Disciplinary Action

WILLIAM J BRINN (Lee County)—By Consent the Commission suspended Mr. Brinn's broker's license for four years effective September 15,1989. Two years of the suspension are to be active and two years on probation. The Commission found that during Mr. Brinn's tenure as Broker-ln-Charge of a licensed real estate corporation, unlicensed employees of the corporation had listed real estate for resale and had engaged in a pattern of deliberate misrepresentation concerning property sold by the corporation. The Commission also found that the corporation, through various employees, had engaged in a pattern or practice of discouraging sales to or purchases by members of recognizable minority groups. Mr. Brinn neither admitted nor denied any misconduct.

CAROLINA LAKES CORPORATION (Lee County) — By Consent, the Commission revoked the corporate real estate license of Carolina Lakes Corporation effective September 15, 1989. The Commission found that unlicensed employees of the corporation had listed real estate for resale and had engaged in a pattern of deliberate misrepresentation concerning property sold by the corporation. The Commission also found that the corporation, through various employees, had engaged in a pattern or practice of discouraging sales to or purchases by members of recognizable minority groups. The corporation neither admitted nor denied any misconduct.

WENDY L. (BAGBY) BROOKSHIRE (Lee County) — By Consent, the Commission suspended Ms. Brookshire's salesman's license for six months effective October 1,1989. The Commission then suspended its Order and placed Ms. Brookshire on probation for six months. The Commission found that Ms. Brookshire had acted as a real estate salesman with the understanding that her seller-principal intended to discriminate and did discriminate against prospective real estate purchasers because of their race, color, and national origin. Ms. Brookshire neither admitted nor denied any misconduct.

THOMAS P BROWN, JR. (New Hanover County) —The Commission revoked Mr. Brown's broker's license effective August 1,1989. The Commission found that Mr. Brown had failed within a reasonable time to remit or account for tenant security deposits, and had failed to maintain the funds of others on deposit in a designated trust account. The Commission also found that Mr. Brown had expended trust funds of owners on the debts and obligations of others, and had failed to keep records of trust funds and to provide such records to the Commissions agent upon request.

PATRICIA K. BURTON (Durham)—By Consent, the Commission revoked Ms. Burton's salesman's license effective August 16,1989. The Commission found that Ms. Burton had failed to remit rental monies to the owner.

JOHN M. CRAIG (Holder Beach)—By Consent, the Commission suspended Mr. Craig's broker's license for one year effective October L 1989. Two months of the suspension are to be active and one year on probation. The Commission found that Mr. Craig, as an officer of a corporate owner of a subdivision, caused a plat to the subdivision to be recorded showing an entrance road across a right-of-way to which there was no legal right of access. The Commission also found that this inaccurate plat had been used in the sale of lots in the subdivision until 1985 when an amendment to the plat was recorded showing a different right-of-way and a new entrance to the subdivision. Mr. Craig neither admitted nor denied any misconduct.

KENNETH W DUNCAN (Dare County)—The Commission suspended Mr. Duncan's broker's license for five years effective September 1, 1989. One year of the suspension is to be active and four years on probation. The Commission found that Mr. Duncan, as Broker-ln-Charge and Principal Broker of a licensed real estate corporation, had allowed unlicensed employees to prepare deeds in violation of law; had failed to properly maintain funds on deposit in an escrow account, applying such funds to the debts of the corporation; had failed to properly supervise certain unlicensed employees of the corporation, had commingled trust funds with the operating funds of the corporation; and had failed to maintain adequate records of his trust account transactions. The Commission also found that Mr. Duncan had failed to record lien-free time share instruments in the time allowed by law and to promptly pay those fees for legal services necessary to procure title insurance.

HENRY EILY (Roxboro)—By Consent, the Commission suspended Mr. Eily's brokers license for 18 months effective October 1 1989. Two months of the suspension are to be active and one year on probation on condition that Mr. Eily complete a Commission-approved Brokerage Operations Course. The Commission found that Mr. Eily had failed, within a reasonable time, to account for or to remit monies belonging to others and that he had commingled his personal property with the property of his principals. The Commission also found that Mr. Eily had failed to maintain sufficient records to verify the adequacy and proper use of his trust account. ~ ~

ROBERT T. FISHER (Chapel Hill)—By Consent the Commission accepted the voluntary surrender of Mr. Fisher's brokers license for three years effective October 1 1989 and dismissed without prejudice certain charges against Mr. Fisher alleging that he had failed to deposit and maintain rents and security deposits in a designated trust account, that he had failed to maintain adequate records of his rental brokerage business, and that he had supervised unlicensed persons who had performed acts for which a license was required.

