STATE OF FLORIDA PY 2. 02 FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, Petitioner, 7 D> 05 Tf vs. FDBPR Case N° 9982589 2002002169 HALLMARK SALES TRAINING AND KERRY KELLY Respondents. / ADMINISTRATIVE COMPLAINT State of Florida, Department of Business and Professional Regulation, Division of Real Estate (‘‘Petitioner”) files this Administrative Complaint against Hallmark Sales Training and Kerry Kelly (“Respondents”) 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 Section 20.165 and Chapters 120, 455 and 475 of the Florida Statutes and the rules promulgated pursuant thereto. 2. Respondent Hallmark Sale Training is and was at all times material hereto a licensed Florida real estate school, issued license number 044515 in accordance with Chapter 475 of the Florida Statutes. The last license issued was as a real estate school at 327 Racetrack Road NW, Ft. Walton Beach, Florida 32547. FDBPR vs Hallmark Sales Training FDBPR Case N° 9982589 Administrative Complaint 3. Respondent Kerry Kelly is and was at all times material hereto a licensed Florida real estate instructor, issued license number 31960 in accordance with Chapter 475 of the Florida Statutes. The last license issued was as a real estate instructor at 327 Racetrack Road NW, Ft. Walton Beach, Florida 32547. 4. On or about November 1, 1999, Petitioner conducted an audit of Respondents. A copy of the audit form is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 5. The audit revealed that Respondents taught a 3-hour Core Law Course on February 18, 1999 and March 26, 1999 without prior FREC approval. A copy of the course roster is attached hereto and incorporated herein as Administrative Complaint Exhibit 2. 6. At the conclusion of the audit, Petitioner provided Respondents with the applicable rules on obtaining FREC approval for courses. 7. Onor about July 9, 2001, Petitioner conducted a follow-up audit on Respondents. A copy of the audit form is attached hereto and incorporated herein as Administrative Complaint Exhibit 3. 8. That audit revealed that Respondents continued to teach the 3-hour Core Law Course on March 15, 2000, March 17, 2000 and September 13, 2000 without prior FREC approval. Copies of course rosters are attached hereto and incorporated herein as Administrative Complaint Exhibits 4A- 4c. COUNT I Based upon the foregoing, Respondent Hallmark Sales Training is guilty of culpable negligence FDBPR vs Hallmark Sales Training FDBPR Case N° 9982589 Administrative Complaint or violating a duty imposed by law in violation of Section 475.25(1)(b), Florida Statutes. COUNT II Based upon the foregoing, Respondent Hallmark Sales Training is guilty of failure to obtain prior approval from the Florida Real Estate Commission before conducting a real estate class in violation of Rule 61J2-3.009 of the Florida Administrative Code and is, therefore, in violation of Section 475.25(1)(e), Florida Statutes. COUNT II Based upon the foregoing, Respondent Kerry Kelly is guilty of culpable negligence or violating a duty imposed by law in violation of Section 475.25(1)(b), Florida Statutes. COUNT IV Based upon the foregoing, Respondent Kerry Kelly is guilty of failure to obtain prior approval from the Florida Real Estate Commission before conducting a real estate class in violation of Rule 61J2-3.009 of the Florida Administrative Code and is, therefore, in violation of Section 475.25(1)(e), Florida Statutes. 