Disciplinary Action

Penalties for violations of the Real Estate License Law and Commission Rules vary impending upon the particular facts and circumsiances 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.

EDYTHE L. ALLISON (Durham) - By Consent, the Commission reprimanded Ms. Allison effective March 16, 1992, for failing to deposit earnest money into her firm's trust account within three banking days following acceptance of an offer, as required by Commission rule.

BARRIER ISLAND STATION, INC. (Duck) - By Consent, the Commission fined Barrier Island Station, Inc., developer of the time share project Barrier Island Station, $30,000 effective April 10, 1992. The Commission found that the developer had conducted a sales promotion program in which inaccurate odds of winning the prize were published, had not awarded the prize on the date advertised, and had not properly supervised the employees and agents who administered the contest and related advertising. The Commission noted that Barrier Island Station, Inc., subsequently awarded the prize and reformed its procedures to avoid a repetition of these problems.

SUSAN M. BATTON (Carolina Beach) By Consent, the Commission suspended Ms. Barton's broker license for two years effective June 1, 1992. The Commission found that Ms. Batton, while employed by an unlicensed corporation, had failed to properly manage rental funds as required by law and Commission rule. Ms. Batton neither admitted nor denied any misconduct.

NORMAN F. BECK (Whiteville) - By Consent, the Commission reprimanded Mr. Beck effective May 15, 1992, for using an offer to purchase and contract form which did not comply with Commission rule and for failing to obtain the buyer's signature on the purchase contract.

BETTY J. BURKETT (Fayetteville) - By Consent, the Commission suspended Ms. Burkett's salesman license for 90 days effcctive June 1, 1992. The Commission then stayed its Order for a probationary term of one year. The Commission found that Ms. Burkett had obtained a notary public's acknowledgement of a seller's signature on two documents which she knew had not been signed in the presence of the notary public. The seller subsequently repudiated the signature on both documents.

BETTY H. CARTER (Greensboro) - By -lonsent, the Commission reprimanded Ms. .:=cr effective March 16, 1992, for allowing a salesman under her supervision to act as a real estate salesman and receive commissions after his license had expired.

CAREY L. CHAPPELL (Goldsboro) By Consent, the Commission suspended Mr. Chappell's broker license for 18 months effective April 15, 1992. The Commission then stayed its Order for a probationary term of 18 months on the condition that he complete the Trust Account Short Course by July 1, 1992. The Commission found that Mr. Chappell had failed to deposit trust monies in a trust or escrow account, had failed to keep accurate records of funds he collected, and had allowed a shortage to accrue in his trust account.

COASTAL HORIZONS REALTY & CONSTRUCTION, INC. (Kitty Hawk) The Commission accepted the voluntary surrender of the corporate real estate broker license of Coastal Horizons Realty & Construction, Inc., for a period of three years effective June 1, 1992. The Commission dismissed without prejudice charges that the corporation had converted trust monies to its own use.

DAVID A. COOK (Chapel Hill) - By Consent, the Commission revoked Mr. Cook's salesman license effective March 26, 1992. The Commission found that Mr. Cook, 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 he collected, and had converted trust monies to his own use.

THOMAS C. COOPER (Wilmington) By Consent, the Commission revoked Mr. Cooper's broker license effective April 1, 1992. The Commission found that Mr. Cooper had failed to deposit and maintain trust monies in a trust or escrow account and had failed to account for and remit the funds collected in his real estate brokerage business. Mr. Cooper neither admitted nor denied any misconduct.

DUNBAR REALTY & INSURANCE Co. (Durham) - By Consent, the Commission suspended the corporate real estate broker license of Dunbar Realty & Insurance Co. for three years effective! April 15, 1992. The Commission then stayed its Order for a probationary term of three years on condition that it correct the trust account violations and bookkeeping practices which led to suspension of its license. The Commission found that Dunbar Realty & Insurance Co. had failed to keep adequate records of trust monies and had commingled those monies with corporate fimds, but noted that no shortage or misapplication of trust monies was discovered.

