Chairperson Gale convened a Meeting of the Nebraska Real Estate Commission at 9:02 a.m. on October 23, 2002, in the Staybridge Room of the Staybridge Suites, located at 2701 Fletcher Avenue in Lincoln, Nebraska. All of the members of the Real Estate Commission were present. Also present were Director Les Tyrrell and Deputy Director for Enforcement Terry Mayrose. Abbie Widger, Special Assistant Attorney General and Counsel to the Commission, was present for the presentation of the stipulation and consent order, and discussion of the Consumer Guide to Buying and Selling Homes and the buyer advisory information from Arizona. Jim Titus, Special Assistant Attorney General and Counsel to the Commission, was present for the discussion of the proposed revisions to the Retirement Communities and Subdivisions Act.

Director Tyrrell presented a Public Notice and Proofs of Publication thereof relating to this Meeting, all of which are attached to and made a part of these Minutes. Chairperson Gale reported that all Commissioners had been notified of the Meeting simultaneously, in writing, and that a proposed Tentative Agenda accompanied the notification.

Director Tyrrell noted that Agenda Item 12b had been moved from 11:00 a.m. to 12:30 p.m., and Agenda Item 13 had been continued, since the Tentative Agenda was mailed to the Commissioners.

After review of the Final Agenda, a motion was made by Wiebusch and seconded by Moline to adopt the Final Agenda as presented. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

The Minutes of the Commission Meeting held on September 25, 2002, were considered.

After review, a motion was made by Moline and seconded by Shepard to approve the Minutes as presented. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Director Tyrrell presented the Receipts and Expenditures Report for September. A copy of said Report is attached to and made a part of these Minutes.

The Cash Fund Balance as of September 30, 2002, was $458,847.14, which compared to a Cash Fund Balance of $376,922.97 on September 30, 2001.

After discussion, a motion was made by Moline and seconded by Johnson to file the September Receipts and Expenditures Report for audit. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

There were no Specialized Registrations to report.

Director Tyrrell presented for ratification the Non-Resident Licenses and Resident Licenses Issued to Persons Holding Licenses in Other Jurisdictions Report, a copy of which is attached to and made a part of these Minutes.

After review, a motion was made by Wiebusch and seconded by Shepard to ratify issuance of the licenses as set forth in the Report. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Director Tyrrell presented for ratification the Examination Report for September, a copy of which is attached to and made a part of these Minutes.

After review, a motion was made by Moline and seconded by Wiebusch to ratify the September Report for the purpose of issuing licenses. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Director Tyrrell presented for ratification the Pre-License Education Instructor Approval Report, a copy of which is attached to and made a part of these Minutes.

Director Tyrrell presented for ratification the Continuing Education Activity Approval Report, a copy of which is attached to and made a part of these Minutes.

Director Tyrrell presented for ratification the Continuing Education Instructor Approval Report, a copy of which is attached to and made a part of these Minutes.

After discussion, a motion was made by Wiebusch and seconded by Moline to ratify the approvals as set forth in the Reports. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Director Tyrrell presented a Summary Report of the pending complaints, which included a list of licensees presently under disciplinary action or on appeal. A copy of said Report is attached to and made a part of these Minutes.

No action was necessary on this Report.

The following Sworn Complaints and Investigative Matters were presented to the Commission:

Item A Complaint #2002-024 - Allan & Susan Arp vs. Richard Merle Wardell

Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Strand and seconded by Wiebusch that the Complaint be set for Hearing on the violations alleged in the Complaint. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

A motion was then made by Strand and seconded by Wiebusch that the Commission file a Complaint on its own motion, on the alleged violation of Neb. Rev. Stat. 76-2421(1). Motion carried with Poskochil, Strand, Wiebusch, and Gale voting aye, and with Johnson, Moline, and Shepard voting nay.

