State Board Fines Two Auctioneers and Revokes License--Consumers Cautioned
• From Maine Government News
Dec 21, 2009 – Department of Professional and Financial Regulation Commissioner Anne Head announced on Tuesday that the Board of Licensing of Auctioneers has once again found former auctioneer James D. Cyr, of Cyr Auction Company in Gray, to have violated various Maine laws. The Board has again imposed substantial fines and ordered Mr. Cyr to pay a share of hearing costs. The Board revoked Mr. Cyr's auctioneer license in December 2008, and has previously imposed sanctions in 2003, 2005, 2006, 2007 and 2008.
Additionally, the Board determined that auctioneer Thomas Madsen of Windham violated Maine laws. The Board voted to revoke his license, imposed significant fines and ordered him to pay a share of hearing costs. To assist auction consigners who have been adversely impacted by these violations, including one individual who is owed more than $20,000, the Board also voted to claim Cyr's and Madsen's bonds.
Specifically, at hearings to consider several complaints on October 7 and November 16, Cyr was found to be continuing to act in a capacity requiring a license; failing to account or remit money within a reasonable time; and noncompliance with a Board order. He was fined $30,000.
Madsen was found to be auctioning goods without a contract; committing advertising violations; aiding or abetting unlicensed practice by Cyr; and failing to account or remit money within a reasonable time; and other violations. He was ordered to pay fines totaling $37,700.
Madsen testified that he loaned Cyr his license so the company could continue to operate. Cyr testified that they have been paying earlier consignors from the proceeds of subsequent auctions, noting that they have been using "one auction to pay a previous auction for well over a year."
Commissioner Head explained that license revocation is the most serious action that can be taken against a licensee. In announcing the Board's decisions, the Commissioner warned the public about these auctioneers and encouraged consumers to be fully informed and prepared when entering into an auction arrangement.
"Most auctioneers in Maine are honest and competent," Head commented. "But those who violate Maine law will be held accountable. We won't tolerate dishonest and unprofessional conduct that poses a threat to consumers."
The Commissioner urged consumers to take the following steps before engaging the services of an auctioneer:
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Confirm the auctioneer's license status online at www.maine.gov/professionallicensing or by calling 207-624-8603 (TTY: 1-888-577-6690);
Do not transfer control of your property to the auctioneer without a written contract--State law requires a written contract between the auctioneer and consignor before the auction may be conducted (32 MRSA section #65533;298);
If the consignor does not receive payment within the time period specified in the contract, contact the Board.
