vs. ) CASE NO. 77-1548
) P.D. NO. 3167
LOUIS S. WOOTEN, SR., )
Respondent. )
This case was heard pursuant to notice in the offices of the Florida Real Estate Commission, Commonwealth Building, Suite 307, 717 Ponce de Leon Boulevard, Coral Gables, Florida, on December 14, 1977, by Stephen F. Dean, assigned Hearing Officer of the Division of Administrative Hearings. This case was presented upon an administrative complaint filed by the Florida Real Estate Commission against Louis S. Wooten, Sr. alleging that Louis S. Wooten, Sr. was guilty of violation of the provisions of Section 475.25(1)(a)(i), Florida Statutes, by having been guilty of dishonest dealing and failing to deposit and maintain escrow funds in an escrow account as required by statute. The issued presented in the case was whether Louis S. Wooten, Sr. was guilty of the violations alleged in the administrative complaint filed by the Florida Real Estate Commission on April 5, 1977.
For Petitioner: Joseph A. Doherty, Esquire
Louis S. Wooten, Sr. was not represented and did not appear.
Louis S. Wooten, Sr. is a registered real estate broker holding license No. 0098381. Louis S. Wooten, Sr. did business at the times involved in the administrative complaint as Lou Wooten Realty.
Adequate notice of this hearing was given Louis S Wooten, Sr. in the manner required by Chapter 120 and Chapter 475, Florida Statutes.
Evidence was received concerning deposits and withdrawals by Louis S. Wooten, Sr. from the Louis S. Wooten, Sr. escrow account in Peoples First National Bank, Miami Shores, Florida, between August 1, 1975 and November 10, 1975, when this account was closed. These records were identified by John Fortnash, vice president of the bank. These records included the ledger for this account from May, 1975 to November, 1975, (Exhibit 1), the ledger from November, 1975, until November 1976, (Exhibit 2), the signature card showing Louis S.
Wooten to be the only person authorized to draw on the account, (Exhibit 3), and sixteen (16) individual deposit slips received as Composite Exhibit 4. These records show no activity in the account subsequent to December 23, 1975, when this account had a balance of $22.00. Thereafter, the balance of this account decreased by $2.00 per month, a service charge, until November 10, 1976, when the balance reached zero and the account was closed.
Concerning Count 1, Yvard Jeune and Rosita Jeune contracted on or about September 26, 1975, to purchase certain real property from Eddie Silver for
$28,500. The Jeunes paid $100 as an initial deposit to Lou Wooten, Sr., and agreed to pay an additional $1,900 for a total deposit of $2,000. This additional $1,900 was paid to Lou Wooten Realty by manager's check on or about September 30, 1975. This manager's check was identified by Barry Eber, chief savings and loan officer for First Savings and Loan of Miami, and received as Exhibit 5. The Jeune contract was contingent upon FHA financing for the Jeunes. FHA financing was not approved, and the Jeunes requested return of their $2,000 in accordance with the terms of the contract. The Jeunes never received their money from Louis S. Wooten, even though they eventually brought suit against Wooten and obtained a judgment against him. The records of Wooten's escrow account do not show the deposit of the $1,900 received from the Jeunes.
Regarding Count 2, on or about October 19, 1975, Emma Crockett made an offer to purchase certain real property and paid an earnest money deposit to Lou Wooten Realty in the amount of $1,000 which was receipted for by Mollie Johnson. Mollie Johnson identified the receipt signed by her and testified that this money was duly delivered to Lou Wooten. Subsequently, Crockett's offer of
$29,500 was rejected by the seller, and on December 24, 1975, a demand was made for return of the deposit. The cancellation mark on the check, identified by Crockett and received as Exhibit 24, indicates that it was received by Wooten Realty. Crockett's deposit was never returned to her by Wooten. As noted above, the Lou Wooten escrow account was closed with a zero balance.
