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02/24/98 GRADY GRAY v. MISSISSIPPI REAL ESTATE

GRADY GRAY, JR, APPELLANT
v.
MISSISSIPPI REAL ESTATE COMMISSION, APPELLEE



DATE OF JUDGMENT: 08/21/96 TRIAL JUDGE: HON. WILLIAM F. COLEMAN COURT FROM WHICH APPEALED: HINDS COUNTY CIRCUIT COURT

Before: Thomas, P.j., King, And Payne, JJ.

The opinion of the court was delivered by: Thomas, P.j., For The Court:

NATURE OF THE CASE: CIVIL - STATE BOARDS AND AGENCIES (OTHER THAN WORKERS' COMPENSATION)

TRIAL COURT DISPOSITION: CIRCUIT COURT AFFIRMED REVOCATION OF REAL ESTATE LICENSE

DISPOSITION AFFIRMED - 2/24/98

MOTION FOR REHEARING FILED:

CERTIORARI FILED:

MANDATE ISSUED:

Grady Gray, Jr. appeals the order of the Mississippi Real Estate Commission revoking his real estate broker's license, raising the following issue as error:

I. THE CIRCUIT COURT OF HINDS COUNTY ERRED WHEN IT AFFIRMED THE MISSISSIPPI REAL ESTATE COMMISSION ORDER REVOKING APPELLANT'S REAL ESTATE LICENSE BECAUSE THERE WAS NO SUBSTANTIAL EVIDENCE IN THE RECORD TO SUPPORT MREC'S CONCLUSION THAT APPELLANT, AS BROKER FOR THE TRANSACTION IN QUESTION, HAD ENGAGED IN IMPROPER CONDUCT; THEREFORE THE MREC ABUSED ITS DISCRETION, FAILED TO EXERCISE CAUTION AND ACTED ARBITRARILY, UNREASONABLY, AND CAPRICIOUSLY BY REVOKING THE APPELLANT'S REAL ESTATE BROKERS LICENSE.

Finding no error, we affirm.

FACTS

Prior to the present incident, Grady Gray, Jr. had been a licensed real estate broker in the State of Mississippi for fifteen years. Then in February of 1994, the Department of HUD notified the Mississippi Real Estate Commission that they were in the process of conducting a hearing into the activities of Gray concerning alleged fraudulent acts. HUD suspected that Gray possibly participated in a fraudulent act by aiding one of his then employees, Lori Rutledge Kelly, in obtaining financing for a HUD unit by use of a falsified social security number. HUD eventually concluded that Gray was not responsible as broker for submitting the falsified social security number. However, HUD did conclude that as employer of the buyer, he or his agents of his company, Real Estate 2000, had submitted a verification of employment form to the mortgage company involved without first checking the social security number that had been supplied by the mortgage company. HUD rendered a Limited Denial of Participation to Gray, restricting him from participating in HUD programs for twelve months.

In June of 1994, the Mississippi Real Estate Commission mailed a certified letter to Gray advising him that because of the information received from HUD it would be necessary to conduct an audit of his account to ensure he was not in violation of the Real Estate Brokers License Act. Gray was directed to contact the investigator handling the matter in order to set up a time for the audit and to bring certain records for the audit. Gray failed to ...


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