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 of the Florida Statutes, depending upon the severity of the offense(s), include: revocation of the license or registration or permit; suspension of the license, FDBPR vs Hallmark Sales Training FDBPR Case N° 9982589 Administrative Complaint 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 any combination of the foregoing which may apply. See § 475.25(1), Fla. Stat. (2001) and Fla. Admin. Code R. 61J2-24.001. The penalties which may be imposed for violation(s) of Chapter 455 of the Florida Statutes, 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. (2001) and Fla. Admin. Code R. 61J2-24.001. FDBPR vs Hallmark Sales Training FDBPR Case N° 9982589 Administrative Complaint SIGNED this DO day of Apso bs , 2002. ent of Business and Professional Regulation By: Director, Division of Real Estate ATTORNEY FOR PETITIONER Lorenzo Level Florida Bar N° 165123 Senior Attorney 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 LL/k PCP: MV/HF 11/02 NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under Section 120.573 of the Florida Statutes, is not available for administrative disputes involving this type of agency action. FDBPR vs Hallmark Sales Training FDBPR Case N° 9982589 Administrative Complaint 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 of the Florida Statutes; 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. STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION DIVISION OF REAL ESTATE SCHOOL AUDIT FORM DATE: //-/- NAME OF SCHOOL: A/ an L ATAL 4 sat les Te ALDI Ad alg PERMIT NUMBER: ADDRESS OF SCHOOL: F027 MWY RACETRACK ._, fpar WALroal, E/ 32547 NAME OF PERMIT HOLDER: Ke LR ie ek it V/ BROKER OR INSTRUCTOR PERMIT NUMBER: ER = ZKRYSSIS” ADDITIONAL LOCATIONS: PERMIT NUMBER (Attach list if needed) ~A js eS Kelly _ BK. 08a 3/2 a / _. 7 i -/2003 O/}. Lup 9/32/97 3) ZH L600 TY45 (4) LIST OF INSTRUCTORS: PERMIT NUMBER Eye Dee (Attach-list if ROL. en” KR. Beatton Tl ZH /000 267. 9-53-01 (2) (Q) te LIST OF APPROVED COURSES: PERMIT NUMBER (Acach list if needed) t LE 2 3 (4) YES NO RECRUIT POSTER - each classroom (Rule 61J2-17.015) ALL INSTRUCTORS PERMITTED (Rule 61J2-17.014) a SCHOOL LOCATIONS REGISTERED (Rule 61J2-17.013) x Es p y4 I HEREBY CERTIFY THAT TO THE BEST OF MY KNOWLEDGE I HAVE PROVIDED TO THE INVESTIGATOR ALL INFORMATION REQUESTED. ANY VIOLATIONS RESULTING IN THE ISSUANCE OF A NOTICE OF NONCOMPLINACE WILL BE CORRECTED WITHIN I4 DA. MIST LL =f 27 = A /ESTIGATOR COMPUTER # SIGNAT, PERMIT DER DATE NOTICE OF NONCOMPLIANCE YES NO_Yf Pursuant to s.455.225(3) F.S., the Commission sets forth cules which are considered minor violations for which the DBPR shall provide a license with a notice of noncompliance. A violation of a rule is considered a minor violation if it does not result in economic or physical harm to a person or adversely affect the public health, safety, or welfare or create a significant threat of such harm. The notice of noncompliance shall only be issued for an initial offense of a minor violation. VIOLATION: LE ADM ter a Bie CORRECTIVE ACTION: WA. PACE ve Emerald Coast Association of REALTORS, Inc. - Event Sign In Sheet Event 0133 Core Law-ECAR 3/26/99 Lastname Firstname Rate Amt Pd = Pmt Type Status Sign In an Bakke Kassandra 1 $0.00 Y Cameron Martha 1 $0.00 Y Dunbar Kimberly 1 $0.00 Y Gallow Beverly 1 $0.00 Y Gaston S. Dianne 1 $0.00 Y Glover Glenda 1 $0.00 Y Holoviak Linda 1 $0.00 Y Hopkins William 1 $0.00 Y Kiser James $0.00 Y LaPierre Hazel 7 wpe sa.do’ ee ¢ ea Y Lopez Lynn 1 $0.00 Y McCraw Sandra 1 $0.00 Y Miller Dennis 1 $0.00 Y Miller Toyoko 1 $0.00 Y Osborne Brenda 1 $0.00 Y Osborne Tom 1 $0.00 Y Salazar “Ruth 1 $20.00 gt Pp Y Sanders Rebecca Loflin 1 $0.00 Y Sellers Lucyna 1 $0.00 Y Stanley Larry 1 $0.06 Y Sullivan Dawn 1 $0.00 Y Stuitus: We Bait List, Yo Reserved Friday, March 26, 1999 Page | of 2 Event 0133 Core Law-ECAR Taylor Marion 1 $0.00 Y Trenary Sharon 1 $0.00 Y Walters Shelia 1 $0.00 Y Walters Shelia 1 $0.00 Y i) Walther Rudi 1 $0.00 KAcdk, WAL pre Wells Barbara 1 $0.00 Y je Woodburn Patricia 2 $0.00 pet Cok, Z ea J / VY EPs a < ~< Status: W= bait List, Yo Reserved Fridav, March 26, 1999 Page 2 of 2 STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION DIVISION OF REAL ESTATE SCHOOL AUDIT FORM waME oF scHooL: £722 Mme oe S& fez Tenieine PERMIT NUMBER: 2 Av = 2/4 Y ¥5°/5 ADDRESS OF SCHOOL: 7X7 a’ Ww Novcigt not OL Kier bitten Fl 34547 NAME OF PERMIT HOLDER: Ke Ry Ke ik BROKER OR INSTRUCTOR PERMIT NUMBER: ADDITIONAL LOCATIONS: PERMIT NUMBER (Attach list if needed) . Ww Kenny ke Ly Bik - & ZAaYv 2s (2) zit - ZIG C Q) (4) LIST OF INSTRUCTORS: PERMIT NUMBER (Attach list if needed) w AOE VE (2) (BD) ce LIST OF APPROVED COURSES: PERMIT NUMBER (Attach list if needed) i) : i FREQ * OAAGE 2 OOF @ Q) 4) YES NO RECRUIT POSTER - each classroom (Rule 61J2-17.015) he __ ALL INSTRUCTORS PERMITTED (Rule 61J2-17.014) Xx — nsrTeenre & 7 Rem hfe SCHOOL LOCATIONS REGISTERED (Rule 61J2-17.013) x. THEREBY CERTIFY THAT TO THE BEST OF MY KNOWLEDGE I HAVE PROVIDED TO THE INVESTIGATOR ALL INFORMATION REQUESTED. NY VIOLATIONS RESULTING IN THE ISSUANCE OF A NOTICE OF NONCOMPLINACE WILL BE CORRECTED WITHIN {4 : Wing 5 a Ly Fa G Lag O alot Ase Hoale Wot. LF) SENATORE OF PERMIT HOLDER DATE SIGNATCRE OP’INVESTIGATOR COMPUTER # DATE NOTICE OF NONCOMPLIANCE YES NO x Pursuant to $.455.225(3) E.S.. the Commission sets forth rules which are considered minor violations for which the DBPR shall provide a license with a notice of noncompliance. A violation of a rule is considered a minor violation if it does not result in economic or physical harm to a person or adversely affect the public health, safety. or welfare or create a significant threat of such harm. The notice of noncompliance shall only be issued for an initial offense of a minor violation. Pata VIOLATION:_*&, >> Ont, ff tater CORRECTIVE ACTION: 6 Suc tee wun aay Bee ee ate Fae sy Emerald Coast Association of REALTORS® AND The North Okaloosa Association of REALTORS® Presents: “CORE LAW” Three (3) hours CE credit Instructor: Mr. Kerry Kelly Up-date of your real estate law!! - ¢Date: Wednesday, March 15 . If you live, work, or play in eTime: 8:30 a.m. sign-in Crestview this is eSeminar: 9:00 a.m.-12:00 your opportunity to get this class in Place: Holiday Inn, your area. Crestview - holiday Inn eCost: $20.00 Crestview oReservations:; Required All reservations must be made by 11:00 a.m. two days prior to any function. Cancellations must be made by 11:00 a.m. two days prior to any function and submitted in writing. To make your reservation call 664-9904 or FAX to 243-6147. Any questions call 243-6145, NAME COMPANY PHONE NUMBER AGENT ID Exhibit Event Sign In Sheet Event €vi7t Core Law-Crestview Lasiname Firstname Rate, Ami Pd Berkley Witla $0.00 Keen Tin pe 1 $0.00 Kolb Kemal 1 $0.00 Lambert Pauline fed. 1 $0.00 Myler Carotyn pe 1 $0.00 Cheryl fe. + $0.00 Scat, Leldzs te. Status; W= Watt List, Y: Reserved Tuerday, March 14, 2000 ADM EXE PAGE Exhibit. _ Qe, ard antsy ~~ Emerald Coast Association of REALTORS® AND The Professional Development Committee Presents: “CORE LAW” Three (3) hours CE credit Instructor: Mr. Kerry KeUy Up-date of your real estate law!! Date: Friday, March 17, 2000 eTime: 8:00 a.m. sign-in and network *Seminar: 8:30 a.m.