STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

FLORIDA REAL ESTATE COMMISSION, )

)

Petitioner, )

) CASE NOS. 77-1809

vs. ) 77-1811

) P.D. NOS. 3088

MILTON W. GOLDMAN and ) 3090

FLORENCE K. GOLDMAN, )

)

Respondents. )

)

RECOMMENDED ORDER

Pursuant to notice, an administrative hearing was held before Michael R.N. McDonnell, Hearing Officer for the Division of Administrative Hearings, at 9:30 a.m., on June 26, 1978, at 717 Ponce de Leon Boulevard, Third Floor, Coral Gables, Florida.

With the agreement of the parties, these two causes were consolidated for hearing.

Petitioner was represented by Kenneth Meer, Esquire, and Mr. Langford, Esquire, Florida Real Estate Commission, 400 West Robinson Street, Post Office Box 1900, Orlando, Florida. Respondents appeared in their own behalf.

Petitioner, Florida Real Estate Commission (hereafter FREC), seeks to revoke, suspend or otherwise discipline Respondents, Milton W. Goldman (hereafter M. Goldman), and Florence K. Goldman (hereafter F. Goldman), for alleged violations of Chapter 475, Florida Statutes, the Florida Real Estate License Law. It is alleged that Respondents were, while registered as real estate salespersons, involved in an "advance fee" real estate operation in which Respondents 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 Respondents knew that no bona fide effort would be made to sell any of the properties listed with their company, First Allstate Realty Corporation (hereafter FAR) and that, therefore, Respondents conspired with FAR to engage in dishonest dealings.

Finally, it is alleged that, because of the alleged misrepresentations and the alleged conspiracy, Respondents are guilty of dishonest and untruthful

conduct and that, therefore, money, property, transactions and rights of investors or those with whom they may sustain a confidential relation may not safely be entrusted to them.

At the final hearing, Petitioner's Motion to Amend the Administrative Complaint was granted as to M. Goldman, adding the additional allegation that M. Goldman was guilty of a violation of a duty imposed by law by virtue of M. Goldman's being found guilty of violating Section 501.204, Florida Statutes, by engaging in unfair and deceptive trade practices and unfair methods of competition.

CONCLUSIONS OF LAW

1. From March 4, 1976, until the business closed in 1976, M. Goldman was a registered real estate salesman in the employ of FAR. From March 25, 1976, until the business closed in 1976, F. Goldman was a registered real estate salesperson in the employ of FAR. FAR was a registered corporate broker, located in Dade County, Florida.

   
   

2. During those periods of times, 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 then 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.

   
   

3. 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.

   
   

4. 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.

   
   

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

   
   

6. There was a total absence of evidence and, hence, a failure of proof as to the allegations of misrepresentations by Respondents. FREC introduced no evidence to show that Respondents represented that the property could be sold for several times the purchase price, chat 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 Respondents either made the representations or knew them to be false. There was no evidence introduced to show that Respondents 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 Respondents were dishonest or untruthful.

   
   

7. No evidence was introduced to establish the amended allegation that M. Goldman 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 Respondents violated Chapter 475, Florida Statutes. It is, accordingly,

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

DONE and ENTERED this 5th 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:

Kenneth Meer, Esquire Mr. Langford, Esquire

Florida Real Estate Commission

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

Milton Goldman

c/o General Development Corp. 1111 South Bayshore Drive Miami, Florida 33131

Florence K. Goldman

1850 North East 142nd Street Apartment 2E

North Miami, Florida 33161

Docket for Case No: 77-001809

Orders for Case No: 77-001809