Disciplinary Action

The Real Estate Licensing Board revoked the broker's license of J. EDWARD SWICEGOOD, JR., of Lexington, who sold several families houses on "land contracts" or installment sale contracts. The purchasers made monthly payments on the land contracts to Swicegood for several years, without knowing that Swicegood had subsequently mortgaged the properties. Swicegood then defaulted on his loans that were secured by the properties being sold under land contract. The Board also found that Swicegood made false statements to the lending institutions to obtain said loans.

The Licensing Board revoked the broker's license of WILLIAM E. LEWIS of Winston-Salem for converting trust funds to his own use. The Board found that Lewis sold a house listed with him and deposited the sale proceeds in his operating business account rather than a trust account. Lewis then spent the proceeds and was unable to account to the seller until immediately prior to the Board's hearing.

The Licensing Board by Consent Order revoked the broker's license of GRADY PERKINS of Raleigh. Perkins did not contest allegations that he commingled his principals' funds with his own, failed to deposit funds of others in an escrow account, prepared false closing statements, converted his principals' funds to his own use and failed to keep proper records.

The Licensing Board revoked the broker's license of W TERRY McGOVERN of Kill Devil Hills for converting trust funds to his own use. A random audit by the Board's Trust Account Auditor detected a shortage in McGovern's escrow account of over $68,000. The Board found that McGovern had accepted numerous advance rental deposits on resort properties managed by him, and had used these deposits to finance a time-sharing project he was building.

The Licensing Board suspended the broker's license of FENTON H. HARRIS of Jacksonville for 60 days for issuing checks drawn on his escrow account that were returned for insufficient funds, and for failing to keep proper trust account records. Harris failed to deposit all rent receipts in a trust account. The Board also ordered Harris and his bookkeeper to take the Board's Trust Account Course.

The Licensing Board reprimanded broker MILDRED Y. JEWELL of Sanford for failing to verify that one of her listings had an electric heat pump. The house actually had another type of heating unit. The buyers purchased the house based on the statement in the MLS listing that the house had a heat pump. The buyers were compensated by Mrs. Jewell's former broker's errors and omissions insurance carrier.