A Seacoast New Hampshire principal real estate broker has been suspended while under investigation amid accusations he misappropriated his firm's escrow account funds and failed to make approximately $250,000 in agent commission payments.
Realtor Daniel Twombly of RE/MAX, which has numerous franchises throughout the region, had his license suspended by the New Hampshire Real Estate Commission on March 11 after it received a complaint. The suspension order states Twombly allegedly “misappropriated funds held in an escrow account over which he exercised custody and control” over a recent five-month period.
Twombly, whose real estate career began in 2001, according to his biography on the RE/MAX website, was the principal broker for RE/MAX Insight and Re/Max On the Move, the latter of which had three Seacoast offices.
Twombly did not return a request for comment for this story.
RE/MAX shuts down franchises affiliated with Twombly
A spokesperson provided a statement issued by RE/MAX saying the company immediately had removed Twombly from its system and terminated both the Insight and On the Move franchises upon the New Hampshire Real Estate Commission’s decision. The two franchises are temporarily operating under the guidance of a commission-appointed principal broker“to facilitate the orderly conclusion of the offices’ business to minimize disruption under the circumstances,” according to the company.
RE/MAX On the Move had offices in Hampton, Dover and Exeter. RE/MAX Insight’s offices were in Manchester and Salem, as well as in Dracut, Methuen, and Tewksbury, Massachusetts.
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“RE/MAX, LLC respects the jurisdiction and authority of the New Hampshire State Real Estate Commission in this matter and accepts their decision as being in the best interest of consumers and real estate agents,” the company's statement says.
Complaint about Twombly led to quick action
According to the state Real Estate Commission’s order, the enforcement division within New Hampshire’s Office of Professional Licensure and Certification received the complaint about Twombly on or about March 11, leading to an expedited investigation that day and the real estate commission’s vote to suspend Twombly’s license in an emergency meeting.
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Testimony and other evidence presented to the commission, according to the order, state RE/MAX Insight and RE/MAX On the Move are subsidiaries of NE Coast to Coast Realty Investments LLC, which has multiple licensed firms and branch offices around New Hampshire.
Among his capacities as principal broker, Twombly was responsible for “the handling of escrow deposits,” the order noted, meaning he was in control of both RE/MAX Insight and RE/MAX On the Move escrow accounts held at Citizens Bank.
Between Oct. 1, 2022 and Feb. 28 of this year, Twombly is alleged to have wrongfully misappropriated escrow funds from the accounts.
“As a result of Respondent’s misappropriation of funds, Respondent has failed to make necessary commission payments totaling approximately $250,000.00,” the order reads.
“The welfare of the general public is served by suspending the Respondent’s ability to access or otherwise control funds of the general public held in escrow by the Coast to Coast offices,” the order also states.
What's next in process for Twombly?
The commission is required to hold hearings on license suspensions within 10 days of such orders or else suspensions are automatically vacated.
Jessica F. Kallipolites, director of the New Hampshire Office of Professional Licensure and Certification enforcement division, said Twombly’s hearing was scheduled for Tuesday, but it was not held because he agreed to remain suspended pending the commission's final decision.
“He has voluntarily agreed not to practice,” she said.
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Kallipolites added she could not disclose more details on the case, such as who filed the complaint against Twombly or whether any referrals to law enforcement agencies have been made.
However, a spokesperson for the New Hampshire attorney general’s office said it is keeping tabs on the case.
“We are in active communication with them and are closely monitoring the situation,” said Michael Garrity, spokesperson for the New Hampshire Attorney General’s Office.
How RE/MAX is moving forward
Many Insight and On the Move agents have moved to other RE/MAX affiliates in the wake of the termination of both franchises, per the RE/MAX spokesperson.
“RE/MAX franchisees are expected and obligated to conduct their businesses with the highest ethical standards, compliant with all applicable laws and regulations,” the company spokesperson said. “If a franchisee falls short of these requirements, in terminating the franchise RE/MAX, LLC protects consumers and upholds the values embodied in the RE/MAX system for the benefit of all RE/MAX franchisees and agents.”
The state Office of Professional Licensure and Certification announced anyone who has "been aggrieved or has information involving Mr. Twombly’s activities" is asked to contact investigator Brendon White at brendon.t.white@oplc.nh.gov or (603) 271-7842.
