STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

FLORIDA REAL ESTATE COMMISSION, )

)

Petitioner, )

)

vs. ) CASE NO. 77-1797

) P.D. NO. 3076

MURIEL STEVENS, )

)

Respondent. )

)

RECOMMENDED ORDER

Pursuant to notice, an administrative hearing was held before Michael R.N. McDonnell, Hearing Officer for the Division of Administrative Hearings, at 8:30 a.m., on June 21, 1978, at 717 Ponce de Leon Boulevard, Third Floor, Coral Gables, Florida.

Petitioner was represented by Manuel E. Oliver, Esquire, and Mark A. Grimes, Esquire, Florida Real Estate Commission, 400 West Robinson Street, Post Office Box 1900, Orlando, Florida. Respondent was represented by William O'Neil, III, Esquire, 350 Lincoln Road, Miami, Beach, Florida.

Petitioner, Florida Real Estate Commission (hereafter FREC) seeks to revoke, suspend or otherwise discipline Respondent, Muriel Stevens (hereafter Stevens), for alleged violations of Chapter 475, Florida Statutes, the Florida Real Estate License Law. It is alleged that Stevens was, while registered as a real estate salesperson, involved in an "advance fee" real estate operation in which Stevens misrepresented to prospective clients that

1. the property could be sold for several times the purchase price.

   
   

2. the property would be advertised nation- wide and in foreign countries.

   
   

3. the Company had foreign buyers wanting to purchase United States property listed with the Company.

It is further alleged that Stevens knew that no bona fide effort would be made to sell any of the properties listed with her company, First Allstate Realty Corporation (hereafter FAR) and that, therefore, Stevens conspired with FAR to engage in dishonest dealings.

Finally, it is alleged that, because of the alleged misrepresentations and the alleged conspiracy, Stevens is guilty of dishonest and untruthful conduct and that, therefore, money, property, transactions and rights of investors or those with whom she may sustain a confidential relation may not safely be entrusted to her.

FINDINGS OF FACT

1. From March 22, 1976, to July 1, 1976, Stevens was a registered real estate salesperson in the employ of FAR, a registered corporate broker, located in Dade County, Florida. During that period of time, FAR was engaged in an enterprise whereby advanced fee listings were obtained from Florida property owners. Salesmen known as "fronters" or "qualifiers" were employed to place calls to Florida property owners whose names and phone numbers had been provided to the salesmen by FAR. The prospects were asked if they cared to list their real estate with FAR in anticipation of resale. It was explained that there would be a refundable fee to be paid by the property owner for the listing. The refund was to occur upon sale of the property. If the prospect was interested, then certain literature was mailed out to them.

   
   

2. Other salesmen were employed as "drivers" who would make the second contact of the prospect who indicated an interest in listing his property. The driver would secure a signed listing agreement alone with a check for $375.00 which constituted the refundable listing fee.

   
   

3. There was no evidence that any of the listings obtained by FAR were ever resold. There were, however, three parcels of land in negotiation for sale when the operations of FAR were terminated in June, 1976. There was to be a division separate and apart from the "fronters" and "drivers" to do the actual selling of the property.

   
   

4. The listings were advertised in the Fort Lauderdale area but there was no evidence to establish whether or not other advertising occurred.

   
   

5. There was a total absence of evidence and, hence, a failure of proof as to the allegations of misrepresentations by Stevens. FREC established that Stevens had conversations with a Mr. Bob Ingersoll, a Mr. Carl L. Woodward, Mrs. Robert (Carolyn) Kelley, and Mr. James B. Limpp. In each of these cases, Stevens participated in inducing these individuals to list their property for resale with FAR. FREC introduced no evidence to establish that the prices for which the properties wore lifted were reasonable listing prices and further introduced no evidence to show that Stevens represented that the property would be advertised nationwide and in foreign countries or that the company had foreign buyers wanting to purchase the property or that such representations, if made, were false. There was no evidence introduced to show that Stevens knew that no bona fide effort would be made to sell the property listed. There was no evidence of any nature introduced by FREC to show that Stevens was dishonest or untruthful.

   
   

   CONCLUSIONS OF LAW

   
   

6. Based on the foregoing findings of fact, it is concluded that FREC has failed to establish that Stevens violated Chapter 475, Florida Statutes. It is, accordingly,

RECOMMENDED that no action be taken to revoke, suspend or otherwise discipline Stevens' license or Stevens' right to practice thereunder.

DONE and ENTERED this 28 day of September, 1978, in Tallahassee, Florida.

MICHAEL R. N. McDONNELL

Hearing Officer

Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304

(904) 488-9675

COPIES FURNISHED:

Manuel E. Oliver, Esquire Mark A. Grimes, Esquire

Florida Real Estate Commission

400 West Robinson Street Post Office Box 1900 Orlando, Florida 32801

William O'Neil, III, Esquire

350 Lincoln Road Miami Beach, Florida

================================================================= AGENCY FINAL ORDER

================================================================= FLORIDA REAL ESTATE COMMISSION

FLORIDA REAL ESTATE COMMISSION,

Plaintiff,

vs. PROGRESS DOCKET NO. 3076

DADE COUNTY

MURIEL STEVENS, DOAH NO. 77-1797

Defendant.

