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.
ACTION ASSOCIATES, INC. (New Bern) - By Consent, the Commission reprimanded Action Associates, Inc. The Commission found that the corporation had failed to oversee the proper deposit of cash receipts into a rental trust account, had failed to oversee the maintenance of the trust account including failure to perform monthly reconciliations of ledgers and journals with bank records, and had therefore failed to detect that a shareholder of the corporation had converted trust monies to his personal use, which resulted in a shortage in the trust account. The Commission noted that the shareholder was removed from the corporation and that the corporation and another shareholder had fully reimbursed the rental trust account.
ALTA C. BIGGERS (Charlotte) - By Consent, the Commission suspended Ms. Biggers' broker license for two years effective December 1, 1993. The Commission found that Ms. Biggers, as custodian of the trust account for tenant security deposits held by a real estate firm, had expended tenant security deposits for improper purposes, which led to a shortage in the firm's trust account. The Commission noted that Ms. Biggers subsequently replaced the missing funds.
ERIC L. BIGGERS (Charlotte) - By Consent, the Commission suspended Mr. Biggers' broker license for two years effective December 1, 1993. The Commission then stayed its Order for a probationary term of two years. The Commission found that Mr. Biggers, as broker-in-charge of his own real estate firm, had failed to maintain proper trust or escrow account records. The Commission further found that Mr. Biggers had allowed tenant security deposits to be expended for improper purposes, which led to a shortage in the firm's trust account. The Commission noted that Mr. Biggers subsequently replaced the missing funds.
ALAN J. BLAKE (Hope Mills) - By Consent, the Commission suspended Mr. Blake's broker license for two years effective December 1, 1993. One year of the suspension is to be active and the remaining period stayed for a probationary term of one year. The Commission found that Mr. Blake, while licensed as both an attorney and a real estate broker, had been disciplined by the North Carolina State Bar for offenses which could reasonably affect his performance in the real estate business; namely, converting interest on trust monies to his personal use and failing to give truthful information to certain clients of his law practice.
RONALD A. BROWN (Charlotte) By Consent, the Commission suspended Mr. Brown's broker license for one year effective November 3, 1993. One month of the suspension is to be active and the remaining period stayed for a probationary term of one year upon condition that Mr. Brown complete the Commission's Trust Account Short Course before January 30, 1994. Following an audit of Mr. Brown's trust account prompted by a complaint concerning an earnest money deposit, the Commission found that on occasion, Mr. Brown had failed to deposit trust monies into a trust account in a timely manner and on other occasions, had failed to obtain copies of contracts. The Commission further found that Mr. Brown had failed to perform monthly trust account reconciliations and trial balances. The Commission noted that Mr. Brown had refunded an earnest money deposit in response to the complaint.
MALEENE R. CAVINESS (Greensboro) - The Commission revoked Ms. Caviness' salesman license effective November 15, 1993. The Commission found that Ms. Caviness had failed to disclose to successive brokers-in-charge and to her property owner-client the fact that she was acting as a rental property manager outside the supervision of a broker-in-charge and had failed to properly account for or remit to successive brokers-in-charge or to the property owner rental proceeds she received from a tenant. The Commission also found that Ms. Caviness had misrepresented the disposition of rent monies she had collected and kept by fabricating cancelled checks. The Commission further found that she had accepted compensation directly from the property owner rather than from her employing broker or broker-in-charge. The Commission also found that Ms. Caviness had commingled trust monies with her own funds and had converted trust monies to her own use.
WILLIAM E. COUTOUZIS (Fayetteville) - By Consent, the Commission suspended Mr. Coutouzis' broker license for two years effective December 15, 1993. The Commission then stayed its Order for a probationary term of two years upon condition that Mr. Coutouzis successfully complete the Commission's Trust Account Short Course prior to March 15, 1994. The Commission found that Mr. Coutouzis, as principal broker and broker-in-charge of a licensed real estate corporation, had failed to oversee the proper deposit and maintenance of trust monies in the rental trust account. The Commission further found that Mr. Coutouzis had failed to maintain certain ledger cards or to perform monthly reconciliations and had failed to retain adequate records in such a manner as to create a clear audit trail. The Commission also found that Mr. Coutouzis had allowed a shortage to occur in the corporation's rental trust account.
NANCY S. DEANS (New Bern) - By Consent, the Commission reprimanded Ms. Deans effective November 10, 1993. The Commission found that Ms. Deans, as principal broker and broker-in-charge of a licensed real estate corporation, had failed to oversee the proper deposit of cash receipts into a rental trust account. The Commission further found that Ms. Deans had failed to oversee the maintenance of the trust account including failure to perform monthly reconciliations of ledgers and journals with bank records, and had therefore failed to promptly detect that another shareholder of the corporation had converted trust monies to his personal use, which resulted in a shortage in the trust account. The Commission noted that the shareholder was removed from the corporation and that Ms. Deans and the corporation had fully reimbursed the rental trust account.
RICHARD L. JAMES (Southern Pines) - By Consent, the Commission suspended Mr. James' broker license for six months effective October 15, 1993. The Commission then stayed its Order for a probationary term of 12 months. The Commission found that Mr. James had misrepresented the receipt of earnest money from a purchaser on an offer to purchase and contract form, had drafted an extensive addendum to the contract which characterized the transaction as a "lease to own," and had assisted parties in structuring a sale of property over a due-on-sale clause in the seller's deed of trust without advising the seller's lender of the transaction.
