Kristal Amos $5,000 Civil Penalty for Unlicensed Real Estate Activity

BEFORE THE MISSOURI REAL ESTATE COMMISSION

MISSOURI REAL ESTATE COMMISSION

Petitioner,
V.
KRISTAL AMOS
Respondent,

FINDINGS OF FACT, CONCLUSIONS OF LAW AND DISCIPLINARY ORDER

On or about May 11, 2023, the Administrative Hearing Commission entered its Default Decision in the case of Missouri Real Estate Commission v. Kristal Amos, No. 21-2737 RE. In that Default Decision, the Administrative Hearing Commission found that Respondent Kristal Amos, to be subject to disciplinary action by the Missouri Real Estate Commission ("Commission") pursuant to § 339.020, 339.200.1 & 3 and 339.205 RSMo.

The Commission has received and reviewed the record of the proceedings before the Administrative Hearing Commission including the properly pled complaint and the Default Decision of the Administrative Hearing Commission. The record of the Administrative Hearing Commission is incorporated herein by reference in its entirety.

Pursuant to notice and §§ 621.110 and 339.100.3, RSMo, the Commission held a hearing on December 4, 2024, at the Missouri Dental Association Building, Lower level, 3340 American Ave, Jefferson City, MO 65109, for the purpose of determining the appropriate disciplinary action against Respondent Kristal Amos. All other members of the Commission were present throughout the meeting. Further, each member of this Commission who was present read the Default Decisions of the Administrative Hearing Commission. The Commission was represented by Assistant Attorney General Jason Lewis. Respondent Kristal Amos having received proper notice and opportunity to appear did not appear in person or through legal counsel. After being present and considering all the evidence presented during the hearing, the Commission issues the following Findings of Facts, Conclusions of Law, and Order.

Based upon the foregoing the Commission hereby states:

I.

FINDINGS OF FACT

1. The Commission is an agency of the state of Missouri created and established pursuant to § 339.120, RSMo, for the purpose of licensing all persons engaged in the practice as a real estate broker or salesperson in this state. The Commission has control and supervision of the licensed occupations and enforcement of the terms and provisions of §§ 339.010-339.205 and 339.710-339.855, RSMo.
2. The Commission hereby adopts and incorporates by reference the properly pled Complaint and, specifically, the Default Decisions of the Administrative Hearing Commission in Missouri Real Estate Commission v. Kristal Amos, Case No. 21-2737 RE, issued May 11, 2023, in its entirety and takes official notice thereof.
3. The Commission set this matter for disciplinary hearing and served notice of the disciplinary hearing upon Respondent Kristal Amos in a proper and timely fashion. Respondent Kristal Amos failed to appear in person or through legal counsel at the hearing before the Commission.

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II.

CONCLUSIONS OF LAW

1. This Commission has jurisdiction over this proceeding pursuant to §§ 621.110 and 339.100, RSMo.
2. The Commission expressly adopts and incorporates by reference the properly pled complaint and Default Decision issued by the Administrative Hearing Commission dated May 11, 2023, in Missouri Real Estate Commission v. Kristal Amos, Case No. 21-2737 RE, takes official notice thereof, and hereby enters its conclusions of law consistent therewith.
3. As a result of the foregoing, and in accordance with the Administrative Hearing Commission's Default Decision dated May 11, 2023, Respondent Kristal Amos, an unlicensed individual, is subject to disciplinary action by the Commission pursuant to § 339.020, 339.200.1 & 3 and 339.205 RSMo.
4. The Commission has determined that this Order is necessary to ensure the protection of the public.

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III.

ORDER

Having fully considered all the evidence before the Commission and giving full weight to the Default Decision of the Administrative Hearing Commission, it is the ORDER of the Commission that Kristal Amos is hereby ORDERED to pay a civil penalty of $5,000 by certified check made payable to the "Missouri Real Estate Commission" and mail to the Missouri Real Estate Commission, P.O. Box 1339, Jefferson City MO 65102-1339. Said certified check must be postmarked or hand delivered within 60 days of the date of this Order. Funds received pursuant to this Order shall be handled in accordance with Section 7 of Article IX of the Missouri Constitution and § 339.205.8, RSMo.

The Commission will maintain this Order as an open, public record of the Commission as provided in Chapters 339, 610 and 324, RSMo.

