THE

Arizona Department of Real Estate

BULLETIN
January 2007

Volume 33, Issue 1.

Governor Janet Napolitano appoints Sam Wercinski Commissioner
Governor Janet Napolitano appointed Broker Sam Wercinski as
Commissioner of Real Estate on
Thursday, January 11, 2007.
Commissioner Wercinski replaces
Elaine Richardson who resigned as
Commissioner in December to devote more time to personal goals
and her family in Tucson.
“Sam’s extensive experience in the
real estate industry and history of
leadership in both the private sector
and the military made him a strong
asset to the state.” Governor Napolitano said. “Elaine’s leadership will
be missed in the Department. I support her in her decision and wish her
the best.”

Commissioner Wercinski dove
right in to learn about the process for issuing licenses. After
initial introduction by the Licensing Division Staff, he did some
On-The-Job-Training by working
the front counter at the Phoenix
Office. He is seen here congratulating Mr. Michael Fallon of
New River who had the distinction of having his application for
a real estate salesperson license
processed by Commissioner
Wercinski himself. Mr. Fallon
was excited about his new career and meeting the new Commissioner in the process.

Wercinski has been a licensed real
estate broker since 1992. After being
honorably discharged from the Air
Force in 1989, he received his Master’s in International Management at
Thunderbird, the Garvin School of International Management.
On his first day at ADRE, Wercinski
told his staff “My notion of a strong
organization begins with three key
elements of the foundation for that
organization. They are 1. Motivated
and Collaborative Staff, 2. Clearly
Stated Shared Goals, and 3. Sufficient Resources. … Central to that
strong organization is mutual respect
for one another as colleagues at
ADRE, respect for our licensees, and
respect for the public we are here to
protect.”

Inside This Issue

the ADRE mission
The purpose of the department is to
protect the public interest through
licensure and regulation of the real
estate profession in the State of
Arizona.

New Division Phone Numbers

2

Reducing the Licensing Back-Log

2

Upgrades to Online Licensing Renewal System

3

Conversation with The Commissioner

4

Tips on Using the ADRE Website

5

She Leaves Her Mark!

6

News from the Arizona Mexico Commission

6-7

Requirements for Broker Records Retention & Storage

8- 9

Useful News & Information

9 - 12

ADRE Enforcement Initiatives Continue
Disciplinary Decisions

12
13 - 22

NEW
PHONE NUMBERS
for ADRE

Commissioner Wercinski
Takes Steps to Reduce
Back-log
of License Applications

At long last, ADRE has been able to replace its antiquated phone and voice message systems!
However, that has meant that the phone numbers
for specific Divisions have changed. The existing
Main Phone Number — 602.468.1414 — remains
operational and will link the caller to these Divisions via an automated phone attendant. However, you can use the following numbers to reach
the various Divisions directly.

Effective February 1st, due to the large number of
licensing requests received by mail and dropped
off at our office, ADRE has implemented a temporary change of hours for walk-in renewals. With
support from industry leaders, ADRE will now use
Tuesdays to focus on processing the back log of
mailed applications many of you have sent and
for which you are now waiting to receive licenses. Customers may continue to walk-in for
immediate service from 8:00am - 4:00pm on Monday, Wednesday, Thursday, and
Friday. A concierge is available every day to assist customers with the use of the computer kiosks
at the front desk, to renew on-line.

Licensing:

602.771.7700

fax: 602.955.6284

Education:

602.771.7720

fax: 602.957.0658

Land Development &
Subdivisions 602.771.7750

fax: 602.955.9361

Investigations: 602.771.7730

fax: 602.468.3514

602.771.7790

fax: 602.468.3514

Administrative
Actions
602.771.7780

fax: 602.468.0562

Executive
Offices

602.771.7760

fax: 602.468.0562

Media

602.771.7766

fax: 602.468.0562

Audits:

Tucson
Office

520.628.6940

fax: 520.628.6941

note: The Tucson Office Number will change over to
the new State system in the near future. When it does,
ADRE will publicize that new number. In the meantime,
continue to use the number above.

REMEMBER, Save Time...Renew Online at:
www.azre.gov
from home or in your office. Only designated brokers, new licensees and those with disclosure issues are currently unable to renew on-line.
Please understand that ADRE licensing staff levels
have remained nearly the same since 2001 while
the number of real estate licensees has increase
by over 30,000 or 60% in this period. We continue
to work on expanding our online services to address this also.
On a very positive note, Sam Wercinski, our new
Commissioner, is asking the legislature to approve
a FOUR YEAR LICENSE upon renewal of an original
two year license AND he has requested a net reduction of fees paid by real estate professionals. More on this topic in a future “Late Breaking
News” e-mail broadcast.
Your understanding and assistance is greatly appreciated and will help us to quickly return Tuesdays to regular hours of operations with shorter
wait times.

Volume 33 — Issue 1

JANUARY 2007

Page 2

Upgrades to the

Online
License Renewal System
About Ready to Launch!
The upgrades to the ADRE Online License Renewal System are going through final testing to
minimize problems after they are launched for
use by brokers and salespersons. Watch Late
Breaking News for the announcement that the
upgrades have passed their tests and are available.
As a reminder, the upgrades will allow
Designated Brokers to:

●
●
●
●
●
●
●

Renew the Employing Company (ENTITY)
license
Renew branch office licenses
Open a branch office
View & Print the renewal applications filed
online by licensees under that Entity
Safeguard the Employing Company’s license filings with ADRE by use of a mandatory password
Print a duplicate license certificate for the
Brokerage or for any of the licensees under that Entity
Utilize the services currently available
online

Salespersons & Associate Brokers to:

●

●
●
●
●

Renew within the “Grace Year” or “Grace
Period” – the one year period following
their license expiration date 1.
Safeguard their personal information by
use of an optional password
View and print their license renewal application filed online
Print a duplicate License Certificate
Utilize the services currently available
online

Certain conditions apply. Licensees making a disclosure
pursuant to Rule R4-28-301 or R4-28-303 (criminal conviction,
adverse judgment, discipline or denial of a professional or
occupational license, etc.) or pursuant to R4-28-306
(conducting activities requiring licensure while license was
inactive or expired or employing a salesperson or broker
whose license was inactive or expired) are NOT ELIGIBLE.

Online
License Renewal Services
Currently Available
using the Online License Renewal System
OLRS
at the Department's webpage:
www.azre.gov :
1) Brokers and salespersons can update their
home address, telephone number and email address online free of charge.
2) Brokers and salespersons can file for renewal of
their personal professional licenses as early as
ninety (90) calendar days prior to the date their
license is scheduled to expire.
3) Associate brokers and Salespersons may sever
employment from an employing broker.
4) Associate brokers and Salespersons may file a
request to be hired. However, they need to notify
the designated broker at the brokerage where
they wish to hang their license that the request
was submitted using the OLRS so that the designated broker can approve the “hire” via the
OLRS before the licensee can start to work for
the brokerage!).
5) Associate brokers and Salespersons need to be
aware that the Designated Broker is required to
approve or disapprove of “new hires” and renewals that include “continuing hire” at their brokerage. If the Designated Broker disapproves a
“continuing hire” as part of the OLRS renewal,
their employment is severed and their license is
renewed on inactive status. Licensees should
follow-up and monitor the status of their license
so they do not conduct unlawful license activity!).

License Renewal
Is a Snap

1.

Volume 33 — Issue 1

JANUARY 2007

when you use the ADRE On-Line
License Renewal System.
go to: www.azre.gov and click on the
“Online Licensing” link.

Page 3

Let the Conversation Begin:
A Message from Commissioner Wercinski
With great enthusiasm, I recently accepted Governor Janet Napolitano’s appointment to serve Arizona as Commissioner of Real Estate. I appreciate the Governor’s confidence in my abilities and have rolled my sleeves up to make
a positive difference. I also want to thank all of you who have contacted me or visited with me personally and offered your congratulations. I am humbled by your willingness to offer help and support. I want to encourage continuous dialog between ADRE, the public and industry stakeholders as a means of bringing new and innovative ideas
that will increase efficiency and service in our department.
My perspective and efforts as Commissioner will be framed by

Mutual Respect
Respect among ADRE staff. Respect for our “customers,” the Real Estate Industry we oversee. And Respect for our
“clients,” the people of Arizona that we are charged by statute to serve and protect.
My experience forms my foundation to build a better ADRE.

A Recent Designated Broker

Prior to January 11, 2007, I was the designated broker for my own firm. I have a real estate professional’s viewpoint
with high standards for detailed work and ethical behavior. In my short time as Commissioner, I have witnessed encouraging results by our relatively small but dedicated staff. With the unprecedented growth in the number of licensees (62% increase), of subdivision filings (61% increase), and of complaints that must be investigated (65% increase)
over the past four years, ADRE has struggled to keep up. Increasing efficiency is a must.