GARY C. KEEVER (Charlotte) - The Commission accepted the permanent voluntary surrender of Mr. Keever's salesman effective November 4, 1993. The Commission dismissed without prejudice charges that Mr. Keever had violated the provisions of the Real Estate License Law based upon his alleged criminal offenses. Mr. Keever neither admitted nor denied any misconduct.
KENNEDY & COMPANY, INC (Southern Pines) - By Consent, the Commission suspended the corporate real estate broker license of Kennedy & Company, Inc. for six months effective October 15, 1993. The Commission then stayed its Order for a probationary term of 12 months. The Commission found that the principal broker and broker-in-charge of the corporation had misrepresented the receipt of earnest money on an offer to purchase and contract form, had drafted an extensive addendum to the contract which characterized the transaction as a "lease to own," and had assisted parties in structuring a sale of property over a due-on-sale clause in the seller's deed of trust without advising the seller's lender of the transaction.
ALFRED S. KILPATRICK (Rocky Mount) - By Consent, the Commission revoked Mr. Kilpatrick's broker license effective November 15, 1993. The Commission found that Mr. Kilpatrick had listed property for sale on a listing agreement form which did not contain a properly-worded nondiscrimination provision. The Commission further found that Mr. Kilpatrick had failed to deposit or maintain an earnest money deposit in a trust or escrow account and had instead converted the money to his own use, and had failed to properly account for the earnest money when the transaction did not close.
JOHN E. LIGHT (Kitty Hawk) - By Consent, the Commission revoked Mr. Light's broker license effective December 1, 1993. The Commission then issued Mr. Light a salesman license. After February 1, 1994, Mr. Light may apply for reinstatement of his broker license upon his fulfillment of various conditions. The Commission found that Mr. Light, as broker-in--charge of an office of a licensed real estate corporation which managed residential rental units, had failed to ensure the deposit and maintenance of rental funds and security deposits in a North Carolina trust or escrow account and had failed to create and maintain records of such funds as required by Commission rule. The Commission noted that Mr. Light had not converted trust monies to his personal use.
LEONZA LOFTIN (Fayetteville) The Commission accepted the voluntary surrender of Mr. Loftin's broker license for three years effective November 3, 1993. The Commission dismissed without prejudice charges that Mr. Loftin had violated the provisions of the Real Estate License Law and Commission rules based upon his handling of certain trust monies.
SHIRLEY F. MORRISON (Greenville) - By Consent, the Commission reprimanded Ms. Morrison effective September 9, 1993. The Commission found that Ms. Morrison, as broker-in--charge of a licensed real estate corporation, had allowed a broker associated with the corporation to engage in real estate brokerage for a fourteen-month period after the broker's license had expired.
JAMES G. READ (Charlotte) - The Commission revoked Mr. Read's salesman license effective October 1, 1993. The Commission found that Mr. Read had made a false statement on his application for real estate licensure; namely, Mr. Read answered "no" to the application question regarding criminal convictions when, in fact, he had been convicted of the crimes of conversion of the property of others, false reporting of odometer mileage to law enforcement officials, and possession of a motor vehicle without a vehicle identification number. The Commission further found that Mr. Read had made misrepresentations and false promises concerning obtaining new financing which he had promised to parties in a real estate transaction, had made false representations to the parties concerning the nature of certain documents he had asked the parties to sign, and had failed to disclose his business and personal connections in the transaction.
BRIAN L. SOUTH (Durham) - By Consent, the Commission suspended Mr. South's broker license for six months effective November 1, 1993. The Commission then stayed its Order for a probationary term of one year. The Commission found that Mr. South, as an officer of a licensed real estate corporation selling its own property, had caused brokerage commissions in nine real estate transactions to be paid to an unlicensed corporation under his control. The Commission noted that it did not find evidence of any other Real Estate License Law violations. Mr. South neither admitted nor denied any misconduct.
AARON L. SPAIN (Greenville) - By Consent, the Commission reprimanded Mr. Spain effective September 9, 1993. The Commission found that Mr. Spain had continued to engage in real estate brokerage for a fourteen-month period after his license had expired.
EDWARD L. STINSON (Nags Head) - By Consent, the Commission suspended Mr. Stinson's broker license for 12 months effective October 10, 1993. The Commission then stayed its Order for a probationary term of 12 months. The Commission found that Mr. Stinson had written checks for real estate license renewal and the late renewal fee which were returned by the bank for insufficient funds. The Commission further found that Mr. Stinson had continued to engage in real estate brokerage for 14 months after his license had expired.
JOHN C. TAYLOE, III (New Bern) By Consent, the Commission suspended Mr. Tayloe's broker license for four years effective November 10, 1993. The Commission found that Mr. Tayloe, as a shareholder in a licensed real estate corporation, had converted certain cash receipts to his own use, had altered corporation books and records to falsely indicate that the receipts had been deposited into the corporation's rental trust account, and had thereby caused a shortage in the account.
VAUGHN REALTY, INC. (Fayetteville) - By Consent, the Commission suspended the corporate real estate broker license of Vaughn Realty, Inc. for two years effective December 15, 1993. The Commission then stayed its Order for a probationary term of two years. The Commission found that Vaughn Realty, Inc. had failed to oversee the proper deposit and maintenance of trust monies in its rental trust account. The Commission further found that the corporation had failed to maintain certain ledger cards or to perform monthly reconciliations and had failed to retain adequate records in such a manner as to create a clear audit trail. The Commission also found that the corporation had allowed a shortage to occur in the corporation's rental trust account.