-11:30 a.m. ePlace: © ECAOR Cost: $20.00 Last chance to get your “Core . ; Law” if your real estate *Reservations: Required license expires in March! All reservations must be made by 11:00 a.m. two days prior to any function. Cancellations must be made by 11:00 a.m. two days prior to any function and submitted in writing. Call 664-9904, FAX 243-6147 or call 243-6145. NAME COMPANY PHONE NUMBER AGENT ID Emerald Coast Association of REALTORS, Inc. Event ov0164 Core Law Lastname Firstname Baron Linda 7 L Best Marge Cartson Debra Carlson Robert Conde Emily Cooper Molissa fo- Donavin Sue Gonzo Patt Gronning John Kiser James Long Linda Lee McGinnte Susan Melting Ra plod Morrell Yvonne Pd Moris Kenneth Naramore Sarah Obert Debra Cleen . Wendy Stamus: Wo Wait List, Y: Reserved Friday, March 17, 2000 Event Sign In Sheet Rate Amt Pd 1 $0.00 + $0.00 1 $0.00 1 $0.00 1 $0.00 1 $0.00 1 30.00 1 $0.00 1 $0.00 1 $0.00 1 30.00 1 $0.00 1 $0.00 + —$000.. 1 $0.00 1 90.00 1 $20.00 1 $0.00 1 $20.00 ADN ECAL 03/17/2000 Pmu Type Status pad ¥ ag Me Au 3g _ sat aly Kron Y Page! of2 treme Ay Exhibit ALD CuAs Our; B50 ues ise, 08/17/2000 Rigby Catrina 1 $0.00 Y Sholes Thomas 1 30.00 Y Smkh Gregory 1 $0.00 Y Strom Priscita 1 $0.00 Y Toople Gloria 4 $0.00 Y white Richard 1 $0.00 Y Wikkineon Lynn Lakin 1 $0.00 Y Aner . EX: : Starus: W= Wait List, Y: Reserved a ence oe meme PAGS a . Friday, March 17, 2000 . ao a Page 2 of 2 Exnibit REALTOR? Emerald Coast Association of REALTORS® “CORE LAW” ARE YOU IN COMPLIANCE? instructor: Mr. Kerry Kelly This may be your chance to get your up-date of “Core Law” for your real estate license renewal. Don’t miss an opportunity to get your CE credit and up-date your education on real estate law! Three hours of CE credit. Sponsor: AAA Insurance Agency \Date: Wednesday, September 13 )Time: 8:30 a.m. sign-in \Seminar: 8:45 a.m.-11:46 )Place: Emerald Coast Association of REALTORS® \Cost: $20.00 \Registration: Required, All reservations must be made by 11:00 a.m. two days prior to any function, cancellations must be made by 11:00 a.m. two days prior to any function and submitted in writing. )To make your reservation please call (850) 664-9904 or FAX to (850) 243-6147, if you have any questions please call (850) 243-6145. NAME OMPANY PHO MBER AGENT ID Lit: Loa | O. | (" iy a. Emerald Coast Association of REALTORS, Inc. Event Sign In Sheet ECAL Event — EV186 Core Law 00/43/2000 Lastname Firstname Rate AmePd = Pmt Type Status Signin Boyar Fred 1+ $0.00 Y cn Brown Robert 1 $0.00 Y Carter Ena 1 $0.00 Y Combe €ad 1 30.00 Y Crookshanks Janet t $20.00 M Y be AA M Czechowicz Shelley 1 $0.00 Y Eberhart Jessup 1 30.00 Y Florence Karen e 1 $0.00 Y Gagne corel [2 q Y) 1 $0.00 Y Holowlak Linda 1 $0.00 Y Hopper Cynthia 1 $0.00 , Y Hubddell Oavid 1 $0,00 Y Hudson Mktrete 1 $0.00 Y Jackson Wamer 1 $0.00 Y Jamieson amy t 90.00 Y Jordan Sherry 1 90,00 Y Marcani Judy 1 $0.00 Y Massing Sandra 1 $0.00 Y Moss Frank 1 $0.00 Y Moss Judy 1 $0.00 Y On Cindy t $20.00 P Y Stars, Ws Walt List, Y: Reserved Wednesday, September 13, 2000 Exhibit Page Status: W—~ Wait List, Y: Reserved Pednesday, September 13, 2000 tae

Docket for Case No: 03-000577