STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

FLORIDA REAL ESTATE COMMISSION ) ex rel. RONALD L. MYERS, )

)

Petitioner, )

)

vs. ) CASE NO. 75-1345

) PROGRESS DOCKET NO. 2623

ABELARDO BLANCO, )

)

Respondent. )

)

RECOMMENDED ORDER

Pursuant to notice, the Division of Administrative Hearings, by its duly designated hearing officer, K. N. Ayers, held a public hearing in the above styled cause on March 25, 1976 at Miami, Florida.

APPEARANCES

For Petitioner: Richard J. R. Parkinson, Esquire

Associate Counsel

Florida Real Estate Commission 2699 Lee Road

Winter Park, Florida

For Respondent: Abelardo Blanco was not present.

RECOMMENDED ORDER

By Information filed January 23, 1976, the Florida Real Estate Commission ex rel. Ronald L. Myers, seeks to revoke or suspend the registration of Abelardo Blanco (Respondent or Blanco) as a real estate broker-salesman. The charges in this Information allege that while Respondent was broker and Active Firm Member of Global Realty, Inc. he negotiated a deposit receipt contract between seller and purchaser, accepted a $5,000 earnest money deposit and thereafter converted same to his own use in violation of 495.25(1)(c),(d), and (i) F.S. The Information further alleges that in this transaction Respondent is guilty of a course of conduct or practices which showed that he is so incompetent, negligent, and untruthful that money and property of investors may not safely be entrusted to him, thus warranting revocation of his license pursuant to 475.25(3) F.S. Five witnesses testified on behalf of Petitioner and sixteen exhibits were admitted into evidence including Respondent's certificate of registration and return of the envelope containing notice of hearing sent via registered mail to Respondent's last address registered with the Real Estate Commission marked "unclaimed".

FINDINGS OF FACT

1. On July 13, 1973 Respondent, Abelardo Blanco, negotiated a contract between South Kendall Ranch, Inc., the purchaser, and Luis Hernandez, the

   seller, of a tract of land in Polk County, Florida. As earnest money deposit the purchaser gave a $500 check payable to Global Realty Escrow Account and an additional $4,500 deposit when the contract was accepted by the seller. The three checks in the amount of $500, $2,000, and $2,500 were all dated July 13, 1973 and made payable to Global Realty Escrow Account. These three checks were endorsed by Blanco and deposited in Global Realty Escrow Account at Republic National Bank of Miami on July 16, 1973.

   
   

2. By checks payable to Blanco dated July 14 in the amount of $1,000, dated July 20, 1973 in the amount of $2,100, and dated July 20, 1973 in the amount of $900, signed by Blanco, $4,000 was withdrawn from this escrow account. By check payable to Robert Jewell dated July 21, 1973, and signed by Blanco,

   $1,000 was withdrawn from this escrow account.

   
   

3. No authorization to disburse these funds was ever given to Blanco by the purchaser.

   
   

4. Due to failure of the seller to present an abstract of title of the property to the attorney for the buyer the contract was rescinded and the transaction never closed. The buyer demanded return of his earnest money deposit from Blanco and after receiving no response to several demands filed a complaint with FREC.

   
   

5. Blanco acknowledged to the buyer that he had taken the earnest money deposit from the escrow account; and, on April 10, 1974 Blanco executed a promissory note for $5,000 payable to the buyer. Subsequently he paid $2,400 on that note before departing his last known address for parts unknown.

   
   

6. When questioned by the investigator for FREC in October, 1974 Blanco blamed a non-active firm member of taking the escrow deposit and leaving the country; however, the checks introduced into evidence indicate that Blanco was less than truthful to the investigator. As a result of Respondent's mishandling and/or misappropriation of funds from the escrow account, the purchaser who entrusted his money to Blanco is out some $2,600.

   
   

   CONCLUSIONS OF LAW

   
   

7. Section 475.25(1) F.S. provides that the registration of a registrant may be suspended for a period not exceeding two years upon a finding that registrant has:

   
   

   "(c) Failed to account or deliver to any person . . . money . . . which has come into his hands and which is not his property, or which he is not in law or equity entitled to retain, . . and at the time which has been agreed upon or is required by law or . . . upon demand of the person entitled to such accounting and delivery; . . or

   (d) Violated any of the provisions of this chapter or any lawful order, rule or regulation made or issued under the provisions of this chapter; or

   (i) Failed, if a broker, to immediately place, upon receipt, any money, fund, deposit, check, or draft entrusted to him by any person dealing with him as a broker, in

   escrow . ., wherein said funds shall be kept until disbursement thereof is properly authorized

   
   

8. The evidence is clear and convincing that Respondent violated the fiduciary duties with which he is charged as a registered real estate broker in the transaction involving South Kendall Ranch, Inc.'s offer to purchase land in Polk County, Florida. It is further concluded that he converted these funds to his own use.

   
   

9. Section 475.25(3) F. S. authorizes the revocation of the registration of a registrant

   
   

   ". . . if he shall be found guilty of a course of conduct or practices which show that he is so incompetent, negligent, dishonest, or untruthful that the money, property, transactions and rights of investors or those with whom he may sustain a confidential relation, may not safely be entrusted to him."

   
   

10. Although there are four counts to the information filed in this case they all stem from the one incident involving the mishandling or misappropriation of the earnest money deposit of South Kendall Ranch, Inc. One incident of dishonesty does not establish a course of conduct so as to authorize revocation of a registration under the statute above quoted. It is therefore,

RECOMMENDED that the registration as broker-salesman of Abelardo Blanco be suspended for a period of two years.

DONE and ENTERED this 23rd day of April, 1976, in Tallahassee, Florida.

K. N. AYERS Hearing Officer

Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida

Docket for Case No: 75-001345

Orders for Case No: 75-001345