Regarding Count 3, George D. Pratt, Jr. and his wife, Eloise, contracted to purchase certain real property from Gladys P. Smith on or about December 5, 1975. The Pratts paid an initial deposit of $100 to T.F. Chambers and subsequently paid an additional $665 in the form of a manager's check to Lou Wooten Realty. This manager's check was identified by Barry Eber, chief savings and loan officer, First Federal Savings and Loan of Miami, and received as Exhibit 6. Harriet Pooley, an employee of Lou Wooten Realty, identified a receipt to George D. Pratt, Jr. and Eloise in the amount of $665 which was received as Exhibit 18. A review of the ledgers of the Louis S. Wooten, Sr. escrow account indicates no deposits were made to this account subsequent to November 26, 1975.
Regarding Count 4, Bettye Green paid Lou Wooten Realty a deposit of
$150 on a transaction in which she and her husband offered to purchase real property owned by the Fidlers. The Greens defaulted on the contract, and were advised by their salesman, T.F. Chambers, that their deposit would be forfeited. No evidence was introduced by the Florida Real Estate Commission regarding any demand on the Fidler's behalf for the money.
Regarding Count 5, Mary Redfield, a friend and representative of Goldie Brown and Bernard Brown, identified a copy of a manager's check earlier identified by Barry Eber, chief loan officer of First Federal Savings and Loan of Miami and received as Exhibit 7, as a copy of an original check for $1,500 given to her by Goldie Brown which was deposited to Wooten's escrow account. Redfield also identified a contract, Exhibit 16, and a closing statement,
Exhibit 17, as documents given to her by Goldie Brown. T.F. Chambers was the salesman who handled this contract. Chambers appeared at closing, after having purchased Lou Wooten Realty from Louis S. Wooten, Sr.Chambers stated that the Wooten escrow account lacked sufficient funds to permit closing the transaction and that he had personally paid for a cashiers check in the amount of $680, the amount necessary to close the purchase. Chambers identified this check which, as a part of Exhibit 21, was received into evidence.
Regarding Count 6, Alladar Paczier, counsel for Istvan and Julia Beres, identified a deposit receipt contract for a bar and restaurant (Exhibit 26) and a receipt for a $3,500 deposit signed by Louis Wooten (Exhibit 27). Paczier represented that Wooten failed to produce the deposit money at closing, and that when demand was made by Paczier of Wooten for the deposit, Wooten stated to him that he did not have the money.
CONCLUSIONS OF LAW
Louis S. Wooten, Sr. is a registered real estate broker licensed by the Florida Real Estate Commission which has authority to bring charges and to enter its final order concerning this administrative complaint.
Louis S. Wooten, Sr. is charged with multiple violations of Section 474.25(1)(i)(a), and further, that by virtue of the course of conduct demonstrated in the charges against him, that he is guilty of dishonest dealing may have his license suspended. Section 474.25(1)(i) requires that a real estate broker deposit and maintain funds entrusted to him in an escrow account in a title company or banking institution located and doing business in Florida until disbursement of such funds is properly authorized. Section 474.25(3) provides that if a registrant engages in a course of conduct which shows that he cannot be trusted with the money of others, that he may have his registration revoked.
The FREC presented substantial and competent evidence to prove that Wooten failed on many occasions to deposit monies entrusted to him to his escrow account, and further, that when demand was made for these funds, that Wooten did not deliver the funds to the rightful claimant. The FREC also presented substantial and competent evidence that when Wooten did make deposits to this escrow account, that he did not maintain the funds in the account until authorized to disburse them, and did not deliver the funds to the rightful claimant. The FREC proved all the violations alleged in its complaint but those contained in Count V. In so doing, the FREC demonstrated that Louis S. Wooten, Sr. engaged in a course of conduct such that he cannot be entrusted with the money of others. The foregoing proves that Louis S. Wooten, Sr. is guilty of multiple violations of 475.25(1)(a) and (i) and thereby, is guilty of violating 475.25(3).
Based upon the foregoing findings of fact and conclusions of law, the Hearing Officer recommends that the Florida Real Estate Commission revoke the registration of Louis S. Wooten, Sr.
DONE and ORDERED this 17th day of January, 1978, in Tallahassee, Florida.
STEPHEN F. DEAN
Division of Administrative Hearings Room 530 Carlton Building Tallahassee, Florida 32304
Joseph A. Doherty, Esquire Florida Real Estate Commission
Louis S. Wooten, Sr.
