STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

FLORIDA REAL ESTATE COMMISSION, )

)

Petitioner, )

)

vs. ) CASE NO. 79-508

) P.D. NO. 3389

JOHN P. KALUNIAN, )

)

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 9:00 a.m., on June 19, 1979, in Room 931, Broward County Courthouse, 201 S.E. 6th Street, Ft. Lauderdale, Florida.

Petitioner was represented by Harold E. Scherr, Esquire, Florida Real Estate Commission, 400 West Robinson Street, Post Office Box 1900, Orlando, Florida, 32802. Respondent neither appeared nor was represented at the hearing, and accordingly, the cause was heard as uncontested.

Petitioner, the Florida Real Estate Commission (hereafter FREC), seeks to revoke, suspend or otherwise discipline Kalunian's license as a real estate broker and his right to practice thereunder because Kalunian failed to properly maintain escrow monies which were entrusted to him.

FINDINGS OF FACT

1. At all times pertinent to these proceedings, Kalunian was registered as a real estate broker with FREC holding Certificate Number 0045958. Kalunian's registration with FREC was suspended by FREC in an emergency suspension order dated September 21, 1978.

   
   

2. On or about July 18, 1978, Harry and Joan Soden, as buyers, entered into a contract with Warren and Barbara Grund, as sellers, for the sale and purchase of real property. In connection with that sale, the buyers entrusted the sum of $2,000.00 with Kalunian as an escrow money deposit. The closing for this transaction was scheduled for October 1, 1978, and at no time prior to the scheduled closing did the parties to the transaction authorize the disbursement of the escrow money deposit.

   
   

3. On or about June 23, 1978, John and Wanda Carlantonio, as buyers, entered into a contract with Ralph and Margarie Steigerwald, as sellers, for the sale and purchase of real property. In connection with that contract, the buyers entrusted the sum of $7,000.00 with Kalunian as an escrow money deposit. The closing for this transaction took place on September 15, 1978. However, at the time of the closing, the $7,000.00 escrow money deposit was not accounted for. At no time prior to the closing did the parties to the transaction authorize a disbursement of the escrow money deposit.

4. On or about July 8, 1978, Diane Maholland, as buyer, entered into a contract with Rita Auletta, as seller, for the sale and purchase of real property. In connection with that contract the buyer entrusted the sum of

   $9,500.00 with Kalunian as an escrow money deposit. The closing of the transaction took place on September 6, 1978. However, at the time of the closing, the $9,500.00 escrow money deposit was not accounted for. At no time prior to the closing did the oarties to the transaction authorize a disbursement of the escrow money deposit.

   
   

5. On July 31, 1978, the balance in Kalunian's escrow account was $501.13.

   
   

6. On August 6, 1978, a letter from Kalunian was discovered in Kalunian's office. In that letter, Kalunian admitted that he had converted funds from his trust account for his own use.

   
   

   CONCLUSIONS OF LAW

   
   

7. By reason of the foregoing, Kalunian has failed to maintain funds in his escrow account until disbursement was properly authorized, in violation of Subsection 475.25(1)(i) Florida Statutes, and has been guilty of false promises, dishonest dealings and breach of trust in violation of Subsection 475.25(1)(a), Florida Statutes.

   
   

8. Furthermore, by reason of the foregoing facts, Kalunian is guilty of a course of conduct which shows that he is incompetent, negligent, dishonest and untruthful, and that the money, property, transactions and rights of investors or those with whom he may sustain a confidential relationship, may not safely be entrusted to him, in violation of Subsection 475.25(3), Florida Statutes. It is, therefore,

RECOMMENDED that FREC revoke the broker's license currently held by Kalunian.

DONE and ENTERED this 31st day of October, 1979, in Tallahassee, Florida.

MICHEAL R. N. McDONNELL

Hearing Officer

Division of Administrative Hearings Room 101 Collins Building Tallahassee, Florida 32301

(904) 488-9675

COPIES FURNISHED:

Harold E. Scherr, Esquire Florida Real Estate Commission

400 West Robinson Street Post Office Box 1900 Orlando, Florida 32802

John P. Kalunian t/a Bayview Realty

2731 E. Oakland Park Boulevard Ft. Lauderdale, Florida

Docket for Case No: 79-000508

Orders for Case No: 79-000508