#5 Does the Media Care? (VI
Consortium)
The following are the emails that I sent to Ernice Gilbert.
All of my documents were included. During this time, we had three short phone
conversations. In those I offered to write the stories for the Consortium
rather than have him spend his time doing it; he accepted. Mr. Gilbert always
promised to call me back, though he never did. He also mentioned that he scheduled
an interview with Commissioner Evangelista to discuss my case. I was never made
aware of the results of that interview
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Good day Mr. Gilbert
I would like to suggest a story or perhaps several stories for
the Consortium. A year and a half ago I sold my house on St. Croix. My broker
cheated me out of twenty-two thousand five hundred dollars. I have all the
documentation to prove it. Since then, I have been seeking a resolution.
1. The broker refused any compensation at closing.
2. A helpful lawyer tells me that he won’t take my case on contingency
due to the small amount and that I would likely pay him more in hourly fees
than I stand to win in a court battle.
3. The Attorney General’s Office after looking over my
documentation does not deny that a crime was committed but would prefer that they
not be used in squabbles between real estate brokers and clients.
4. In a mediation conducted by the Virgin Islands Territorial
Association of Realtors, the broker offered me ten thousand dollars. This would
have come with a nondisclosure agreement forbidding me from telling my story to
the public. I refused. They tried to force me into binding arbitration which
the assistant AG warned me to avoid since it requires signing away all my
rights in advance.
5. I
continue to try and get the Real Estate Commission to do their job, that of
policing the brokers that they license. I submitted all my documentation to
DLCA in November of last year. They have dragged their feet since then with a
litany of excuses. I finally enlisted the aid of Administrator Sammy Sanes to
intervene. He forwarded my documentation to Commissioner Evangelista who
unfortunately has also chosen to ignore my written complaint.
Real estate is a huge industry in the Virgin Islands. I am
certain that your readers would be aghast at the lack of support that exists
for problems that arise with brokers. I hope to make the USVI a better place to
live by sharing my story and offering suggestions to fix a broken (and possibly
corrupt) system so that others don’t have to suffer similar misery. I just need
an outlet and perhaps the help of an investigative reporter.
I would greatly appreciate the opportunity to talk with you.
Sincerely,
David Mattera
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Dear Mr. Gilbert
Regarding my real estate predicament, I view myself as
the canary in a coal mine. But just studying the symptoms of the canary is only
part of the overall story. With a coal mine you also need to study the owner of
the mine, the management, geology, and safety precautions. Similarly, there is
a broader picture to write about other than my exact situation. There are also
the questions of what allowed my predicament to happen, how could it have been
prevented, and what were the roles of the major players.
I see five separate stories:
1. Eliminating
dual agency will boost small brokers and reduce violations.
2. VITAR
is not your friend.
3. The
Real Estate Commission does not do its job of policing brokers.
4. My
story. What is a fiduciary?
5. The
Attorney General’s time should not be wasted solving disputes between brokers
and clients.
Eliminating dual agency will boost small brokers and
reduce violations
Dual agency is not a guarantee of corruption, but it is
certainly an invitation. My problem would never have happened if dual agency
was not legal in the USVI. It’s not legal in eight states, with more to follow.
The VI Legislature wants to expand opportunities
for local Virgin Islanders. In other words, let the little guys into the game.
The best way to do this would be to prevent the big guys from having both sides
by eliminating dual agency. Buyers will choose a little guy to assist them in
finding a house that will most likely be listed by a big guy. Since big guys
won’t be able to assist buyers in purchasing a house that they are listing.
Here are a couple of useful links. Be sure to read
the sub-link “Dual Agency is the Biggest Consumer Scam in Real Estate” in the
first link.
https://www.caare.org/never-agree-to-dual-agency/
VITAR is not your friend
VITAR is the Virgin Islands’ version of the National
Association of Realtors. Understanding their purpose as well as how they are
formed and funded clarifies why they are not on the side of clients. They say
that they are “members driven”. In other words, the realtors who created VITAR
and pay for VITAR are in the driver’s seat. VITAR exists so that disputes
between brokers over the dividing of commissions do not spill into public view.
