advertisement

Prosecutors: Burr Ridge broker accused of theft risked losing franchise

Real estate broker Harry "Bud" Simons was late paying his monthly stipends to RE/MAX corporate offices several times and was threatened with having his franchise yanked in 2013.

That was during the same time prosecutors say Simons stole more than $145,000 from the earnest money accounts of at least a dozen clients.

Prosecutors allege that between February 2013 and February 2014, Simons accepted deposits totaling $145,300 from clients who wished to use his real estate agency, County Line RE/MAX in Burr Ridge, to purchase a home.

But once business slowed and the Willowbrook resident began having trouble paying the agency's bills, prosecutors said, he began transferring money from his clients' escrow accounts into the agency's operating fund. In all, more than $239,000 was transferred between the accounts in 68 transactions.

Clients whose home purchases were jeopardized, their real estate agents and Jim Merrion, the regional director for RE/MAX in Northern Illinois, all testified Thursday during the second day of Simons' trial on five counts of theft.

Merrion said Simons was late making his payments "several times" in 2013 and on several occasions was given 10 days to get current or have the franchise stripped from him.

Merrion said Simons usually had a believable excuse for the delinquencies and always assured him "everything was all right."

In February 2014, when other brokers in Simon's agency began accusing Simons of stealing their clients' earnest money, Merrion again got involved. Merrion said he visited the agency and confronted Simons about nearly all of the money in the agency's escrow account being gone, and asked Simons about all the times he assured Merrion things were all right.

"He said 'I lied,' and walked out," Merrion said. "The conversation was over."

In the weeks leading up to the confrontation, several of Simons' agents were pressing him to release earnest money but he was evading them, they said.

Some even got to their clients' closings to discover there was no money and covered the loss out of their own commissions.

Nellie McCarthy, a Hinsdale-based agent, testified she helped Burr Ridge dentist Pamela Brosnan and her husband find their dream home in fall 2013 only to be left holding the bag at closing.

Brosnan said the $740,000 home required two separate checks, each for $5,000 to be deposited as earnest money. As was the case with 11 other homebuyers, Brosnan's money was nowhere to be found at closing time.

"Both Realtors split the missing money out of their own pockets," Brosnan testified.

McCarthy, an agent with 19 years of experience, said giving up her commission was "the right thing to do," though she has never been reimbursed

"I wanted my clients to be happy and get their home," she said. "None of this was their fault."

Simons' attorney, John Paul Carroll, has told jurors that prosecutors' account of events is accurate and has spent very little time cross-examining witnesses. But he said Simons isn't guilty of the theft because he never intended to deprive his customers of their earnest money permanently.

In fact, he said Simons was replacing the transferred money with the earnest money of new clients until new clients started drying up.

Both sides may rest and have closing arguments Friday.

Burr Ridge Realtor accused of pocketing earnest money

Burr Ridge real estate broker accused of stealing earnest money

Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.