riLED STATE OF FLORIDA 00 AUG 10 PMI2: 36 DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULASYON,:¢ (): FLORIDA REAL ESTATE COMMISSION ADMINISTRATIVE HEARIKGS FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, Petitioner, vs. FDBPR Case N° 99-83003 MICHAEL JOSEPH KLIMEK, Respondent. / ADMINISTRATIVE COMPLAINT State of Florida, Department of Business and Professional Regulation, Division of Real Estate (hereinafter "Petitioner") files this Administrative Complaint against Michael J oseph Klimek (hereinafter "Respondent") and alleges: ESSENTIAL ALLEGATIONS OF MATERIAL FACT 1. Petitioner is a state government licensing and regulatory agency charged with the responsibility and duty to prosecute Administrative Complaints pursuant to the laws of the State of Florida, in particular § 20.165, Fla. Stat., Chapters 120, 455 and 475, Fla. Stat., and the rules promulgated pursuant thereto. 2. Respondent is and was at all times material hereto a licensed Florida real estate broker, issued license number 0552487 in accordance with Chapter 475, Fla. Stat. 3. The last license issued was as a voluntary inactive broker at 6153 Orange Hill Court, Orlando, Florida 32819. (uy YY FDBPR v. Michael J. Klimek Case No. 99-83003 Administrative Complaint 4. On or about April 14, 1997, Mohammad & Dana Karbassi (“owners”) executed a membership enrollment application and entered into an exchange agreement with Vacation Systems International, Inc. (“VSI”), a Florida registered corporation at the time of this transaction. Respondent was the President of VSI at all times material to this transaction. 5. The agreement provided that VSI would make the owners’ timeshare “available to a network of real estate brokers and those clients who have exchanged into your resort through Vacation Systems International, Inc.” A copy of the membership enrollment application is attached hereto, incorporated herein and made a part hereof by reference as Administrative Complaint Exhibit lL. 6. The exchange agreement required a payment in the amount of $499.00, which was paid by the owners to VSL A copy of the credit card receipt and statement is attached hereto, incorporated herein and made a part hereof by reference as Administrative Complaint Exhibit 2. 7. Respondent advised that VSI members were offered a “complimentary listing” of their timeshare for sale with Timeshare Resales, Inc. (“TRI”), a Florida registered real estate brokerage at all times material to these allegations. A copy of Respondent’s correspondence is attached hereto, incorporated herein and made a part hereof by reference as Administrative Complaint Exhibit 3. Respondent was the registered broker of TRI from September 23, 1998 until March 4, 1999. A copy of the TRI listing agreement is attached hereto, incorporated herein and made a part hereof by reference as Administrative Complaint Exhibit 4. WU WY FDBPR v. Michael J. Klimek Case No. 99-83003 Administrative Complaint 8. VSI was dissolved in March of 1999, and it appears that TRI and its assets were sold to Thomas E. Lugen, Inc. t/a Century 21 Timeshare Resales, broker. 9. Despite repeated requests, Respondent and VSI did not provide the owners with information regarding the agreed upon exchange services for the $499.00 fee, and upon information and belief, did not provide proof of the services as contracted for the exchange network. 10. Despite repeated phone calls, the only response during this transaction was through correspondence dated December 17, 1997. A copy of the correspondence is attached hereto, incorporated herein and made a part hereof by reference as Administrative Complaint Exhibit 5. COUNT I Based upon the foregoing, Respondent is guilty of dishonest dealing by trick, scheme or device, or breach of trust in any business transaction in violation of § 475.25 (1)(b), Fla. Stat. 