LESLIE D. FERGUSON (Waynesville) By Consent, the Commission suspended Mr. Ferguson's broker license for 18 months effective May 1, 1992. The Commission then stayed its Order for a probationary term of 18 months. The Commission found that Mr. Ferguson had prepared a contract which did not accurately reflect the agreement between the parties in a real estate transaction and also had defaulted on his promise to pay a portion of the buyer's interest on a purchase money note to the seller until the buyers sued Mr. Ferguson and obtained a judgment. Mr. Ferguson subsequently paid the judgment and resolved his dispute with the seller.

FLUHART, INC. (Carolina Beach) - By Consent, the Commission revoked the corporate real estate broker license of Fluhart, Inc., effective April 1, 1992. The Commission found that the corporation had failed to deposit and maintain in a trust or escrow account all rents received on properties that it managed for others and had failed to keep adequate records of the receipt and disbursement of those funds. The Commission also found that Fluhart, Inc., had issued checks drawn on its trust account which were returned unpaid due to insufficient funds and had failed to make complete trust account and transaction records available for inspection by the Commission's auditor.

JOHN G. FLUHART (Carolina Beach) By Consent, the Commission suspended Mr. Fluhart's broker license for two years cffective April 1, 1992. The Commission found that Mr. Fluhart, as a property manager, had failed to deposit and maintain all trust monies in a trust or escrow account and had failed to account for and remit the trust funds he collected. The Commission also found that Mr. Fluhart had issued checks drawn on his corporation's trust account which were returned unpaid due to insufficient fiinds, and had failed to make complete trust account and transaction records available for inspection by the Commission's auditor.

WILLIAM TED GOSSETT (Raleigh) The Commission accepted the voluntary surrender of Mr. Gossett's broker license for three years cffective April 1, 1992. The Commission dismissed without prejudice charges that Mr. Gossett had failed to deposit and maintain trust monies in a trust or escrow account and had converted trust monies to his own use. Mr. Gossett neither admitted nor denied any misconduct.

MARK P. GUSTAFSON (Chapel Hill) By Consent, the Commission suspended Mr. Gustafson's broker license for two years effective June 1, 1992. The Commission found that Mr. Gustafson, as a property manager, had failed to deposit and maintain trust monies in a trust or escrow account, had failed to account for and remit collected fiinds to the property owner, and had failed to make available adequate records of his handling and accounting of trust funds for inspection by the Commission's auditor. Mr. Gustafson subsequently paid to the property owner all unremitted funds.

EDWARD M. HARRINGTON (Greensboro) - By Consent, the Commission suspended Mr. Harrington's broker license for three years effective April 15, 1992. Eighteen months of the suspension are to be active and the remaining period stayed for a probationary term of 18 months. The Commission found that Mr. Harrington had been convicted of the federal offense of bank fraud.

JACK A. HELTON, II (Morganton) By Consent, the Commission suspended Mr. Helton's broker license for 18 months effective June 1, 1992. Nine 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. Helton, while employed as broker-in-charge of a rental management firm, had failed. to adequately supervise unlicensed bookkeeping employees which resulted in trust account violations including failure to properly remit trust monies, failure to keep adequate trust account records, and apparent shortages in the firm's escrow account.

LEIGH E. HOBBS (Wrightsville Beach) - By Consent, the Commission suspended Ms. Hobbs' broker license for six months
effective May 12, 1992. Forty-five days of . suspension arc to be active and the remaining period stayed for a probationary term of one year. The Commission found that Ms. Hobbs, while acting as the purchaser in two real estate transactions, had used a sales contract-and closing statements in which the sales prices of the properties were inflated and had falsely indicated that earnest money deposits and cash payments had been made to the seller outside of the closings.

ARTHUR R. HOLLOMAN (Greenville) - By Consent, the Commission revoked Mr. Holloman's broker license effective May 18, 1992. The Commission found that Mr. Holloman had Ued to deposit and maintain trust monies from his property management business in a trust or escrow account, had commingled the funds of others with his firm's funds, and had converted trust monies to his own use. The Commission also found that Mr. Holloman had failed to properly account for and remit trust monies within a reasonable time, had failed to maintain adequate records, and had issued a security deposit refund check that was returned unpaid due to insufficient funds.

