The N.C. Real Estate Commission has suspended a Graham real estate agent’s license after finding “improper, fraudulent and dishonest dealing.”
That’s according to a decision released last week against Jason Cox of East Coast REO LLC. The company is at 200 N. Main St. in Graham. The decision names Cox as the broker-in-charge of the firm at the time of an investigation.
The investigation concluded that Cox represented buyers and sellers of properties without disclosing that he or his company was representing both. He purchased the properties at below-market prices and resold the properties to investors and homebuyers for a profit, the decision states.
The commission suspended Cox’s real estate license for two years, effective Nov. 1. His license can be reinstated for a probationary period after 10 months if he completes a 12-hour broker-in-charge course, a four-hour course on ethics, and a disciplinary class the commission offers by Aug. 30.
If he doesn’t complete the coursework by that time, his suspension will be active through November 2015.
The commission’s financial fraud investigator, D. Scott Schiller, found 32 properties Cox listed from 2006 to 2009 that were purchased from lenders by entities operated or associated with Cox or members of his family, and later resold at higher prices. Those transactions resulted in a gross profit of $506,500.
In addition, Cox and East Coast REO took sales commissions and listing and marketing commissions from the owners and mortgage lenders for those sales.
AN EXAMPLE listed in the decision cites the 2008 sale of a property on Sartin Road, in northern Alamance County, owned by M&T Bank. Cox recommended a list price of $25,000. The bank requested a list price of $28,750.
On Oct. 1, 2008, Cox and East Coast REO listed the lot for $48,750 but “provided M&T Bank with (a listing) showing that the Sartin Road lot was listed for $28,750.”
On Sept. 30, 2008, a purchase and sale contract was signed by REO Portfolio Services, “a corporate entity owned by Cox’s uncle and stepfather-in-law Kevin Faulkner.” An offer of $28,750 was given to the bank.
On Oct. 1, 2008, Donald E Williamson Jr. submitted a contract to purchase the Sartin Road lot from REO Portfolio Services for $48,850. REO Portfolio Services later bought the lot for $28,750 and transferred the deed to Williamson at a gross gain of $20,100.
The bank learned of that transaction and lodged a complaint against Cox and East Coast with the Alamance Multiple Listing Service, whiCox and East Coast settled with M&T Bank and “continue to represent the same lenders with no additional complaints,” the decision says.ch terminated Cox’s membership for one year and fined him $2,500.