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, Fla. Stat., depending upon the severity of the offense(s), include: revocation of the license or 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 $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 education courses; publication; or 3 Ww Y FDBPR v. Michael J. Klimek Case No. 99-83003 Administrative Complaint any combination of the foregoing which may apply. See § 475.25(1), Fla. Stat. and Rule 61J2- 24.001, Fla. Admin. 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, but 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 [gt day of ately , 2000. (LS LAL a “FILED aa Professional Regulation Department of Professional Regwlatian By: Herbert S. Fecker, Jr. Division of Real Estate Director, Division of Real Estate FDBPR v. Michael J. Klimek Case No. 99-83003 Administrative Complaint ATTORNEY FOR PETITIONER Sunia Y. Marsh Florida Bar N° 0068896 Senior Attorney, Real Estate Department of Business and Professional Regulation, Legal Section - Suite N 308 Hurston Bldg. North Tower 400 West Robinson Street Orlando, Florida 32801-1772 (407) 481-5632 (407) 317-7260 FAX SM/k PCP: DS/MV 7/00 NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under § 120.573, Fla. Stat, is not available for administrative disputes involving this type of agency action. 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 qualified representative in this matter; and that you have the right, at your option and expense, 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 within twenty-one (21) days of receipt of this Administrative Complaint, the Petitioner will file with the Florida Real Estate Commission a motion requesting an informal hearing and entry of an appropriate Final Order which may result in the suspension or revocation of your real estate license or registration. Please see the enclosed Explanation of Rights and Election of Rights form. U Y Sw ie i [ Pim gy - een s if ff 8 beta 1 © ; rN Vacation Systems Internationa?, Bid 0 Py 2: 9; VISTGH G8 Your Exchan TRA KE eee MEMBERSHIP ENROLLMENT APPLICATION Owner’s Name 0 ( Karbass ppuneat 01 OS 21 B Clintwood Dr . da Tor) Rochester NY 14620 uv vA + my Home Phone 716-271-2024 Work Phone 716-461-8400 Fax Resort Name Westgate Vacation Villas [cou 0899 id 0899 Kissimmee, FL 32741 Week 27 ‘Unit CCC6 Type Bedrooms 2 Occupancy 6 Bathrooms 2 r / / ie Deed Y Lease N Lease Years Remain 0 _ Purchase Date-01/01/30— “ Maintenance Fee 325.00 Taxes Maintenance Paid To Date “[¢C- Purchase Price 13800.00 ——. —=. 1. VACATION SYSTEMS INTERNATIONAL, INC. WILL MAKE YOUR TIMESHARE DESCRIBED ABOVE AVAILABLE TO A NETWORK OF REAL ESTATE BROKERS AND THOSE CLIENTS WHO HAVE EXCHANGED INTO. YOUR RESORT THROUGH VACATION SYSTEMS INTERNATIONAL, INC. FORM WILL BE FORWARDED UPON REQUEST. 3. DOMESTIC EXCHANGE IS $79.00 US DOLLARS AND INTERNATIONAL EXCHANGE IS $99.00 US DOLLARS, PAYABLE UPON CONFIRMATION OF EXCHANGE. YES!!| I/WE WOULD LIKE TO ENROLL RIGHT AWAY AND MAKE THE ABOVE INFORMATION AVAILABLE TO BROKERS. ENCLOSED IS MY CHECK FOR $499.00 (PLUS $125.00 FOR EACH ADDITIONAL TIMESHARE WEEK) MADE PAYABLE TO VACATION SYSTEMS INTERNATIONAL, INC., OR CHARGE MY () AMERICAN EXPRESS, () VISA OR () MASTERCARD. Credit Card Number A | ? 7 ?} Exp. Date Timeshare owner pays a one time, non-recurring and non-refundable service fee for enrollment. Executive xchange Consultant Date ADMINISTRATIVE COMPLAINT EXHIBIT 4# 2963 -V¥inetind Road « Kissimmee, Florida 34746 PAGE (@07) 896-2988 » Fax (407) 396-4615 © Toll Free (800) 645-1714 y- a oF Acct#: 85759- 87322 EXHIBIT 7 PAGES (Office Cany — Qien and Ratnrn) a ow f’ . SALES SLip | THIS FORM T0 BE USEO WITH vet OI goods andor sank sh the io Pe Caelersarecmenn pager CUSTOMER Copy nee IMPORTANT: RETAIN THIS Copy FOR Your RECorps, ee om nati ok. Tee fo EXHIBIT | pace__/¢ _. dervei/9¥9 MON 18:04 FAX; 406 233 28971 BLGS CLINIC 4TH RECP Boos WORLDPERKS VISA Fauod hy Het Bank of South Dakura (National Agsocration) ~ FILED 0 AUG 10 PMI2! 