PEGGY S. HOLLOWAY (Durham) By Consent, the Commission suspended Ms. Holloway's broker license for six months effective May 15, 1992. The Commission then stayed its Order for a probationary term of six months on the condition that Ms. Holloway replace the $2000 earnest money which she had removed from her trust account without authorization when a real estate transaction had failed to close. The Commission found that Ms. Holloway, who was acting as both real estate agent and seller, had failed to deposit the earnest money into her trust account within three banking days following acceptance of the offer as required by Commission rule, and had failed to maintain adequate records of the transaction.

BERNICE H. INGRAM (Durham) The Commission accepted the voluntary surrender of Ms. Ingram's broker license for one year effective April 15, 1992, and dismissed without prejudice charges that Ms. Ingram had failed to maintain trust account records as required by Commission rule.

KENWYN N. JOHNSON (Laurinburg) - By Consent, the Commission reprimanded Mr. Johnson effective March 26, 1992, for failing to provide the purchaser of a subdivision lot developed by Mr. Johnson with a street disclosure statement as required by law.

JERRY W. JOLLY (Banner Elk) - The Commission revoked Mr. jolly's time share project registration effective March 15, 1992. The Commission found that Mr. Jolly, developer of Beech Manor, had contracted to sell time shares aficr the expiration of his time share registration. The Commission also found that Mr. Jolly had failed to record lien-free time share instruments and to deliver tides to buyers in two transactions as required by law.

SUE A. KEMPER (Charlotte) - By Consent, the Commission revoked Ms. Kemper's broker license effective April 1, 1992. The Commission granted a real estate salesman license to her effective May 1, 1992. On May 1, 1993, Ms. Kemper may apply to the Commission for reinstatement of her broker license without examination, but subject to Commission review. The Commission found that Ms. Kemper had induced a purchaser to buy property by promising to buy the purchaser's property. After the transaction closed, Ms. Kemper defaulted on her obligations to make payments on the loan she assumed from the purchaser, and on a second loan made by the same purchaser. The Commission noted that Ms. Kemper subsequently paid off the second loan, but the purchaser remains liable for the repayment of the first loan.

ELLIOT L. LAMBERT (Greensboro) By Consent, the Commission suspended Mr. Lambert's broker license for one year effective August 1, 1992. Thirty days of the suspension arc to be active with the remaining period stayed for a probationary term of

I I months. The Commission found that Mr. Lambert, while engaging in property management, had failed to deposit and maintain a tenant security deposit in a trust or escrow account, had failed to refimd or account for the security deposit and had failed to pay a court-ordered judgment for the return of the security deposit. The Commission also found that Mr. Lambert had failed to maintain records sufficient to verify the adequacy and proper use of his trust account and had allowed a shortage to accrue in his account. The Commission noted that Mr. Lambert has subsequently established trust account records that comply with Commission rules and has placed funds in the account to equal his liability for the fiinds of others.

LAMBERT REALTY COMPANY, INC. (Greensboro) - By Consent, the Commission suspended the corporate real estate broker license of Lambert Realty Company, Inc., for one year effective August 1, 1992. Thirty days of the suspension are to be active and the remaining period stayed for a probationary term of I I months. The Commission found that the corporation had failed to keep adequate trust account records, including ledgers and journals, and had allowed a shortage to accrue in its trust account. The Commission noted that Lambert Realty Company, Inc., has subsequently established trust account records which comply with Commission rule and has placed fiinds in the trust account to equal its liability for the funds of others.

MARGARET S. MAHAFFEY (Greensboro) - The Commission suspended Ms. Mahaffey's broker license for four years effective May 11, 1992. The Commission found that Ms. Mahaffey had failed to deposit and maintain trust monies in a trust or escrow account, had failed to account for and remit trust monies in her possession, and had commingled trust monies with her own funds. The Commission also found that Ms. Mahaffey had f2Acd to adequately supervise an unlicensed employee and had failed to make records available for inspection by the Commission's auditor. '

ANITA G. MCBRIDE (Fayetteville) The Commission revoked Ms. McBride's broker license effective May 11, 1992, for misrepresenting the monies she received and remitted in connection with her managemerit of rental property. The Commission found that Ms. McBride had failed to deposit and maintain trust monies in a trust or escrow account, had failed to provide copies of a lease agreement to all parties in the transaction, had failed to make and retain adequate trust account records, and had failed to make those records available for inspection by the Commission's auditor.