Item B Complaint #2002-025 - Val Gottsch vs. Audrey Della Hancock

Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Wiebusch and seconded by Poskochil that the Complaint be dismissed without prejudice. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Item C Complaint #2002-026 - Helen E. Prouse vs. Mark Sylvester Dietz

Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Moline and seconded by Poskochil that the Complaint be dismissed without prejudice, and that the Respondent be notified that agency disclosure statements do not need to be completed in conjunction with the magazine sales. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Item D Complaint #2002-028 - Mike & Tonya Kerres vs. Leann Kaczmarek Yahnke

Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Moline and seconded by Strand that the Complaint be dismissed without prejudice. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

A motion was then made by Wiebusch and seconded by Shepard that the Commission file a Complaint on its own motion, on the alleged violation of Neb. Rev. Stat. 76-2421(1). Motion failed with Shepard voting aye, and with Johnson, Moline, Poskochil, Strand, Wiebusch, and Gale voting nay.

It was the consensus of the Commission that Director Tyrrell send the Respondent a letter of admonishment that agency must be properly disclosed at the first practicable opportunity.

Item E Complaint #2002-029 - Thomas G. Widdowson vs. Joseph George Sobotka

Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Johnson and seconded by Strand that the Complaint be dismissed without prejudice. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Item F Complaint #2002-040 - Olan Kline vs. Clayton Patrick Gruhn

Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Moline and seconded by Wiebusch that the Complaint be dismissed without prejudice. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Prior to discussion of this matter, Commissioners Johnson and Shepard recused themselves, thereby nullifying any potential conflicts of interest.

After discussion, a motion was made by Moline and seconded by Strand to enter into the Order as presented. Motion carried with Moline, Poskochil, Strand, Wiebusch, and Gale voting aye, and with Johnson and Shepard not participating or voting, having recused themselves, thereby nullifying any potential conflicts of interest.

The Hearing in Complaint #2001-032, Joseph Valenti vs. Michael Louis Riedmann and Thomas David Myers, was continued pending presentation of a stipulation and consent order.

Mr. Brown stated that he was released from probation, but that he continues to go to his counselor for peace of mind. The judge stated he had done everything as required.

Commissioner Poskochil asked if Mr. Brown had heard the results from the property sale at Studio 14. Mr. Brown said he knew there had been an auction, but he had not received any papers on whether any additional money was owed.

Commissioner Shepard asked if Mr. Brown had any recent arrests. Mr. Brown said no.

Chairperson Gale said he wanted Mr. Brown to inform his broker of his past convictions, and to notify the Commission of any future problems. Mr. Brown said he had discussed his criminal history with his prospective broker.

Chairperson Gale noted that there was always pressure to cut corners, and that Mr. Brown could not do that in the real estate business. Mr. Brown had to make a commitment to do a good job. Chairperson Gale suggested that Mr. Brown take advantage of continuing education classes, such as ethics classes.

Commissioner Moline noted that Mr. Brown could reapply in a year if the Commission voted against him today.

After discussion, a motion was made by Shepard and seconded by Johnson to allow Mr. Brown to sit for the salesperson examination, and to have a license issued upon passing. Commissioner Poskochil asked if the motion included any amendments. Commissioner Shepard amended the motion to require that Mr. Brown immediately notify the Commission of any criminal charges being filed against him for a period of 36 months. Commissioner Johnson accepted the amendments. Motion carried with Johnson, Poskochil, Shepard, and Gale voting aye, and with Moline, Strand, and Wiebusch voting no.

Mr. Abboud said he was an Arizona State graduate with a degree in finance. He had 10 years of experience in investment banking. He held no state or federal licenses. Mr. Abboud said he was the President/CEO of Global Entertainment, which was an on-line gaming business. The company was publicly traded. He was currently a shareholder, but was not employed by Global. Mr. Abboud had been unemployed since January, and was receiving unemployment compensation. He had spoken with some brokers, and had three relatives in the real estate business. He was not sure if he wanted to work for the relatives or go with a larger real estate company.

Commissioner Poskochil asked about the obstruction of justice charge. Mr. Abboud said he did not remember anything about that charge, and asked when it happened. Director Tyrrell told him the date and that it was related to the littering charge. Mr. Abboud said that the police stopped a car in which he was a passenger. They gave the driver a sobriety test, and asked Mr. Abboud to get out of the car. Mr. Abboud got out, sat on the curb, lit a cigarette, and when he finished it he dropped it on the street and put it out. The police gave him a ticket for littering.

