STATE OF NEW YORK - New York State Department of State



STATE OF NEW YORK

DEPARTMENT OF STATE

_______________________________________________________

In the Matter of the New York State Department of State,

Division of Licensing Services,

Complainant,

-against - CONSENT ORDER

2010-2551

FARHAN M. ZEEJAH, State Licensed Real Estate Appraiser,

and State Certified Residential Real Estate Appraiser Applicant,

Applicant/Respondent

_______________________________________________________

1. The New York State Department of State, Division of Licensing Services (the “Department”) is a department of the State of New York charged with the regulation of real estate appraisers and with the enforcement of Article 6-E of the Executive Law.

2. The Applicant/Respondent, FARHAN M. ZEEJAH, has a current state licensed real estate appraiser license, doing business under FHN Realty & Appraisal, with registered business address at 843 Edward St., Baldwin, NY 11510, licensed under UID # 47000046094, expiring on 3/07/12.

3. On or about September 24, 2009, FARHAN M. ZEEJAH filed an application for licensure as a state certified residential real estate appraiser, with supplemental information to be included and submitted to the Department on or about October 16, 2009 and November 5, 2009. Said application was followed and/or supplemented by subsequent correspondence from the Applicant/Respondent sent to the Department, some with attachments, and received by the Department on December 21, 2009, December 23, 2009, January 6, 2010, and February 25, 2010.

The Department is required by the Appraiser Qualifications Board (AQB) of The Appraisal Foundation (see Title XI of the Financial Institutions Reform, Recovery And Enforcement Act of 1989 [FIRREA]) to audit the experience of all real estate appraiser license/certification applicants to ensure that the work is USPAP (Uniform Standards or Professional Appraisal Practice) compliant. This requirement took effect as of January 1, 2008.

On November 25, 2009, the Department sent the Applicant/Respondent a letter requesting four (4) appraisal reports to be submitted for review from his application, and a response was received by the Department on or about December 8, 2009. On December 9, 2009, the Department sent the Applicant/Respondent’s four reports to Matthew L. Smith, MAI, SRA, MRICS, a state certified general real estate appraiser and Member of the NYS Board of Real Estate Appraisal, for review regarding USPAP compliance. On February 4, 2010, the checklist reviews of Applicant/Respondent’s four reports were returned by Matthew L. Smith, cosigned by Neal D. Peysner, SRA, Regional Advisor to the NYS Board of Real Estate Appraisal, and state certified general real estate appraiser, and based upon this review, all of the four reports appeared to have problems, and it was recommended that since the four appraisals submitted were from earlier dates, that more recent appraisals be obtained and reviewed to see if the work quality had improved.

On February 5, 2010, the Department’s Senior Investigator, Janine Barnhart, sent the Applicant/Respondent correspondence requesting an additional appraisal experience report and corresponding log sheets documenting/listing the Applicant/Respondent’s appraisal experience from April 2008 to date. The Applicant/Respondent provided the requested information under cover correspondence dated February 6, 2010, and received by the Department on February 9, 2010.

On February 9, 2010, the Department sent correspondence to the Applicant/Respondent requesting that he submit additional documentation, and specifically, his appraisals for four (4) specific properties. The Applicant/Respondent provided the requested information under cover correspondence dated February 12, 2010, and received by the Department on or about February 17, 2010. On February 19, 2010 the Department sent the Applicant/Respondent’s four reports to Matthew L. Smith, MAI, SRA, MRICS, a state certified general real estate appraiser and Member of the NYS Board of Real Estate Appraisal, for review regarding USPAP compliance. On April 21, 2010, the checklist reviews of Applicant/Respondent’s four reports were returned by Matthew L. Smith, state certified general real estate appraiser, and based upon this review, all of the four reports appeared to have problems and USPAP violations.

On April 22, 2010, the Department’s Senior License Investigator, Janine Barnhart, sent the review appraiser’s reports to Senior Investigator Ernest Delaney for assignment to a real estate appraiser Regional Advisor for a detailed report/review of all eight of the Applicant/Respondent’s reports.

