STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

FLORIDA REAL ESTATE COMMISSION, )

)

Petitioner, )

)

vs. ) CASE NO. 77-1801

) P.D. NO. 3080

ERICA LEICHUS, )

)

Respondent. )

)

RECOMMENDED ORDER

Pursuant to notice, an administrative hearing was held before Michael R.N. McDonnell, Hearing Officer for the Division of Administrative Hearings, at 8:30 a.m., on June 22, 1978, at 717 Ponce de Leon Boulevard, Third Floor, Coral Gables, Florida.

Petitioner was represented by John L. Huskins, Esquire, Florida Real Estate Commission, 400 West Robinson Street, Post Office Box 1900, Orlando, Florida.

Respondent made no appearance at the hearing.

Petitioner, Florida Real Estate Commission (hereafter FREC), seeks to revoke, suspend or otherwise discipline Respondent, Erica Leichus (hereafter Leichus), for alleged violations of Chapter 475, Florida Statutes, the Florida Real Estate Law. It is alleged that Leichus was, while registered as a real estate salesperson, involved in an "advance fee" real estate operation in which Leichus misrepresented to prospective clients that:

1. the property could be sold for several times the purchase price,

2. the property would be advertised nationwide and in foreign countries,

3. the Company had foreign buyers wanting to purchase United States property listed with the Company.

It is further alleged that Leichus knew that no bona fide effort would be made to sell any of the properties listed with her company, First Allstate Realty Corporation (hereafter FAR) and that, therefore, Leichus conspired with FAR to engage in dishonest dealings.

Finally, it is alleged that, because of the alleged misrepresentations and the alleged conspiracy, Leichus is guilty of dishonest and untruthful conduct and that, therefore, money, property, transactions and rights of investors or those with whom she may sustain a confidential relation may not safely be entrusted to her.

At the final hearing, Petitioner's Motion to Amend the Administrative Complaint was granted adding the additional allegation that Leichus was guilty of a violation of a duty imposed by law by virtue of Leichus' being found guilty

of violating Section 501.204, Florida Statutes, by engaging in unfair and deceptive trade practices and unfair methods of competition.

FINDINGS OF FACT

1. From December 29, 1975, to January 15, 1976, and from February 5, 1976, to September 30, 1976, Leichus was a registered real estate salesperson in the employ of FAR, a registered corporate broker, located in Dade County, Florida. During those periods of time, FAR was engaged in an enterprise whereby advanced fee listings were obtained from Florida property owners. Salesmen known as "fronters or qualifiers" were employed to place calls to Florida property owners whose names and phone numbers had been provided to the salesmen by FAR. The prospects were asked if they cared to list their real estate with FAR in anticipation of resale. It was explained that there would be a refundable fee to be paid by the property owner for the listing. The refund was to occur upon sale of the property. If the prospect was interested, then certain literature was mailed out to them.

   
   

2. Other salesmen were employed as "drivers" who would make the second contact of the prospect who indicated an interest in listing his property. The driver would secure a signed listing agreement along with a check for $375.00 which constituted the refundable listing fee.

   
   

3. There was no evidence that any of the listings obtained by FAR were ever resold. There were, however, three parcels of land in negotiation for sale when the operations of FAR were terminated in June, 1976. There was to be a division separate and apart from the "fronters" and "drivers" to do the actual selling of the property.

   
   

4. The listings were advertised in the Fort Lauderdale area but there was no evidence to establish whether or not other advertising occurred.

   
   

5. There was a total absence of evidence and, hence, a failure of proof as to the allegations of misrepresentations by Leichus. FREC introduced no evidence to show that Leichus represented that the property could be sold for several times the purchase price, that it would be advertised nationwide and in foreign countries or that the company had foreign buyers wanting to purchase United States property listed with the company. There was no evidence introduced to show that Leichus either made the representations or knew them to be false. There is no evidence introduced to show that Leichus knew that no bona fide effort would be made to sell the property listed. There was no evidence of any nature introduced by FREC to show that Leichus was dishonest or untruthful.

   
   

6. No evidence was introduced to establish the amended allegation that Leichus was guilty of a violation of a duty imposed by law.

CONCLUSIONS OF LAW

Based on the foregoing findings of fact, it is concluded that FREC has failed to establish that Leichus violated Chapter 475, Florida Statutes. It is, accordingly,

RECOMMENDED that no action be taken to revoke, suspend or otherwise discipline Leichus' license or Leichus' right to practice thereunder.

DONE and ENTERED this 2 day of October, 1978, in Tallahassee, Florida.

MICHAEL R. N. MCDONNELL

Hearing Officer

Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304

(904) 488-9675

COPIES FURNISHED:

John L. Huskins, Esquire Florida Real Estate Commission

400 West Robinson Street Post Office Box 1900 Orlando, Florida 32801

Ms. Erica Leichus 7441 Wayne Avenue

Miami Beach, Florida 33141

Docket for Case No: 77-001801

Orders for Case No: 77-001801