC. (Greensboro) - By Consent, the Commission suspended the corporate real estate broker license of Lambert Realty Company, Inc. for three years effective March 15, 1994. Nine months of the suspension are to be active and the remaining period stayed for a probationary term of two years and three months. The Commission found that the corporation, through its president and principal broker, had engaged in the unauthorized practice of law by drafting additional terms to a standard lease form, combining it with an option contract form, and using the forms for a purpose for which they were not designed and for which they are not properly used. The Commission further found that the option form contained a provision concerning payment of a commission on the transaction to Lambert Realty Company, Inc. The Commission also found that the corporation's president and principal broker had accepted approximately $2,500 from the tenants/buyers in the transaction and that he had represented to them that he would use the funds to pay off their debts.

LARRY E. MCCORKLE (Charlotte) - By Consent, the Commission reprimanded Mr. McCorkle effective December 16, 1993. The Commission found that Mr. McCorkle, as a broker and a partner in a real estate partnership, had drafted a legal instrument by preparing a lease-purchase contract in which he adopted the standard "offer to purchase and contract" form and attached an addendum on which he drafted terms affecting the rights of the owners.

MARICIA T. MUSTIAN (Raleigh) By Consent, the Commission reprimanded Ms. Mustian effective April 18, 1994. The Commission found that Ms. Mustian, while licensed as a real estate salesman, had participated in collecting rent for property which she did not own and without the supervision of a broker-in-charge. The Commission noted that Ms. Mustian cooperated with its investigation and has since obtained her real estate broker license.

IVAN K. OWENS (Durham) - By Consent, the Commission suspended Mr. Owens' broker license for 18 months effective March 8, 1994. The Commission then stayed its Order for a probationary term of three years. The Commission found that in 1983, Mr. Owens had been convicted of a criminal offense; namely, the sale and delivery of cocaine.

JACK A. RAMSEY, JR. (Salisbury) The Commission accepted the permanent voluntary surrender of Mr. Ramsey's broker license effective January 1, 1994. The Commission found that Mr. Ramsey had been accused of conduct which, if proved, would provide the legal and factual basis for disciplinary action against him. The Commission dismissed without prejudice charges that Mr. Ramsey had violated provisions of the Real Estate License Law. Mr. Ramsey neither admitted nor denied any misconduct.

REALIZED VALUE, INC. (Graham) - By Consent, the Commission suspended the corporate real estate broker license of Realized Value, Inc. for three years effective February 15, 1994. Eighteen months of the suspension are to be active and the remaining period stayed for a probationary term of eighteen months. The Commission found that the corporation and its owner had failed to disclose to certain purchasers of properties in a subdivision which the corporation had listed for sale that a major thoroughfare was proposed to be built directly abutting the subdivision which would extend over a nearby interstate. The Commission further found that the corporation's representative had answered inquiries about plans for the proposed road construction and extension by falsely representing that he was unaware of future road plans. Realized Value, Inc. neither admitted nor denied any misconduct.

DAVID T. ROWE (Havelock) - By Consent, the Commission revoked Mr. Rowe's broker license effective April 15, 1994. The Commission found that Mr. Rowe, on certain occasions, had failed to deposit and maintain trust monies in a trust or escrow account and had instead deposited those funds into his operating account or otherwise converted them to his own use; had failed to keep records of 0 transactions or of receipts and disbursements of trust monies, including failure to keep transaction ledgers or journals; and had allowed a shortage to occur in his trust account. The Commission further found that a lack of knowledge regarding trust accounting procedures and disputes contributed to his improper disbursement of earnest monies to himself. Mr. Rowe neither admitted nor denied any misconduct.

THOMAS W. RUSSELL (Research Triangle Park) - By Consent, the Commission revoked Mr. Russell's broker license effective December 16, 1993. On March 15, 1994, Mr. Russell was issued a salesman license; on March 15, 1995, Mr. Russell will be eligible to apply for a broker's license without examination. The Commission found that Mr. Russell, as a broker associated with a licensed real estate corporation, had engaged in real estate brokerage and received commissions for a three-year period after his licensed had expired.

WOODROW S. SAFRIT (Calabash) The Commission accepted the permanent voluntary surrender of Mr. Safrit's broker license effective March 9, 1994. The Commission dismissed without prejudice charges that Mr. Safrit had violated the provisions of the Real Estate License Law and Commission rules pertaining to the handling of trust monies and trust account recordkeeping in various real estate transactions. Mr. Safrit neither admitted nor denied any misconduct.

