Disciplinary Action

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.

BILL & DANNY, INC. (Corolla) - By Consent, the Commission revoked the corporate real estate broker license of Bill & Danny, Inc. effective December 9, 1992. The Commission found that the corporation had failed to maintain trial balances or a running balance of funds in one of its trust or escrow accounts, had failed to reconcile trust account records to bank records on a monthly basis, had converted trust monies to its own use, and had allowed a shortage to occur in its trust accounts. The Commission further found that Bill & Danny, Inc. had failed to remit sales taxes to the appropriate authorities and had commingled sales tax funds with the corporation's funds.

WILLIAM E. BRENNER, JR. (Chapel Hill) - By Consent, the Commission suspended Mr. Brenner's broker license for two years effective November 5, 1992. Four months of the suspension are to be active and the remaining period stayed for a probationary term of two years. The Commission found that Mr. Brenner had been convicted of a criminal offense; namely, structuring financial transactions to evade federal reporting requirements.

JOHN A. CATES (Chapel Hill) - By consent, the Commission suspended Mr. Cates' broker license for two years effective December 31, 1992. The Commission then stayed its Order for a probationary term of two years. The Commission found that Mr. Cates, as broker-in-charge of a property management firm, had failed to properly account for trust monies and had commingled trust monies with the firm's funds. The Commission noted that these violations had not resulted in monetary loss to any of Mr. Cates' clients. The Commission further noted that Mr. Cates had cooperated with the Commission's audit and had promptly corrected the firm's accounting practices.

BARBARA C. CAUDLE (WinstonSalem) - By Consent, the Commission suspended Ms. Caudle's broker license for one year effective October 15, 1992. The Commission then stayed its Order for a probationary term of one year. The Commission found that Ms. Caudle had allowed an unlicensed part-owner and managing general partner of certain properties she managed to withdraw security deposits from the trust or escrow account which she maintained exclusively for that client. The Commission further found that Ms. Caudle had failed to determine which tenants' security deposits had been withdrawn or to properly advise the tenants. The Commission also found that Ms. Caudle had refunded the tenants' security deposits as they came due by using part of the deposits of other tenants, which led to a trust account shortage. The Commission noted that Ms. Caudle subsequently replaced the funds in her trust account.

CHAPEL HILL REALTY, INC. (Chapel Hill) - By consent, the Commission suspended the corporate real estate broker license of Chapel Hill Realty, Inc. for two years effective December 31, 1992. The Commission then stayed its Order for a probationary term of two years. The Commission found that Chapel Hill Realty, Inc. had failed to properly account for trust monies, and had commingled trust monies with the corporation's funds. The Commission noted that these violations had not resulted in monetary loss to any of the corporation's clients. The Commission farther noted that the corporation had cooperated with the Commission's audit and had promptly corrected its accounting practices.

CONVEST CORPORATION (Boone) The Commission accepted the permanent voluntary surrender of the expired corporate real estate broker license of Convest Corporation effective October 1, 1992. The Commission dismissed without prejudice charges that the corporation had violated provisions of the Real Estate License Law and Commission rules in several transactions involving the development, sales and rental management of residential condominiums.

CATHERINE G. COTTON (Charlotte) - By Consent, the Commission reprimanded Ms. Cotton effective September 10, 1992, for continuing to engage in the business of a real estate salesman for two years after the expiration of her license. The Commission noted that during this period, Ms. Cotton was actively supervised by her broker-in-charge.

GLENN A. DARST (Durham) -The Commission suspended Mr. Darst's broker license for five years effective January 1, 1993. Three months of the suspension are to be active and the remaining period stayed for a probationary term of five years. The Commission found that Mr. Darst had failed to provide for a deed of trust from the buyer as promised in a real estate transaction, and instead provided only for an unsecured note, had failed to deliver accurate closing statements, and had misrepresented, concealed and omitted material facts in separate transactions. The Commission further found that Mr. Darst had failed to ensure that certain trust monies were deposited and maintained in a trust or escrow account, had failed to account for trust monies in his possession and had improperly disbursed the funds which led to a trust account shortage. The Commission also found that Mr. Darst had failed to keep accurate transaction records or to promptly make these records available for inspection by the Commission's investigator.

