Sullivan, John | Principal Broker | Bentonville, AR

07/13/2015 | Hearing No. 3383

Respondent: John Sullivan, Principal Broker, EXP Realty, LLC, Bentonville, Arkansas, Formal Consent Order, Formal Hearing 3383. (October 6, 2014) Violation(s): A.C.A. §17-42-311(a)(2), 17-42-311(a)(6) and 17-42-311(a)(11); Commission Regulations 8.5(a) and 10.8(b). Sanctions: Respondent John Sullivan’s broker license is revoked. As Principal Broker of EXP Realty, LLC, Respondent’s primary business activity was property management. Respondent commingled rents and security deposits belonging to property owners and tenants with his personal funds. Respondent collected rent and security deposits while managing properties and used said funds for his own personal use. Respondent collected rent and security deposits on behalf of clients but failed within a reasonable time to account for or remit said funds to those clients. Respondent Sullivan controlled the trust account for EXP Realty, LLC and issued or caused to be issued checks which exceeded the balance in said trust account resulting in checks being returned for nonsufficient funds. Respondent withdrew funds for his personal use that were not identified to a real estate transaction. Recovery Fund Order: As a direct result of the proven violations by Respondent John Sullivan in the October 6, 2014 Consent Order, Formal Hearing # 3383, in the subsequent Recovery Fund Hearing held July 13, 2015, the Commission finds that Respondent John Sullivan is liable and ordered to pay the complainants within thirty (30) days of the date of this Order. As a result of the above proven violations, the Commission voted for Respondent Sullivan to pay as follows: Complainant Kay Goss for rents of $2,649.00 and a security deposit of $700.00. On or about March 24, 2007 Complainant Goss entered into a property management agreement with Respondent. Complainant stated in her complaint Respondent received from tenants of Complainant Goss’ property located at 369 Steele Road, Springdale, Arkansas $2,786 for rental funds for May, June, and July 2014; and $6 in bank fees for returned checks for a total of $2,792. Respondent failed to remit or account for rental funds to Complainant. Complainant Richard Henry for rents of $14,444.00. On or about September 27, 2006 Complainant Richard Henry, Officer of RYH Properties LLC, an Arkansas Limited Liability Company, entered into a property management agreement with Respondent for properties located at 6414 44th St. Rogers, Arkansas, 702 & 709 SW Sterling Place, Bentonville, Arkansas, and 3101 & 3206 Pinot, Springdale, Arkansas. Complainant stated in his complaint Respondent received $15,700 for rents collected in June and July 2014. Respondent failed to remit or account for the rental funds collected to Complainant. Complainants Todd and Karen Reynolds for rents of $9,113.00 and security deposits of $3,800.00. On or about June 1, 2010 Complainants Karen & Todd Reynolds entered into a property management agreement with Respondent for properties located at 4473 Johnson Rd units A, B, C, and D Fayetteville, Arkansas. Complainants stated several years prior to this complaint they entered into a property management agreement with Respondent for properties located at 1890 Kaywood, 1880 Kaywood, and 1840 Kaywood Units 9, 10, 11, and 12, Fayetteville, Arkansas. Complainants stated in their complaint Respondent received up to $12,000 for rents collected in June and July 2014 and security deposits collected from tenants in the amount of $3,800. Respondent failed to remit or account for the rental funds collected to the Complainants and Respondent did not disburse the security deposits to the tenants or to the Complainant Property Owner. Respondent failed to account for the security deposit. Complainant Jane Tu for rents of $1,912.50. On or about August 15, 2006 Complainant Jane Tu entered into a property management agreement with Respondent for properties located at 6653 Cutter Court, & 5337 Monica Marie in Springdale, Arkansas. Complainant stated in her complaint Respondent received $2,125 for rents collected in May of 2014. Respondent failed to remit or account for the rental funds collected to the Complainant. Complainants James M. and Linda A. Sullivan/Sullivan LP for rents of $832.50. On or about July 9, 2007 Complainant James M. Sullivan entered into a property management agreement with Respondent for properties located at 9 Hillswick Drive, Bella Vista, Arkansas. Complainant stated in his complaint Respondent received $1,850 for rents collected in June and July of 2014. Respondent failed to remit or account for the rental funds collected to the Complainant. Complainants David and Christine Hartman for rents of $1,192.50 and a security deposit of $2,100.00. On or about April 6, 2007 Complainants David & Christine Hartman entered into a property management agreement with Respondent for property located 1843 N Fallbrook Fayetteville, Arkansas. Complainants stated in their complaint Respondent received $1,325 for rents collected in May 2014. Respondent