As for assisting clients, not so much. You can read in this link how
arbitration is legally binding. I was warned by the Assistant Attorney General
about this.
https://virginislandsrealtors.com/code-of-ethics
The Real Estate Commission does not do its job
of policing brokers
The
Real Estate Commission can revoke Mr. Hanley’s license based on civil or
criminal laws or a much wider sense of ethics violations such as, “any conduct in a real estate transaction which
demonstrates bad faith, dishonesty, untrustworthiness or incompetency”.
Here are the links for the VI laws setting up the Real
Estate Commission including their duties, ability to revoke licenses, and
penalties.
Title 27 -
Professions and Occupations Chapter 15 - Real Estate Brokers and Salesmen §
421a. Virgin Islands Real Estate Commission (SETTING UP THE COMMISSION)
https://law.justia.com/codes/virgin-islands/2019/title-27/chapter-15/421a/
Title
27 - Professions and Occupations Chapter 15 - Real Estate Brokers and Salesmen
§ 422. Duties of Real Estate Commission
https://law.justia.com/codes/virgin-islands/2019/title-27/chapter-15/422/
Title 27 -
Professions and Occupations Chapter 15 - Real Estate Brokers and Salesmen §
429. Suspension or revocation of license
https://law.justia.com/codes/virgin-islands/2019/title-27/chapter-15/429/
Title 12A -
Consumer Code Chapter 6 - Consumer Fraud and Deceptive Business Practices §
328. Remedies of the Department of Licensing and Consumer Affairs
https://law.justia.com/codes/virgin-islands/2019/title-12a/chapter-6/328/
You can read in my documents how they avoid doing their
job. The question is, “Why?”. I believe that if you dig in you will find that
the commission like VITAR leans towards the brokers and is probably made up of
mostly brokers. I’ll attach the nomination and resume of Karen Korsgren who was
turned down by the legislature.
In many states their real estate commissions have some
brokers. However, in a state with millions of residents the likelihood that any
member will be a drinking buddy of a broker brought up on charges will be slim
to none. In the VI they probably have each other on speed dial.
My story / What is a fiduciary?
I will send you all my documents as bunches that are sort
of in chronological order. As to exactly what Chris Hanley did that was
illegal, the following is the list
of criminal violations that I feel Mr. Hanley committed. It’s the list I sent
to the Attorney General’s Office. I believe that each violation falls into one
or more of the following criminal violations: breach of contract, breach of
fiduciary duty, or fraudulent misrepresentation.
Wednesday:
1. Hanley
informed his buyers of the other buyers’ 650k offer price. Disclosing
confidential information is forbidden by contract.
2. Hanley
was told by his buyers to write and submit to me, the seller, an offer for 665k
consisting of 695k with a seller assist of 30k. He did not produce a written
offer.
3. Hanley
did not inform his buyers that a seller’s assist of 30k exceeded VA rules
4. Hanley
misinformed seller of an offer by his buyers because no signed offer existed.
5. Hanley
informed seller of 695k. Actual amount was to have been 665k.
6. Hanley
allowed seller to verbally accept a nonexistent offer and turn down the only
real offer.
7. Hanley
did not provide useful information on VA loans when asked. Providing lender
information is required by contract.
Friday:
8. Hanley
misinformed the seller regarding who must pay the previously unmentioned 30k.
Providing lender information is required by contract.
9. Hanley
essentially negotiated 30k to 22.5k. Forbidden by contract.
Saturday:
10. Hanley allowed the
written offer to expire.
11. Hanley forged the
dates on the offer.
For
a “Reader’s Digest” version of this:
Chris
Hanley told me over the phone that his client offered 45k more than another
broker’s client. An offer is a signed document. No real written offer existed.
He wanted me to accept the fictitious offer so that he could tell the other
broker to go away. After I accepted the nonexistent offer, he then had two days
to manipulate me and his buyer into some deal, any deal so that he could get it
on paper before they arrived, all to guarantee himself a double commission of
40k vs 20k.
This ordeal has taught me a lot, including a broker’s
responsibility as a fiduciary. See attached file “nar-fiduciary-duty” for a
definition. Its further explained in
https://www.thebalancesmb.com/remedies-for-breach-of-fiduciary-duties-2867173
The Attorney General’s time should not be wasted solving
disputes between brokers and clients.