Your Input is Essential
By continuing several measures begun prior to my arrival and implementing new procedures immediately, we are
accelerating changes that benefit the public and industry stakeholders. For example, we are proposing legislation
to extend licenses to four years after the initial two year license is renewed. Additionally, we are asking the legislature to allow us to reduce the net fees for this four year license. We hope to see this change in statute by June 2007
so stay tuned. Your input is valuable.
I hope many of you will join me at a future Advisory Board meeting or other industry gatherings.

I Look Forward To Meeting You

I will travel the state over the next three months to meet with you. Please let me know if I can make a personal visit
to an interested group. I encourage you to contact me with suggestions and comments. I will serve this Great State
of Arizona to the best of my abilities…or even better with your involvement.
Respectfully yours,

Sam Wercinski, Commissioner
Arizona Department of Real Estate

You can find the Commissioner’s bio and resume at www.azre.gov.
NOTE: Watch ADRE’s LATE BREAKING NEWS for announcements about meetings across the state where Commissioner Wercinski will be
scheduled to attend to “Continue the Conversation” with real estate industry stakeholders and with the public.

Volume 33 — Issue 1

JANUARY 2007

Page 4

TIPS On Using ADRE’s New Webpage
ADRE’s website has a new look and has
been updated and made easier to navigate. Take a
minute to visit the new website, if you haven’t already. We hope you will let us know about any aspects of the new design, and organization that may
not be as helpful as we have tried to make them.
A great tool is the line of six “QUICK-LINKS”
found under the masthead. See the red oval highlighting the “Online Services” QUICK-LINK. Clicking
on that link will take you directly to a page that explains the ADRE PUBLIC DATA BASE and the
ADRE ONLINE LICENSING RENEWAL SERVICE. Once you are at that page, just click on the
one you want.

Vo l um e 3 3 — I s s u e 1

Use the other five “QUICK LINKS” on that same
line on the home page to gain easy access to
“Articles” (from The Bulletins); “Bulletins”;
“FAQs” (Frequently Asked Questions); “Fees”; or
“Forms”.
This Website is constantly a work in progress, as staff fields more questions. If a topic isn’t
there that you think ought to be, please let us know
using the “Contact Us” option on the website, or by
sending an e-mail message to:

JANUARY 2007

info@azre.gov.

Page 5

She Left Her Mark.

In announcing the resignation of Elaine Richardson as Commissioner of Real Estate, Governor Janet
Napolitano said:
“Commissioner Richardson has been the head of the Department of Real Estate during
the busiest time in Arizona history. Throughout the past four years she led the state through an incredible
boom and did so with excellence and efficiency. She will be missed, and I wish her continued success.”

Real estate transactions in Sonora, Mexico continue to be a principal focus of the Arizona-Mexico Commission. This was demonstrated at the recent Plenary Session held November 15-17, 2006, at Rocky Point,
Sonora, Mexico.
At the Real Estate Ad Hoc Committee meeting held on November 15, 2006, there was “standing room
only.” The Committee agenda included some very informative presentations as well as discussion on
future action items. The State of Sonora Secretary of Economy, Ricardo Platt, presented information on
the status of “mandated” licensure for real estate professionals in Sonora. ADRE was well represented by
Mary Utley, ADRE Communications Director and a Member of the Arizona Mexico Commission, reappointed by Governor Napolitano to that position on May 11, 2006.
Both the Sonora and Arizona Real Estate Committees continue to work collaboratively for the promotion
of the real estate industry in both states, with particular focus on consumer protection in the State of
Sonora.

This banner greeted the participants and attendees at the
Fall 2006 Plenary Session of the Arizona Mexico Commission
held in Rocky Point, Sonora.

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JANUARY 2007

Page 6

Continued from page 6.

The audience witnessing the proceedings at the Plenary Session held at the
Condominios Las Palmas. in Rocky
Point.

Sonoran Governor Bours & Arizona Governor Napolitano sign resolutions
adopted at the Plenary Session.

Attendees at the Real Estate Ad Hoc
Committee Meeting, Nov. 15, 2006.

The two Governors receive an economic
briefing during the Plenary Session.

Sr. Ricardo Platt, State of Sonora Secretary of
Economy, & Mary Utley, Member of the Arizona Mexico Commission, participate in the
panel presentation at the Real Estate Ad Hoc
Committee meeting.

V o l um e 3 3 — I s s u e 1

JANUARY 2007

Presentations at the Real Estate Ad
Hoc Committee Meeting were augmented by slides and Power Point images.

Page 7

What Are ADRE’s Requirements for Paper File
Storage & Broker Records Retention?
by: Janet A. Blair, Deputy Director of Auditing Division

Question: What is the difference between the “Employing Broker” and the
“Designated Broker?”
An Employing Broker is an entity. A.R.S. § 322101(23) defines Employing Broker as “a person
who is licensed or is required to be licensed as a:
(a) Broker entity pursuant to section 32-2125(A) or
(b) a sole proprietorship if the sole proprietor is a
broker licensed pursuant to this chapter. NOTE that
A.R.S. § 32-2101(43) defines “Person” as “any individual, corporation, partnership or company and
any other form of multiple organization for carrying
on business, foreign or domestic.”
A Designated Broker is defined by A.R.S. § 322101(20) as “the natural person who is licensed as
a broker under this chapter and who is either: (a)
Designated to act on behalf of an employing real
estate, cemetery or membership camping entity,
or (b) doing business as a sole proprietor.”

Question: Is the Employing Broker or the
Designated Broker responsible for the
activities of a brokerage?
The employing broker is responsible for the
acts of all associate brokers, salespersons, and
other employees (AAC R4-28-1103(D)), but both
the employing broker and designated broker have
a duty to reasonably supervise and control them
through written policies and procedures (AAC R428-1103(A)).
The designated broker may use employees
to administer supervision and control but shall not
relinquish overall responsibility (AAC R4-28-1103(E)),
and must monitor compliance with statutes, rules,
and the employing broker's policies, procedures,

V o l um e 3 3 — I s s u e 1

and systems (AAC R4-28-1103(B)).
The designated broker must also reasonably
supervise and control the activities of the employing broker (AAC R4-28-1103(C)), and if he immediately reports a violation of real estate statutes or
rules by a salesperson or associate broker under his
supervision he would not be subject to disciplinary
action for failure to supervise the salesperson or
broker (AAC R4-28-1103(F)).
A broker shall not employ a salesperson or associate broker and allow the salesperson or associate broker to establish and carry on a brokerage
business if the broker's only interest is the receipt of
a fee for the use of the license and the broker does
not exercise supervision over the salesperson or associate broker (AAC R4-28-302).

Question: Who keeps the records after
the designated broker leaves the Employing Broker’s services?
The designated broker must keep a record of all monies received in connection with a
real estate transaction (ARS §32-2151).
The employing broker must keep:

• Records of all real estate, cemetery, time-

share or membership camping transactions,
and employment records for all current and
former employees (ARS §32-2151.01(A)).
• All real estate purchase and nonresidential
lease contracts and employment agreements, or copies of these documents (ARS
§32-2151.01(H)).
• After termination of a property management
agreement, he need not keep but must immediately provide the following to the prop-

JANUARY 2007

(Continued on page 9)

Page 8

What Are ADRE’s Requirements for Paper
File Storage & Broker Records Retention?
CONTINUED

ADRE Participated in
AAR Broker Manager Seminar
Held in December

(Continued from page 8)

erty owner: All originals or copies of all rental
agreements for current and previous tenants
including any applications, property inventories, leases, pet permits, default notices,
lease amendments, or addenda (ARS §322173(B)).
If the items are left at an on-site
management office, the employing broker
must give immediate written notification to
the owner where the records are located
(ARS §32-2173(D)).
• Rental agreements and related documents
shall be kept for one year after expiration of
the agreement or until the documents are
given to the owner at the termination of the
property management agreement (ARS §322175(A)).
• Records of all finder fees paid to tenants shall
be kept for three years after payment or until
the records are given to the owner at the
termination of the property management
agreement (ARS §32-2175(B)).
• All client financial records shall be kept for
three years from the date each document
was executed (including bank statements,
canceled checks or bank generated check
images, deposit slips, bank receipts, receipts
and disbursement journals, owner statements, client ledgers and applicable bills, invoices and statements) (ARS §32-2175(C)).

From left to right: K. Michelle Lind, Esq., General
Counsel, Arizona Association of REALTORS®
(Phoenix); Frank Dickens, AAR® 2007 President &
Member of the ADRE Advisory Board (Flagstaff);
Tom Adams, ADRE Director of Regulation
(Phoenix); and Craig Sanford, AAR® 2006 President (Phoenix) at the AAR® sponsored Broker
Manager Seminar held at the Black Canyon Conference Center in Phoenix on December 14,
2006.
ADRE’s Tom Adams spoke to the 240 participants
at the Broker Manager Seminar. Tom spoke
about the investigation process; about the most
common complaints brought to ADRE against licensees; and what to do to avoid getting into
disciplinary trouble with ADRE. Michelle Lind and
Alice Martin, of AAR® also spoke about broker
management best practices.