GLENN A. DARST REALTY, INC. (Durham) - The Commission suspended the corporate real estate broker license of Glenn A. Darst Realty, Inc. for five years effective January 1, 1993. Three months of the suspension are to be active and the remaining period stayed for a probationary term of five years. The Commission found that Glenn A. Darst Realty, Inc. had failed to deliver accurate closing statements and had misrepresented, concealed and omitted material facts in various real estate transactions. The Commission further found that the corporation had failed to ensure that certain trust monies were deposited and maintained in a trust or escrow account, had failed to account for trust monies in its possession and had improperly disbursed the funds which led to a trust account shortage. The Commission also found that Glenn A. Darst Realty, Inc. had failed to keep accurate transaction records or to make these records available for inspection by the Commission's investigator.

JOE C. DAVENPORT (Boone) - The Commission accepted the permanent voluntary surrender of Mr. Davenport's expired broker license effective October 1, 1992. The Commission dismissed without prejudice charges that Mr. Davenport had violated the provisions of the Real Estate License Law and Commission rules in several real estate transactions.

RITCHIE J. DEBNAM (Sylva) - By Consent, the Commission suspended Mr. Debnam's expired salesman license for one year effective September 10, 1992. Forty-five days of the suspension are to be active and the remaining period stayed for a probationary term of 10 months and 15 days. The Commission found that Mr. Debnam had failed to inform buyers in a real estate transaction that the property's furnace was not in good working order and had included a provision concerning the payment of his commission in an offer to purchase.

DUCKS REAL ESTATE, INC. (Duck) By Consent, the Commission revoked the corporate real estate broker license of Duck's Real Estate. Inc. effective March 15, 1993. The Commission found that the corporation had failed to perform monthly bank reconciliations or to maintain accurate owner ledgers and had allowed a shortage to occur in its trust accounts. The Commission noted that the corporation had replaced the missing funds during the Commission's audit of its records. Duck's Real Estate, Inc. neither admitted nor denied any misconduct.

JAMES D. ERSKINE (Asheville) - By Consent, the Commission reprimanded Mr. Erskine effective October 9, 1992, for acting as a real estate broker after his license had expired.

DANIEL E. FENYAK (Duck) - By Consent, the Commission revoked Mr. Fenyak's broker license effective December 9, 1992. On or after January 9, 1993, Mr. Fenyak will be issued a salesman license upon his payment of the appropriate fee and fulfillment of various conditions. The Commission found that while Mr. Fenyak was principal broker, broker-in-charge and co-owner of a licensed real estate corporation, the corporation had failed to maintain a running balance of funds in one of its trust or escrow accounts, had failed to maintain trial balances or to reconcile internal trust account records to bank records on a monthly basis, had converted trust monies to the corporation's use and had allowed a shortage to occur in its trust accounts. The Commission further found that the corporation had failed to remit sales taxes to the appropriate authorities and had commingled sales tax funds with the corporation's funds.

HENNARD S. FLOYD (Fayetteville) By Consent, the Commission suspended Mr. Floyd's broker license for two years effective November 15, 1992. Six months of the suspension are to be active and the remaining period stayed for a probationary term of 18 months upon condition that Mr. Floyd complete the Commission's Trust Account Course by May 15, 1993. The Commission found that Mr. Floyd and his licensed property management corporation had failed to deposit and maintain rents in a properly designated trust or escrow account. The Commission further found that Mr. Floyd had converted trust monies to the corporation's use, which led to a shortage in its trust account.

FLOYD CONSTRUCTION COMPANY, INC. (Fayetteville) - By Consent, the Commission suspended the corporate real estate broker license of Floyd Construction Company, Inc. for three years effective November 15, 1992. The Commission then stayed its Order for a probationary term of three years. The Commission found that the
property management corporation had failed to deposit and maintain rents in a properly designated trust or escrow account and had converted trust monies to its own use, which led to a shortage in the trust account.