Regarding the false application for a passport, Mr. Abboud said he changed his name in 1988 because of some marijuana charges against him. He was threatened with a lot of jail time, so he changed his name.

Chairperson Gale asked if Mr. Abboud was currently on probation, and if he had ever applied for a pardon. Mr. Abboud said he was not on probation, and had not applied for a pardon because the required time had not passed.

Commissioner Poskochil asked about the 1988 charges related to the false Social Security number and other documents. Mr. Abboud said he had a marijuana charge in Phoenix in 1987 which was eventually dismissed. He had been threatened with a lot of jail time. Mr. Abboud said he attempted to get a passport and get out of the country, but he got caught.

Commissioner Poskochil asked about the assault charge. Mr. Abboud said he had been living with his girlfriend, who got wrapped up in the wrong things and the wrong friends. They each got restraining orders against the other, which they both eventually dropped. They were now friends.

Commissioner Poskochil said he was looking for some positive history. Mr. Abboud said he took his company public, he got a good education, and his temper had improved.

Commissioner Johnson concurred with Chairperson Gale.

Director Tyrrell presented an Exhibit containing information regarding the cost of sending Commission members and staff to the ARELLO Workgroup Meeting next January in New Orleans. A copy of said Exhibit is attached to and made a part of these Minutes. Total cost per attendee was expected to be approximately $900.00.

After discussion, a motion was made by Moline and seconded by Poskochil to approve the expenditures as presented for applicable Commissioners and staff to attend the Meeting. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Commissioner Moline reported that he attended the meeting on Sunday only. He attended the session on communication, which was about asking questions and giving answers. It was a consensus of the attendees that this was an excellent session.

Commissioner Poskochil said the session on virtual assistants and related liability issues was interesting. It was a very good meeting, and he was glad he went.

Director Tyrrell said the overall program was the best he had attended in a number of years. Commissioner Wiebusch was elected as a Director. The model law is no longer being pursued. The Commission Member Training Board appeared to be taking a more proactive approach to its mission, and all ARELLO members will receive the new orientation CD.

No action was necessary on this Report.

Surveys were included in approximately every fourth piece of mail during September (excluding renewals). 88 were mailed, and 8 were returned. The response rate was low, but all comments received were positive.

No action was necessary on this Report.

Counsel Titus presented an Exhibit which consisted of proposed amendments to the Retirement Communities and Subdivisions Act. A copy of said Exhibit is attached to and made a part of these Minutes.

Counsel Titus noted that the revisions were based on Commission discussion at the September meeting and comments received from a registrant. Comments had been solicited from all current registrants, but only one responded.

December 11-12, 2002 - Staybridge Suites, Lincoln

January 29-30, 2003 - Staybridge Suites, Lincoln

March 5-6, 2003 - Staybridge Suites, Lincoln

April 16-17, 2003 - Staybridge Suites, Lincoln

May 28-29, 2003 - Staybridge Suites, Lincoln

At 10:05 a.m. on October 23, Chairperson Gale declared a brief recess, and reconvened the Meeting at 10:20 a.m.

At 11:45 a.m. on October 23, Commissioner Strand was excused for the remainder of the meeting.

At 11:45 a.m. on October 23, Chairperson Gale declared a recess for lunch, and reconvened the Meeting at 12:30 p.m.

At 1:12 p.m. on October 23, there being no further business to come before the Commission, a motion was made by Moline and seconded by Wiebusch that the Meeting adjourn. Motion carried with Johnson, Moline, Poskochil, Shepard, Wiebusch, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing Minutes of the October 23, 2002, Meeting of the Nebraska Real Estate Commission were available for inspection on October 31, 2002, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Joan Nigro, CBSHOME, Omaha

Joe Valenti, CBSHOME, Omaha

Doug Ruge, CBSHOME, Omaha

Mike Riedmann, NP Dodge, Omaha

Thomas Myers, NP Dodge, Omaha

John Liakos, NP Dodge, Omaha

Brian Carlson, Lincoln Journal Star, Lincoln

Leslie Reed, Omaha World Herald, Omaha

Jill Bastian, KOLN/KGIN, Lincoln

Marh Cheryl Smith, Lincoln

Russell Gronewold, Immanuel Retirement Communities, Omaha