ADRE’s NEW Commissioner, Sam Wercinski, congratulates NEW Broker, Michelle Reynolds-Ricart,
of Phoenix ,on Jan. 24th the day Michelle qualified for her broker’s license.

Vo l um e 3 3 — I s s u e 1

JANUARY 2007

Page 9

Renewing Early — Online!

Arizona Snowpack Levels Low.

by Lynn Long,
Licensing Services Representative
ADRE Tucson Office

Early Forecasts by the U.S. Dept. of Agriculture
Estimate Little Water for Spring.

It is always recommended that you renew online
and well in advance of your license expiration
date. Waiting until the last day or two may have
unforeseen drawbacks. Your continuing education credits (CE's) may have a glitch that requires
you to contact the issuing school, or the Department by phone or a thunderstorm blows in and
knocks out the electricity or phone lines. Waiting
until the last few days creates stress and may result in an inconvenience for you.
You can renew up to 90 days in advance; take
advantage of this opportunity. The online renewal process takes just a few minutes and is
complete when you pay the fee. (Your broker
doesn't have to approve your renewal, but may
disapprove it, in which case your license is still renewed but on inactive-status. You'll need to be
hired by another broker before engaging in activities requiring a license.)
If you must renew by mail or drop box, your application will be processed in the order received.
This is a much longer process, and may interrupt
your business as a salesperson. The Department
continues to receive applications that are incomplete: A check is missing, the salesperson or
broker forgot to sign the renewal form, or one
block is not marked. All of these things create a
deficient application and what may be a
lengthy wait time before you are notified that
your application is incomplete, advising you of
your deadline to correct the error and mail it in,
and time for the Department to resume processing it again. The key is to renew Online and renew in advance.
Another quick tidbit for fast courteous service is
the Licensing web email inquiries. Rather than
call the Department, email your question
through the Department Webpage. It allows the
staff to research your question and respond in a
much quicker manner.

Vo l um e 3 3 — I s s u e 1

“PHOENIX, Jan. 8, 2007 – So far this winter Arizona has not
gotten much snow or rain, and water users face below
normal water supplies this spring as the state enters the
12th year of drought. The Arizona Basin Outlook Report released this week by USDA’s Natural Resources Conservation Service (NRCS) shows the state at 38 percent of average snowpack. The federal agency monitors snow conditions in Arizona’s mountain watersheds each winter to estimate the amount of water available for spring and summer uses.
“’Precipitation has been well below average since November 1 and our seasonal snowpack has yet to fully develop,’ said Larry Martinez, state water supply specialist
with the NRCS in Phoenix, Arizona. ‘What is needed now is
a shift in the weather pattern to help bring more winter
storms to Arizona,’ Martinez said. ‘If the month of January
lapses without significant snowfall, it will become difficult
to catch up as the winter progress,’ said Martinez.
“Among the findings in the Basin Outlook Report, the Salt
River basin snowpack was measured at 38 percent of the
30-year average; the Verde River basin, 40 percent of average, and the San Francisco-Upper Gila basin at 40 percent of average. The southern headwaters of the Little
Colorado River basin had 41 percent of average snowpack, while the central Mogollon Rim was at 52 percent of
average. At the Grand Canyon, the snowpack was 33
percent of average. In the Chuska Mountains of northeastern Arizona, snowpack conditions were measured at
41 percent of average. At the San Francisco Peaks the
snowpack was measured at 32 percent of average. …
“For the current water year, (Oct. 1-Dec. 31), cumulative
precipitation was 57 percent of average over the Salt
River basin, 47 percent of average over the Verde River
basin, and 64 percent of average over the San FranciscoUpper Gila River basin. The Little Colorado River basin received 58 percent of average precipitation. …
“Overall, the six Salt River Project reservoirs held a combined total of 1,407,052 acre-feet in storage at 61 percent
of system capacity. … An acre foot of water equals
325,851 gallons and is enough to supply two families for a
year. Long-range estimates call for below median runoff
over the January-May forecast period. …”
The Arizona Basin Outlook Report is available at:
http://www.az.nrcs.usda.gov/snow/.

JANUARY 2007

Page 10

Comprehensive Septic Tank Inspection Program
Began July 1, 2006

A new 2006 Arizona law requires new property owners to file a Notice of Transfer application when purchasing any
property that has a septic tank system or an alternative onsite wastewater treatment system. New owners are responsible for filing the Notice of Transfer application, although others acting on their behalf may file for them.
Regardless of who does the filing, the permitting process has now become easy and efficient. The Arizona Department of Environmental Quality (ADEQ) has developed an Internet web site that enables anyone with the responsibility for filing a Notice of Transfer to achieve easy compliance by filing online at:
http://www.azdeq.gov/environ/water/permits/onsitenot.html
The new law also requires that the seller of such a property must seek to have the wastewater treatment system inspected, and must obtain a Report of Inspection completed by a qualified inspector. The information from the completed Report of Inspection is vital for completely filling out the Notice of Transfer application.
To file a Notice of Transfer application online, all you need is the correct property identification information, a Report
of Inspection, and an acceptable credit card. There is a $50.00 fee to file the Notice of Transfer application.
Who Must File or Renew a Notice of Transfer Application?
In Arizona, you are required to have an Aquifer Protection Permit if you own or operate a facility that discharges a pollutant to the land surface or above an aquifer, near enough that the pollutant might reasonably
reach the aquifer. This is the Permit that is transferred when one files a Notice of Transfer application. Included among the types of onsite wastewater treatment systems that require permitting are:
1 Septic Tank and Leach Fields
2 Composting Toilet Systems
3 Evapo-transpiration Bed System, Mound Systems and Aerobic Systems
4 Engineered Pad and Filter Systems
For further specific questions, e-mail: septic_inspection@azdeq.gov

Vo l um e 3 3 — I s s u e 1

JANUARY 2007

Page 11

Arizona Responds to Mortgage Fraud
Mortgage fraud has been in the news locally and nationally, of late. Senator Jay Tibshraeny (Chandler)
introduced Senate Bill 1221 that would make residential mortgage fraud a class 4 felony.

Felecia Rotellini,
Superintendent,
Arizona Department
of Financial Institutions

ADRE is partnering with the Superintendent of the Arizona Department of Financial Institutions, Felecia Rotellini, in a newly created mortgage fraud task force comprised of
state and federal regulatory agencies. Ms. Rotellini’s office has been receiving numerous tips and complaints about suspected fraudulent mortgage schemes. ADRE
has been working with several of the major real estate brokerages, whose designated
brokers have been notifying ADRE of incidences of suspected mortgage fraud. They
have also warned licensees in their respective brokerages not to engage in any questionable transactions. Watch for news about the task force on the ADRE website:
www.azre.gov, or on the Arizona Department of Financial Institutions website: www.
azdfi.gov. ADRE will also be sending out news as it becomes available via our Late
Breaking News broadcasts.
In the meantime, you can read Catherine Reagor’s article from the Tuesday, January
23rd issue of The Arizona Republic by going to this link:

http://www.azcentral.com/news/articles/0123mortgagefraud0123.html

ADRE Enforcement Initiatives Continue
Pages 13 through 22 of this issue list the: 63 Consent Orders; 10 Commissioner’s Final Orders; 10 Summary Suspensions; 34 Accelerated Settlement Agreements; and 14 Cease and Desist Orders issued
since the last Bulletin. The total number of 131 disciplinary cases resolved over these past two months
was the work of the Administrative Actions Staff of 4 under the able direction of Tom Adams, Director of
Regulation. This compares with the 43 disciplinary cases resolved over the same two months two years
ago, and represents a 204.65% increase. Follow-up monitoring of these resolved cases falls to the one
Compliance Officer on staff!
These increases in ADRE’s enforcement efforts and the resulting increases of Disciplinary Decisions are a
result of the policy direction set by the immediate past Commissioner, which will continue with Commissioner Wercinski. These increases are also indicative of the work load increases in the following areas of
ADRE responsibility.
Work Load Categories

As of June 30, 2002

Most Recent Count Available

% increase

People with Licenses

52,853

85,456

61.7%

Subdivision Applications
Receipted

1,690

Complaints Investigated
& Closed

Vo l um e 3 3 — I s s u e 1

(Fiscal Year ‘02 total)

650 (Fiscal Year ‘02 total)

(as of Jan. 2007)

2,718

(Fiscal Year ‘06 total)

60.8%

1,206

(Fiscal Year ‘06 total)

