Disciplinary Hearing

File 13-311, 13-312 and 13-355

Hearing Date: March 3, 2017

Hearing Decision: March 27, 2017

Discipline Committee Decision Regarding Liability: March 27, 2017

Discipline Committee Decision and Order with Respect to Penalty: July 5, 2017

Related File: Suspension order, Tumbler Ridge Realty: May 13, 2014

Financial Services Tribunal Appeal Decision: April 19, 2018

A discipline committee for the Council has found that Roger Bruce Schoen failed in his responsibilities as the managing broker of RE/MAX Tumbler Ridge Realty.In May, 2014, the Real Estate Council issued an ORDER IN URGENT CIRCUMSTANCES suspending the licence of RE/MAX Tumbler Ridge Realty, freezing its bank accounts and appointing a receiver, after an audit of the brokerage uncovered evidence that RE/MAX Tumbler Ridge Realty could not account for trust monies held on behalf of clients.

As the managing broker, Mr. Schoen was responsible for the control and conduct of the brokerage's business. The discipline committee found that Mr. Schoen did not ensure that the business of the brokerage was carried out competently and in accordance with the Real Estate Services Act and Rules. He was not actively engaged in the management of the brokerage and did not ensure that licensees and employees at the brokerage were adequately supervised. He did not ensure that the brokerage maintained and retained proper books, records, and trust accounts, and did not ensure that client funds were deposited into the appropriate bank account.

Results

In its Decision and Order with Respect to Penalty, a discipline committee of the Council ordered the following:

1. Mr. Schoen must pay a discipline penalty of $10,000.00 to the Council.
2. Mr. Schoen must pay enforcement expenses of $55,667.71 to the Council.
3. Mr. Schoen is prohibited from applying for a licence as a managing broker under the Real Estate Services Act for a period of five years from the date of this decision.
4. Mr. Schoen is prohibited from applying for all other categories of licensing under the Real Estate Services Act for a period of two years from the date of this decision.
5. In relation to any relicensing application, Mr. Schoen will be required to take and pass all of the courses required for his application category as if he had never been licensed before.
6. If he successfully applies for relicensing otherwise than as a managing broker, subject to the further direction or order of a hearing committee under section 10 of the Real Estate Services Act, Mr. Schoen must remain under close supervision of a managing broker of the brokerage with which he is licensed for a period of two years.

Mr. Schoen subsequently filed an appeal with the Financial Services Tribunal (FST). In its decision, the FST dismissed the appeal on all grounds, and confirmed the decisions of the discipline committee regarding liability and penalty.