failed to remit or account for the rental funds collected to the Complainants. On or about February 18, 2014 Respondent received $2,100 for a security deposit for Complainant’s property at 1843 Fallbrook Way, Fayetteville, Arkansas. Tenant vacated the subject property on or about September 30, 2014. Respondent did not disburse the security deposit to the tenant or to the property owner. Respondent failed to account for the security deposit. Complainant Mary E. Gibbs for a security deposit of $500. On or about September 3, 2013 Complainant entered into a lease agreement with Respondent to rent property located at 5337 Monica Ave Springdale, Arkansas. Respondent received $500 for a security deposit from Complainant. Respondent did not disburse the security deposit collected from the Complainant to the Complainant or to the Complainant Property Owner. Respondent failed to account for the security deposit. Complainants Becky Sudtelgte & Nathaniel Wesselink for a security deposit of $400.00. On or about March 5, 2013 Complainants entered into a lease agreement with Respondent to rent property located at 2756 Carondolet # B, Springdale, Arkansas. Respondent received $400 for a security deposit. Complainants vacated the subject property on or about August 10, 2014. Respondent did not disburse the security deposit to the Complainant or to the Property Owner. Respondent failed to account for the security deposit. Complainant Gary Gaertner for a security deposit of $1,200.00. On or about July 10, 2012 Complainant entered into a lease agreement with Respondent to rent property located at 6653 Cutter Court, Springdale, Arkansas. Respondent received $1,200 for a security deposit. Complainant stated he vacated the subject property on or about July 2014. Respondent did not disburse the security deposit to the Complainant or to the property owner. Respondent failed to account for the security deposit. Complainants Dan & Angel Gunn for a security deposit of $1,150. On or about September 13, 2013 Complainant entered into a lease agreement with Respondent to rent property located at 709 SW Sterling Place, Bentonville, Arkansas. Respondent received $1,150 as a security deposit. Complainant vacated the subject property on or about August 15, 2014. Respondent did not disburse the security deposit to the Complainant or to the property owner. Respondent failed to account for the security deposit. Complainants Steven & Michele Byram for a security deposit of $1,150.00. On or about January 31, 2013 Complainants entered into a lease agreement with Respondent to rent property located at 710 SW Sterling Place, Bentonville, Arkansas. Respondent received $1,150 as a security deposit. Complainants vacated the subject property on or about May 31, 2014. Respondent did not disburse the security deposit to the Complainants or to the property owner. Respondent failed to account for the security deposit. Complainant Jayme Wilson for a security deposit of $150. On or about February 15, 2014 Complainant entered into a lease agreement with Respondent to rent property located at 2780 Carondolet # A, Springdale, Arkansas. Respondent received $800 as a security deposit. Respondent did not disburse the security deposit to the Complainant or to the property owner. Respondent failed to account for the security deposit. Complainants Russ & Amber Murphy for rents of $782.00 and security deposits of $2,250.00. On or about January 15, 2011 Complainants entered into a property management agreement with Respondent for property located 214 Cordes Drive, Siloam Springs, Arkansas and 703 SW Sterling, Bentonville, Arkansas. Complainants stated in their complaint Respondent received $2,525 for rents collected in July 2014. Respondent failed to remit or account for the rental funds collected to the Complainants. On or about September 1, 2013 Respondent received $600 for a security deposit for the property at 214 Cordes Drive, Siloam Springs, Arkansas. Tenant vacated the subject property on or about August 31, 2014. Respondent did not disburse the security deposit collected from the tenant to the tenant or to the Complainant Property Owners. On or about May 1, 2012 Respondent received $1,650 for a security deposit for the property at 703 SW Sterling, Bentonville, Arkansas. Respondent did not disburse the security deposit to the tenant or to the Complainant Property Owners. Complainant Richard Jaffe for rents of $1,699.00. On or about May 23, 2005 Complainant entered into a property management agreement with Respondent for property located 2203 Pin Oak Unit A & B, Springdale, Arkansas. Complainant stated in his complaint Respondent received $3,600 for rents collected in June and July 2014. Complainant stated Respondent failed to remit or account for $2,059 of the rental funds to the Complainant. Complainant Anna Crump for a security deposit of $1,100.00. On or about July 29, 2013 Complainant entered into a lease agreement with Respondent to rent property located at 11093 Waterleaf Lane, Prairie Grove, Arkansas. Respondent received $1,100 as a security deposit. Complainant vacated the subject property on or about November 13, 2014. Respondent did not disburse the security deposit to the Complainant or to the property owner. Respondent failed to account for the security deposit. Complainants Kevin & Rebecca Woodcock for a security deposit of $1,000. On or about February 20, 2014 Complainants entered into a lease agreement with Respondent to rent property located at 6414 South 44th St, Rogers, Arkansas. Respondent received $1,000 as a security deposit. Complainant purchased the subject property on or about November 17, 2014. Respondent did not disburse the security deposit to the Complainant or to the previous property owner. Respondent failed to account for the security deposit. Complainants Diane & Fredrick Paulson for rents of $11,658.68 and security deposits of $6,740.00. On or about July 25, 2007 Complainants Paulson entered into a property management agreement with Respondent for properties located at 2425 & 2427 W Olrich, 2425, 2427, 2428 & 2430 W Gum, 2424 & 2426 W Magnolia, 2703 W Beech in Rogers, Arkansas, as well as 113 A & B Fox Run, Lowell, Arkansas. Complainants stated in their complaint Respondent received $12,000 for rents collected in June and July 2014, and security deposits collected from tenants in the amount of $6,740. Respondent failed to remit or account for rental funds collected to Complainant. Respondent failed to account for the security deposits. Complainants Rainer and Mary K. Tischler for rents of $2,329.62 and security deposits of $2,100.00. Complainants Tischler stated they entered into a property management agreement with Respondent for properties located at 2429 & 2431 Olrich, Rogers, Arkansas. Complainants stated in their complaint Respondent received $2,780 for rents collected in June and July 2014 and security deposits collected from tenants in the amount of $2,100. Respondent failed to remit or account for the rental funds collected to the Complainants. Respondent failed to account for the security deposits. Complainants Wilbur & Mary Rankin for rents of $11,236.39 and security deposits of $5,350.00. On or about July 1, 2007 Complainants Rankin entered into a into a property management agreement with Respondent for properties located at 3153 Arrow Place, Springdale, # 5 Borland Lane, Bella Vista, # 8 Borland Lane, Bella Vista, 3805 Carriage Way, Bentonville, 1109 E. Freedom, Siloam Springs, 1322 Morlan, Springdale, 505 Persimmon Street, Gravette, 507 Persimmon Street, Gravette, and 46 Saxony, Farmington, all in Arkansas. Complainants stated in their complaint Respondent received $14,640 for rents collected in June and July 2014. Respondent failed to remit or account for rental funds collected to Complainant. And Complainants stated in their complaint on behalf of tenants the following: On or about February 22, 2013 Respondent received $800 for a security deposit for the property at 3153 Arrow Place, Springdale, Arkansas. Respondent did not disburse the security deposit collected to the tenant or to the Complainant Property Owners. On or about October 4, 2011 Respondent received $800 for a security deposit for the property at # 5 Borland Lane, Bella Vista, Arkansas. Respondent did not disburse the security deposit collected to the tenant or to the Complainant Property Owners. On or about April 21, 2014 Respondent received $650 for a security deposit for the property at # 8 Borland Lane, Bella Vista, Arkansas. Respondent did not disburse the security deposit collected to the tenant or to the Complainant Property Owners. On or about November 1, 2013 Respondent received $500 for a security deposit for the property at 3805 Carriage Way, Bentonville, Arkansas. Respondent did not disburse the security deposit collected to the tenant or to the Complainant Property Owners. On or about October 12, 2013 Respondent received $500 for a security deposit for the property at 1109 E. Freedom, Siloam Springs, Arkansas. Respondent did not disburse the security deposit collected to the tenant or to the Complainant Property Owners. On or about December 17, 2011 Respondent received $300 for a security deposit for the property at 1322 Morlan, Springdale, Arkansas. Respondent did not disburse the security deposit collected to the tenant or to the Complainant Property Owners. On or about October 11, 2010 Respondent received $500 for a security deposit for the property at 505 Persimmon Street, Gravette, Arkansas. Respondent did not disburse the security deposit collected to the tenant or to the Complainant Property Owners. On or about March 1, 2014 Respondent received $800 for a security deposit for the property at 507 Persimmon Street, Gravette, Arkansas. Respondent did not disburse the security deposit collected to the tenant or to the Complainant Property Owners. On or about November 15, 2013 Respondent received $500 for a security deposit for the property at 46 Saxony, Farmington, Arkansas. Respondent did not disburse the security deposit collected to the tenant or to the Complainant Property Owners.