HARVEY S. FORBES (Sanford) - By Consent, the Commission reprimanded Mr. Forbes effective July 1, 1992, for failing to advise the listing agent and buyers of property listed by his real estate firm about septic tank problems on the property. The Commission noted that Mr. Forbes subsequently compensated the buyers for some of their expenses related to the malfunctioning septic tank.

RAYMOND E. GARRISON, JR. (Wilmington) - The Commission revoked Mr. Garrison's salesman license effective January 1, 1993. The Commission found that Mr. Garrison had made a false representation on his application for a real estate license. The Commission further found that Mr. Garrison had been convicted of criminal offenses involving moral turpitude which could reasonably affect his performance in the real estate business; namely, making false representations to HUD for purposes of obtaining financial assistance.

GOFORTH PROPERTIES, INC. (Chapel Hill) - The Commission accepted the permanent voluntary surrender of the corporate real estate broker license of Goforth Properties, Inc. effective December 31, 1992. The Commission dismissed without prejudice charges that the corporation had failed to handle trust or escrow funds in compliance with Commission rules.

SAMMY G. HARPER (Wilmington) The Commission revoked Mr. Harper's broker license effective September 10, 1992. The Commission found that Mr. Harper had failed to disclose the occupancy of an apartment he managed to the apartment owners, had failed to deposit and maintain rental funds in a trust or escrow account, and had failed to account for and remit the funds to the owners of the property. The Commission also found that Mr. Harper had commingled trust monies with his personal funds and had converted trust monies to his own use, which led to a shortage in his trust accounts. The Commission further found that Mr. Harper had falsely represented to property owners that he had remitted their property taxes to the appropriate taxing authority, and that he had failed to notify the Commission in writing of his change of business address.

TERESA A. HEWITT (Winterville) - By Consent, the Commission suspended Ms. Hewitt's broker license for six months effective December 9, 1992. Two months of the suspension are to be active and the remaining period stayed for a probationary term of one year. The Commission found that Ms. Hewitt, as a partner in a North Carolina investment partnership, had engaged in the unauthorized practice of law by preparing a deed, a deed of trust and purchase money promissory note. Ms. Hewitt did not record the deed or deed of trust.

WILLIAM B. HOGAN (Duck) - By Consent, the Commission revoked Mr. Hogan's broker license effective December 9, 1992. On or after January 9, 1993, Mr. Hogan will be issued a salesman license upon fulfillment of various conditions. The Commission found that while Mr. Hogan was president and co-owner of a licensed real estate corporation, the corporation had failed to maintain trial balances or a running balance of funds in one of its trust or escrow accounts, had failed to reconcile trust account records to bank records on a monthly basis, had converted trust monies to the corporation's use and had allowed a shortage to occur in its trust accounts. The Commission further found that the corporation had failed to remit sales taxes to the appropriate authorities and had commingled sales tax funds with the corporation's funds.

DIANE M. JARVIS (Corolla) - By Consent, the Commission suspended Ms. Jarvis' salesman license for one year effective January 1, 1993. The Commission then stayed its Order for one year upon condition that Ms. Jarvis successfully complete the Commission's Trust Account Course by January 1, 1993. The Commission found that while Ms. Jarvis was employed as property manager and bookkeeper of a licensed real estate corporation, she had failed to remit sales taxes to the appropriate authorities, had assisted in commingling sales tax funds with the corporation's funds, and had assisted in converting trust monies to the corporation's use.

MONIQUE A. KOENIG (Fayetteville) - The Commission suspended Ms. Koenig's salesman license for five years effective January 1, 1993. The Commission found that Ms. Koenig had been convicted of criminal offenses involving moral turpitude which could reasonably affect her performance in the real estate business; namely, making fraudulent misrepresentations in order to obtain food stamps and assistance from Aid to Families with Dependent Children.

KAREN J. LABOVITZ (Charlotte) - By Consent, the Commission reprimanded Ms. Labovitz effective September 10, 1992, for allowing a salesman under her supervision to engage in the business of a real estate salesman after the expiration of her license. The Commission noted that the salesman subsequently reinstated her license.