It might not be proper for me to send you copies of
emails and written summaries of conversations from the Attorney General’s
Office while that investigation is still ongoing. We can chat about it.
The following paragraph from
https://www.moneycrashers.com/real-estate-agent-responsibilities-duties/
has been a main motivator for me.
“Violating Fiduciary Duties
If a real estate agent enters into a fiduciary
relationship with you and subsequently violates any of the associated duties,
he or she can face substantial penalties. Though the type of penalty differs
depending on the circumstances of each situation, a real estate agent who
violates these duties can be denied a commission from the transaction, be
forced to compensate you for any damages arising from the breach of duty,
face real estate license restrictions or revocations, or even face criminal
charges.”
My problem has been finding someone to enforce any of
these penalties.
On the phone, you asked me what I was hoping to get. I
said that I want to see dual agency eliminated in the USVI and I want the Real
Estate Commission’s refusal to do their job investigated. Accomplishing these
ends is going to require a voice louder than mine that will reach a large
audience. If you’re up for a challenge I would love to help.
Call me when you have time.
Thanks,
Dave
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Good day Mr. Gilbert
Here is my attempt at my first article. Edit
it as you see fit. I will soon write the other four. If you’d like you could
print this with an intro that you write. I have a concern that Mr. Evangelista
will try to dodge questions about my case by saying that it is confidential but
will then want to tell you that all cases are heard in a timely and expeditious
manner. It’s like the fire department analogy that I told you about. Unless you
can point out a person whose house is on fire, you can’t prove that the
department actually has no intention of ever putting out a fire. Therefore, I
am very willing to be available to go on a three-way call or ZOOM to say, “Here
I am. Let’s talk about my case.” Let me know.
For completeness, it might be helpful for your readers if you include the four laws that cover the DLCA/Real Estate Commission.
Here are questions and topics that you may want to bring up in your conversation with Mr. Evangelist. You might also want to chat with Sammy Sanes.
QUESTIONS FOR MR. EVANGELISTA
Who are the members of the Real Estate
Commission and when were they appointed?
Which ones are agents/brokers?
Does the Commission have any written rules that they abide by to determine violation vs. punishment, or are they just winging it? Don’t accept an affirmative answer. Ask to see a copy.
Why did you ignore David Mattera? Please don’t insist that: you missed the emails he sent you, were not notified by K’wanda Daniels, who also received copies, and didn’t read the email from Sammy Sanes.
For how long has the Commission been dysfunctional and have you ever thought of trying to fix it?
Suggestion/demand: Other people should not have to feel their way around in the dark like Mr. Mattera did. The Commission’s purpose and procedures should be explained on the DLCA website along with directions to file a complaint.
Suggestion/demand: The Commission’s past actions need to be recorded on the website or in some easy to find link. That will include their minutes along with a table showing all complaints filed covering accusations and resolutions. These people work for the public. If they have disciplined a realtor ten times in the last year, the public has a right to know.
QUESTIONS FOR MR. SANES
What did you learn from Mr. Mattera’s
situation, and do you think fixes need to be made?
What did you learn from the Government House Legal Counsel regarding the Real Estate Commission’s unwillingness to do their job?
Dave
p.s. When you learn who the members of the Commission are, you might want to give them a call for their appraisal of the current situation.
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Hi
Mr. Gilbert
Here
is article #2. Edit as you see fit. VITAR is an interesting topic. For angry
clients they are like a fishing lure, benign on the outside but far more
dangerous on the inside. You may want to interview someone from Pinellas. I
feel sorry for these people. I don’t think they had any idea what they signed
up for. Angela Emerson might agree or wish to defer to someone else. This
is the company directory:
https://pinellasrealtor.org/staff-directory/
Dave
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Hi
Mr. Gilbert
Here
is #3. Edit away. Could you please edit my second article so that the top line
says #2 not #1? Sometimes I get so carried away with copy and paste to save
typing that it exceeds my proofreading skills.
How
are you?