SO ORDERED, EFFECTIVE THIS 18 DAY OF December, 2024.

MISSOURI REAL ESTATE COMMISSION

Brittany Tomblinson
Brittany Tomblinson, Executive Director

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Before the
Administrative Hearing Commission
State of Missouri

MISSOURI REAL ESTATE COMMISSION
Petitioner,
V.
METROPOLITAN REAL ESTATE
MANAGEMENT, LLC, et al,
Respondents.

DEFAULT DECISION AS TO KRISTAL AMOS

On November 5, 2021, Petitioner filed a properly pled complaint seeking to discipline Respondents. Respondent Kristal Amos was served with a copy of the complaint, our notice of complaint/notice of hearing, and order dated January 9, 2023, by personal service on February 15, 2023.

More than thirty days have elapsed since Amos was served. Amos has not filed an answer or otherwise responded to the complaint.

In accordance with § 621.100.2, RSMo 2016, we enter a default decision against Amos establishing that Petitioner is entitled to the relief requested in the complaint against Amos. This default decision shall become final and may not be set aside unless a motion is filed with this Commission within thirty days of the date of the order establishing good cause for not responding to the complaint and stating facts constituting a meritorious defense.

SO ORDERED on May 11, 2023.

Spencer F. Bartlett
SPENCER F. BARTLETT
Commissioner

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BEFORE THE
ADMINISTRATIVE HEARING COMMISSION
STATE OF MISSOURI

MISSOURI REAL ESTATE
COMMISSION
3605 Missouri Blvd.
PO Box 1339
Jefferson City, Missouri 65102

Petitioner,

V.

METROPOLITAN REAL ESTATE
MANAGEMENT, LLC, a Missouri
Limited liability company,

Serve on:
Douglas A. Carter, registered agent
2125 S. Brentwood Blvd.
Springfield, MO 65804,

GREGORY K. MATTHESS
2523 E. Olde Ivy Street
Springfield, MO 65804

ZACHARY FISCHER
1501 S. Kimbrough
Springfield, MO 65817
and

KRISTAL AMOS
4826 S. Farm Road 141
Springfield, MO 65810

Respondents.

FILED
NOVEMBER 5, 2021
ADMINISTRATIVE
HEARING COMMISSION

Case No.

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COMPLAINT

Petitioner, the Missouri Real Estate Commission ("MREC"), by and through the undersigned counsel, and for its cause of action against Respondents Metropolitan Real Estate Management, LLC, Gregory K. Matthess, Zachary Fischer, and Kristal Amos, states:

Allegations Common to All Counts

1. The MREC is an agency of the State of Missouri created and existing pursuant to § 339.120, RSMo,¹ for the purpose of executing and enforcing the provisions of §§ 339.010 to 339.180 and §§ 339.710 to 339.860, RSMo (as amended), relating to real estate salespersons and brokers.
2. Gregory K. Matthess ("Matthess"), holds a broker associate license, no. 2015039088, which was cancelled on December 31, 2018 and expired on August 31, 2020.
3. Zachary Fischer ("Fischer"), is licensed as a real estate salesperson, license no. 2017004236, which expired on September 30, 2018.
4. Kristal Amos ("Amos") did not hold a license issued by the MREC at any time relevant herein.

¹All statutory citations are to the Revised Statutes of Missouri 2016, as amended, unless otherwise noted.

1. Jurisdiction and venue are proper before the Administrative Hearing Commission pursuant to §§ 621.045 and 339.100.2, RSMo.
2. Metropolitan Real Estate Management, LLC (Metropolitan), is a Missouri limited liability company, charter no. LC001585840. Metropolitan is licensed by the MREC as a real estate charter, no. 2018025905, which expired on September 30, 2018.
3. Fischer and Amos were the owners and operators of Metropolitan.
4. Matthess was the designated broker for Nvest Realty Group LLC ("Nvest") from July 25, 2017 until May 29, 2018. Nvest's real estate association license was revoked by the MREC on February 15, 2019. Metropolitan was issued a license from the MREC on July 13, 2018 and Matthess was the designated broker. At all times relevant herein, Matthess was the designated broker of Metropolitan; and, as such, Matthess bears responsibility for his own conduct as well as that of Metropolitan. On June 28, 2019, the MREC received a "Closing a Real Estate Brokerage/Sole Proprietorship" form signed by Matthess closing Metropolitan effective December 31, 2018.
5. Matthess filed a Closing of a Real Estate Brokerage/Sole Proprietorship form with the MREC and Metropolitan was closed effective December 31, 2018. The closing document filed with the MREC named Fischer as the Custodian of Records.
6. As the designated broker, references herein to Matthess are also references to Metropolitan, and references herein to Metropolitan are also references to Matthess.
7. Metropolitan had an escrow account, #*1378, at the Arvest Bank ("escrow account") and an operating account, #8268, at the Arvest Bank ("operating account"). Metropolitan filed a Consent to Examine and Audit Escrow/Trust Account with the MREC which registered account #1278 and #8268, but failed to register account #***1459.
8. Metropolitan, Fischer, and/or Amos managed properties owned by up to 50 owners, including property owned by Dusty Schober and S&S Property Investments, LLC.

