A Red Deer real estate broker has had his broker licence cancelled for life following a Real Estate Council of Alberta investigation.
David Stephen Kennedy, 56, must also pay $1,500 in investigation and proceedings costs, says the council in a 23-page Aug. 13 decision.
Kennedy had been a licensed real estate broker in Alberta since 1997 and worked for Manor Management Ltd.
The ruling says that “Mr. Kennedy failed to act competently, failed in his fiduciary obligations, failed to disclose conflicts of interst, ad engaged in conduct that undermined public confidence in the industry.
“The Hearing Panel views the nature and gravity of the admitted breaches of the Rules to be severe and consider this an aggravating factor.”
Kennedy admitted to 21 breaches of the Real Estate Act in connection with 10 separate files.
A 2018 audit found Manor’s trust account was short nearly $119,000. “This shortage was created by improper withdrawals by Mr. Kennedy and had the potential to cause serious harm to his brokerage clients and to the industry.”
Kennedy later covered the shortfall and no clients suffered losses.
Kennedy also collected tens of thousands of dollars in rents without passing them on to the property owners and on a number of occasions contracted companies he had an interest in to do work without getting bids from others. At various times, he failed to pass on security deposits or rents as required and did not pay various bills and invoices or do repair work as promised.
In another case, he continued to manage and collect fees from a property until 2017, even though the management agreement had expired in 1995.
Kennedy had a history of breaking the rules and received five $1,500 administrative penalties from the Real Estate Council from 2015 through 2017.
While Kennedy could have faced a fine of up to $25,000 for each finding of conduct deserving sanction the panel accepted that he had co-operated, admitted the breaches and accepted a longer period of prohibition from holding a licence. In light of that, fines were not considered an appropriate penalty.
He was also handed a 36-month prohibition for applying for any real estate licence that is retroactive to Dec. 13, 2019, when his licence was suspended previously. He can reapply for another licence after Dec. 13, 2022 but only as an associate and after taking education courses.
Kennedy’s book of business was sold to another property management company in September 2020.
A man who answered the phone at a listing for Manor Management said Kennedy was not available.
Kennedy does not have a 50 per cent interest in SHEA Floors, as stated in the RECA report.