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Legal Staff Recommends $500 Penalty in Unlicensed Auction Case, Dismisses Misrepresentation Claim

December 14, 2024 | Commerce & Insurance, Deparments in Office of the Governor, Organizations, Executive, Tennessee


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Legal Staff Recommends $500 Penalty in Unlicensed Auction Case, Dismisses Misrepresentation Claim
Legal staff summarized three matters at the Nov. 18 meeting and recommended outcomes in each. Counsel recommended a $500 civil penalty for one respondent in an unlicensed-auction matter after confirming that respondent had previously been licensed but had not been licensed for six years. Counsel said the respondent in the first related matter responded and claimed they were unaware of the licensing issue and had posted to social media that they would cease activity until the issue was resolved.

In a separate case involving the sale of 50 acres, the complainant alleged the respondent misrepresented or withheld information about an easement for a septic system. The respondent denied knowledge and noted the complainant's title search and counsel did not disclose the easement; legal staff found no evidence the respondent intentionally misled bidders and recommended dismissal.

Legal staff asked commissioners to accept the recommendations; a motion to accept legal counsel's recommendations on the three matters passed by voice vote. Counsel also advised commissioners that a formal contested‑case hearing will be scheduled for February; staff and outside counsel will present evidence and commissioners will sit as the factfinder in that case.

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