11/22/2006 12:00AM

Ky. group censures agents

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Four bloodstock agents involved in Jess Jackson's $17.5 million purchase of Buckram Oak Farm in Lexington acted illegally because they were not licensed to provide real estate services in Kentucky, the Kentucky Real Estate Commission has said.

The commission will issue a cease-and-desist order to bloodstock agents Emmanuel de Seroux, Brad Martin, and Frederic Sauque and to trainer Bruce Headley, according to a report Wednesday in the Lexington Herald-Leader. The commission, which cannot apply penalties, also is working with the state attorney general to obtain a court injunction against future actions by unlicensed real estate agents.

Last year, Jackson sued the four agents, alleging they had defrauded him by secretly accepting commissions from horses' sellers as well as from Jackson, a practice known as dual agency. De Seroux has alleged that Jackson never paid the commissions he had agreed to pay.

The Buckram Oak transaction is part of an amended complaint Jackson filed in March. In that amendment, Jackson alleged that the agents and farm owner, Buckram Oak Holdings, operated by the late Mahmoud Fustok, conspired to defraud Jackson. Jackson purchased Buckram Oak, now named Stonestreet, privately in 2005 for $17.5 million. A year earlier, the farm had been listed for sale for $16 million, a fact the real estate commission's report said Jackson knew. Jackson has alleged that after the sale Fustok and Sauque arranged a $500,000 commission for de Seroux, a scenario that de Seroux's attorney has publicly called "outrageous and false."

The commission's investigation, conducted by Lana Williams, concluded that de Seroux, Sauque, Martin, and Headley had violated Kentucky state law. Under Kentucky statutes, only licensed brokers or agents can conduct real estate transactions and receive fees for those services.

Jackson's lawsuit, which was filed in California, could go to a jury trial next summer.Four bloodstock agents involved in Jess Jackson's $17.5 million purchase of Buckram Oak Farm in Lexington acted illegally because they were not licensed to provide real estate services in Kentucky, the Kentucky Real Estate Commission has said.

The commission will issue a cease-and-desist order to bloodstock agents Emmanuel de Seroux, Brad Martin, and Frederic Sauque and to trainer Bruce Headley, according to a report Wednesday in the Lexington Herald-Leader. The commission, which cannot apply penalties, also is working with the state attorney general to obtain a court injunction against future actions by unlicensed real estate agents.

Last year, Jackson sued the four agents, alleging they had defrauded him by secretly accepting commissions from horses' sellers as well as from Jackson, a practice known as dual agency. De Seroux has alleged that Jackson never paid the commissions he had agreed to pay.

The Buckram Oak transaction is part of an amended complaint Jackson filed in March. In that amendment, Jackson alleged that the agents and farm owner, Buckram Oak Holdings, operated by the late Mahmoud Fustok, conspired to defraud Jackson. Jackson purchased Buckram Oak, now named Stonestreet, privately in 2005 for $17.5 million. A year earlier, the farm had been listed for sale for $16 million, a fact the real estate commission's report said Jackson knew. Jackson has alleged that after the sale Fustok and Sauque arranged a $500,000 commission for de Seroux, a scenario that de Seroux's attorney has publicly called "outrageous and false."

The commission's investigation, conducted by Lana Williams, concluded that de Seroux, Sauque, Martin, and Headley had violated Kentucky state law. Under Kentucky statutes, only licensed brokers or agents can conduct real estate transactions and receive fees for those services.

Jackson's lawsuit, which was filed in California, could go to a jury trial next summer.