9. Metropolitan, Fischer, and/or Amos used web-based software called Appfolio. Through Appfolio, tenants were provided a tenant portal through which they paid rents. Rental payments were then deposited into account #****1378. Owners were provided an owner portal giving them access to documents and rents received. When Metropolitan closed on or about December 31, 2018, Appfolio was closed, no records were backed up, hard copies were not retained and none of the information previously stored on Appfolio was available any longer.

10. Section 339.020, RSMo, provides:

    It shall be unlawful for any person, partnership, limited partnership, limited liability company, association, professional corporation, or corporation, foreign or domestic, to act as a real estate broker, real estate broker-salesperson, or real estate salesperson, or to advertise or assume to act as such without a license first procured from the commission.

11. Section 339.100.2, RSMo, provides:

    1. The commission may cause a complaint to be filed with the administrative hearing commission as provided by the provisions of chapter 621 against any person or entity licensed under this chapter or any licensee who has failed to renew or has surrendered his or her individual or entity license for any one or any combination of the following acts: (1) Failure to maintain and deposit in a special account, separate and apart from his or her personal or other business accounts, all moneys belonging to others entrusted to him or her while acting as a real estate broker or as the temporary custodian of the funds of others, until the transaction involved is consummated or terminated, unless all parties having an interest in the funds have agreed otherwise in writing; ... (3) Failing within a reasonable time to account for or to remit any moneys, valuable documents or other property, coming into his or her possession, which belongs to others; ... (15) Violation of, or attempting to violate, directly or indirectly, or assisting or enabling any person to violate, any provision of sections 339.010 to 339.180 and sections 339.710 to 339.860, or of any lawful rule adopted pursuant to sections 339.010 to 339.180 and sections 339.710 to 339.860; (16) Committing any act which would otherwise be grounds for the commission to refuse to issue a license under section 339.040; ... (19) Any other conduct which constitutes untrustworthy, improper or fraudulent business dealings, demonstrates bad faith or incompetence, misconduct, or gross negligence; ... (23) Assisting or enabling any person to practice or offer to practice any profession licensed or regulated under sections 339.010 to 339.180 and sections 339.710 to 339.860 who is not registered and currently eligible to practice under sections 339.010 to 339.180 and sections 339.710 to 339.860.[.]

12. Section 339.105, RSMo, provides:

    1. Each broker who holds funds belonging to another shall maintain such funds in a separate bank account in a financial institution which shall be designated an escrow or trust account. This requirement includes funds in which he or she may have some future interest or claim. Such funds shall be deposited promptly unless all parties having an interest in the funds have agreed otherwise in writing. No broker shall commingle his or her personal funds or other funds in this account with the exception that a broker may deposit and keep a sum not to exceed one thousand dollars in the account from his or her personal funds, which sum shall be specifically identified and deposited to cover service charges related to the account.
    2. Each broker shall notify the commission of his or her intent not to maintain an escrow account, or the name of the financial institution in which each escrow or trust account is maintained, the name and number of each such account, and shall file written authorization directed to each financial institution to allow the commission or its authorized representative to examine each such account; such notification and authorization shall be submitted on forms provided therefor by the commission. A broker shall notify the commission within ten business days of any change of his or her intent to maintain an escrow account, the financial institution, account numbers, or change in account status.
    3. In conjunction with each escrow or trust account, a broker shall maintain books, records, contracts and other necessary documents so that the adequacy of said account may be determined at any time. The account and other records shall be provided to the commission and its duly authorized agents for inspection at all times during regular business hours at the broker's usual place of business.

