Allen, Jere | Principal Broker | Mountain Home, AR

01/09/2012 | Hearing No. 3169

Respondent: Jere Allen, Principal Broker, Sunbelt Hotel Brokers
Mountain Home, AR, Formal Hearing # 3169

Violations:
Arkansas Code Annotated § 17-42-311(6)(a), 17-42-311(a)(2), 17-42-311(a)(13) and 17-42-311(a)(11); and Commission Regulations 10.8(g)(1), 10.8(b), 10.9(a) and 8.5(a)

Sanctions:
Respondent Allen’s license is revoked and he is fined $1,000 per violation for a total of $5,000.In a Recovery Fund Hearing, Respondent was ordered to pay Complainant Jignesh Patel $23,332.57.

• Mitesh Patel, potential purchaser and customer of Respondent Allen, entered into a Letter of Intent to purchase a hotel located in Bessemer, AL. Respondent Allen accepted a cashier’s check for $25,000 dated July 23, 2009 paid to the order of “Sunbelt Hotel Brokers LLL-Escrow Account” remitted by Mitesh Patel as a deposit for the purchase of the hotel. On July 24, 2009, the $25,000 was deposited into Respondent’s operating account. When the real estate transaction did not occur, Respondent Allen submitted a check in the amount of $25,000 on the account of Sunbelt Hotel Brokers LLC to refund Mitesh Patel’s escrow deposit. The check was returned for “Not Sufficient Funds.” Respondent refunded the escrow deposit to Mitesh Patel on November 11, 2009 with a cashier’s check paid to the order of the Prosecuting Attorney.
• Randy Ricketts, representing P&R Management, LLC, potential purchaser and customer of Respondent Allen, entered into a Letter of Intent to purchase a hotel in St. Augustine, FL from an owner whom Respondent represented. The Letter of Intent dated March 1, 2010 stated “Purchaser shall deliver to Sunbelt Hotel Brokers LLC - Escrow $50,000 by certified funds or Wire transfer upon execution of the letter of intent by the seller and purchaser.” On March 7, 2010 Randy Ricketts instructed by email that $50,000 be wired to Sunbelt Hotel Brokers LLC-Escrow Account as a deposit for the purchase of the hotel. When the real estate transaction did not occur, Randy Ricketts requested the deposit be returned. On or about May 28, 2010, Randy Ricketts received a wire transfer of $40,000 from Respondent. On or about September 2010, Randy Ricketts received $1,000 from Respondent. A check dated September 20, 2010 written on the account of Sunbelt Hotel Brokers LLC for $9,000 payable to Randy Ricketts was returned for “Not Sufficient Funds.” Respondent signed a Promissory Note dated October 15, 2010 for the $9,000 owed to Randy Rickets.
• Jignesh Patel, potential purchaser and client of Respondent, entered into a Letter of Intent to purchase a hotel located in Union City, GA. The Letter of Intent, dated April 11, 2011, stated, “Purchaser shall deliver to Escrow agent Sunbelt Hotel Management, LLC $22,500 by wire transfer with letter of intent.” The Letter of Intent, written on the letterhead of Respondent’s real estate firm, Sunbelt Hotel Brokers, included the signature of Jignesh Patel but not the seller. The $22,500 deposit was received by Respondent and deposited on April 12, 2011 into Respondent’s operating account, where it was commingled with Respondent’s personal or non-trust funds. When the real estate transaction did not occur, Complainant Jignesh Patel requested Respondent return the deposit money on or about April 28, 2011. Respondent has not returned the deposit to Complainant Jignesh Patel. In an email to Complainant Jignesh Patel, dated May 20, 2011, Respondent indicated that he had used part of the Complainant’s deposit to loan a friend $16,000.