/

FINAL ORDER

At a regular meeting of the Florida Real Estate Commission held at the Executive Headquarters in Orlando, Florida, on October 25, 1978.

PRESENT: Levie D. Smith, Jr., Chairman Arthur N. Hamel, Vice Chairman Virginia H. Bishop, Member Garth C. Reeves, Jr., Member

APPEARANCES: Mark A. Grimes, Attorney for Plaintiff William O'Neil, III, Attorney for Defendant

This matter came on for Final Order upon the Hearing Officers Recommended Order and the Plaintiff's and Defendant Exceptions thereto, and upon consideration thereof, together with a review of the complete record and oral argument of attorneys for Plaintiff and Defendant, and the Commission being fully advised in the premises, finds:

1.

That the Defendant Muriel Stevens is presently registered with the Commission as a salesman, c/o General Development Corp., Owner, 1111 S. Bayshore Drive, Miami, Florida 33131.

2.

That the Plaintiff's Exceptions to the Hearing Officer's Recommended Order are well taken and should be accepted; that the Defendant's Exception to the Hearing Officer's Recommended Order is not well taken and should be rejected; and that the Commission rejects the Hearing Officer's Conclusions of Law and recommendation and adopts his Findings of Fact to the extent that they are not inconsistent with the Plaintiff's Exceptions herein.

3.

That the Hearing Officer's REcommended Order should be rejected as it does not conform with the provisions pertaining to evidence in Chapters 120 and 475, Florida Statutes, and the rules promulgated therein and the applicable case law.

4.

That the Commission finds that the Defendant Muriel Stevens was registered an a salesman and employed by First Allstate Realty Corp. from March 22, 1976 to July 1, 1976.

5.

That the Commission finds that the evidence does establish that the listing prices as suggested by the Defendant to Carl Woodard and Bob Ingersoll were unreasonable, and that the Defendant knew or should have known that those suggested listing prices were unreasonable.

6.

That the Commission finds that the evidence does establish that the Defendant represented to Carl Woodard that First Allstate Realty Corp. and the Defendant had previously sold properties to foreign investors, and that the Defendant knew this statement to be false in that the Defendant had never sold any properties to foreign investors while employed by First Allstate Realty Corp.; and that the Defendant made these representations without knowledge of whether First Allstate Realty Corp. had been in contact with foreign investors and without knowledge of any sales by First Allstate Realty Corp. to foreign investors.

7.

That the Commission finds that the evidence does establish that the Defendant represented to Carl Woodard and Bob Ingersoll that First Allstate Realty Corp. had previously sold other properties, and that the Defendant knew or should have known that these statements were false, and that the Defendant had no knowledge whether First Allstate Realty Corp. had ever sold other properties.

8.

That the Commission further finds that the Defendant Muriel Stevens owed a duty of fair and honest dealing to Carl Woodard and Bob Ingersoll which the evidence clearly reflects that she breached.

IT IS THEREFORE ORDERED:

1. That the Plaintiff's Exceptions to the Hearing Officer's Recommended Order be, and they are hereby, sustained.

   
   

2. That the Defendant's Exception to the Hearing Officer's Recommended Order be, and the same is hereby, rejected.

   
   

3. That, the Hearing Officer's Findings of Fact be, and they are hereby, adopted by the Commission to the extent that they are not inconsistent with the Plaintiff's Exceptions herein, and the additional findings of fact of the Commission as set out herein.

   
   

4. That the Hearing Officer's Conclusions of Law and Recommendation be, and they are hereby, rejected by the Commission, for the reasons stated in this Order and the Plaintiff's Exceptions as filed.

   
   

5. That the Defendant Muriel Stevens be, and she is hereby adjudged guilty of violating Subsections 475.25(1)(a) and 475.25(3), Florida Statutes.

   
   

6. That for such violations for which she was adjudged guilty, the registration of Defendant Muriel Stevens be, and the same is hereby, suspended for a period of two (2) years. Said suspension to become effective, upon the effective date of this Order as provided by law.

   
   

7. That the Defendant Muriel Stevens shall immediately surrender her certificate of registration as a salesman to the Florida Real Estate Commission at its Executive Headquarters in Orlando.

DONE AND ORDERED this 26th day of October, 1978.

Levie D. Smith, Jr. Chairman

Arthur N. Hamel Vice Chairman

Virginia H. Bishop Member

Garth C. Reeves, Jr. Member

I HEREBY CERTIFY that a copy of the foregoing Final Order was mailed to William O'Neil, III, Attorney for Defendant, 350 Lincoln Road, Suite 228, Miami Beach, Florida 33139; and to Defendant Muriel Stevens, c/o General Development Corp., Owner, 1111 S. Bayshore Drive, Miami, Florida 33131, by United States certified mail this 7th day of December, 1978.

Executive Director

NOTICE TO DEFENDANT:

This Order shall become effective upon the 8th day of January, 1979.

However, you have the right of review by an appellate court, if you so desire.

Docket for Case No: 77-001797

Orders for Case No: 77-001797