13. Section 339.710(12), RSMo, defines the term "designated broker" and provides:

    "Designated broker", any individual licensed as a broker who is operating pursuant to the definition of real estate broker as defined in § 339.010, or any individual licensed as a broker who is appointed by a partnership, limited partnership, association, limited liability corporation, professional corporation, or a corporation engaged in the real estate brokerage business to be responsible for the acts of the partnership, limited partnership, association, limited liability company, professional corporation or corporation. Every real estate broker partnership, limited partnership, association, limited liability company, professional corporation or corporation shall appoint a designated broker;

14. State Regulation 20 CSR 2250-8.120(7) provides:

    (6) Each check written on an escrow account or each corresponding check stub, or other record of disbursement of funds from the account and each deposit ticket shall indicate the related real estate transaction(s). Each check written on an escrow account for commission shall be made payable to the licensee to whom the commission is owed or to the firm's general operating account.
    (7) The designated broker and the branch office manager shall be responsible for the maintenance of the escrow account and shall ensure the brokerage's compliance with the statutes and rules related to the brokerage escrow account(s).

15. Metropolitan became licensed on July 13, 2018. On or about November 3, 2018, a complaint was filed with the MREC by Dusty Schober for himself and S&S Property Investments LLC against Metropolitan, Matthess, Fischer and Amos related to Respondents' conduct associated with management of property owned by Schober and S&S Properties (hereinafter "Schober's Complaint").

16. On or about April 26, 2019 through September 20, 2019, an MREC auditor attempted to conduct, and in part conducted, an audit and examination of Metropolitan's business records and escrow accounts ("Audit").

Count I

Unlicensed Activity: Kristal Amos

1. The MREC realleges and incorporates by reference paragraphs 1 through 20 as though fully set forth herein.
2. At all relevant times described herein, Kristal Amos did not hold, and has never held, a real estate broker or salesperson license from the MREC.
3. During the course of an audit and investigation, the MREC learned that Amos, as an owner and operator, worked for and/or on behalf of Metropolitan from about May 2018 to about April 2019, performing the duties of a real estate broker and/or salesperson in conducting property management, including, but not limited to: a. Making deposits, reconciling accounts, signing checks and making cash withdrawals on the Metropolitan escrow and operating accounts; b. Making transfers for management fees and payments to owners and vendors; and c. "Just whatever needed to be done" in providing property management services.
4. Fischer, as a co-owner and co-operator of Metropolitan with Amos, assisted and enabled Amos to practice real estate without a license.
5. Matthess, as the designated broker, did not supervise Amos in any way, and did not insure that Amos, who was unlicensed, would not perform activities for which a license was required.
6. Amos' conduct as set forth above is in violation of §§ 339.020 and 339.200.1, RSMo, and is subject to civil penalties as allowed by §§ 339.200.3 and 339.205, RSMo.
7. Based on Fischer's and Matthess' conduct as set forth above, cause exists to discipline the licenses of Metropolitan, Fischer, and Matthess under § 339.100.2(15) and (23), RSMo.

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Count II

Improper Use of License by Designated Broker and Failure to Supervise

1. The MREC realleges and incorporates by reference paragraphs 1 through 27 as though fully set forth herein.
2. Matthess was owed money by Nvest. Matthess agreed to become the designated broker for Metropolitan for the sole purpose of recouping the monies owed him by Nvest.
3. At the time Matthess became the designated broker, he agreed with Fischer and Amos that he would not be involved in the daily operation of Metropolitan. He agreed to become the designated broker as a way to recoup monies he claimed were owed to him. Matthess did not know how many properties were managed or the names of the property owners, did not have access or keys to the office, and did not know the balances of bank accounts were, was not a signatory on any accounts, did not know anything about how the brokerage was run. He did not know how the brokerage was wound up – did not know how the final disbursements were made or what or where records were maintained. He did not know Metropolitan had closed until informed of it by a MREC investigator, and did not cause the necessary closing documents to be filed with the MREC.
4. Code of State Regulation 20 CSR 2250-8.020(1), (2), provides: > (1) Individual brokers, designated brokers, and office managers/supervising brokers shall be responsible for supervising the real estate activities including the protection of any confidential information as defined under 339.710.8, RSMo, of all licensed and unlicensed persons associated with them, whether in an individual capacity or through a corporate entity, association or partnership..... > (2) A broker shall not permit licensed and unlicensed persons affiliated with the broker to – > (A) Establish and carry on real estate brokerage business for their own benefit, directly or indirectly, where the broker's primary interest is the receipt of a fee or other valuable consideration for the use of the broker's license by others; or > (B) Where the broker has no control or only nominal control of the business affairs conducted under the broker's license or is only nominally associated with the business.
5. Matthess' conduct is in violation of § 339.100.2 (15), RSMo, and 20 CSR 2250-8.020(1), (2), and therefore is subject to discipline.

