STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

DEPARTMENT OF EDUCATION, ) EDUCATION PRACTICES COMMISSION, )

)

Petitioner, )

)

vs. ) CASE NO. 83-244

)

ROBERT EDWIN HOUGH, )

)

Respondent. )

)

RECOMMENDED ORDER

Pursuant to notice, the Division of Administrative Hearings, by its duly designated Hearing Officer, WILLIAM B. THOMAS, held a formal hearing in this case on May 20, 1983, in Jacksonville, Florida. The transcript was received on June 13, 1983, and the Petitioner requested 15 days thereafter to submit proposed findings of fact and conclusions of law. These were filed and have been adopted. Nothing was received from or on behalf of the Respondent.

APPEARANCES

For Petitioner: L. Haldane Taylor, Esquire

1902 Independence Square

Jacksonville, Florida 32202 For Respondent: None

By Administrative Complaint issued on October 25, 1982, the Petitioner alleges that the Respondent fraudulently obtained money from Hazel M. Smith, by representing that her money would be invested in a savings program through a branch of the First Federal Savings and Loan Association of Jacksonville, where the Respondent was working as manager. In addition, the Petitioner charged the Respondent with engaging in a scheme to obtain approximately $20,000 from First Federal Savings and Loan Association by issuing a worthless check. Finally, the Respondent was charged with obtaining $4,500 from Frazier Dughi in order to pay off a loan at First Federal Savings and Loan Association, but instead converting the funds to his own use. The Complaint contends that these charges constitute violations of Section 231.28(1), Florida Statutes, and the Petitioner seeks the suspension or revocation of the Respondent's teaching certificate.

The Petitioner presented three witnesses in support of the Administrative Complaint, namely, an officer of First Federal Savings and Loan Association, a representative from the Duval County Public School System, and Frazier Dughi, who now works at Florida National Bank in Jacksonville, but who was an officer at First Federal Savings and Loan Association when the Respondent worked there. Six exhibits were offered and received in evidence.

The Respondent was furnished a Notice of Hearing dated March 14, 1983, informing him of the time and place set for the final hearing in this case, but

he did not appear. Counsel for the Petitioner ascertained by telephone communication with the Respondent that he would not be in attendance at the hearing on May 20, 1983; thus, this matter went forward as scheduled.

FINDINGS OF FACT

1. The Respondent, Robert E. Hough, holds Florida Teacher's Certificate Number 313219, which is a Rank III certificate covering the area of substitute teaching.

   
   

2. From September, 1975, until his dismissal on May 20, 1982, the Respondent had been employed with the Duval County School System as a substitute teacher. He was never employed in a full-time position.

   
   

3. During the times relevant to this proceeding, the Respondent was employed with First Federal Savings and Loan Association of Jacksonville, as a manager of the Mandarin Branch, until his termination on May 29, 1981.

   
   

4. While the Respondent was employed with First Federal Savings and Loan, one of his associates was Mr. Frazier Dughi. Mr. Dughi was employed with First Federal Savings and Loan as an officer in the Real Estate Department until he left that employment in August, 1980. On or about October 29, 1981, Mr. Dughi secured a loan in the amount of $4,500 from First Federal Savings and Loan, and assigned a certificate of deposit he held with First Federal Savings and Loan as collateral. This loan was obtained for the purpose of purchasing an automobile which Mr. Dughi had negotiated to buy from a private individual. After Mr. Dughi had inspected the automobile and decided that it was not to his liking, he met the Respondent on his way home. He had known the Respondent through their employment and had developed a friendship with him. The Respondent went to Mr. Dughi's home where Mr. Dughi informed him what had occurred regarding the automobile purchase. In an effort to avoid any interest expense on the loan, Mr. Dughi gave to the Respondent the $4,500 check from First Federal Savings and Loan, which represented the loan proceeds, and asked the Respondent to deposit it as repayment of the loan through the Respondent's Mandarin Branch office.

   
   

5. Mr. Dughi first became aware that his loan had not been repaid approximately 18 months later when he received a notice from First Federal Savings and Loan that he must pay $1,000 in interest in order to renew the loan. In response to this notice, Mr. Dughi contacted Don Perry, a vice-president of First Federal Savings and Loan, and requested the matter be investigated.

   
   

6. Mr. Perry testified and produced the original documents involving the transaction between Mr. Dughi and First Federal Savings and Loan. The check initially payable to Mr. Dughi in the amount of $4,500 shows that part of the initial endorsement was removed from the check and subsequently signed and endorsed by the Respondent, as follows: "Pay to the Order of Robert E. Hough". The check was deposited at the Respondent's Mandarin Branch office, into the Respondent's personal account. Subsequently, a check was drawn on the Respondent's account in the amount of $4,200 and deposited in an account with the American National Bank which was owned by the Respondent. At no time did Mr. Dughi authorize the Respondent to deposit his funds or to convert the funds to his personal use.