85.5%

JANUARY 2007

Page 12

Disciplinary Decisions
in alpha order by type of action

by Consent Order
Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action

Name
Location:
License Number
Summary

Order Date
Action

Name
Location:
License Number
Summary

Order Date
Action

Name
Location:
License Number
Summary
Order Date
Action

Kayle H. Adams
Oro Valley, AZ
Unlicensed Applicant
Petitioner disclosed a December 2001 felony
conviction for Theft. Respondent was placed on 5
years probation, which was successfully
completed.
October 26, 2006
License granted, 2 year Provisional License with
Broker Acknowledgment, $25,000 Surety Bond
Michelle L. Basso
Bullhead City, AZ
SA109032000
Respondent submitted a bank statement to a loan
originator on behalf of a client to facilitate closing
on a loan. The bank statement was Respondent’s
own statement that was subsequently altered to
include the client’s name instead of Respondent.
November 14, 2006
2 year Provisional License with Broker
Acknowledgment, $1,000 Civil Penalty, 6 hours of
CE in Commissioner's Standards with an
emphasis on Ethics
David Benedict
Cave Creek, AZ
BR031470000
Respondent represented a broker to whom
Respondent was not licensed, failed to maintain
appropriate records, accepted compensation from
a source other than the licensed broker to whom
Respondent was licensed, failed to deal fairly with
all involved parties.
October 23, 2006
$1,500 Civil Penalty, 2 year Provisional License,
12 hr CE in Commissioner's Standards and Broker
Management Clinic, $10,000 surety bond
Andrew Ross Bloom
Scottsdale, AZ
SA110379000
Respondent submitted a contract offer on behalf of
a buyer indicating an earnest money check had
been collected and would be deposited.
Respondent salesperson had not collected a
check. Eventually the sale fell through and buyer
never submitted an earnest money check to the
title company. Seller asked for earnest money as
provided and no money was available.
November 9, 2006
2 year Provisional License with Broker
Acknowledgment, $2,000 Civil Penalty, 6 hours of
CE in Commissioner's Standards

Name
Location:
License Number
Summary

Order Date
Action

Name
Location:
License Number
Summary

Order Date
Action

Name
Location:
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Action
Name
Location:
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Name
Location:
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Summary
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James W. Bourdeau
Scottsdale, AZ
BR007472000
Respondent failed to supervise salesperson.
November 1, 2006
$1,000 Civil Penalty, 3 hour CE in Commissioner's
Standards and a 3 hour Broker Management Clinic

Vo l um e 3 3 — I s s u e 1

JANUARY 2007

Kurt J. Boxrud
Phoenix, AZ
BR005316000
During a broker audit, Respondent was found
failing to maintain license certificates at branch
offices, failing to appoint branch managers and
commingling broker funds in trust accounts.
October 23, 2006
2 year Provisional License, $2,500 Civil Penalty,
12 hours CE in General Real Estate with an
emphasis on Trust Account procedures.
David Bruce Boyden
Phoenix, AZ
SA112116000
Respondent convicted of DUI in November of
2005, failed to disclose the conviction when
submitting a timely renewal application at the end
of November 2005.
November 16, 2006
30 day License Suspension, $2,000 Civil Penalty,
6 hours CE in Commissioner's Standards, 2 year
Provisional License with Broker Acknowledgment.
Clark Donald Campbell
Scottsdale, AZ
Unlicensed Applicant
Respondent, when applying for licensure,
disclosed a 2001 conviction for misdemeanor
assault in the State of Colorado and a 1996 Decree
of Censure from AZ Optometry Board for record
keeping.
December 12, 2006
License granted, 2 year Provisional License with
Broker Acknowledgment
Delbert Lee Carr
Show Low, AZ
Unlicensed Applicant
Petitioner, when applying for licensure, disclosed
a January 2002 misdemeanor conviction for
Assault and Disorderly Conduct and a February
2002 misdemeanor conviction for DUI / Trespass /
Violation of Court Order / Assault and Disorderly
Conduct.
November 1, 2006
License granted, 2 year Provisional License with
Broker Acknowledgment
Wendy Castle
Chandler, AZ
SA538884000
Respondent made multiple false statements in the
course of a real estate transaction.
November 20, 2006
60 day License Suspension, $2,500 Civil Penalty,
12 hours CE in General Real Estate with an
emphasis on Ethics, $5,000 Surety Bond, 2 year
Provisional License with Practice Monitor

Page 13

Disciplinary Decisions
Consent Orders continued
Name
Location:
License Number
Summary

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Action
Name
Location:
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Summary
Order Date
Action

Name
Location:
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Summary

Order Date
Action
Name
Location:
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Summary

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Action

Name
Location:
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Summary

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Evette Cecena
Mesa, AZ
Unlicensed Applicant
Respondent, when applying for licensure,
disclosed a June 2004 misdemeanor conviction
for DUI and a January 2005 misdemeanor
conviction for Fighting.
November 28, 2006
2 year Provisional License with Practice Monitor
Alexander Marr Chandler
Fort Worth, TX
BR510616000
Respondent disclosed an August 2006 DUI
conviction in a timely manner.
December 5, 2006
$1,000 Civil Penalty, agree not to reapply or
request reinstatement of Arizona license for 5
years.
Joseph Sebastian Chavez
Guadalupe, AZ
Unlicensed Applicant
Petitioner disclosed a June 2001 misdemeanor
conviction for Possession of Marijuana and a
February 2003 misdemeanor conviction for DUI
when applying for licensure.
October 18, 2006
License granted, 2 year Provisional License with
Practice Monitor, 2 year Body Fluid Testing
Gregory P. Coe
Scottsdale, AZ
Unlicensed Individual
Respondents acquired, sold and/or offered for sale
50 improved lots within a subdivision without
obtaining a Public Report. Respondents did
consent to a voluntary Cease and Desist of sales
until obtaining complying with all applicable
statutes and rules.
November 1, 2006
Cease and Desist, $25,000 Civil Penalty (jointly
and severally), offer rescission, apply for and
obtain a Public Report
Coebilt, Inc.
Scottsdale, AZ
Unlicensed Entity
Respondents acquired, sold and/or offered for sale
50 improved lots within a subdivision without
obtaining a Public Report. Respondents did
consent to a voluntary Cease and Desist of sales
until obtaining complying with all applicable
statutes and rules.
November 1, 2006
Cease and Desist, $25,000 Civil Penalty (jointly
and severally), offer rescission, apply for and
obtain a Public Report

Name
Location:
License Number
Summary
Order Date
Action

Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action

Name
Location:
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Summary

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Name
Location:
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Summary

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V o l um e 3 3

Issue 1

JANUARY 2007

Kenneth R. Cook
Prescott Valley, AZ
SA542139000
During a 2006 broker audit, multiple violations
were discovered, including trust account
irregularities.
December 1, 2006
2 year Provisional License with Practice Monitor,
$10,000 Civil Penalty (jointly and severally), 12
hours CE in Commissioner's Standards.
Debbie L. Cox
Phoenix, AZ
SA536959000
Advertisement did not include name of employing
broker or designated broker and did not identify
Respondent as a real estate salesperson.
December 13, 2006
$1,000 Civil Penalty, 8 hours CE in
Commissioner's Standards.
R.C. "Duke" De Bernardi
Scottsdale, AZ
BR005211000
Respondent allowed individual to conduct real
estate sales activities after expiration of license.
October 27, 2006
$2,000 Civil Penalty, Develop and implement
acceptable written procedures to prevent
unlicensed activity within 30 days.
Stuart Deene
Phoenix, AZ
BR108957000
Respondent failed to timely renew license,
conducted unlicensed activity, failed to deal fairly
with a party to a real estate transaction and
conducted activities under a name other than the
name under which Respondent was licensed.
December 13, 2006
$4,000 Civil Penalty, 12 hours CE in
Commissioner's Standards, 2 year Provisional
License
Harry F. D'Elia, III
Phoenix, AZ
SA535849000
Respondent failed to pay complainant towards
improvements on a property as agreed.
November 1, 2006
License renewal granted, $1,000 Civil Penalty, 6
hr CE in Commissioner's Standards with an
emphasis on Ethics, 2 year Provisional License
w/Broker Acknowledgment.
Paul Eugene Dickerson
Scottsdale, AZ
Unlicensed Applicant
Respondent disclosed an August 1999 felony
conviction in the Commonwealth of Virginia when
applying for an original salespersons license.
Respondent discharged from probation in 2001.
October 18, 2006
License granted, 2 year Provisional License with
Broker Acknowledgment, $25,000 Surety Bond

Page 14

Disciplinary Decisions
Consent Orders
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action

Name
Location:
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Summary
Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
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Summary