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Count III

Unlicensed Activity by Metropolitan

1. The MREC realleges and incorporates by reference paragraphs 1 through 32 as though fully set forth herein.
2. Metropolitan became licensed by the MREC on July 13, 2018, and closed effective December 31, 2018. Metropolitan registered an escrow account, #****1378, at Arvest Bank. Records show that there was activity in the escrow account with Arvest Bank beginning in May 2018, before Metropolitan was licensed.
3. Metropolitan also had a brokerage operating account, #****8268, with Arvest Bank. Bank statements reflect activity in the operating account in January and April 2019, after Metropolitan was closed.
4. Based on Metropolitan's violation of § 339.020, and Matthess' and Fischer's assistance to Metropolitan, cause exist to discipline Matthess, Fischer, and Metropolitan under § 339.100.2 (15), RSMo, and is therefore subject to discipline.

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Count IV

Untrustworthy and Improper Business Dealings

1. The MREC realleges and incorporates by reference paragraphs 1 through 36 as though fully set forth herein.
2. Metropolitan paid expenses from the brokerage operating account without a written invoice or other documentation justifying the payments. Fischer and Amos transferred approximately $66,692.40 from the rental account to the operating account from May to December 2018 without adequate written documentation to support the transfers.
3. Cash withdrawals from the escrow account totaling $48,234.77 were made between October to December 2018 without any documentation as to whom payments were made or the amounts paid.
4. The conduct of Matthess, Fischer, and Metropolitan violates § 339.105.3, RSMo, supra, and 20 CSR 2250-8.120(6) and (7), supra.
5. Based on the conduct of Matthess, as designated broker, and Fischer, as the office manager, cause exists to discipline the licenses of Metropolitan, Fischer, and Matthess pursuant to § 339.100.2(3) and (15), RSMo.

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Count V

Brokerage Accounts

1. The MREC realleges and incorporates by reference paragraphs 1 through 41 as though fully set forth herein.
2. In 2019 the MREC conducted an audit and examination of Metropolitan's business records and escrow accounts which revealed violations.
3. Rents collected by Metropolitan were transferred from the escrow account to the operating account to pay the maintenance expenses on managed properties, in violation of § 339.105.1, RSMo.
4. In at least 6 instances there were overdrafts in the property management account, #****1278, in violation of § 339.105.1, RSMo.
5. There was a shortage of $139.90 in the property management escrow account, #****1378, in violation of § 339.105.1, RSMo.
6. Matthess opened and closed a security deposit account, #****1459, at Arvest Bank, but failed to notify the MREC of the account, in violation of § 339.105.2, RSMo, and 20 CSR 2250-8.220(7).
7. 20 CSR 2250-8.220(7) states: > (7) In addition to the notification required by § 339.105.2, RSMo, each broker, upon the request of the commission or its agent, shall consent to the examination and audit of the broker's property management escrow account(s) by the commission or its agent. As part of the consent, each broker shall execute a form presented to him/her by the commission or its agent entitled Consent to Examine and Audit Escrow or Trust Account.
8. Based on the conduct of Matthess in violation of § 339.105, RSMo, and 20 CSR 2250-8.220(7), cause exists to discipline Matthess under § 339.100.2(15), RSMo.

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Count VI

Records Retention and Access

1. The MREC realleges and incorporates by reference paragraphs 1 through 49 as though fully set forth herein.
2. Metropolitan did not maintain adequate records necessary to determine the adequacy of the property management escrow account, #****1378. Metropolitan used web-based software called Appfolio which included escrow registers, reconciliations, liability reports, and owner