SANDRA B. MCMILLAN (Whiteville) By Consent, the Commission reprimanded Ms. McMillan effective May 15, 1992, for preparing an offer to purchase on a form Which did not comply with Commission rule and for failing to obtain all necessary signatures on the form.

WILLIAM J. MOORE (Charlotte) -The Commission revoked Mr. Moore's broker license effective February 28, 1992. The Commission found that Mr. Moore had Wed to deposit and maintain trust monies in a trust or escrow account, had failed to account for and remit security deposits within a reasonable time, and had failed to notify the Commission in writing of his change of business and residence addresses.

ROBERT S. NEAL (Chapel Hill) - By Consent, the Commission suspended Mr. Neal's broker license for 50 days effectivc June 15, 1992, followed by two years' probation for acting as a real estate broker while his real estate license was under active suspension. The Commission also found that Mr. Neal had allowed an employee of his firm to engage in real estate brokerage sales vftcr her salesman license had expired.

OCKULY ENTERPRISES, INC. Gacksonville) - By Consent, the Commission -reprimanded Ockuly Enterprises, Inc., effective June 1, 1992. The Commission found that the corporation had failed to promptly post trust account transaction entries to individual ledgers or to the general journal, and had accumulated an overage of funds in its trust account. The Commission noted that the corporation subsequently traced the overage and disbursed it.

NORA J. OCKULY (Jacksonville) - By Consent, the Commission reprimanded Ms. Ockuly effective June 1, 1992. The Commission found that Ms. Ockuly, as principal broker and broker-in-charge of a corporation, had failed to post trust account transaction entries to individual ledgers or to the general journal promptly, and had accumulated an overage of funds in the corporation's trust account. The Commission noted that Ms. Ockuly subsequently traced the overage and disbursed it.

PIEDMONT HOMES, INC. (Greensboro) - The Commission revoked the corporate real estate broker license of Piedmont Homes, Inc., effective May 11, 1992. The Commission found that the corporation had failed to deposit and maintain trust monies in a trust or escrow account, had failed to account for and remit trust monies in its possession, and had commingled trust monies with the corporation's funds. The Commission also found that the corporation had failed to adequately supervise an unlicensed employee, and had failed to make records available for inspection by the Commission's auditor.

JAMES A. POLLARD (Benson) - By Consent, the Commission reprimanded Mr. Pollard effective March 12, 1992. The Cornmission found that Mr. Pollard, while acting as the buyer in a real estate transaction, had failed to advise the seller that his purchasemoney deed of trust had not been recorded. Mr. Pollard subsequently recorded other deeds of trust which also used the property as security and which took priority over his obligation to the seller. When Mr. Pollard's personal residence on the property subsequently burned, he used his insurance proceeds to pay the other indebtedness against the property, but did not pay any further monies to the seller.

BONNIE J. ROUSSEAU (Cary) - By Consent, the Commission reprimanded Ms. Rousseau effectivc May 14, 1992. The

Commission found that Ms. Rousseau had used a standard offer to purchase and contract form as a "Iease/purchasc option," a purpose for which the form was not designed, had prepared an addendum which constituted the drafting of a legal instrument and, therefore, the unauthorized practice of law, and had failed to sign the document to signify her receipt of the earnest money from the buyers.

SUGAR SKI RESORT, INC. (Banner Elk) - The Commission accepted the permanent voluntary surrender of the corporate real estate broker license of Sugar Ski Resort, Inc., effective March 1, 1992. The Commission dismissed without prejudice charges that Sugar Ski Resort, Inc., had failed to supervise unlicensed bookkeeping employees, had failed to maintain trust account records in compliance with Commission rule, had failed to remit nun monies within a reasonable time, and had apparently allowed shortages to accrue in the corporation's trust account.

ANNA B. WHITENER (Raleigh) - By Consent, the Commission reprimanded Ms. Whitener effective April 10, 1992, for depositing earnest money into an account which was not properly designated as a trust or escrow account and for commingling trust monies with her own funds.

BOBBY G. WRENN (Fayetteville) - By Consent, the Commission suspended Mr. Wrenn's salesman license for 90 days effective June 1, 1992. The Commission then stayed its Order for a probationary term of one year. The Commission found that Mr. Wrenn, while acting as a notary public, acknowledged a seller's signature on documcnts which were not signed in his presence. The seller subsequently repudiated the signature on both documents