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.
BB & P MANAGEMENT CORPORATION (High Point) - By Consent, the Commission suspended BB & P Management Corporation's broker license for one year effective December 1, 2000. The Commission then stayed the suspension for a probationary term of one year. The Commission found that BB & P Management Corporation had failed to sufficiently account for the trust monies in its care and custody, thereby creating a situation whereby an associate with the firm was able to embezzle trust monies. The Commission further found that the firm engaged in occasional deficit spending and that its records contained certain inaccuracies. The Commission noted that upon discovery of the embezzlement and accounting deficiencies, BB & P Management Corporation immediately replaced the funds, corrected the trust account software, notified the Commission of these events and cooperated fully with the Commission's investigation.
JERRYL E. BENNETT (Fayetteville) - The Commission revoked Mr. Bennett's salesperson license effective September 1, 2000. The Commission found that Mr. Bennett had failed to submit to supervision by his designated brokers-in-charge. The Commission also found that Mr. Bennett had failed to provide agency disclosure of any kind to the buyer in a real estate transaction, had made false promises regarding repairs he was to perform on a property in order to induce or persuade the buyer to close the transaction, and had assisted the buyer in obtaining a VA loan requiring owner occupancy even though he knew the buyer had no intentions of occupying the property herself. The Commission further found that Mr. Bennett failed to retain records of the transaction, failed to make transaction records available for inspection by the Commission or its authorized representatives, and failed to respond to a Letter of Inquiry from the Commission within 14 calendar days.
J. HENRY BROWN, JR. (Raleigh) - By Consent, the Commission revoked Mr. Brown's broker license effective October 10, 2000. The Commission will issue a salesperson license to Mr. Brown upon certain conditions. On or after October 10, 2001, Mr. Brown may apply for reinstatement of his broker license. The Commission found that Mr. Brown, while engaged in brokerage at a real estate firm and having signature authority on all the firm's trust accounts, had been aware of trust account problems including shortages and checks that had been returned for insufficient funds, but that he had failed to correct these problems and failed to adequately account for the funds he held on behalf of others. The Commission also found that Mr. Brown had written and signed several checks from the trust account to pay for personal expenses. The Commission further found that Mr. Brown had assumed broker-in-charge duties for two years without notifying the Commission.
JAMES H. BROWN, SR. (Raleigh) - By Consent, the Commission revoked Mr. Brown's broker license effective February 1, 2001. The Commission found that Mr. Brown had failed to properly designate trust accounts and otherwise failed to properly account for the funds of others while managing subsidized housing projects for the elderly, and that he had engaged in commingling of funds and deficit spending and repeatedly deposited personal funds into his trust accounts to alleviate shortages. The Commission also found that Mr. Brown had failed to properly complete sales contracts, failed to obtain written listing agreements and failed to provide either agency disclosures or residential property disclosures. The Commission further found that Mr. Brown failed to notify the Commission that he was unable to perform his broker-in-charge duties for approximately two years due to health reasons and appoint a new broker-in-charge and that he operated a real estate brokerage firm from March 1999 until November 1999 without first obtaining a broker license for the firm, and that he failed to disclose a prior criminal conviction/disciplinary action when he applied for firm licensure.
BARBARA L. CRITES (Kill Devil Hills) - By Consent effective October 10, 2000, the Commission suspended Ms. Crites' broker license for 36 months and suspended Ms. Crites' approval as a continuing education update course instructor until July 1, 2001. Ninety days of the license suspension were active and the remaining period stayed for a probationary term of thirty-three months. The Commission found that during 1997, Ms. Crites was convicted of driving while intoxicated, that she neglected to report this violation to the Commission as required by Commission rule or in connection with the renewal of her license and education-related approvals, and that she failed to disclose her conviction when she applied to become approved as a pre-licensing course instructor in 2000. The Commission further found that in 2000, Ms. Crites terminated the tenancy of two tenants occupying a property under her control because she objected to their upkeep of the property, their rental payment history and their display of literature and other items of a religious nature inside the property.
CYNTHIA C. DOUGLAS (Manteo) - By Consent, the Commission suspended Ms. Douglas' broker license for three years effective October 1, 2000. Four months of the suspension are to be active and the remaining period stayed for a probationary term of two years and eight months. The Commission found that Ms. Douglas, while broker-in-charge of a rental management firm, had a shortage in her trust account in 1997, which she promptly replaced. The Commission further found that in April 1998, trust monies handled by Ms. Douglas were wrongly deposited to her operating account. Ms. Douglas subsequently transferred the bulk of these funds into her trust account, leaving a shortage. An audit of Ms. Douglas' accounts by the Commission in January 1999 revealed a remaining shortage, which she then replaced. The Commission noted that Ms. Douglas cooperated with the Commission in its investigation and corrected her trust account record-keeping practices, and that all persons for whom Ms. Douglas held trust monies were fully paid.
20/20 REALTY, LTD. (Manteo) - By Consent, the Commission suspended 20/20 Realty, Ltd.'s broker license for three years effective October 1, 2000. The Commission then stayed the suspension for a probationary term of three years. The Commission found that 20/20 Realty, Ltd., a rental management firm, had a shortage in its trust account in 1997 which was promptly replaced. The Commission further found that in April 1998, trust monies handled by the firm were wrongly deposited to its operating account. 20/20 Realty, Ltd. subsequently transferred the bulk of these funds into its trust account, leaving a shortage. An audit of 20/20 Realty, Ltd.'s accounts by the Commission in January 1999 revealed a remaining shortage, which the firm then replaced. The Commission noted that 20/20 Realty, Ltd. cooperated with the Commission in its investigation and corrected its trust account record-keeping practices, and that all persons for whom 20/20 Realty, Ltd. held trust monies were fully paid.
GANSON L. KNIGHT (Indian Trail) - By Consent, the Commission suspended Mr. Knight's broker license for two years effective October 15, 2000. The Commission found that Mr. Knight had used a listing contract that did not contain required non-discrimination language when he listed a property for sale, that he had lent both the buyer and seller money to close the transaction, and that he had drafted promissory notes but had not disclosed these notes to the buyer's primary lender. The Commission also found that as of the summer of 1999, Mr. Knight had failed to maintain all required trust account records including deposit tickets, ledger sheets and bank statements and that he had failed to make all earnest money deposits in a timely manner, had failed to reconcile his trust account, and had failed to maintain records for three years and in sufficient detail to create a clear audit trail.
EDGAR S. MINCEY (Thomasville) - The Commission accepted the permanent voluntary surrender of Mr. Mincey's broker license effective October 19, 2000. The Commission dismissed without prejudice charges that Mr. Mincey had violated provisions of the Real Estate License Law and Commission rules in connection with the handling of the trust accounts of the firm for which he was broker-in-charge. Mr. Mincey neither admitted nor denied any misconduct.
MARY L. STEVENSON (Greenville) - By Consent, the Commission revoked Ms. Stevenson's broker license effective October 11, 2000. On or after April 1, 2001, the Commission shall reinstate her salesperson license upon certain conditions. The Commission found that in 1998, Ms. Stevenson failed to deposit into a trust account a $500 earnest money deposit belonging to a buyer in a real estate sales transaction, and that she instead converted it to her own use. The Commission also found that during 1999, Ms. Stevenson received another $500 earnest money deposit and subsequently failed to account for the money to the buyer and seller. The Commission further found that Ms. Stevenson failed to produce trust account records for inspection by the Commission's auditor.