ERIC J. SWANSON (Wilmington) The Commission revoked Mr. Swanson's broker license effective January 1, 1994. The Commission found that Mr. Swanson had been convicted of criminal offenses involving moral turpitude which could reasonably affect his performance in the real estate business; namely, conspiracy to distribute and possess with intent to distribute marijuana.

DAVID L. TURNER (Harrisburg) By Consent, the Commission suspended Mr. Turner's broker license for 90 days effective February 21, 1994. The Commission then stayed its Order for a probationary term of one year. The Commission found that Mr. Turner had agreed in his signed written contract of association with a real estate company that all listings were the property of the company and would remain there if he left the company. The Commission further found that he had subsequently advised nine sellers by letter that he was leaving the company' had advised them that the company would not have access to the local MLS system, and had offered them the opportunity to transfer their listings to his new firm. The Commission further found that Mr. Turner had received requests for transfer from all nine sellers and that he had prepared and submitted transfer forms to the MLS, all without the knowledge or consent of the owner of his former employing company. The Commission noted that Mr. Turner's new employer subsequently returned the listings to the former company.

GARY P. VICK (Wilson) - By Consent, the Commission revoked Mr. Vick's salesman license effective March 1, 1994. The Commission found that Mr. Vick had failed to disclose to the seller of property which he had listed that his broker-incharge had agreed to purchase the property in the stead of another salesman associated with the firm whose offer the seller had already accepted. The Commission also found that the broker-in-charge had entered into a contract to sell the property to a third party for more than the list price and failed to disclose this agreement to the seller. The Commission further found that at the urging of the salesman, Mr. Vick had induced the seller to reduce the price which the corporation had previously helped the seller establish. The Commission noted that after the seller filed a complaint, the parties had agreed to a settlement of her claims.

GAY D. WALDROP (Greenville) By Consent, the Commission suspended Ms. Waldrop's broker license for sixty days effective February 10, 1994. The Commission then stayed its Order for a probationary term of one year. The Commission found that Ms. Waldrop had engaged in the unauthorized practice of law by preparing an offer to purchase and contract which she attempted to modify for use as an option contract. The Commission further found that Ms. Waldrop had attached to the contract an addendum including seven separate paragraphs in which she addressed certain lease provisions, option provisions, use and refund of certain "option money," inspections, insurance, and taxes. The document which Ms. Waldrop prepared was subject to different interpretations and was not clearly drafted in its entirety.

WILTON M. WARNER, JR. (Elizabethtown) - By Consent, the Commission revoked Mr. Warner's broker license effective December 16, 1993. The Commission found that Mr. Warner, as principal broker and broker-in-charge of a licensed real estate corporation, had allowed a shortage to occur in the corporation's property management trust account. The Commission further found that the corporation's sales escrow account was overdrawn and that checks for client funds drawn on the account had therefore been returned unpaid by the bank due to insufficient funds. Mr. Warner neither admitted nor denied any misconduct.

WARNER INSURANCE AND REALTY (Elizabethtown) - By Consent, the Commission revoked the corporate real estate broker license of Warner Insurance and Realty effective December 16, 1993. The Commission found that Warner Insurance and Realty, through its principal broker and broker-in-charge, had allowed a shortage to occur in its property management trust account. The Commission further found that the corporation's sales escrow account was overdrawn and that checks for client funds drawn on the account had therefore been returned unpaid by the bank due to insufficient funds. Warner Insurance and Realty neither admitted nor denied any misconduct.

JEFFREY B. WILLIAMS (Clayton) The Commission revoked Mr. Williams' salesman license effective February 1, 1994. The Commission found that Mr. Williams had been convicted of a criminal offense involving moral turpitude which could reasonably affect his performance in the real estate business; namely, second degree murder. The Commission found that Mr. Williams had been driving a car at a high rate of speed while being pursued by police. The Commission further found that a passenger in Mr. Williams' car had shot and killed an innocent bystander while shooting at the police.

CLAYTON J. WOMACK (Greensboro) - The Commission revoked Mr. Womack's salesman license effective April 1, 1994. The Commission found that Mr. Womack had acted as a real estate salesman while his hcense was inactive due to his failure to file a Supervision of Salesman Notification form with the Commission and had continued to act as a salesman after his license had expired. The Commission further found that Mr. Womack had made false promises to refund monies collected in a real estate transaction.