   
   

7. Hazel M. Smith is an individual who maintained a savings account with the Mandarin Branch of the First Federal Savings and Loan Association. On or about November 15, 1979, the Respondent entered into a transaction with Mrs. Smith in which he obtained $10,000 from her account on his representation to her

   that a special program was being offered to certain preferred customers of First Federal Savings and Loan. However, the money from Mrs. Smith's account was immediately deposited into the personal account of the Respondent. He then obtained a loan in the amount of $10,000 from First Federal Savings and Loan, using the deposit from Mrs. Smith's account as collateral. Thereafter, monthly payments in the amount of $132.16 drawn on the Respondent's account at the American National Bank were deposited in Mrs. Smith's account at First Federal Savings and Loan, in keeping with the terms of the agreement in which Mrs. Smith was to receive repayment over a ten-year period at a ten percent interest rate.

   
   

8. As a result of this transaction between the Respondent and Hazel Smith, the Respondent was arrested, and by information filed on October 29, 1981, he was charged with grand theft in violation of Section 812.014, Florida Statutes. On May 3, 1982, the Respondent pled guilty to this criminal charge. Thereafter, the Respondent was adjudicated guilty and sentenced to Florida State Prison for a period of 30 months.

   
   

9. Mr. Perry testified regarding the investigation that had been conducted by First Federal Savings and Loan concerning a check "kiting" scheme involving the Respondent, going back to April 25, 1978. This scheme continued until the Respondent resigned from First Federal Savings and Loan in May, 1981, by which time it was determined that the Respondent had secured the sum of $20,100. The Respondent had "kited" checks through three financial institutions, First Federal Savings and Loan, Atlantic National Bank, and the American National Bank. The scheme was uncovered on May 27, 1981, when a check for $20,100 was returned because of insufficient funds.

   
   

10. As a result of these transactions, the Respondent was arrested and an Information was filed by the Office of the State Attorney on October 29, 1981, charging the Respondent with grand theft in violation of Section 812.014, Florida Statutes. On May 3, 1982, the Respondent pled guilty to these offenses; subsequently he was adjudicated guilty and sentenced to a five- year period of probation to be served consecutive to the prior 30-month sentence in the Florida State Prison.

    
    

11. The Respondent's employment with the Duval County School System was terminated on May 20, 1982.

    
    

    CONCLUSIONS OF LAW

    
    

12. The Division of Administrative Hearings has jurisdiction over the parties and the subject matter of this proceeding. Section 120.57(1), Florida Statutes.

    
    

13. Pursuant to Section 231.28(1), Florida Statutes, the Education Practices Commission is authorized to suspend or revoke a teacher's certificate, provided:

    
    

    It can be shown that such person obtained

    the teaching certificate by fraudulent means; has proved to be incompetent to teach or per- form his duties as an employee of the public school system or to teach in or to operate

    a private school; has been guilty of gross immorality or an act involving moral turpitude; has had his certificate revoked in another state; has been convicted of a misdemeanor,

    felony, or any other criminal charge, other than a minor traffic violation; upon investi- gation has been found guilty of personal con- duct which seriously reduces his effectiveness as an employee of the school board; or has otherwise violated the provisions of law or rules of the State Board of Education, the penalty for which is the revocation of the teaching certificate.

    
    

14. The Respondent has been convicted of two felonies, and the acts upon which these convictions were based constitute personal conduct which seriously reduces the Respondent's effectiveness as an employee of the Duval County School System, and are acts involving moral turpitude, in violation of Section 231.28(1), Florida Statutes.

RECOMMENDATION

From the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that Teaching Certificate Number 313219 held by the Respondent,

Robert Edwin Hough, be REVOKED permanently.

THIS RECOMMENDED ORDER entered this 25th day of July, 1983, in Tallahassee, Florida.

WILLIAM B. THOMAS

Hearing Officer

Division of Administrative Hearings 2009 Apalachee Parkway

Tallahassee, Florida 32301 904/488-9675

Filed with the Clerk of the Division of Administrative Hearings this 25th day of July, 1983.

COPIES FURNISHED:

L. Haldane Taylor, Esquire 1902 Independence Square Jacksonville, Florida 32202

Mr. Robert E. Hough Post Office Box 229 Lawtey, Florida

Donald L. Greisheimer Director

Education Practices Commission

125 Knott Building Tallahassee, Florida 32301

Docket for Case No: 83-000244

Orders for Case No: 83-000244