Monday, May 20, 2013

MAC Marketing's Director of Sales suspended by RECBC for misconduct. But the RECBC order doesn't identify her as being associated to MAC Marketing?

This is turning out to have been quite the week for MAC Marketing Solutions.

In our last post we told you how one of their former sales managers had been disciplined by the Real Estate Council of BC (RECBC)  for misconduct on April 15, 2013.  As we covered in our post, it's not clear if she was working in association with a MAC project at the time of the infractions.

Two days later, on April 17th, Janet Frost (Director of Sales for MAC Marketing Solutions) was ordered suspended by the RECBC for twenty-one days.

The RECBC order of discipline says Frost:
  • (a) marketed and sold Alberta development units in British Columbia, without a disclosure statement for those units filed with the Superintendent of Real Estate in British Columbia;
  • (b) received deposits in British Columbia, from British Columbia residents and forwarded them to the developer’s Alberta sales centre with the expectation that they would be provided to an Alberta lawyer, rather than ensuring that the deposits were held in a trust account in a savings institution in British Columbia;
  • (c) failed to act in the best interests of the buyers and disclose all known material information about the property, including the fact that the development was being marketed in British Columbia without a disclosure statement filed with the Superintendent of Real Estate or that their deposit monies might be at risk once the deposits were paid out of the trust of the developer’s lawyer to the developer, contrary to sections 3-3(1)(a) and 3-3(1)(f) of the Council Rules;
  • (d) failed to disclose the nature of the representation that she was providing to the buyers, whether she was providing real estate services on behalf of the developer and receiving remuneration from the developer, contrary to section 5-10 of the Council Rules;
  • (e) failed to disclose, in writing, prior to the buyers entering into contracts for the purchase of the property, the source and amount of the remuneration she received or anticipated receiving, contrary to section 5-11 of the Council Rules;
  • (f) permitted A.H.’s name to be placed on each of the contracts she wrote when A.H. was not providing real estate services to the buyers prior to the acceptance of the buyers’ contracts for purchase of the properties, contrary to section 3-4 of the Council Rules; and
  • (g) failed to submit the trade records for the D.R. and R.R. transaction, the D.M. and M.M. transaction and the Y.H. Inc. transaction to the brokerage, contrary to section 3-2(1) of the Council Rules.
For this she has been suspended for twenty-one days, from June 12, 2013 to July 2, 2013 (inclusive), she must successfully complete the Real Estate Trading Services Remedial Education Course; and she must pay enforcement expenses to the Council in the amount of $1,000.00.

But here's the rub.

The RECBC order doesn't identify Janet Frost as working with MAC Marketing Solutions at the time of the misconduct. Instead it links her to Maverick Real Estate Corporation of Delta:
Issue: Janet Marie Kathleen Frost, representative, entered into a Consent Order with the Council that, while licensed with Maverick Real Estate Corporation, Delta, she committed professional misconduct within the meaning of section 35(1)(a) of the Real Estate Services Act in that she failed to act with reasonable care and skill, in relation to a development in Calgary.
A quick check of Frost's LinkedIn profile reveals that her she hasn't worked with Maverick Real Estate Corporation since 2007, and even then she is only listed with Maverick for one year from 2006-2007. More significantly, during the period she was with Maverick, Frost was also a sales representative for MAC Marketing Solutions.

According to Frost's LinkedIn profile Frost was a sales representative for MAC Marketing from 2002-2009 and MAC's Director of Sales from 2009 to Present:

So what gives here? 

Is the RECBC only now getting around to ruling on misconduct Frost committed in 2006/2007? If that's the case, were her activities with Maverick separate from her duties as a MAC Sales Representative/Sales Director from 2002-2013? 

It's certainly beneficial for MAC that their Sales Director receives a suspension but in the RECBC announcement she isn't tied to their corporate brand.

It makes you wonder if, when the RECBC finally gets around to announcing the results of their investigation into MAC's February fake asian buyer scandal, the guilty parties will be identified as MAC employees? Or will their real estate licences tie them to another entity?

On thing is for sure, at the rate that current and former MAC associated agents are being disciplined by Real Estate governing boards, we might have to add a tote board to our sidebar just to keep track.


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  1. When you consider the revolutions in dentistry since medieval times, it's funny to think we live in such a toothless age. 21 days and 1,000 bucks, indeed.

    1. I agree. With all her infractions, 21 days seems so childishly stupid where penalties are concerned.

      Basically, these people (like her) can do anything they please with minimal consequences. Should the punishment not exceed the gain if it is to be a real deterrent?

      Why can't they just spank her bottom publicly on CTV late-night? That would suit everyone a lot better and give us all a little comic relief from this real estate show.

  2. how many idiots out there bought real estate after being lured by unethical marketing such as MAC's?

    at least if you get burned on the stock market, you can wander over to Stockwatch to see the disciplinary process at work.

    For RE what do we have? Time to tighten up the scrutiny and produce a web page that packs a punch. Whispers and a few others do an admirable job, but the infractions and crookedness of the RE industry runs deep and wide. We need a Stockwatch for Real Estate. Anyone point me in the direction?

  3. With their listing I am concerned that RECBC is not fully disclosing information to the public, and in this process being less than transparent. As a member of the public I would like to know 1) who was she working for when were the offenses committed 2) when were the listed offenses committed. None of this is made clear.

    This brings me to a greater concern, which is that RECBC may simply be a low-level enforcer, going after perhaps the clumsy individual RE worker in exchange for what appears to be a traffic fine. What is their capacity to deal with institutionalized fraud?

    That is a big list of infractions. Are there others involved? I would like to know if what is going on here is symptomatic of institutionalized fraud and corruption. If so, then who polices the RECBC. Who can shutdown MAC if deemed necessary.

  4. Moral of the story - Choose your realtor wisely and research...


  5. Unfortunately, if a tree falls in the forest and the media doesn't report it, it doesn't make a sound.

  6. Only the best agent for Rose