‘ STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REG FLORIDA REAL ESTATE COMMISSION FLORIDA DEPARTMENT OF BUSINESS y Oe f- J ? AND PROFESSIONAL REGULATION. Cc Petitioner. vs. . EDBPR Case N° 99-80127 SHERI ANNE RUSSELL. Respondent. ADMINISTRATIVE COMPLAINT State of Florida, Department of Business and Professional Regulation, Division of Real Estate (hereinafter "Petitioner") files this Administrative Complaint against Sheri Anne Russell (hereinafter "Respondent") and alleges: ESSENTIAL ALLEGATIONS OF MATERIAL FAC T 1. Petitioner is a state government licensing and regulatory agency L with the responsibility and duty to prosecute Administrative Complaints pursuant to of Florida, in particular § 20.165. Fla. Stat., Chapters 120, 455 and 475, Fla. promulgated pursuant thereto. 2. Respondent is and was at all times material hereto a licensed Flori issued license number 0533560 in accordance with Chapter 475, Fla. Stat. 3. The last license issued was as a broker at 4949 ALA N. 151. Ft. Pi e laws of the State Stat., and the rules da real estate broker, erce, Florida 34949. 4. At all times material hereto, Respondent was the President and a developer of Paragon of North Hutchinson Island. Inc.. a Condominium in Hutchinson Island. Florida. FDBPR vs Sheri Anne Russell FDBPR Case N° 99-80127 Administrative Complaint 5. On or about December 28, 1997, Dorit and Lawrence L. Anderson of 64 Buckingham Gate, London Swielas, England (Buyers). entered into a contract to purchase a unit, which had not yet been built, from Paragon for approximately $432,000. Copy of the|lcontract is attached hereto. made a part hereof, and incorporated herein as Administrative C omplaint Exhibit 1. 6. Paragraph 2.1(a) of the contract evidences the agreement between the parties that Paragon was to deposit all payments made by buyer to seller toward the purchase price, up to and including 10% (approximately $43.250), with Attorney Josepin J. DeRoss. 100 Avenue A. Suite C, Fort Pierce, Florida, 34950, who was to maintain said monies in his escrow account. 7. On or about December 28, 1997, Buyers gave Paragon a check in the amount of $10,000 as initial deposit on the Anderson/Paragon contract. C opy of cancelled check is attached hereto. made a part hereof, and incorporated herein as Administrative C omplaint Exhibit 2. 8. On or about December 29. 1997. Buyers gave Paragon a check in the amount of $43,250.00 as additional deposit on the Anderson/Paragon contract. Copy of cancelled check is attached hereto, made a part hereof, and incorporated herein as Administrative Complaint Exhibit 3. 9. Paragraph 2.1(b) of the Andersom/Paragon contract evidences the agreement between the parties that “‘all payments in excess of 10%, paid toward the purchase price [was to] be held in a special Escrow Account maintained by Joseph J. DeRoss.”” (Exhibit 1, page 3). 10. On or about December 31. 1997, Buyers gave Paragon another check in the amount FDBPR vs Sheri Anne Russell FDBPR Case N° 9$3-80127 Administrative Complaint of $43,250.00 as additional deposit on the Anderson/Paragon contract for tq tal deposit amount of $96,500. Copy of cancelled check is attached hereto, made a part hereof, and incorporated herein as Administrative Complaint Exhibit 4. 11. On or about March 25, 1999, in response to an investigation regarding this matter, Respondent contacted Department of Business and Professional Regulation (DBPR) Investigator, Raymond Russell, and stated that the Anderson funds were never deposited in escrow. 12. On or about April 6, 1999, pursuant to an official investigation, Attorney DeRoss advised DBPR Investigator Raymond Russell, that he had never received any funds related to the Anderson Purchase. COUNT I Based upon the foregoing, Respondent is guilty of fraud. misrepresentation, concealment, false promises, false pretenses, dishonest dealing by trick, scheme or device, or culpable negligence in any business transaction in violation of § 475.25(1)(b), Fla. Stat. (1997). WHEREFORE, Petitioner respectfully requests the Florida Real Estate Commission, or the Department of Business and Professional Regulation, as may be appropriate, to issue a Final Order as final agency action finding the Respondent(s) guilty as charged. The penalties which may be imposed for violation(s) of Chapter 475, F/a. Siat.. depending upon the severity of the offense(s), include: revocation of the license or registration or permit; suspension of the license, *DBPR vs Sheri Anne Russell FDBPR Case N* Administrative Complain: w 0 @ 0127 registration or permit for a period not to exceed ten (10) years, imposition of an administrative fine of up to $1,000 for each count or offense: imposition of investigative costs: issuance of a reprimand; imposition of probation subject to terms including, but not limited to. requiring the licensee, registrant or permitee to complete and pass additional real estate ¢ducation courses: publication; or any combination of the foregoing which may apply. See § 475.25(1). Fla. Stat. and Rule 61J2-24.001. Fla. ddmin. Code. The penalties which may be imposed for violation(s) of Chapter 455, Fla. Stat.. depending upon the severity of the offense(s), include: revocation of the license. registration, or permit: suspension of the license. registration. or permit for a period not to exceed ten (10) years: imposition of an administrative fine of up to $5,000 for each count or offense; imposition of investigative costs; issuance of a reprimand; imposition of probation subject to terms including, out not limited to, requiring the licensee. registrant, or permitee to complete and pass additional real estate education courses: publication; restriction of practice: injunctive or mandamus relief; imposition of a cease and desist order; or any combination of the foregoing which may apply. See § 455.227, Fla. Stat. and Rule 61J2-24.001, Fla. Admin. Code. SIGNED this Lb o day of Lerembh er 1999, FILED aed ? F . - Professional 4. (er fe By: Herbert S. Fecker, Jr. 5 / ip I be Director, Division of Real Estate emit ee FDBPR vs Sheri Anne Russei: Administrative Complaint NPC.k PCP: MPS-LJ 12/99 NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under § 120.573, available for administrative disputes involving this type of agency action. FDBPR Calse N° 99-80127 ATTORNEY FOR PETITIONER Nancy P. Campiglia Florida Bar N° 164259 Senior Attorney Department of Business and Professional nel Legal Section - Suite 308 Hurston Bldg. North Tower 400 West Robinson Street Orlando, Florida 32801 (407) 481-5632 (407) 317-7260 -1772 FAX Fla. Stat, is not PLEASE BE FURTHER ADVISED that pursuant to this Administrative Complaint you may request, within the time proscribed, a hearing to be conducted in this matter in accordance with Sections 120.569 and 120.57, Fla. Stat.; that you have the right, at your option and expense, to be represented by counsel or other quali in this matter; and that you have the right, at your option and expense, fied representative to take testimony, to call and cross-examine witnesses, and to have subpoena and subpoena duces tecum issued on your behalf if a formal hearing is requested. PLEASE BE FURTHER ADVISED that if you do not file an Election of Rights form or some other responsive pleading with the Petitioner with 5 in twenty-one (21 FDBPR vs Sheri Anne Russell FDBPR Case N° 99-80127 Administrative Complaint days of receipt of this Administrative Complaint, the Petitioner will "I Real Estate Commission a motion requesting an informal hearing and appropriate Final Order which may result in the suspension or revocat estate license or registration. Please see the enclosed Explanation of Rights and Election of Rights form. ntry of an ion of your real with the Florida

Docket for Case No: 00-000439