STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

JAMES SCOTT JONES, )

)

Petitioner, )

)

vs. ) CASE NO. 79-1208

) FLORIDA REAL ESTATE COMMISSION, )

)

Respondent. )

)

RECOMMENDED ORDER

This matter came on for hearing in Key West, Florida, before the Division of Administrative Hearings, by its duly designated Hearing Officer, Robert T. Benton, II, on August 21, 1979. The Division of Administrative Hearings received a transcript of proceedings on October 18, 1979. At the hearing, the parties were represented by counsel:

For Petitioner: Michael Halpern, Esquire

410 Fleming Street

Key West, Florida 33040

For Respondent: Mark A. Grimes, Esquire

400 West Robinson Street Orlando, Florida 32892

Petitioner made application to respondent for registration as a real estate salesman. By order entered May 23, 1979, respondent denied petitioner's application, citing Sections 475.17 and 475.18, Florida Statutes (1977), and petitioner's affirmative answer, on the application form, to the question whether he had been arrested for or charged with an offense. The order denying petitioner's application did so subject to petitioner's "opportunity to request a hearing and present evidence to make it affirmatively appear . . . that he meets the qualifications set forth in Subsection 475.17, Florida Statutes." Petitioner's exhibit No. 1.

FINDINGS OF FACT

1. Petitioner has been married for nine and a half years and has a six year old daughter. He lives with his family in Key Haven.

   
   

2. Petitioner has been arrested on three occasions. In 1970, while repossessing a stereo set he had sold, he got into a scuffle with the buyer, who filed charges, which never came to anything. In 1973, or 1974, be was a part owner of a duplex which burned down. An insurance company drew a check in favor of petitioner and three other payees. Petitioner was arrested after he bad assigned his interest in the check to somebody who then forged the endorsements of the other payees, but nothing came of these charges, either. On September 14, 1977, however, a complaint was filed in Hennepin County, Minnesota, alleging that petitioner was guilty of feloniously keeping and permitting a place of

   prostitution. On November 16, 1977, after pleading guilty, petitioner was convicted in Minnesota of permitting a place of prostitution; on January 5, 1978, imposition of sentence was stayed and petitioner was placed on probation on condition that he pay a $5,000.00 fine and that he "[h]ave no direct or indirect involvement whatsoever in the sauna . . . business." Respondent's exhibit No. 1.

   
   

3. Petitioner's conviction grew out of his ownership of a business that employed young women to model lingerie for men who paid approximately ten dollars per half hour to see the show. Petitioner had owned half of this business for six weeks when the police raided; two employees were arrested for and subsequently convicted of prostitution. Since his conviction for permitting a place of prostitution, petitioner has been charged with no crime.

   
   

4. In November of 1977 petitioner moved to Key West. Since his arrival, petitioner has represented certain Minnesota companies, established three retail stores, acted as property manager for Old Town Key West Development, Ltd., and become a distributor for Key West Fragrances and Cosmetics, which expects gross receipts of approximately six million dollars this year. As property manager for Old Town Key West Development, Ltd., from February through November, 1978, petitioner arranged for the leasing and upkeep of several buildings, and collected rent from some 65 tenants, totalling up to $15,000.00 monthly. This involved handling large amounts of cash. Christopher C. Belland and Edwin O. Swift, who hired petitioner as property manager, for Old Town Key West Development, Ltd., testified that petitioner was honest, truthful and of good character.

   
   

5. As a distributor for Key West Fragrances and Cosmetics, petitioner has been privy to certain proprietary information. Raymond A. Charles, who is a vice-president for marketing of Key West Aloe, Inc., a wholly owned subsidiary, testified that petitioner is honest and trustworthy. Petitioner pays the rent for his stores on time, and enjoys a good reputation in the Key West business community.

   
   

6. In January or February of 1978, Minnesota requested Florida to supervise petitioner on probation. After an investigation by an employee of Florida's Department of Corrections, Florida agreed. Petitioner's first application to respondent for registration was denied on the ground that he was on probation at the time. The present proceedings began with petitioner's second application to respondent for registration as a real estate salesman. Neither application is in evidence.

   
   

7. In early March of 1979, the probation officer who supervised petitioner at that time recommended early termination of probation. This unusual request was renewed in April or May of 1979, by William N. O'Neil, another probation officer who had succeeded to petitioner's supervision. Minnesota granted early termination of probation on May 15, 1979. Joint exhibit No. 1. Mr. O'Neil, petitioner's former probation officer, testified that petitioner was honest, truthful and trustworthy.

   
   

8. Petitioner was licensed as a real estate salesperson in Minnesota from October 9, 1975, to June 30, 1978, and, as of August 9, 1979, was still eligible to renew his Minnesota license "by becoming affiliated with a broker and paying the renewal fee," petitioner's exhibit No. 2, notwithstanding his conviction for permitting a place of prostitution. No complaints have been lodged against petitioner as a real estate salesperson. He was not very active as a real estate salesperson in Minnesota but did make occasional sales.

   CONCLUSIONS OF LAW

   
   

9. Because petitioner was adjudicated "guilty of a crime against the laws of [Minnesota] , involving moral turpitude Section 475.25(1)(e), Florida Statutes (1978 Supp.) he is "guilty of conduct . . . which would have been grounds for . . . suspending registration . . . bad [petitioner] then been registered [under Florida law]." Section 475.17(1), Florida Statutes (1978 Supp.). It follows that respondent is forbidden to grant petitioner's application for registration as a real estate salesman "unless, because of lapse of time and subsequent good conduct and reputation, or other reason deemed sufficient it shall appear to the commission that the interest of the public and investors will not likely be endangered by the granting of registration." Section 475.17(1), Florida Statutes (1978 Supp.).

   
   

10. Approximately two years have elapsed since petitioner's conviction. If petitioner had been registered in Florida, and if respondent bad taken disciplinary action against petitioner on account of the conviction, at or about the time it occurred, the maximum penalty would have been two years' suspension. Section 475.25, Florida Statutes (1977). There has, therefore, been ample "lapse of time," within the meaning of Section 475.17(1), Florida Statutes (1978 Supp.). Petitioner's good conduct and reputation since the conviction were established by uncontroverted evidence. The evidence showed that several business people bad confidence in petitioner's integrity and competence and suggested no reason why "the interest of the public and investors [would] likely be endangered by the granting of [petitioner's application for] registration." Section 475.17(1), Florida Statutes (1978 Supp.).

RECOMMENDATION

Upon consideration of the foregoing, it is RECOMMENDED

That respondent grant petitioner's application for registration as a real estate salesman.

DONE and ENTERED this 19th day of November, 1979, in Tallahassee, Florida.

ROBERT T. BENTON, II

Hearing Officer

Division of Administrative Hearings Room 101 Collins Building Tallahassee, Florida 32301

(904) 488-9675

COPIES FURNISHED:

Michael Halpern, Esquire

410 Fleming Street

Key West, Florida 33040

Mark A. Grimes, Esquire Florida Real Estate Commission

400 West Robinson Street Post Office Box 1900 Orlando, Florida 32802

Docket for Case No: 79-001208

Orders for Case No: 79-001208