Dave
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Good
Monday Morning Mr. Gilbert
Here
is #4. I can’t write #5 yet because the contents of that are going to be dependent
on the results of #1 through #4 being printed. We still haven’t had our
conversation yet.
Happy
Thanksgiving to you and yours,
Dave
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Good
Day Mr. Gilbert
My
condolences on the loss of your friend Jean Greaux. I’m sure your busy days are
less bright. So, I hate to bother you now but I am uncertain how you want to
proceed with the articles I sent you, if at all. My hope in writing them was
that you could print them and not have to devote more of your time.
In
one of our short phone conversations, you asked me what I hoped to accomplish.
I answered that I wanted to see the dysfunctional Real Estate Commission fixed
and dual agency eliminated. These tasks can only be met by the Governor and the
Senate. And they would most likely be motivated by public sentiment. Therefore,
would it be possible for you to print them with a brief introduction and a
request for comments and questions – that I would gladly answer if needed?
Follow up stories could be based on interviews. And questions for those
interviews could be shaped by the comments and questions.
Sincerely,
Dave
No response
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After Ernice
Gilbert went MIA by never answering an email or recent voice mail, I reached
out to Glen Dratte, a member of the VI Consortium and newly appointed spokesman
for the Governor and other agencies. Unlike Mr. Gilbert, we had long phone
calls in which we discussed trying to solve all the problems of the Virgin
Islands. Glen even suggested that I should speak with the Governor and said
that he could arrange that. Unfortunately, like Mr. Gilbert, he also went MIA.
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Good day Mr. Dratte
I hope that we can continue our conversation soon. I had a
feeling that Mr. Gilbert was beyond busy, as a result promises of returned
phone calls got missed. And seeing as I don’t want to bother him, I don’t know
how to proceed.
I’m unaware if Mr. Gilbert shared the articles that I wrote for
him so I’m sending you copies. My main issue is with the Real Estate
Commission. In a phone call with Mr. Gilbert, I compared them to a fire
department that, in reality, doesn’t put out fires. They’ll promise
you that they do. They’ll swear that if your house ever catches on fire and you
call them that they will show up and put it out. Unfortunately, you will never
know that they are lying unless your house actually catches on fire, you call
them repeatedly, and in the end, they never show up.
Following the lines of this analogy, my house is on fire. It’s
been on fire for over a year. They have promised to help me but I am quite
certain that they have no intention of ever doing their job. I am hoping that
these articles can be printed, perhaps as an op-ed with a brief introduction
and a request for comments or questions. If you’d like, I could handle the
responses. Who knows, you may want me to continue doing research articles
in the future.
One of my hopes is that the Governor learns of my problem and it
has an effect on his choices for new members of the commission. And like the
Real Estate Commission, the other problem that I talk about of dual agency can
only be fixed by the Governor in conjunction with the Legislature. If you’d
like to share these articles with the Governor or Senators, please do so.
Sincerely,
David Mattera
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Happy Holidays David,
Received and noted.
Will be in touch.
Thanks for sharing.
Glen Dratte
SVP Advertising/Marketing/Brand
Management
VI Consortium-VIC Regional News
Tel:340 642 8058
Visit our Website:
"Like Us" on facebook:
https://www.facebook.com/viconsortium/
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When someone
says, “Will be in touch.”, what is a reasonable period of time to wait? Two weeks seems reasonable. Is it possible
that during these two weeks he let a certain someone else read my articles? I
need Glen to talk to me. Maybe I can diffuse things with a compromise.
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Good day Glen
I know you are very busy with your new job, so
I hate to interrupt you. I don't usually carry my phone. It's only a flip
phone that doesn't receive email and texting is painful. I'll get a smartphone
someday. However, Warren Buffett ran a multibillion dollar corporation using a
flip phone for decades. So, I'll probably hold out for a while longer. How
about if we make an appointment to continue our conversation? Please text me a
time when you will be able to chat.
I understand that the articles I wrote don't make anybody look good, primarily the government and the real estate industry. That being said, I have no problem compromising. I can hold off if I know that the Governor plans to do something about the Real Estate Commission. Let's talk about that.
Thanks,
Dave
No response