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Action

Name
Location:
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Summary
Order Date
Action

continued

Ana Dorame
Tucson, AZ
BR108436000
Respondent failed to appropriately supervise a
licensee who failed to deposit a client's funds into
escrow.
October 25, 2006
$2,000 Civil Penalty, 12 hr CE in Commissioner's
Standards and Broker Management Clinic
James and Karen Dove
Kingman, AZ
Unlicensed Individuals
Respondents sold 24 lots within a subdivision in
Coconino County, Arizona without complying with
Public Report requirements.
October 10, 2006
Cease and Desist, $10,000 Civil Penalty (jointly
and severally), offer rescission, apply for and
obtain a Public Report
Linda Jo Dutton
Prescott Valley, AZ
Unlicensed Applicant
Respondent, when applying for licensure,
disclosed an October 2005 misdemeanor
conviction for Issuing a Bad Check.
November 14, 2006
License granted, 2 year Provisional License with
Practice Monitor
Eric L. Erickson
Tucson, AZ
Unlicensed Applicant
Respondent, when applying for licensure,
disclosed a November 1998 conviction in New
York for DWAI, an April 2003 felony conviction in
New York for Criminal Possession of a Weapon
Third Degree and an April 2003 misdemeanor
conviction in New York for DWAI.
December 4, 2006
License granted, 2 year Provisional License with
Practice Monitor
Steven James Fetterly
Tucson, AZ
BR009126000
In May of 2006, Respondent submitted a late
broker’s renewal, disclosed an action taken by
ROC against Respondent’s contractor license.
Respondent did not notify the Department of the
ROC action in a timely manner.
November 27, 2006
License renewal granted, 2 year Provisional
License, $2,000 Civil Penalty, 6 hours CE in
Commissioner's Standards
Nancy L. Fry
Tucson, AZ
SA039834000
Respondent received compensation from a source
other than the licensed broker to whom
Respondent was licensed.
November 20, 2006
$1,000 Civil Penalty, 6 hr CE in Commissioner's
Standards, 2 year Provisional License w/Broker
Acknowledgment

V o l um e 3 3 — I s s u e 1

Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action

Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
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Summary
Order Date
Action
Name
Location:
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Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action

JANUARY 2007

Ryan Garrison
Tempe, AZ
SA571529000
Respondent unable to comply with terms of
previously signed Consent Order.
December 1, 2006
License revocation
Geoff Gribble
Mesa, AZ
SA539525000
Respondent failed to properly represent
complainant in a sales transaction by having
someone other than the complainant sign
transaction documents. Respondent also made
inappropriate comments to a buyer about the
complainant.
November 2, 2006
2 year Provisional License with Practice Monitor,
$2,000 Civil Penalty, 6 hours CE in
Commissioner's Standards
Hall Realty, LLC
Show Low, AZ
LC536242000
From November of 2002 through November of
2004, Respondent entity assisted an unlicensed
entity in the acquisition and/or sale of subdivided
lots without complying with applicable
subdivision statutes and rules.
October 17, 2006
$1,000 Civil Penalty
Robert Haymes
Morristown, AZ
SA545227000
Respondent sold multiple subdivided lots without
complying with applicable subdivision statutes
and rules.
October 16, 2006
$4,000 Civil Penalty (jointly and severally), Cease
and Desist, apply for Public Report
Jace Hermanson
Scottsdale, AZ
Unlicensed Applicant
Respondent disclosed an August 2005 action by
the National Association of Securities Dealers
when applying for licensure.
December 13, 2006
License granted, 2 year Provisional License with
Practice Monitor, $25,000 Surety Bond
Benjamin N. Hernandez
Tucson, AZ
Unlicensed Applicant
Respondent, when applying for licensure,
disclosed an August 2004 misdemeanor
conviction for Theft.
December 15, 2006
License granted, 2 year Provisional License with
Practice Monitor, $10,000 Surety Bond

Page 15

Disciplinary Decisions
Consent Orders
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Location:
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Summary

Order Date
Action

Name
Location:
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Summary
Order Date
Action

Name
Location:
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Summary
Order Date
Action

Name
Location:
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Summary
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Action

Name
Location:
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Summary

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Action
Name
Location:
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Summary

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continued

Michelle Hoogendoorn
Tempe, AZ
SA550923000
Respondent, while selling personal real estate
rental properties, failed to disclose to the buyer
that a tenant would be leaving and did not
disclose that there was cleaning deposit monies
available. Respondent also failed to disclose a
mediation judgment to the Department.
December 1, 2006
2 year Provisional License with Broker
Acknowledgment, $1,000 Civil Penalty, 3 hours of
CE in Commissioner's Standards and 3 hours CE
in Disclosures
Tommy Hughes, Jr.
Boulder City, NV
Unlicensed Individual
Respondent sold 13 lots within two subdivisions
in Coconino County, Arizona without complying
with Public Report requirements.
December 1, 2006
Cease and Desist, $5,000 Civil Penalty (jointly
and severally), offer rescission, apply for and
obtain a Public Report
Timothy Johnson
Scottsdale, AZ
SA548680000
In May of 2005, Respondent was convicted of
Extreme DUI, failed to disclose within 10 days.
October 17, 2006
License renewal granted, $2,000 Civil Penalty, 2
year Provisional License with Broker
Acknowledgment, 2 year Body Fluid Testing, AA
meeting attendance and sobriety monitor
Jeff W. Kist
Phoenix, AZ
SA548155000
Respondent was convicted of DUI in December of
2004, failed to disclose within 10 days.
October 20, 2006
License renewal granted, $500 Civil Penalty, 6 hr
CE in Commissioner's Standards, 2 year
Provisional License w/Broker Acknowledgment.
Tiffany R. Lasswell
Hamilton, MT
SA575016000
Respondent requested a credit history on an
individual that Respondent did not represent as a
real estate salesperson. Respondent attempted to
obtain history for personal reasons.
December 22, 2006
License revocation
Elizabeth Law
Pinetop, AZ
Unlicensed Applicant
Respondent, when applying for licensure,
disclosed February 2001 felony convictions for
Possession of Dangerous Drugs and Possession
of Marijuana.
November 3, 2006
License granted, 2 year Provisional License with
Broker Acknowledgment

V o l um e 3 3 — I s s u e 1

Name
Location:
License Number
Summary

Order Date
Action

Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action

Name
Location:
License Number
Summary
Order Date
Action

Name
Location:
License Number
Summary
Order Date
Action

JANUARY 2007

Stacy Mae Lemmert
Lapeer, MI
SA554873000
Respondent failed to disclose a 2005
misdemeanor conviction for Reckless Driving
within 10 days, failed to respond to requests for
information from the Department. License was
summarily suspended in August of 2006.
November 14, 2006
Vacate Summary Suspension Order, $750 Civil
Penalty, 2 year Provisional License w/Broker
Acknowledgment.
Jennifer Joanne Lit tell
Phoenix, AZ
Unlicensed Applicant
Respondent, when applying for licensure,
disclosed a June 2003 misdemeanor conviction
for Extreme DUI.
November 27, 2006
2 year Provisional License with Practice Monitor,
2 year Body Fluid Testing
Steven Michael Luckett
Tucson, AZ
BR115801000
Respondent timely reported a May 2006
misdemeanor conviction for Extreme DUI and DUI.
November 24, 2006
License revocation
Sheryl McLuhan
Peoria, AZ
SA513487000
Respondents failed to timely disclose existence
of termites and mold to buyers (Respondents were
selling their own property).
October 25, 2006
2 year Provisional License with Broker
Acknowledgment, $3,000 Civil Penalty (jointly and
severally), 6 hours of CE in Commissioner's
Standards
Dwayne McLuhan
Peoria, AZ
SA513518000
Respondents failed to timely disclose existence
of termites and mold to buyers (Respondents were
selling their own property).
October 25, 2006
2 year Provisional License with Broker
Acknowledgment, $3,000 Civil Penalty (jointly and
severally), 6 hours of CE in Commissioner's
Standards
Barbara Monroe
Cave Creek, AZ
SA542394000
Respondent continued to conduct real estate sales
activities after expiration of license.
December 7, 2006
License renewal granted, 2 year Provisional
License with Broker Acknowledgment, $1,000
Civil Penalty, 6 hours CE in Commissioner's
Standards

Page 16

Disciplinary Decisions
Consent Orders continued
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action

Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
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Summary

Order Date
Action

Mountain Sage Realty, LLC
Tempe, AZ
LC551940000
During a 2006 broker audit, multiple violations
were discovered, including trust account
irregularities.
December 1, 2006
$10,000 Civil Penalty (jointly and severally)
James H. Neiss
Scottsdale, AZ
Unlicensed Applicant
Respondent failed to disclose a May 2004 action
by the Arizona Registrar of Contractors against
Respondent's contractor license when applying for
licensure.
November 14, 2006
License granted, 2 year Provisional License with
Practice Monitor, $25,000 Surety Bond
Donna Norbury
Morristown, AZ
SA545228000
Respondent sold multiple subdivided lots without
complying with applicable subdivision statutes
and rules.
October 16, 2006
$4,000 Civil Penalty (jointly and severally), Cease
and Desist, apply for Public Report
Out West Properties, LLC
Kingman, AZ
Unlicensed Entity
Respondents sold 24 lots within a subdivision in
Coconino County, Arizona without complying with
Public Report requirements.
October 10, 2006
Cease and Desist, $10,000 Civil Penalty (jointly
and severally), offer rescission, apply for and
obtain a Public Report
Paul Padrnos / Antelope Springs
Construction, Inc.
Prescott, AZ
Unlicensed Individual / Entity
Respondent sold 9 lots within subdivisions
located in Yavapai County, Arizona without
complying with Public Report requirements.
November 29, 2006
$5,000 Civil Penalty, offer rescission, apply for
and obtain a Public Report
Bradley "Brad" Potter
Phoenix, AZ
SA565575000
During a 2006 broker audit, multiple violations
were discovered, including trust account
irregularities. Respondent was found to have
represented a broker other than the broker that
Respondent was licensed to.
November 15, 2006
2 year Provisional License with Practice Monitor,
$2,000 Civil Penalty, 12 hours CE in
Commissioner's Standards.

