Consent Order

Contravention of section 15, section 17, section 23(2) section 31(1) of the Real Estate Act, and section 9.12; section 12.01 and 12.01(b) of Regulation 75/61 under the Real Estate Act /Failure to keep proper books, records and accounts; Improperly withdrew funds; Failure to remit interest; Misconduct and Negligence

Cypress Properties Ltd., Vancouver, contravened (i) section 15 of the Real Estate Act and 12.01 of Regulation 75/61 under the Real Estate Act in that it failed to keep proper books, records and accounts, (ii) section 17 of the Real Estate Act in that it improperly withdrew funds held in a pooled trust account without authorization thereby causing a trust shortage and (iii) section 23(2) of the Real Estate Act in that it failed to remit interest paid on funds in the brokerage's trust account to the Real Estate Foundation in a timely manner.

Michael James Henson, currently unlicensed, who while licensed as the managing broker of Cypress Properties Ltd., Vancouver,

1. contravened section 31(1) of the Real Estate Act by removing funds from trust without the authority of his clients and deposited the funds to the credit of the brokerage contrary to section 17 of the Act
2. misconducted himself within the meaning of section 31(1) of the Real Estate Act in that he permitted financial statements to be produced that were misleading contrary to section 12.01(b) of Regulation 75/61 under the Real Estate Act
3. was negligent within the meaning of section 31(1) of the Real Estate Act in that he
4. contravened section 15 of the Real Estate Act and section 12.01 of Regulation 75/61 under the Real Estate Act in that he failed to ensure the brokerage kept such proper and up to date books, records and accounts as required and
5. contravened section 23(2) of the Real Estate Act in that he failed to ensure that the brokerage remitted interest paid on funds in the brokerage 's trust accounts to the Real Estate Foundation in a timely manner.

Results

Cypress Properties Ltd. was reprimanded for the contraventions described above after an Agreed Statement of Facts, Proposed Acceptance of Findings and Waiver was entered into between the Real Estate Council and Michael James Henson on behalf of Cypress Properties Ltd. and a Consent Order was issued.