STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

DAVID STEIN, )

)

Petitioner, )

)

vs. ) CASE NO. 80-1441

) STATE OF FLORIDA, OFFICE OF THE ) COMPTROLLER, )

)

Respondent. )

)

RECOMMENDED ORDER

By letter dated 21 July 1980, David Stein, Petitioner, requested a formal hearing to contest the denial of his application for a mortgage broker's license by Respondent. The only grounds presented by Petitioner was that the allegations upon which Respondent denied Stein's application were false. These allegations were that Stein did not include judgments entered against him in the space provided there for on the application and these judgments remained outstanding.

By Notice of Hearing dated August 18, 1980, this case was scheduled for hearing at 9:00 a.m. on 24 September 1980 at Fort Lauderdale, Florida. On the afternoon of 22 September 1980 a Western Union telegram was received from Pittsburgh, Pennsylvania from Stein stating "Due to circumstances beyond my control please postpone hearing scheduled 9-24-80." Respondent's attorney was notified and attempts were made to locate Stein or someone who knew where Stein could be contacted to advise him the hearing would not be continued pursuant to the telegram alone.

At the hearing, which commenced as scheduled, Stein did not appear.

Respondent called one witness, and three exhibits were admitted into evidence. Following the hearing, and by letter dated 29 September 1980, Stein was advised by this Hearing Officer that his telegram received two days prior to the scheduled hearing did not comply with Rule 28-5.210, Florida Administrative Code, in that it did not indicate extreme emergency precluded Petitioner's appearance at the hearing. This letter further advised Stein that if he provided information on the circumstances surrounding an extreme emergency that precluded his presence at the 24 September hearing, the Hearing Officer would consider reopening the hearing to allow him to present evidence. The letter provided that if no response was received from Petitioner within ten days, the Recommended Order would be issued in this case. No response to this September 29, 1980 letter has been received from Stein.

FINDINGS OF FACT

1. In his application for registration as a mortgage broker (Exhibit 2), David Stain, Petitioner, in response to question 7 "Have you any judgments against you?" answered "No".

2. By letter dated May 12, 1980 (Exhibit 1), Respondent advised Stein that background investigation revealed numerous judgments against him and stated it would he necessary for Stein to advise why he chose to answer question 7 in the negative.

   
   

3. After receiving no response from Stein, Respondent, on 2 July 1980, entered a Final Order denying Stein's application for registration as a mortgage broker. Grounds given in this Order were based upon numerous unsatisfied judgments entered against Stein in Pennsylvania.

   
   

4. Exhibit 3, a composite exhibit of court records from Allegheny County, Pennsylvania, shows judgements entered against David Stein and in favor of: Pennsylvania Department of Revenue (2), Diner's Club, Ford Motor Credit Company, Charles Arnold, Alan Shaffer, Carl Kronander, and CNA Financial Corporation.

   
   

   CONCLUSIONS OF LAW

   
   

5. The Division of Administrative Hearings has jurisdiction over the parties and the subject matter of these proceedings.

   
   

6. Section 494.05(1), Florida Statutes, provides in pertinent part that the department may deny, suspend or revoke the registration of any person upon a finding of facts showing an applicant has been guilty of:

   
   

   1. Misrepresentation, circumvention, or concealment by the licensee . . . of any material particulars or the nature thereof, regarding a transaction to which he is a party . . . .

   2. Insolvency.

      
      

7. Section 494.05(2), Florida Statutes, provides in pertinent part:

   
   

   The license of a licensee may be revoked if the application for the license is found to contain a material misstatement . . . .

   
   

8. Petitioner presented no evidence upon which to base any finding that he is qualified for registration as a mortgage broker. Respondent, on the other hand, presented evidence of the judgments against Petitioner. Failure to make this disclosure in response to question 7 is, standing alone, sufficient to deny Petitioner's applications or registration. Additionally, the number of judgments rendered against Stein raises questions of his solvency and whether funds of investors, with whom he would be doing business as a mortgage broker, could safely be entrusted to him.

From the foregoing it is concluded that David Stein does not meet the qualifications prescribed in Chapter 494, Florida Statutes, for registration as a mortgage broker. It is therefore

RECOMMENDED that Stein's petition for registration be denied. Entered this 20th day of October, 1980.

K. N. AYERS, Hearing Officer Division of Administrative Hearings Room 101, Collins Building Tallahassee, Florida 32301

(904) 488-9675

COPIES FURNISHED:

Mr. David Stein 5733 Golfway Drive

Boca Raton, Florida 33433

Douglas R. Gardner, Esquire Assistant General Counsel Office of the Comptroller The Capitol

Tallahassee, Florida 32301

Docket for Case No: 80-001441

Orders for Case No: 80-001441