Name
Location:
License Number
Summary
Order Date
Action

Name
Location:
License Number
Summary
Order Date
Action

Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action

Name
Location:
License Number
Summary

Order Date
Action

Name
Location:
License Number
Summary
Order Date
Action

V o l um e 3 3 — I s s u e 1

JANUARY 2007

Merla Rimpel
Phoenix, AZ
SA556890000
Respondent failed to disclose a 1994 felony
conviction in the State of Texas when applying for
licensure.
November 3, 2006
2 year Provisional License with Broker
Acknowledgment, 6 hr CE in Commissioner's
Standards
William Hugh Rose, Jr.
Phoenix, AZ
SA018844000
Respondent timely reported a May 2006
misdemeanor conviction for Extreme DUI.
November 27, 2006
2 year Provisional License with Broker
Acknowledgment, $1,000 Civil Penalty, 2 year
Body Fluid Testing / Sobriety Monitor / AA
meetings
David Sheptow
Oro Valley, AZ
Unlicensed Applicant
Petitioner disclosed a December 2001
misdemeanor conviction for Contempt of Court and
a July 2005 misdemeanor conviction for DUI
when applying for licensure.
October 26, 2006
License granted, 2 year Provisional License with
Broker Acknowledgment
Neil Brian Sherman
Phoenix, AZ
BR026438000
Respondent failed to disclose a misdemeanor
conviction, submitted a false or misleading
license renewal application and conducted
unlicensed real estate activities.
November 15, 2006
License renewal granted, 2 year Provisional
License with Broker Acknowledgment, $15,000
Civil Penalty, 12 hr CE in Commissioner's
Standards
Garland Smith / Rio Verde Realty
Hereford, AZ
BR104078000 / SE104078000
Respondents advertised lots within a proposed
subdivision in Cochise County without having the
permission of the owner of the subdivision and
without having complied with applicable
subdivision laws and rules.
October 20, 2006
$2,000 Civil Penalty (jointly and severally), 3
hours CE in Commissioner’s Standards, 3 hour
Broker Management Clinic
Thomas Eldredge Fow Strong
Scottsdale, AZ
SA569358000
Respondent unable to comply with terms of
original order.
October 25, 2006
Voluntary revocation of license

Page 17

Disciplinary Decisions
Consent Orders
Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action

Name
Location:
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Summary

Order Date
Action
Name
Location:
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Summary
Order Date
Action
Name
Location:
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Summary

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continued

& Commissioner’s Final Orders

Meredith Swanston
Chandler, AZ
Unlicensed Applicant
Respondent, when applying for licensure,
disclosed a September 2003 misdemeanor
conviction for DUI and a February 2006
misdemeanor conviction for Aggravated Assault.
December 1, 2006
License granted, 2 year Provisional License with
Practice Monitor
Bryan A.Z. Vazquez
Phoenix, AZ
SA533332000
Respondent failed to disclose two misdemeanor
convictions for Excessive Speed within 10 days
as required.
December 15, 2006
License renewal granted, $500 Civil Penalty
Keith Vertes
Scottsdale, AZ
SA513047000
Respondent failed to disclose being a principal
and a sales agent on purchase contracts; entered
into real estate sales agreements without
Designated Broker's approval.
December 11, 2006
License renewal granted, 2 year Provisional
License w/ Practice Monitor, $2,000 Civil Penalty,
6 hours CE in Commissioner's Standards and 3
hours CE in Disclosures
Darrell Gene Wolter
Glendale, AZ
BR108324000
Respondent failed to disclose multiple
misdemeanor convictions and failed to cooperate
with Department staff by providing documents in a
timely manner.
October 3, 2006
$4,000 Civil Penalty, 60 day license suspension,
2 year Provisional License with Practice Monitor
Ronald Woodrow
Phoenix, AZ
BR041877000
Respondent failed to submit written notification
appointing a licensee to act on behalf of
Respondent.
December 5, 2006
$500 Civil Penalty
Mark Young
Bullhead City, AZ
Unlicensed Applicant
Respondent, when applying for licensure,
disclosed a December 1989 felony conviction for
DUI and an August 2002 misdemeanor conviction
for DUI.
December 12, 2006
License granted, 2 year Provisional License with
Practice Monitor

by Commissioner's Final Order
Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action

Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action

Vo l um e 3 3 — I s s u e 1

JANUARY 2007

Mark A. Brencick
San Diego, CA
Unlicensed Applicant
As part of an original license application,
Petitioner disclosed a 1998 DUI conviction and a
2000 DUI conviction. Commissioner agreed to
modifications in Original Order.
November 7, 2006
2 year Provisional License, $20,000 surety bond
Terri R. Crum
Avondale, AZ
SA531367000
Petitioner conducted unlicensed activity, failed to
renew license in a timely manner.
December 5, 2006
License renewal granted, 2 year Provisional
License with Broker Acknowledgment, $800 Civil
Penalty, 6 hours CE in Commissioner's Standards.
William Mervyn Dominguez, Jr.
Chandler, AZ
SA537708000
Respondent was convicted of Theft, a Class 3
Felony, in May of 2005. Respondent failed to
notify the Department of the conviction within ten
days as required. Respondent's license was
summarily suspended on July 17, 2006. Final
Order upholds the Summary Suspension.
November 3, 2006
Uphold Summary Suspension of license
Glynn Owen Ellis
Payson, AZ
Unlicensed Applicant
Petitioner, when applying for an original license in
November of 2005, disclosed July 2005
misdemeanor convictions for Threats/Domestic
Violence and Threatening and Intimidating.
December 8, 2006
License denied.
Cynthia S. Ensman
Glendale, AZ
SA548868000
Petitioner convicted in May of 2006 of Attempted
Fraudulent Schemes and Artifices, a Class 3
Felony and placed on 2 years probation. The
Department summarily suspended Petitioner's
license on August 10, 2006
November 29, 2006
Summary Suspension of Salesperson's License
affirmed, license revoked.
Ammar Dean Halloum
Tempe, AZ
SA552563000
Respondent failed to disclose a March 2005
conviction for Theft, a Class 6 undesignated
offense within 10 days as required.
December 8, 2006
License revocation

Page 18

Disciplinary Decisions
Commissioner’s Final Orders continued & Summary Suspensions
Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action

Ronald Lloyd Peters
Gilbert, AZ
BR504924000
Petitioner, when applying for license renewal In
May of 2005, disclosed a 2003 misdemeanor DUI
conviction. Disclosure was not made in a timely
manner.
October 11, 2006
License granted, Advisory Letter of Concern
Bryan M. Rae
Phoenix, AZ
Unlicensed Applicant
Petitioner, when applying for licensure in
December of 2005, disclosed a February 2002
misdemeanor conviction for Issuing a Bad Check
and an August 2002 undesignated felony
conviction for Unlawful Use of Means of
Transportation.
October 31, 2006
License granted, 2 year Provisional License with
Practice Monitor, $5,000 Surety Bond
Kyle Richard Riedy
Scottsdale, AZ
SA564037000
In August of 2005, Respondent entered into a
Consent Order with the Department, part of which
Respondent agreed not to consume alcohol, illegal
drugs or controlled substances not prescribed by
a treating physician. In April of 2006, the
Department received a report that Respondent had
tested positive for alcohol. On June 29, 2006, the
Department summarily suspended Respondent's
license.
October 3, 2006
Summary Suspension of salesperson's license
affirmed.
Richard A. Sands
Scottsdale, AZ
Unlicensed Applicant
Petitioner, when applying for licensure in March of
2006, disclosed multiple misdemeanor
convictions from November of 2002 through 2004,
including Disorderly Conduct and Threatening or
Intimidating by Word or Conduct.
October 16, 2006
License denied.