36 (A) 2 iSiOK OF =merek mins VE Acoust & Paymblintaation uslomer name: Mohanunad Karhass} Dana B Karbagst Account number: Statement date: May 6, 1997 Minimum payment due $638.08 Payments & dredits - 871,02 New purchusda & advances 2,041.01 Finance charges & fees 55.00 New balanc. $3,063.07 Credit Available Credit line $5,000.00 New halance! ~ 2,063.07 Your Resources for Help Credit available $2,996.03 34 Hour Customer Service 1-800-NWA-VISA . . Mpls/St. Paul Metro Area 612-244-7777 WorldPerks Visa Miles Text telephone (TTY) 1-800-846-2580 WorldPorks (nforinalion Line 1-800-327-2881 WorldPerks fumber 488 209 315 Miles Liisa sUilement 2,063 4997 iniles year to date 4,186 Payments . 15 JCPENNEY CO #1618 ROCHESTER N + $32.94 & Credits | Apr. 24 PAYMENT - ‘THANK YOU - 638.08 | Totat Payments and Credits» SOT1.02 Purchuses Ann 2 BASHA ROCHESTER NY $13.00 Apr. 4 CLOVER MONROE MOBIL. ROCHESTER NY 462.29 | Ap. 7 TOPS MARKETS #412 BRIGHTON NY §4.97 Apr. 8 GOOD COMPANY G06300024 ROCHESTER NY 9.24 Apr. 9 VACATION SYSTEMS INTER ORLANDO FL 499.00 Apr. 1t MARIO'S VIA ABRUZZI ROCHESTER NY 42.50 Apr. 120 CVS 592 BRIGHTON NY LL.bO Apr. 12 FIRESTONE 3053 0646172 ROCHESI'ER NY 44.25 Apr. 13 ‘TOPS MARKETS #412 BRIGHTON NY 27.00 Apr. 14 CVS 755 ROCHESTER NY 7.99 Apr. 44 JCPENNEY CO #1618 ROCHESTER NY 79.92 Apr. 15 JACPENNEY CO #1618 ROCPIESTER NY 27.00 Apr. 16 USPS 3510280618 ROCHESTER NY 5.39 Apr. 16 CLOVER MONROE MOBIL ROCHESTER NY 119.83 Ape. 17 PASTA BLITZ BY LAMBERT PHILADELPHIA PA 47,00 Apr. 18 SHERA'TON HOTELS SCTY Ht PHILADELPHIA PA 180.94 Apr. 18 PEL WORKSHOPS & SIT'UDI KENSINGTON PE 36.AL FRGN AMT: 50.00 Apr. 19 TOKO IMPORTS ITHACA NY 19.44 Apr 19 MOOSEWOOD RESTAURANT ITHACA NY 24,60 Apr 19 LOG COUNTRY INN B&B SPENCER NY 61.05 * Puge 1 of 2 i EXHIBIT 20 340.00 Payment must be received May 26, 1997 ONES RRINE pa MINE GS REAL sb iar December 16, 1999 a HEAR Margaret L. Mitnik Investigation Specialist Bureau of Enforcement Re: DBPR Case #BK 99-83003 -Michael Joseph Klimek ("Broker") ° Dear Ms. Mitnik: This letter is in response to your letter dated December 1, 1999, and the complaint of Mohammad and Dana Karbassi ("Complainants"). Vacation Systems International, Inc. ("VSI") was an exchange company that offered memberships to timeshare owners, VSI members were offered a listing. of their timeshare for sale with Timeshare Resales, Inc. ("TSR"). The complainants enrolled with VSI for a one time non-refundable membership of $499.00, and received the benefit of the services offered by VSI. Further, the Complainants received a complementary listing with TSR. The attached membership enrollment application establishes the Complainants agreements to their agreement with VSI. A taped verification of the terms of this agreement also exists. VSI ceased conducting business, and was dissolved during 1999, and the assets of TSR, including a listing agreement were transferred to Century 21 (Broker- Tom Lugen). Century 21 is currently the listing broker for the Complainants timeshare, and all inquiries should be directed to Mr. Lugen. Because VSI fulfilled its obligations to the Complainants, and TSR and the undersigned are no longer the brokers responsible for selling the Complainants timeshare, their complaint has no merit. I wish the Complainants the very best of luck in selling their timeshare through Mr. Lugen . Very truly yours; _ / Michael J. Klimek 6153 Orange Hill Court ADMINISTRATIVE COMPLAINT, Orlando, FL 32819 XHiBiT fe PAGE oF} EXMIBIT___# pace /F— ~~ TIMeSHARE RESALES, ING: 5 LICENSED REAL ESTATE TIMESHARE LISTING AGREEMEN® AUG 10 PM l2: 36 pare BENT Se The undersigned Owner(s) (herein “Owner") of the timeshare unit(s) described below hereby subdEcb& kM Gtheshare Resales, Inc. (herein “T'SR") for endeavoring to find Prospects for the sale of: , UNIT# RESORT NAME AND ADDRESS WEEK(S) CCCé Westgate Vacation Villas 27 Conveyance of Title Owner shail furnish a title insurance policy showing that he has marketable title to the property. Title shall be conveyed to the Purchaser by Warranty Deed, free and clear of €ncumbrances, Right to Use : Where the property is held under a tight to use agreement, the Owner shall furnish a communication from the developer showing that! an unencurnbered right to use the unit is vested with the Owner. Closing Buyer shall be responsible for all closing fees incurred. This agreement is non-exclusive; Owner may use other brokers or agencies without cost or obligation to TSR. It is the Owner's responsibility to contact TSR in writing if the unit is no longer available for sale. Buyer prior to receipt of such notice and/or Owner refuses to close then Owner must pay to TSR t! Na ahw pa 2 3 3 a © ® a n =n x re) 3 > a w o ® = fog ® 2 a fog € s on © a 5 o 2. 