An executive with LeHomes Realty appears to have been left holding the bag following an audit by regulators.
As a result, the person identified only as Dxxx Nxxxxxxx Dxxxxx or Mr. Dxxxxx lost his licence as managing broker of the company’s office in Vancouver.
The Vancouver branch of the Richmond-headquartered realty company does sales and rental management.
Last year, the B.C. Financial Services Authority (BCFSA), which was formerly the Real Estate Council of B.C., conducted an office and records inspection.
The audit found that the brokerage's rental trust account showed a shortage of $4,872.50.
The examination also established that the Vancouver branch permitted an unlicensed company identified only as XXXXXXX B.C. Ltd. or XXX Co. to provide rental management services on behalf of the brokerage's rental property management clients.
In a consent order proposal prepared by LeHomes Realty, the company stated that the Mr. Dxxxxx was “unaware that the Brokerage rental trust account was not being reconciled in an appropriate form and timely manner until this was discussed with him”.
“Mr. Dxxxxx was unaware of the trust shortage until being notified by the auditor,” the document also noted.
As for the unlicensed company XXXXXXX BC Ltd., a realtor with LeHomes Realty was “the shareholder and director of XXX Co.”.
The said realtor identified only as GG was also “sole signatory of all cheques disbursed from XXX Co.'s bank account”.
“Mr. Dxxxxx told BCFSA that the Brokerage's office and bank procedures, including using XXX Co., were set up prior to him joining the Brokerage,” stated the consent order proposal by LeHomes Realty.
The document admitting “professional misconduct” by the Vancouver office was signed by the company’s authorized signatory, Hong Chen.
The consent order proposal was accepted by the BCFSA.
Subsequently, the regulator imposed sanctions on LeHomes Realty, which is formally named as Pan Pacific Platinum Real Estate Services Inc.
One is for the realty company to pay a discipline penalty of $17,500.
LeHomes Realty will also have to pay enforcement expenses of $1,500.
In addition, the company will undergo another audit within six months.