Order Date
Action
Name
Location:
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Summary

Order Date
Action
Name
Location:
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Summary

Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action
Name
Location:
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Summary

by Summary Suspension
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary

Ernest Marty Atencio
Phoenix, AZ
SA104218000
Respondent failed to abide by terms of Consent
Order, did not provide Body Fluid Testing
specimens on assigned days.
December 5, 2006
Summary Suspension of salesperson's license
William R. Bliss
Scottsdale, AZ
BR010414000
Respondent Broker and Entity failed to respond to
requests for information from Auditing, failed to
provide documents and information as required for
audit. As a result, Department auditing staff were

V o l um e 3 3 — I s s u e 1

Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action

JANUARY 2007

unable to determine if Respondents are in
compliance with Department Statutes and Rules.
December 8, 2006
Summary Suspension of broker's license
Bliss Financial Group, Inc.
Scottsdale, AZ
CO534019000
Respondent Broker and Entity failed to respond to
requests for information from Auditing, failed to
provide documents and information as required for
audit. As a result, Department auditing staff were
unable to determine if Respondents are in
compliance with Department Statutes and Rules.
December 8, 2006
Summary Suspension of entity's license
Thomas Bonaventure Bourgeois
Phoenix, AZ
SA103513000
Respondent convicted in July of 2006 of
Aggravated Driving or Actual Physical Control
while Under the Influence of Intoxicating Liquor or
Drugs, Class 4 felonies. Respondent on probation
for 3 years.
October 12, 2006
Summary Suspension of salesperson's license.
Cynthia Lee Dalhover
Flagstaff, AZ
SA113006000
Respondent convicted of Criminal Simulation, a
Class 6 felony and placed on probation for 2 years.
November 15, 2006
Summary Suspension of salesperson's license
Floyd L. Jackson
Phoenix, AZ
SA526356000
Respondent damaged a client's property while
showing to a prospective buyer, did not reimburse
the client as agreed upon. Respondent failed to
comply with Department requests for information
and did not respond to multiple offers of
settlement.
October 26, 2006
Summary Suspension of Salesperson's license.
Alexander Anthony Keeme
Tucson, AZ
SA523510000
Respondent convicted of Forgery and Taking the
Identity of Another, both felonies. Respondent also
failed to deposit client funds in an escrow
account.
October 10, 2006
Summary Suspension, license renewal denied.
Michael Levine
Chandler, AZ
SA556548000
Respondent failed to disclose the June 2005
revocation of Respondent's Colorado real estate
broker's license. Respondent failed to comply with
Department requests for information.
November 3, 2006
Summary Suspension of Salesperson's license.

Page 19

Disciplinary Decisions
Summary Suspensions
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary

Order Date
Action

continued

& A.S.A.s

David Mark Noffz
Flagstaff, AZ
BR012832000
Respondent convicted of Criminal Simulation, a
Class 6 felony and placed on probation for 2 years.
November 30, 2006
Summary Suspension of broker's license.

Name
Location:
License Number
Summary

Bryan Charles Stearns
Gilbert, AZ
SA559905000
Respondent convicted of two counts of Public
Sexual Indecency, both Class 6 felonies.
Respondent was placed on lifetime probation and
ordered to register as a Sex Offender if required by
law. Respondent failed to notify the Department of
the convictions in a timely manner.
October 26, 2006
Summary Suspension of salesperson's license.

Name
Location:
License Number
Summary

by Consent Order (ASA)
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action

Amcal Southwest, LLC
Scottsdale, AZ
LC544812000
Conducted sales activities without an active
license.
September 25, 2006
$6,000 Civil Penalty
Leland "Lee" Keith Bagenstos
Tucson, AZ
SA523188000
Conducted sales activities without an active
license.
November 9, 2006
$1,000 Civil Penalty
Linda Gean Bauch
Yuma, AZ
BR107026000
Conducted sales activities without an active
license.
November 9, 2006
$1,000 Civil Penalty
Nancy A. Calhoun
Phoenix, AZ
BR018964000
Failed to disclose, within 10 days, December
2005 misdemeanor conviction for DUI.
October 16, 2006
$1,000 Civil Penalty
Casablanca Real Estate, LLC
Yuma, AZ
LC548905000
Conducted sales activities without an active
license.
October 4, 2006
$6,000 Civil Penalty
Charlene Kay Crew
Prescott, AZ
SA509990000
Conducted sales activities without an active
license.
August 3, 2006
$1,500 Civil Penalty

Vo l u m e 3 3 — I s s u e 1

Order Date
Action

Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action

JANUARY 2007

Fairway Property Advisors, Inc.
Tempe, AZ
CO521704000
Conducted sales activities without an active
license.
August 3, 2006
$3,000 Civil Penalty
Holly Fischer
Scottsdale, AZ
SA528018000
Respondent's advertisement failed to clearly and
prominently display the broker's name.
July 28, 2006
$500 Civil Penalty
Christian Fischer, Jr.
Scottsdale, AZ
SA542494000
Respondent's advertisement failed to clearly and
prominently display the broker's name.
July 28, 2006
$500 Civil Penalty
Angela Amalia Gallardo
Somerton, AZ
SA572313000
Failed to disclose, within 10 days, May 2006
misdemeanor conviction for DUI.
November 13, 2006
$1,000 Civil Penalty
Gerson Realty & Mgmt Co., Inc.
Tempe, AZ
CO112472000
Conducted sales activities without an active
license.
August 1, 2006
$3,000 Civil Penalty
Donna T. Gilbrech
Scottsdale, AZ
BR011277000
Conducted sales activities without an active
license.
August 7, 2006
$2,000 Civil Penalty
David S. Haynes
Phoenix, AZ
BR003094000
Failed to disclose, within 10 days, February 2006
misdemeanor conviction for DUI.
November 9, 2006
$1,000 Civil Penalty
William E. Huff
Scottsdale, AZ
BR012712000
Conducted sales activities without an active
license.
September 19, 2006
$2,000 Civil Penalty
Dennis J. Hultman
Apache Junction, AZ
BR009194000
Conducted sales activities without an active
license.
September 20, 2006
$2,000 Civil Penalty

Page 20

Disciplinary Decisions
A.S.A.s continued
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action

Vicky S. Kimling
Scottsdale, AZ
BR006425000
Failed to properly supervise; allowing sales
activities by an unlicensed person.
October 10, 2006
$1,000 Civil Penalty
David C. Lewerke
Prescott, AZ
BR007120000
Failed to properly supervise; allowing sales
activities by an unlicensed person.
August 3, 2006
$1,500 Civil Penalty
Shannon S. Martinson
Scottsdale, AZ
SA549067000
Failed to disclose, within 10 days, February 2005
misdemeanor conviction for DUI.
September 13, 2006
$1,000 Civil Penalty
Seamus J. McCarthy
Flagstaff, AZ
BR102060000
Failed to properly supervise; allowing sales
activities by an unlicensed person.
October 30, 2006
$3,000 Civil Penalty
P&H Realty, Inc.
Phoenix, AZ
CO002734000
Conducted sales activities without an active
license.
November 9, 2006
$3,000 Civil Penalty
Darwin R. Perkins
Phoenix, AZ
SA528684000
Conducted sales activities without an active
license.
July 27, 2006
$2,000 Civil Penalty
Ellen Pretzer
Gilbert, AZ
SA044251000
Failed to disclose, within 10 days, July 2004
misdemeanor conviction for DUI.
October 10, 2006
$1,000 Civil Penalty
Michael Todd Smiley
Scottsdale, AZ
SA534756000
Failed to disclose, within 10 days, September
2005 small claims judgment.
October 18, 2006
$1,000 Civil Penalty
Patricia G. Smith
Scottsdale, AZ
SA110805000
Respondent's advertisement failed to clearly and
prominently display the broker's name.
July 28, 2006
$500 Civil Penalty

V o l um e 3 3 — I s s u e 1

Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action

JANUARY 2007

Sonora International Realty Corporation
Tucson, AZ
CO548070000
Conducted sales activities without an active
license.
September 8, 2006
$6,000 Civil Penalty
Streamline Realty, LLC
Scottsdale, AZ
LC551946000
Conducted sales activities without an active
license.
November 16, 2006
$3,000 Civil Penalty
Sun Tree Realty, LLC
Chandler, AZ
LC523084000
Conducted sales activities without an active
license.
November 16, 2006
$3,000 Civil Penalty
The Benjamin Group, LLC
Tempe, AZ
LC507884000
Conducted sales activities without an active
license.
July 26, 2006
$6,000 Civil Penalty
Sharon Kay Tomlin
Scottsdale, AZ
SA021644000
Conducted sales activities without an active
license.
October 11, 2006
$1,000 Civil Penalty
Wendy K. Warter
Surprise, AZ
SA543818000
Conducted sales activities without an active
license.
September 27, 2006
$1,000 Civil Penalty
Ann White
Tucson, AZ
BR006804000
Failed to properly supervise; allowing sales
activities by an unlicensed person.
September 21, 2006
$1,500 Civil Penalty
Sandra Williams
Yuma, AZ
BR032889000
Failed to properly supervise; allowing sales
activities by an unlicensed person.
November 14, 2006
$1,000 Civil Penalty
Patricia R. Wood
Cottonwood, AZ
SA014821000
Conducted sales activities without an active
license.
October 19, 2006
$3,000 Civil Penalty

Page 21

Disciplinary Decisions
A.S.A.s continued & Cease and Desist Orders
Name
Location:
License Number
Summary
Order Date
Action

Willie Wright, Jr.
Tucson, AZ
BR008055000
Failed to properly supervise; allowing sales
activities by an unlicensed person.
November 13, 2006
$1,000 Civil Penalty

by Cease and Desist Order
Name
Location:
License Number
Summary
Order Date
Action

John R. Allen
Gilbert, AZ
Unlicensed Individual
Respondent conduction unlicensed activities.
October 5, 2006
Cease and Desist unlicensed activities.