R.T FISHER PROPERTIES, INC. t/a CAROLINA MANAGEMENT (Chapel Hill)—By Consent, the Commission accepted the voluntary surrender of the corporate real estate license of R.T Fisher Properties, Inc. for three years effective October 1 1989 and dismissed without prejudice certain charges against the corporation alleging that the corporation had failed to maintain adequate records of its rental brokerage business and that it had supervised unlicensed persons who had performed acts for which a license was required.

STEVEN B. FREE (Lee County)—By Consent, the Commission suspended Mr. Free's salesman's license for one year effective October 1,1989. The Commission then suspended its Order and placed Mr. Free on probation for one year The Commission found that Mr. Free had acted as a real estate salesman with the understanding that his seller-principal intended to discriminate and did discriminate against prospective real estate purchasers because of their race, colon and national origin. Mr. Free neither admitted nor denied any misconduct.

JAMES L. HUMPHRIES (Raleigh)—The Commission suspended Mr. Humphries' broker's license for one year effective October 1, 1989. Two months of the suspension are to he active and one year on probation. The Commission found that Mr. Humphries had misrepresented to a prospective purchaser certain restrictive covenants applicable to the property which the purchasers had proposed to buy and that he had failed to disclose to a lender the conflict between the restrictive covenants and the purchasers' intended use of the property Mr. Humphries appealed the commission's Order to the Wake County Superior Court which affirmed the Commission's Order on August 1, 1989.

HALE K.JOHNSON (New Hanover County)—By Consent, the Commission revoked Mr. Johnson's broker's license effective July 7 1989. The Commission found that Mr. Johnson had failed to account for and remit a security deposit to a property owner

WILLIAM R. LEWIS (Marion)—By Consent, the Commission suspended Mr. Lewis' salesman's license for one year effective August 9, 1989. The Commission found that Mr. Lewis had been convicted of a criminal offense involving moral turpitude which would reasonably affect his performance in the real estate business; namely, involuntary manslaughter.

LIFESTYLE HOMES, INC. (Dare County)—By Consent, the Commission fined Lifestyle Homes, Inc., developer of the time share project Golden Strand, $1,000 effective July 13,1989. The Commission found that Lifestyle Homes, Inc. had failed to file lien-free time share instruments in favor of consumer purchasers within the prescribed 45 days of the date of the purchasers' execution of the sales contract. The Commission noted that the corporation subsequently cleared title to the various time shares.

LIGHTHOUSE REALTY, INC. (Dare County)— The Commission suspended the corporate real estate license of Lighthouse Realty, Inc. for five Years effective September 12,1989. One year of the suspension is to be active and four years on probation. The Commission found that Lighthouse Realty, Inc. had allowed unlicensed employees to prepare deeds in violation of law; had failed to properly maintain funds on deposit in a trust account, applying such funds to the debts of the corporation; had failed to properly supervise its unlicensed employees; had commingled trust funds with its operating funds; had failed to maintain adequate records of its trust account transactions; and had failed to promptly pay those fees for legal services necessary to procure title insurance.

BRET M. LINDSEY (Cumberland County)—The Commission revoked Mr. Lindsey's salesman's license effective July 5,1989. The Commission found that Mr. Lindsey had been convicted of certain criminal offenses involving moral turpitude which would reasonably affect his performance in the real estate business; namely, uttering a forged instrument, breaking and entering, and damage to real property.

ROY J. MOORE, JR. (Durham)—By Consent, the Real Estate Commission~uspended Mr. Moore's broker's license for four years effective September 1,1989. Eighteen months of the suspension are to be active and thirty months on probation. The Commission found that Mr. Moore had failed to properly account for and remit trust funds, deposited such funds in an account which was not designated as a trust or escrow account, transferred portions of the funds to an interest-bearing account without the consent of his principal, and converted certain funds to his own use. While deposited into the account which was not designated a trust or escrow account, the funds were attached in connection with a lawsuit against Mr. Moore. However, the funds were subsequently released by court action, and Mr. Moore has entered into an agreement with the principals to repay all funds.

DAVID S. PAYNE (Raleigh)— By Consent, the Commission suspended Mr. Payne's broker's license for two years effective September L 1989. Six months of the suspension are to be active and one year on probation on condition that he complete the Commissions Trust Account Course. The Commission found that Mr. Payne, as Broker-ln-Charge of a real estate office, had failed to ensure that all deposit tickets properly identified the funds being deposited; had failed to maintain adequate records concerning account liabilities, had improperly disbursed funds; had failed to deposit all trust funds into a trust or escrow account; had commingled trust funds with company and personal funds; and had withdrawn commissions from the firm's property management account in excess of commissions earned. The Commission also found that Mr. Payne had failed to properly supervise a salesman associated with the office for which he served as Broker-ln-Charge. The Commission noted, however, that no customer or client lost any funds as a result of Mr. Payne's conduct.