ROBERT F. LEE (Wilmington) -The Commission accepted the voluntary surrender of Mr. Lee's broker license for three years effective July 15, 1992. The Commission dismissed without prejudice charges that Mr. Lee had violated the Real Estate License Law based upon an alleged felony criminal conviction.

LEONIDAS A. MONROE, JR. (Fayetteville) - By Consent, the Commission suspended Mr. Monroe's broker license for 18 months effective November 15, 1992. The Commission then stayed its Order for a probationary term of 18 months. The Commission found that Mr. Monroe, as broker-incharge of a real estate firm, had failed to supervise property management bookkeeping employees which resulted in trust account violations including. failure to deposit or maintain earnest money deposits in a trust or escrow account and conversion of these funds to the firm's use. The Commission further found that Mr. Monroe had allowed a shortage to occur in the firm's escrow account. The Commission noted that Mr. Monroe believed his duties as broker-in-charge related only to real estate sales.

DEAN A. PARKER (Cashiers) - The Commission accepted the voluntary surrender of Mr. Parker's salesman license for two years effective September 10, 1992, and dismissed without prejudice charges that Mr. Parker had violated the Real Estate License Law as a result of his conduct as a real estate salesman. Mr. Parker neither admitted nor denied any misconduct.

GAYL T. PERKINS (Roxboro) - By Consent, the Commission suspended Ms. Perkins' broker license for six months effective September 10, 1992. Two months of the suspension are to be active and the remaining period stayed for a probationary term of one year. The Commission found that Ms. Perkins had failed to disclose the location of a lot's boundary line to buyers in a real estate transaction. Ms. Perkins neither admitted nor denied any misconduct.

CLYNE H. QUINN (Black Mountain) - By Consent, the Commission suspended Mr. Quinn's broker license for one year effective November 15, 1992. The Commission then stayed its Order for a probationary term of one year. The Commission found that Mr. Quinn had prepared an offer to purchase on a form which did not comply with Commission rules and which contained conflicting provisions with respect to the method of completing the transaction. The Commission further found that Mr. Quinn had permitted the buyers to move into the property before he presented their offer to the sellers, and that a court order was required to eject them after the sellers rejected the offer.

PHILLIP L. RODDY (Charlotte) - By Consent, the Commission suspended Mr. Roddy's salesman license for six months effective September 10, 1992. Three 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. Roddy, while acting as a notary public, had acknowledged a grantor's signature on a document which had not been signed in his presence.

EDWARD K. ROMAN (Cary) -By Consent, the Commission revoked Mr. Roman's broker license effective January 1, 1993. On or after February 1, 1993, Mr. Roman may apply for a real estate salesman license. The Commission also granted Mr. Roman permission to file for reinstatement of his broker license after January 1, 1994, upon successful completion of the Commission's Trust Account, Brokerage Operations and Real Estate Law courses. The Commission found that Mr. Roman had failed to give a written accounting for a security deposit that he had received from a tenant and had failed to refund the deposit when it came due. The Commission further found that Mr. Roman had failed to promptly make trust account records available for inspection by the Commission's investigator despite repeated requests that he do so.

ROBERT J. SALMON, JR. (Wallace) The Commission suspended Mr. Salmon's broker license for one year effective October 1, 1992. The Commission then stayed its Order for a probationary term of one year. The Commission found that Mr. Salmon had been convicted of criminal offenses involving moral turpitude which could reasonably affect his performance in the real estate business; namely, making unlawful gifts to a public official.

WILLIAM C. SAXON (Athens, GA) The Commission revoked Mr. Saxon's broker license effective December 15, 1992. The Commission found that Mr. Saxon, while engaging in the real estate brokerage business in Georgia and being licensed in North Carolina pursuant to a reciprocity arrangement between the two states, had failed to deposit and maintain trust monies in a trust or escrow account. The Commission also found that Mr. Saxon had failed to keep adequate records of the funds he collected, had commingled trust monies with his personal funds, and had failed to remit trust monies in his possession. The Commission further found that Mr. Saxon had failed to cooperate with the investigation by the Georgia Real Estate Commission.