Name
Location:
License Number
Summary

James Amsler
Tonto Basin, AZ
Unlicensed Individual
Respondents sold multiple lots within a 33-acre
portion of land in Navajo County without
complying with applicable subdivision statutes
and rules.
December 21, 2006
Cease and Desist all sales or transfers of property
until in compliance with applicable statutes and
rules.

Order Date
Action

Name
Location:
License Number
Summary

Order Date
Action

Name
Location:
License Number
Summary
Order Date
Action

Patricia Glesener
Tonto Basin, AZ
Unlicensed Individual
Respondents sold multiple lots within a 33-acre
portion of land in Navajo County without
complying with applicable subdivision statutes
and rules.
December 21, 2006
Cease and Desist all sales or transfers of property
until in compliance with applicable statutes and
rules.
John Scremin Development, Inc.
Chandler, AZ
Unlicensed Entity
Respondent failed to comply with terms of
November 2003 Consent Order regarding unlawful
subdivision activity.
December 21, 2006
Cease and Desist all sales or transfers of property
until in compliance with terms of Consent Order.

Name
Location:
License Number
Summary
Order Date
Action

Thomas Ryan
Tempe, AZ
Unlicensed Individual
Respondent conducting unlicensed activities.
October 23, 2006
Cease and Desist unlicensed activities.

Name
Location:
License Number
Summary

John C. Scremin
Chandler, AZ
Unlicensed Individual
Respondent failed to comply with terms of
November 2003 Consent Order regarding unlawful
subdivision activity.
December 21, 2006
Cease and Desist all sales or transfers of property
until in compliance with terms of Consent Order.

Order Date
Action

Name
Royers W. Drachman
Location:
Tucson, AZ
License Number BR006575000
Summary
Vacating previous March 14, 2006 Order
summarily suspending Respondent's license;
Pima County Superior Court issued an order
V o l um e 3 3 — I s s u e 1

dismissing all criminal charges against
Respondent.
October 18, 2006
Vacate Summary Suspension of license

Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action
Name
Location:
License Number
Summary
Order Date
Action

Name
Location:
License Number
Summary
Order Date
Action

Name
Location:
License Number
Summary
Order Date
Action

Name
Location:
License Number
Summary
Order Date
Action

Michael Adam Hurley
Bullhead City, AZ
Unlicensed Applicant
Applicant convicted of misdemeanor Assault and
Criminal Damage in October of 2004.
August 7, 2006
License granted, 2 year Provisional License with
Practice Monitor, $10,000 Surety Bond
Heather John
Phoenix, AZ
SA508179000
Respondent failed to deposit earnest money funds
into a neutral escrow account.
August 30, 2006
$1,000 Civil Penalty, 6 hr CE in Commissioner's
Standards, 2 year Provisional License with Broker
Acknowledgment
Jeffrey S. Kantor
Scottsdale, AZ
SA533218000
In February of 2006, Respondent convicted of DUI.
Respondent failed to timely notify the Department
of the conviction.
September 5, 2006
License granted, $2,000 Civil Penalty, 2 year
Provisional License with Practice Monitor, 2 year
Body Fluid Testing
Andrew S. Keener
Mesa, AZ
SA572379000
Respondent timely disclosed a March 2006
misdemeanor conviction for Extreme DUI.
September 28, 2006
2 year Provisional License with Broker
Acknowledgment, $1,000 Civil Penalty, 2 year
Body Fluid Testing
Kino Springs Golf Course L.L.C.
Santa Cruz County, AZ
Unlicensed Entity
Respondent sold lots in a subdivision without a
valid Public Report and complying with applicable
subdivision statutes and rules
August 22, 2006
$8,000 Civil Penalty, Rescission, apply for Public
Report

Name
Location:
License Number
Summary
Order Date
Action

Ira S. Kristol
Scottsdale, AZ
BR043830000
Respondent employed an unlicensed individual.
August 18, 2006
License granted, $2,000 Civil Penalty, 3 hr CE in
Commissioner's Standards, 3 hr Broker
Management Clinic, 2 year Provisional License,
develop written procedures to prevent unlicensed
activity.

Name
Location:
License Number
Summary
Order Date
Action

Dennis Krostal
Green Valley, AZ
BR039084000
Respondent employed an unlicensed individual.
August 15, 2006
$3,000 Civil Penalty

End of Listings for January 2007
JANUARY 2007

Page 22

Reminders
Abbreviations Used In The Bulletin
AAC

Arizona Administrative Code (usually citing the Rules promulgated by the
Arizona Department of Real Estate,
often referred to as
“The Commissioner’s Rules”)

AAR

Arizona Association of REALTORS ®

ADRE

Arizona Department of Real Estate

ARS

Arizona Revised Statutes

ICRESON

Instituto Catastral y de Servicios
Registrales This is the agency within

ADRE’s On-Line
License Renewal System is Secure.
Not only is it convenient and easy, the On-Line
ADRE License Renewal System is a secure site that
uses industry standards implemented by IBM that
meet State of Arizona standards for securing and
transferring personal information over the Internet.
Payment and other screens handling sensitive
information utilize encryption to keep your personal information safe.
Go to: www.azre.gov and click on the
“Online Licensing” link.

the Government of the State of Sonora,
Mexico that maintains the public registry
(cadastral) of titles and deeds, and the
voluntary registry of real estate agents
working in Sonora.

License Renewal
Is a Snap

Check out the F.A.Q.
(Frequently Asked Questions)

link on the new
ADRE web site !

when you use the ADRE On-Line
License Renewal System.
go to: www.azre.gov and click on the
“Online Licensing” link.

www.azre.gov

Sign Up for
LATE BREAKING NEWS
go to: www.azre.gov and click on
the “More News” link under News & Alerts
on the ADRE Home Page.
Get the latest news from ADRE.

Vo l um e 3 3 — I s s u e 1

JANUARY 2007

Page 23

Arizona Department of Real

Main Office:

Estate

Southern Arizona Office:

2910 North 44th St., 1st Floor
Phoenix, Arizona 85018
Phone: 602.468.1414
Fax: 602.468.0562

400 W. Congress, Suite 523
Tucson, Arizona 85701
Phone 520.628.6940
Fax 520.628.6941

www.azre.gov

the bulletin

January 2007

An official publication of the State of Arizona

Janet Napolitano
Governor

department of real estate
Samuel P. Wercinski
Commissioner
Ron Passarelli
Deputy Commissioner
Mary C. Utley
Communications Director
Real Estate Advisory Board
Gary Brasher, Chair
Lisa A. Suarez, Vice-Chair
R.L. Brown, Past Chair
Vicki L. Cox-Golder
Frank Dickens
Thomas J. Pancrazi
Vince Pellerito

Note: Please check your mailing label and if the date
above your name is more than 1 year old, you must
subscribe for another year. Send your request along
with a check for $10 payable to ADRE and note on your envelope:
Attention: Bulletin Subscription.

© 2007 ARIZONA DEPARTMENT OF REAL ESTATE.
THE ARIZONA DEPARTMENT OF REAL ESTATE BULLETIN, OR “THE BULLETIN,” IS SCHEDULED TO BE
PUBLISHED 6 TIMES A YEAR AND IS AVAILABLE FROM THE WEB SITE ABOVE. FIRST-CLASS MAIL
SUBSCRIPTIONS ARE AVAILABLE FOR $10 PER YEAR. ARTICLES REPRINTED FROM OTHER
PUBLICATIONS DO NOT NECESSARILY REFLECT THE POLICIES OR INTERPRETATIONS OF LAW BY THE
ARIZONA DEPARTMENT OF REAL ESTATE.

ADRE is an EQUAL EMPLOYMENT OPPORTUNITY
& REASONABLE ACCOMMODATION AGENCY.

Page 24