On August 16, 2010, the real estate appraiser Regional Advisor’s written report, prepared by Domenico Antonelli, was received regarding the review of Applicant/Respondent’s eight reports. Pursuant to the Regional Advisor’s report, all of the eight reports contained significant deficiencies, and were generally violative of USPAP standards. The Regional Advisor reached the conclusion that the Applicant/Respondent’s application for an upgrade of his license was not appropriate, and further recommends disciplinary action be taken for the Applicant/Respondent’s providing misleading, negligent appraisal reports to his clients, and for the consistent violations of USPAP demonstrated in the reports reviewed.

On the basis of this recommendation, the Department proposed denial of the pending application, and the Respondent/Applicant requested a hearing.

The complaint filed by the Department which was in response to the request for hearing, and which in fact, resulted in a hearing being scheduled, included not only allegations about the application, and the documentation submitted by the Respondent/Applicant, but further included allegations of misconduct, and initiation of a disciplinary proceeding, in concert with the requested hearing on the pending application.

4. Respondent has been advised of the right to counsel, and has elected to be represented in these proceedings by a non-attorney, William C. Merrell, Ph.D., 1461-16 Lakeland Ave., Bohemia, NY 11716.

5. By executing this Consent Order, Respondent affirmatively waives the right to a hearing on the pending complaint, including both the disciplinary portions and the initial pending application, in the manner provided by law, consents to the issuance and entry of this Order and agrees to be bound by the terms, provisions and conditions contained herein.

6. Respondent/Applicant confirms the withdrawal of the initial application for appraiser license upgrade, such that said application is no longer before the Department for consideration in that capacity. Respondent acknowledges, however, that the experiential paperwork submitted in support of his application was deficient in numerous aspects. The Department acknowledges that Respondent/Applicant has affirmed that all of the work product submitted by the Respondent/Applicant in support of the application, prior to the commencement of the above-captioned application denial and disciplinary action, were what he states were work copies of his appraisals, and that the final products submitted to the clients were devoid of the same errors and deficiencies. Respondent/Applicant affirms that the documents submitted to the Department during the pendency of the hearing on this matter, referenced by him as ‘final work product’, were the actual final work product, and that he misunderstood the Department’s request for proof of experience, and submitted deficient, draft versions of the appraisals. He further affirms that he understands that submitting deficient draft copies of work product, in support of an application for appraiser license renewal or advancement, was improper, and was a proper basis for the Department’s proposed denial of the application submitted by Respondent/Applicant. On that basis, Respondent/Applicant affirmatively took action to withdraw the initial application, and same is no longer pending before the Department in that capacity. The disciplinary aspects of the case remain, and are addressed in the within Consent Order.

7. Respondent Zeejah is therefore referenced henceforth herein as “Respondent”.

8. Respondent admits the allegations and violations set forth herein, and affirms that all alleged violations have been corrected:

By directly or indirectly, negligently and/or fraudulently, preparing and communicating a real estate appraisal report which contained violations of the Uniform Standards of Professional Appraisal Practice (USPAP) and/or NYS Executive Law Article 6-E and 19 NYCRR, Parts 1101 and 1106, et seq, thereby violating provisions of all of the foregoing, and violating the standards for the development or communication of real estate appraisals provided in Article 6-E of the Executive Law in violation of Executive Law §160-u.

By preparing and communicating an appraisal report which contained violations of the Uniform Standards of Professional Appraisal Practice, thereby demonstrating negligence, and/or incompetency, in developing, preparing or in communicating an appraisal in violation of Executive Law § 160-u.

NOW, in consideration of the above premises, it is ORDERED:

1. That Respondent agrees to a three (3) month suspension of his current appraiser license, commencing ten (10) days after the date of the letter of notification confirming final approval of the within Consent Order by the Department’s General Counsel, which notification shall be sent via certified mail to Respondent, in care of his attorney, at the address indicated above, with the Respondent to surrender his license and pocket card as applicable during said suspension period, by delivering same, and/or causing same to be delivered within ten (10) days of the date of the afore-stated notification letter, to the NYS Department of State, Division of Licensing Services, Attn: Norma Rosario, 80 South Swan St., 10th Floor, Albany, NY 12201. Upon completion of the suspension period, the license will be returned to the Respondent, absent any intervening occurrence which would prohibit the Department’s return of said license.

