L. REAGAN, )
)
Petitioner, )
)
vs. ) CASE NO. 76-1746
)
JEFFREY H. BAUMAN, )
)
Respondent. )
)
RECOMMENDED ORDER
Pursuant to notice, the Division of Administrative Hearings by its duly designated Hearing Officer, James E. Bradwell, held a public hearing in the subject cause on December 6, 1976, in Coral Gables, Florida.
APPEARANCES
For Petitioner: John Huskins, Esquire
2699 Lee Road
Winter Park, Florida 32789
The Florida Real Estate Commission hereinafter sometimes referred to as the "commission" by its nominal Plaintiff, C.L. Reagan, filed an administrative complaint against Jeffrey H. Bauman a/k/a Jeffrey H. Bauman seeking to revoke the registration of or otherwise discipline him For acts and practices engaged in during the period of approximately January 2, 1976 through January 16, 1976 as alleged in three counts. 1/
This cause is a companion case to two related cases, i.e., C.L. Reagan vs. Frank Viruet, FREC Progress Docket 2856 and C.L. Reagan vs. Bernard Bauman, FREC Progress Docket 2857. 2/
Under Count I it is alleged that Defendant Jeffrey Bauman operated as a real estate salesman For a person not registered as his employer in violation of the provisions and intent of Subsection 475.42(1)(b), Florida Statutes, thereby violating Subsection 475.25(1)(b), Florida Statutes.
Under Count II it is alleged that Defendant Jeffrey Bauman solicited real estate sales listings by means of dishonest dealing, trick, scheme or device, in violation of the provisions and intent of Subsection 475.25(1)(a), Florida Statutes.
Under Count III it is alleged that Defendant Jeffrey Bauman engaged in a course of conduct or practices, as set out in the above Counts I and II, which show that he is so dishonest and untruthful that money, property, transactions and rights of investors or those with whom he may sustain a confidential relation may not be safely entrusted to him, in violation of the provisions and intent of Subsection 475.25(3), Florida Statutes.
Based upon my observation of witnesses and their demeanor while testifying, I make the following:
FINDINGS OF FACT
The testimony revealed that during late December, 1975, Land Re-Sale Service, Inc., a Florida Corporation, filed application with the Florida Real Estate Commission seeking registration as a corporate real estate broker. The application revealed that Defendant Frank Viruet (FREC Progress Docket 2856) was to become the Active Firm Member Broker, and Vice President of the company; that Carol Bauman was to become Secretary-Treasurer and Director of the company; that Lee Klein was to become President and Director of the company. Testimony shows that Carol Bauman is the wife of Defendant Bernard Bauman (Progress Docket 2857); that Lee Klein is the sister of Carol Bauman and that Jeffrey Bauman (FREC Progress Docket 2858) is the son of Bernard Bauman.
Subsequent to filing said corporate application For registration with the Commission, evidence reveals that the name was changed to Noble Realty Corporation and shortly thereafter to Deed Realty, Inc. and that along with each change, a new application For corporate registration was later filed with the commission. It was noted that the stated officers and active firm members broker remain as stated in the initial corporate application For registration. Thus, it can be concluded For all legal purposes that the above corporate entities are one and the same.
Count I of the Administrative Complaint filed herein, reveals that according to the certificate filed with the Commission's chairman dated December 3, which was offered into evidence by Plaintiff and admitted, during the period November 1, 1975 to the date of said certificate, i.e., December 3, 1976, which covers all dates material to the complaint herein, no registration was issued to or held by either of said corporations, Land Re-Sale Service, Inc., Noble Realty Corporation or Deed Realty, Inc. This was further confirmed by the testimony of Bernard Bauman who was to have become a salesman associated with the above entities and by Frank Viruet, who was to have become the active firm member broker For the above entities.
Approximately December 2, 1975, Land Re-Sale Service, Inc. entered into a written lease For office premises known as Room 212, Nankin Building, 16499
N.E. 19th Avenue, North Miami Beach, Florida For the period January 1 through December 31, 1976 (A copy of the lease was entered into evidence by stipulation.)
The unrebutted testimony of Plaintiff Reagan reveals that he observed during his investigation of this cause a building directory on the ground entrance floor to the Nankin Building displaying the name Noble Realty, Inc., Room 212 and a similar display on the building directory which was located on the second floor.
Plaintiff's witness Peter King, a representative of and For Southern Bell Telephone Company testified that on December 27, 1975, three phones were installed in Room 212 of the Nankin Building in the name of Land Re-Sale Service, Inc. and that from January 2 to January 16, approximately 575 calls were made from the stated phones all during evening hours to out-of-state numbers.
Jeffrey Bauman admitted to having made phone calls to out-of-state numbers For purposes of soliciting real estate sales listings, but failed to
recall specifically the number of calls nor did he have records to substantiate this fact.
Bernard Bauman testified that from such solicitations, approximately 4 listings were obtained accompanied by an advance fee of $375.00 For each listing. When he was advised by the Commission's Investigator that the operation they were conducting was in violation of the licensing law by reason that no registration had been issued to the company and that all who are engaged in real estate activities therein were in violation of the license law (Chapter 475, F.S.) the premises were closed and all real estate activities ceased. This was further confirmed and unrebutted by plaintiff Reagan.
As to Count II, the evidence established that, as stated above, the Defendants Bernard and Jeffrey Bauman had solicited real estate sales listings with representations to out-of-state property owners that listings would in fact be published and disseminated to brokers nationwide. Both Jeffrey and Bernard Bauman admitted that their listings were never published or otherwise disseminated to brokers. Bernard Bauman's testimony reveals that no monies received were returned to senders.
There is no evidence introduced to show that Defendant Jeffrey Bauman knew, at the time of soliciting, that no bona fide efFort would be made to sell the property so listed with Noble Realty Corporation.
As to Count III, plaintiff alleges that the above acts as set Forth above established a course of conduct by defendant upon which his revocation or registration should issue.
CONCLUSIONS OF LAW
As charged in Count I, Defendant is charged with violation of Subsection 475.42(1)(b), Florida Statutes, in that he operated as a real estate salesman or broker while not registered. The evidence on this point is that Defendant Bernard Bauman was soliciting sales listings and was thereFore operating as a real estate broker or salesman as defined in Subsection 475.42(3)(a), Florida Statutes. He was not the holder of a valid current registration certificate as defined in Section 475.42(3)(b), Florida Statutes during the period of solicitation.
Since the corporate entity was not holder of registration as a broker, it follows that neither Frank Viruet, Bernard Bauman or in this case Jeffrey Bauman were holders of valid current registration certificates. Accordingly, it is concluded that Jeffrey Bauman is guilty of operating as a real estate broker salesman in violation of Subsection 475.42(1)(b), Florida Statutes.