KATHLEEN S. SHARPE (Charlotte) By Consent, the Commission reprimanded Ms. Sharpe effective October 8, 1992. The Commission found that Ms. Sharpe had failed to correct a closing statement to show owner-financing. The Commission noted that Ms. Sharpe's actions did not appear to be willful or motivated by any personal or financial gain.

WANDA SMITH (Charlotte) - By Consent, the Commission reprimanded Ms. Smith effective October 8, 1992. The Commission found that Ms. Smith had failed to correct a closing statement to show owner financing. The Commission noted that Ms. Smith's actions did not appear to be willful or motivated by any personal or financial gain.

JOHN F. STREIT, JR. (Fayetteville) By Consent, the Commission suspended Mr. Streit's broker license for two years effective November 6, 1992. Eight months of the suspension are to be active and the remaining period stayed for a probationary term of 16 months upon the condition that Mr. Streit take the Commission's Trust Account Course during the time of active suspension. The Commission found that Mr. Streit had failed to maintain and retain adequate trust account records and to account for and remit rental monies he collected as a property manager. The Commission noted that Mr. Streit subsequently remitted the monies to the property owner.

GEORGE T. TAYLOR (Kill Devil Hills) - By Consent, the Commission suspended Mr. Taylor's broker license for six months effective December 9, 1992. The Commission then stayed its Order for a probationary term of one year. The Commission found that Mr. Taylor and his licensed real estate corporation had failed to inspect a property which the corporation managed, after the tenant had vacated the property and turned off its electrical power, resulting in extensive damage to the property. The Commission further found that Mr. Taylor had failed to inform the owner that the property had been vacated.

TODD REALTY, INC. (Kill Devil Hills) - By Consent, the Commission suspended the corporate real estate broker license of Todd Realty, Inc. for six months effective December 9, 1992. The Commission then stayed its Order for a probationary term of one year. The Commission found that the corporation had failed to inspect a property which it managed after the tenant had vacated the property and turned off its electrical power, resulting in extensive damage to the property. The Commission further found that the corporation had failed to inform the owner that the property had been vacated.

PAULETTE D. VAUGHAN (Virginia Beach, VA) - By Consent, the Commission revoked Ms. Vaughan's broker license effective October 12, 1992. The Commission found that Ms. Vaughan, as broker-incharge of a property management office, had failed to adequately maintain trust monies in a trust or escrow account, had failed to keep accurate records of client funds the firm collected and expended, and had allowed a shortage to occur in the firm's trust account.

VISTA REALTY, INC. (Winston-Salem) - By Consent, the Commission suspended the corporate real estate broker license of Vista Realty, Inc. for one year effective October 15, 1992. The Commission then stayed its Order for a probationary term of one year. The Commission found that the corporation had allowed an unlicensed part-owner and managing general partner of certain properties it managed to withdraw security deposits from the corporation's trust or escrow account which it maintained exclusively for that client. The Commission further found that Vista Realty, Inc. had failed to determine which tenants' security deposits had been withdrawn or to properly advise the tenants. The Commission also found that the corporation had refunded security deposits as they came due by using part of the deposits of other tenants, which led to a trust account shortage. The Commission noted that the corporation subsequently replaced the funds in the trust account.

GARY H. WATTS (Charlotte) - By Consent, the Commission suspended Mr. Watts'

broker license for two years effective December 1, 1992. Fifty-nine days of the suspension are to be active and the remaining period stayed for a probationary term of 22 months. The Commission found that Mr. Watts had been convicted of criminal offenses; namely, money laundering and the aiding and abetting of money laundering.

DOROTHY D. WINCHESTER (Raleigh) - By Consent, the Commission reprimanded Ms. Winchester effective September 18, 1992, for failing to disclose the contents of a property inspection report to the buyer of the property or to inform the buyer of a major defect in the property. The Commission noted that Ms. Winchester had subsequently returned the buyer's earnest

money deposit.