RELIABLE PROPERTIES, INC. (Wake County) -By Consent, the Commission accepted the voluntary surrender of the corporate real estate license of Reliable Properties, Inc. for one year effective October 1, 1989 and dismissed without prejudice certain charges against the corporation alleging that the corporation had failed to account for the monies of others, had failed to maintain records of its transactions, and had failed to provide those records to the Commission upon request. The corporation neither admitted nor denied any misconduct.

ROY L. ROBERTS (Raleigh)—By Consent, the Commission suspended Mr. Roberts' salesman's license for 18 months effective September 1, 1989. Six months of the suspension are to be active and one year on probation on condition that he complete the Commission's Trust Account Course. The Commission found that Mr. Roberts, while licensed as a salesman, failed to deliver an earnest money deposit to his supervising Broker-ln-Charge. The Commission noted, however, that the customer who made the earnest money deposit received a refund from Mr. Roberts.

WILLIAM A. SCURRY (Mecklenburg County)— By Consent, the Commission suspended Mr. Scurry's broker's license for 30 days effective October 1, 1989. The Commission then suspended its Order and placed Mr. Scurry on probation for one year The Commission found that Mr. Scurry had acted for more than one party in a HUD transaction without the knowledge of all parties. Mr. Scurry neither admitted nor denied any misconduct.

STRAND SOUTH, LTD. (Dare County) — By Consent, the Commission fined Strand South, Ltd., developer of the time share project Strand South $1,000 effective July 13, 1989. The Commission found that Strand South, Ltd. had failed to file lien-free time share instruments in favor of consumer purchasers within the prescribed 45 days of the date of the purchasers' execution of the sales contract. The Commission noted that the corporation subsequently cleared title to the various time shares.

THATCHER L. TOWNSEND,JR. (Winston-Salem) —By Consent, the Commission accepted the voluntary surrender of Mr. Townsend's broker's license for two years effective September L 1989 and dismissed without prejudice certain charges against him alleging that he had received compensation in real estate transactions without the knowledge or approval of his principals.

NANCY A. VOGL (Mecklenburg County) — By Consent, the Commission suspended Ms. Vogl's salesman's license for 30 days effective October 1, 1989. The Commission then suspended its Order and placed Ms. Vogl on probation for one year The Commission found that Ms. Vogl had acted for more than one party in a HUD transaction without the knowledge of all parties. Ms. Vogl neither admitted nor denied any misconduct.

CONNIE C. WARD (Wake County)—By Consent, the Commission~accepted the voluntary surrender of Ms. Ward's broker's license for one year effective October 1, 1989 and dismissed without prejudice certain charges against her alleging that she had failed to account for the monies of others, had failed to maintain records of her transactions, and had failed to provide those records to the Commission upon request. Ms. Ward neither admitted nor denied any misconduct.

THOMAS A. WILLIAMS (Raleigh)—By Consent, the Commission suspended Mr. Williams' broker's license for five years effective November 1, 1989. However, Mr. Williams may apply for the reinstatement of his license after one year's active suspension upon satisfying certain terms and conditions imposed by the Commission. The Commission found that Mr. Williams, as Broker-ln-Charge and Principal Broker of a real estate corporation primarily engaged in development and management of rental property, had failed to properly supervise the employees responsible for maintaining trust accounts and records. The Commission also found that Mr. Williams, as managing partner of numerous limited partnerships which utilized the services of the corporation, benefited from the misapplication of trust funds held by the corporation. The Commission noted that during the course of its audit of the corporation's records, the corporation provided a correct accounting and remitted monies due to the Complainant.

THOM WILLIAMS & ASSOCIATES, INC. (Raleigh) — By Consent, the Commission suspended the corporate real estate license of Thom Williams & Associates, Inc. for five years effective November 1, 1989. The Commission then suspended its Order and placed the corporation on probation for five years subject to certain terms and conditions imposed by the Commission. The Commission found that the corporation, in managing certain rental property for others, did not use adequate internal audit controls, did not maintain adequate records, could not demonstrate from its records that it had properly maintained client funds, and that it did, in fact, improperly disburse the funds of certain principals for the expenses of others. The Commission noted that, during the course of its audit of the corporation's records, the corporation provided a correct accounting and remitted monies due to the Complainants.

DOUGLAS G. WINNER (Wake County)—The Commission suspended Mr. Winner's brokers license for one year effective August 15,1989. Two months of the suspension are to be active and one year on probation. The Commission found that Mr. Winner had misrepresented to a prospective purchaser certain restrictive covenants applicable to the property which the purchasers proposed to buy and had failed to disclose to a lender the conflict between the restrictive covenants and the purchasers' intended use of the property Mr. Winner appealed the Commission's Order to the Wake County Superior Court which affirmed the Commission's Order on August 1,1989.