of State Farm Mortgage & Loan ) CASE NO. 75-316 Corporation. )
After due notice a public hearing was held before Delphene C. Strickland, Hearing Officer, Department of Administration, Division of Administrative Hearings, on June 24, 1975, commencing at 2:15 p.m. in Room 315, Carlton Building, Tallahassee, Florida.
Complainant: William B. Corbett, Jr., Counsel
Witnesses: Joseph M. Ehrlich
Bernard E. Supworth Leonard G. Pardue Joseph M. Magill
Whether the license of Respondent should be suspended for violation of the Mortgage Brokerage Act, Chapter 494, Florida Statutes.
Respondent Irving Zimmerman holds Mortgage Brokerage Registration No. 90-3337.
An Order of Emergency Suspension of License was issued by the Department of Banking and Finance dated March 24, 1975 and served on Respondent Irving Zimmerman by certified mail. Said Emergency Order is now in effect:
Through his attorney, Milton R. Wasman, Respondent Zimmerman requested this formal administrative hearing.
The attorney for Respondent, Mr. Milton R. Wasman, called the undersigned Hearing Officer on the day immediately preceding this hearing, that is June 23, 1975, requesting that the hearing be postponed because of a physical disability of said attorney. Said request was denied because of the late hour of request and because of grievous inconvenience to the parties and to the
witnesses that had been subpoenaed. Said request was denied orally by telephone to Respondent's attorney whereupon said attorney requested that the transcript of the proceeding be made available. Said attorney was assured that he could view the transcript upon his request when it was available.
Upon request of William Corbett, Counsel for the agency, authorization was given to take the deposition of witness Joseph M. Magill, a witness who could not attend the hearing. Said deposition is filed with this record. The attorney for Respondent Zimmerman, Mr. Wasman appeared in behalf of the Respondent at the taking of said deposition in Miami, Florida on July 18, 1975.
The following instruments were made part of the record: Summons dated March 24, 1975; Order of Emergency Suspension of License filed March 24, 1975; Petition for Hearing filed by Respondent's attorney; Deposition of witness for the agency, Mr. Joseph M. Magill; Transcript of record of this hearing and also transcript of record at the taking of deposition.
On or about July 10, 1974, Mr. Leonard G. Pardue issued a check in the amount of $7,500 payable to "State Farm Mortgage Co., escrow account" for the purpose of making a mortgage loan to Hans G. and Ann M. Widenhauser. Subsequently, after the Widenhausers decided not to make this loan, the Respondent contacted Mr. Pardue and attempted to negotiate a substitute loan to Alan and Marcia Hollet. After that loan did not close, Mr. Pardue, by his attorney, Mr. Roger G. Welcher, wrote several letters to Respondent which demanded a return of the $7,500 to his client. Mr. Pardue filed a civil suit against Respondent to recover said funds; however, as of the date of the hearing, the Respondent has failed or refused to return the money.
Mr. Bernard Supworth made a mortgage loan to Robert E. and Madeline Pope in June of 1972, through the Respondent as broker. The monthly payments were made to Respondent who in turn was supposed to remit the funds to Mr. Supworth. Subsequently, on or about January 25, 1974, Respondent advised Mr. Supworth that the mortgage was being paid off and Mr. Supworth executed and delivered a Satisfaction thereof to Respondent. Later, Mr. Supworth learned that the Pope mortgage had been paid off in July, 1973, and that a check had been issued by Dade Federal and Savings & Loan Association on July 9, 1973, payable to State Farm Mortgage in the amount of $3,544.98. Notwithstanding such payment in full on the Pope mortgage in July, 1973, Respondent continued to remit monthly payments on it to Mr. Supworth. Mr. Supworth had not agreed to receive any monthly payments after the mortgage had been satisfied and to date has not received all of his money on the Pope transaction.
Respondent Zimmerman negotiated another mortgage loan to Mr. Supworth to James and Phyllis Lowe, as borrowers in the amount of $4,600 to be paid in the amount of $97.74 per month. These payments were to be paid by the Lowes to the Respondent, who was to remit said payment to Mr. Supworth. Thereafter, on or about November 21, 1973, Respondent advised Mr. Supworth, by memorandum, that this mortgage must be paid off. Thereupon, Mr. Supworth executed and delivered a Satisfaction of Mortgage to Respondent. He continued to receive monthly payments from Respondent on the Lowe mortgage up until January, 1975. Mr. Supworth later learned that the Lowe mortgage had been paid in full to Respondent in October, 1973. Mr. Supworth had not agreed to this transaction.
On or about August 15, 1973, Mrs. Judith Valenza made a mortgage loan at the Commercial Bank of Kendall. Later Mrs. Valenza negotiated a mortgage loan through Respondent, as broker, to pay off the existing mortgage to the Commercial Bank of Kendall. Pursuant to that transaction, Mrs. Valenza closed
said loan through Respondent, as broker. Thereafter, a check was issued on "Irving Zimmerman Trust Account" in the amount of $3,510.78, and payable to the Commercial Bank of Kendall. The check was returned because of "insufficient funds". As of the date of the hearing, the Commercial Bank of Kendall had not received payment of said check from Respondent.
On or about January 28, 1975, Mr. and Mrs. Joseph M. Magill executed a note and mortgage in the amount of $3,500 in favor or Helen R. Stahl, as trustee, at the offices of Respondent. Respondent failed to account for or deliver money to the person entitled thereto, on demand failed to disburse funds in accordance with the agreement, and failed to keep funds in a trust account.
CONCLUSIONS OF LAW
Based upon the foregoing findings of fact:
The Respondent violated Section 494.05(1)(c)(e) and (f), F.S., as charged, in connection with the transaction with Mr. Leonard G. Pardue, an investor.
The Respondent violated Section 494.05(1)(b)(c) and (e), F.S., in connection with the transactions concerning Mr. and Mrs. Robert E. Pope and Mr. Bernard E. Supworth, and investor.
The Respondent violated Section 494.05(1)(b)(c) and (e), F.S., in connection with the transactions with Mr. and Mrs. James Lowe and Mr. Bernard E. Supworth, an investor.
The Respondent violated Section 494.(1)(c) and (e), F.S. in connection with the transaction with Judith J. Valenza, a borrower and the Commercial Bank of Kendall.
Respondent violated Section 494.05(1)(c)(e) and (f), F.S., in connection with the transaction with Mr. and Mrs. Joseph M. Magill.
The testimony taken at the deposition of July 18, 1975, was properly taken after due notice to the Respondent and his attorney. Said testimony, evidence and exhibits may be and hereby are admitted as a part of this record.
The Order of Emergency Suspension of License, entered by the Department on March 24, 1975, was and is a valid exercise of agency action under Section 120.60(5), F.S., and it was necessary for the purpose of protecting the public welfare under the circumstances and the same is hereby ratified and confirmed.
Suspend the Mortgage Brokerage Licenses heretofore issued by the Department of Banking and Finance to Respondent, State Farm Mortgage & Loan Corporation and its designated principal broker, Irving Zimmerman, for a period of two (2) years from date hereof.
DONE AND ORDERED this 17th day of September, 1975.
DELPHENE C. STRICKLAND
Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304
State Farm Mortgage & Loan Corporation 1300 S. Dadeland Boulevard
Mr. Irving Zimmerman 941 S.W. 65th Court Miami, Florida 33165
Milton R. Wasman, Esquire Suite 200
600 S.W. 3rd Avenue Miami, Florida 33129
William B. Corbett, Esquire Assistant General Counsel Office of the Comptroller The Capitol