3 Es < 3 oa 3 5 ® g [7 3 3 3 g o 2g, 5 2 Owner shall indemnify and hold TSR, its officers, and employees harmless against and from any misrepresentation made herein by Owner or Owner's resort, managing entity, resort developer or resort sales agents, or failure of Owner to perform hereunder. 6. Owner acknowledges that due to extensive advertising and promotional programs incurred by TSR, that the selling commission may be more than that charged in other types of real estate transactions. A minimum commission is one thousand dollars ($1,000.00). TIMESHARE RESALES WILL Promote Owner’s property as TSR deems advisable, Furnish information when requested by any cooperating broker and assist cooperating Brokers in closing a sale of Owner's Property when requested to do so. Promptly pay a fee to any cooperating Broker who effects a sale of Owner's property when said fee is received by TSR. Sales wil be handled by Timeshare Resales, tno., 3 Licensed Real Estate Broker. Contact Owner only upon receipt of a bona-fide offer accompanied by a gdod faith deposit. ALL INQUIRIES SHOULD BE DIRECTED TO AND WILL BE HANDLED BY OUR CLIENT/CUSTOMER SERVICE DEPARTMENT. (407) 396-7840 There are no judgments or pending litigation against Broker resulting from or alleging a violation by Broker of Chapters 475/498, 718, or 721, Florida Statutes, or resulting from or alleging consumer fraud on the Part of the Broker. The term of this agreement is twelve (12) months from the date above which may be extended upon your request by written agreement. THERE IS NO GUARANTEE THAT YOUR TIMESHARE PERIOD CAN BE SOLD AT ANY PARTICULAR PRICE OR WITHIN ANY PARTICULAR TIME. Owner certifies that the Unit/Week identified above is a (check one} ANNUAL BI-ANNUAL Timeshare Estate. vf f. 1 ' ve Jew. Gt , ; OER * Owner's Signature Owner's Signature RATIVE COMPL. EXHIBIT 7 EXHIBIT. AGE \_ oF \__ (Office Copy - Sign and Return) P, ————"—~__ 2913 Vineland Road Kissimmee, Florida 34746 « (407) 396-7840 (Please fill out other side) / PAGE Ma \/ TIMESHARE RESALES‘TINED 20, Aug Hou BUI: Boker HEARINGS YE December 16, 1997 Mr. and Mrs. Mohammad Karbassi 1009 Ave. F Billings, MT 59102 - Owner# 85759 Re: Westgate Vacation Villas Dear Mohammad and Dana, Upon review of the status of your timeshare listed with Timeshare Resales, Inc., we have had interest and inquiry, but have not yet received a bona-fide offer on your particular unit(s). We have had activty as recent as 11/19/97. We will continue to present your unit(s) to any and all interested parties until a buyer is procured. Your unit(s) is(are) listed at $15,500 net. Currently, we have units comparable to yours at your resort for as low as $12,900. Your net list price can be adjusted at any time upon receipt of your written authorization. Timeshare Resales, Inc., will only contact owners upon receipt of bona-fide offer accompanied by a good faith deposit. You are under no obligation to accept any offer below your net listing price. If you would like to speak to a Timeshare Resales, Inc., Customer Service Representative, kindly contact our 24 hour voice mail at (467) 396-7840 and your call will be returned in the order it is received, during our normal business hours Monday - Friday 9am to Spm EST. You may also write to us at: 2957 Vineland Road Kissimmee, FL 34746 Respectfully, ennifer LK. “Tonachio Jennifer R. Tonachio Lic. Real Estate SalespersoPDMINISTRATIVE COMPLAINT Customer Service Represerttathye 7 # 3S PAGE an irs es 2957 Vineland Road + Kissimmee, FL 34746 » 407-396-7840 + | Fax 407-39G-1980 Let FXHIBIT___/ ___ PAGE

Docket for Case No: 00-003341PL