2. That prior to the expiration of the suspension period, Respondent shall produce evidence of the successful completion of continuing education totaling a minimum of 7.5 hours, above and beyond the coursework needed to complete necessary continuing education for license renewal or for the license upgrade, which the Department acknowledges is still sought by the Respondent, with subject matter concentrating upon the necessity of accuracy and completeness on all work product produced by an appraiser, and submitted to the Department in response to a specific request. Failure to timely provide evidence of completion of this coursework will result in a delay in return of Respondent’s license until the continuing education proof is submitted.

3. Respondent agrees that the second application for advancement to a new level of appraiser licensure, which was submitted during the pendency of the within disciplinary action, shall be held by the Department in abeyance, pending completion of the terms of this Consent Order, and that once said terms have been fully complied with, the application shall be reviewed and responded to by the Department. The Department agrees that the issues which were the subject of the within disciplinary proceeding shall not create negative inferences in the Department’s consideration of the second application, absent any evidence which arises in the interim to the effect that Respondent has been untruthful with the Department, or that any other misconduct has occurred, which the Department is unaware of at this time.

4. That Respondent shall submit the original fully executed Consent Order on or before October 1, 2011, to the Department, sent to the attention of: NYS Department of State, Division of Licensing Services, Attn: Linda D. Cleary, Esq., 80 South Swan St., 10th Fl., Albany, NY 12201.

5. Failure to timely comply with any of the terms and conditions stated herein shall render the offer set forth herein null and void.

6. That upon execution of this Order by the Secretary of State or his designee, the Complaint in this matter shall be terminated, withdrawn and discontinued with prejudice with respect to Respondent in accordance with the terms hereof.

7. That the Consent Order herein expressly depends upon representations made by Respondent, both oral or written, formal or informal which relate to the subject matter of the Consent Order, including the representations and affirmations set forth below, and that such representations and affirmations have fully, accurately and truthfully disclosed all relevant facts to the Department of State. If any such representations or affirmations shall be determined to be limited, inaccurate or untruthful, the Department of State shall not be bound by the terms herein and shall initiate any action it deems appropriate in the administrative, civil or criminal prosecution of Respondent.

8. The provisions of this Order shall be deemed to bind Respondent, Respondent’s agents, employees, successors and assigns and all persons, firms, corporations acting under or for Respondent.

9. The effective date of this Order shall be the date on which the Secretary of State or his designee signs it and shall expire when Respondent has fully complied with the requirements of this Order. The Department will provide Respondent or Respondent’s counsel with a fully executed copy of this Order as soon as practicable after the Secretary of State signs it.

10. The failure of Respondent to comply fully and in a timely fashion with any provision of this Order shall constitute a default and a failure to perform an obligation under this Order.

11. This Order constitutes the entire agreement of the parties and no provision of the agreement shall be deemed waived or otherwise modified except as is specifically set forth in a writing executed by the Secretary of State or his designee indicating an intent to modify this Order.

12. Nothing contained in this Order shall be construed as barring, diminishing, adjudicating or in any way affecting (1) any legal, administrative or equitable rights or claims, actions, suits, causes of action or demands whatsoever that the Department may have against anyone other than Respondent; (2) any right of the Department to enforce administratively or at law or in equity, the terms, provisions and conditions of this Order; or (3) any right of the Department to bring any future action, either administrative or judicial, for any other violations of the Executive Law, the implementing regulations or conditions contained in orders if any, issued by the Department to Respondent.

Dated: September 28, 2011

________________________

Albany, New York

NEW YORK STATE

DEPARTMENT OF STATE

By:___________________________

Susan L. Watson

General Counsel

CONSENT OF RESPONDENT/APPLICANT FARHAN M. ZEEJAH,

State licensed real estate appraiser

Respondent FARHAN M. ZEEJAH in the above stated capacity, hereby consents to the issuing and entering of this Order, waives the right to a hearing and agrees to be bound by the terms and conditions herein.

________________________________________

FARHAN M. ZEEJAH

STATE OF NEW YORK )

) ss.:

COUNTY OF )

On this ____ day of _________ in the year 2011 before me, the undersigned, personally appeared FARHAN M. ZEEJAH, personally known to me or proven to me on the basis of satisfactory evidence, to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity and that by his signature on the instrument, the individual or the person upon behalf of which the individual acted, executed the instrument.

________________________________________

Notary Public

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