Disciplinary Action

The Real Estate Licensing Board revoked the broker's license of BETTY L. PARSONS of West Jefferson for converting trust funds to her own use and failing to deposit same in a trust account. The Board found that Mrs. Parsons collected almost $8,000 from prospective purchasers on a transaction that never closed, and failed to return same on demand. The Board also found that Mrs. Parsons prepared forged bank statements in an attempt to deceive the Board's Trust Account Auditors into believing that the funds were still in her trust account.

The Licensing Board revoked the broker's license of MILDRED B. RUSSELL of Albemarle for forging the signature of a property owner to a document guaranteeing payment of the electric bill of one of her clients.

The Licensing Board revoked the broker's license of PATRICIA M. WATSON of Southern Pines for embezzling funds from the trust account of the real estate office where she was employed as a bookkeeper. Mrs. Watson's employing broker voluntarily made up the shortages caused by her theft.

The Licensing Board revoked the broker's license of RAYMOND L. WALKER, JR., of Chapel Hill for failing to account to property owners for rent income he collected on their behalf.

The Licensing Board suspended the broker's license of KENT C. HADLOCK of Maggie Valley for one year for acquiring an interest in his principal's property without the knowledge or informed consent of the seller. The Board's action was originally taken in December of 1981, but was stayed while Mr. Hadlock appealed to Wake County Superior Court. He recently withdrew the appeal

The Licensing Board suspended the broker's license of MARVIN E. MINTON of Nags Head for one year for converting trust funds to his own use and failing to deposit in a trust account all funds of others received by him as agent. The Board's Trust Account Auditor found that Mr. Minton withdrew funds from his company's escrow account as "commissions" which had not been earned by him. The Board further found that Mr. Minton had made up all shortages in his trust account at the time of the hearing, and had employed a competent bookkeeper. Accordingly, after Mr. Minton served 30 days of the one year suspension, the Board suspended its order and placed Mr. Minton on probation for five years, on condition that he not violate the Real Estate License Law and that he take the Board's trust account course offered by the auditing staff.

The Licensing Board suspended the broker's license of WILLIAM C. SPANN of Chapel Hill for one year for converting trust funds to his own use. The Board found that Mr. Spann had "borrowed" funds from his escrow account or withdrawn same as "commissions" before they were earned.

The Licensing Board suspended the broker's license of VERLENE D. WRIGHT of Gastonia for one year for encouraging and assisting a purchaser to furnish false information to a mortgage lender and to the Veterans Administration. The buyers had decided not to purchase the property, but Mrs. Wright encouraged them to take title to the property so that she could resell it. The buyers falsely represented that they intended to occupy the property as owners. The Board further ruled that after Mrs. Wright's license was suspended for 60 days, the sentence would be suspended and the remainder served on probation, on condition that she use her best efforts to re~tore the. VA eligibility of the borrowers,' take 'additional real estate education, and not violate any othL~F ~rovision of the License Law.

The Licensing Board suspended the broker's license of L. DOUGLAS BLACK of Gastonia for one year for encouraging and assisting the same purchasers to furnish false information to the mortgage lender and the Veterans Administration. The Board suspended its order and placed Mr. Black on probation for one year, on condition that he use his best efforts to restore the VA eligibility of the borrowers, take additional real estate education, and not violate the License Law during the probationary period.

The Licensing Board suspended the broker's license of RICHARD C. CHAPMAN of Sanford for six months for selling his principals' house to financially unqualified purchasers. The sellers never collected a penny on their second mortgage, which was wiped out when the purchasers declared bankruptcy and their first mortgage was foreclosed. The Board further ordered Mr. Chapman to make financial restitution to the sellers in the amount of the second mortgage, plus interest.

The Licensing Board suspended the broker's license of ELAINE 0. JOHNSON of Wallace for one year for disbursing an earnest money deposit to the seller, knowing that the buyer felt she was entitled to said funds. Mrs. Johnson thereby violated the Board's regulation requiring a broker to retain disputed deposits in a trust account until the matter is resolved by litigation or compromise. Mrs. Johnson also improperly recorded a listing contract to enforce her claim for a commission, creating a cloud on the title. The Board further found that Mrs. Johnson failed to have all parties to the transaction properly fill out the contract of purchase. Feeling that Mrs. Johnson's actions were a result of ignorance and carelessness rather than a deliberate intent to defraud any party, the Board suspended its order and placed Mrs. Johnson on probation for two years. The Board further ordered Mrs. Johnson to repay the disputed earnest money deposit to the buyer, release her from the listing contract, and take a 90-hour broker's pre-licensing course.