STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

SCOTT WILLIAM KATZ, )

)

Petitioner, )

)

vs. ) CASE NO. 87-5408

) DEPARTMENT OF BANKING AND FINANCE, ) OFFICE OF THE COMPTROLLER, )

)

Respondent. )

)

RECOMMENDED ORDER OF DISMISSAL

This cause has come before the undersigned for consideration based on a response to an Order to Show Cause filed herein dated January 5, 1988.

APPEARANCES

For Petitioner: Scott William Katz, pro se

361 Midpines Road

Palm Springs, Florida 33461

For Respondent: Lawrence S. Krieger

Assistant General Counsel Department of Banking and Finance Office of Comptroller

111 Georgia Avenue

West Palm Beach, Florida 33401-5293 INTRODUCTION AND BACKGROUND

1. This matter commenced on November 6, 1987, when Respondent, Department of Banking and Finance, Office of the Comptroller, advised Petitioner that his application for licensure as a mortgage broker was denied. The basis for denial, as stated in the referenced letter, was that Petitioner was disbarred by the Florida Supreme Court on June 26, 1986; Petitioner's notarized statement of August 19, 1987 relating that he was disbarred by the Oklahoma Supreme Court on February 19, 1987, and Petitioner's written statement of August 29, 1987, advising that Petitioner entered a plea of no contest on five (5) charges of practicing law while disbarred and was given 12 months probation. According to the letter, the above grounds provided basis for denial of his application pursuant to Subsections 494.052 and 494.055(1), (b), (c), and (i), Florida Statutes.

   
   

2. Petitioner, by letter dated November 13, 1987, timely requested a formal hearing pursuant to Subsection 120.57(1), Florida Statutes and the matter was referred to the Division of Administrative Hearings on December 4, 1987.

   The following day, December 5, 1987, Petitioner demanded of the Director, Division of Administrative Hearings, that the matter be assigned to an appropriate hearing officer within 24 hours of receipt of his letter and

   threatening that in the event that he failed to receive a copy of a hearing notice within 24 hours of receipt of his letter, he would file suit in the U.S. Federal District Court. In that letter, Petitioner threatened to have this matter investigated by the Federal Bureau of Investigation and again demanded that an appropriate hearing date be immediately forwarded to him.

   
   

3. Official recognition was taken of the decision of The Florida Bar v. Katz. 491 So.2d 1101(Fla. 1986). A review of that decision indicates that Petitioner was admitted to The Florida Bar in 1980 and he was also a member of the Oklahoma Bar. During August, 1985, the Florida Bar filed a 3 count complaint against Katz alleging he violated certain disciplinary rules. The complaint stemmed from charges that Katz (1) represented a wife in a dissolution of marriage proceeding and subsequent proceedings to modify the final judgement and to collect various arrearages, and then, without advising the wife, commenced proceedings against the wife on behalf of the former husband to reduce the support payments, (b) coerced an agreement from a former client to pay damages on a claim which had no legal basis, and (c), misrepresented materials facts in a sworn pleading to a Federal Judge to obtain the relief sought. After a hearing on November 8, 1985, the referee entered his report on January 21, 1986, finding Petitioner guilty of all charges and recommending he be disbarred. This recommendation was approved by the Supreme Court on June 26, 1986 on The Florida Bar v. Katz, 491 So.2d 1101(Fla. 1986), and Katz was disbarred effective July 25, 1986. That decision triggered a disbarment order by the Oklahoma Bar in 1987 and Katz' loss of his right to practice law in that State.

   
   

4. Additionally, in a separate proceeding instituted under former Integration Rule 11.14 (now codified in rules regulating the Florida Bar), the Circuit Court in and for Palm Beach County found Katz guilty of filing a falsified affidavit and proposed order for attorney fees in a criminal case then pending before the Circuit Court ordered that Katz be disbarred and that such disbarment be consecutive to that order by the Supreme Court in its decision rendered on June 26, 1986.

   
   

5. Additionally, on May 12, 1987, Petitioner pled nolo contendere to 5 counts of practicing law while disbarred, a misdemeanor offense, and was placed on 12 months probation. That term of probation is effective thru May 12, 1988.

   
   

6. Petitioner has failed to state in his response to the Order to Show Cause any basis to conclude that his character has been rehabilitated or that there are changed circumstances upon which it can reasonably be concluded that he is entitled to approval of his application for licensure as a mortgage broker.

   
   

   CONCLUSIONS OF LAW

   
   

7. The Division of Administrative Hearings has jurisdiction of the subject matter and the parties thereto pursuant to Subsection 120.57(1), Florida Statutes (Supp. 1986).

   
   

8. The authority of the Respondent is derived from Chapter 494, Florida Statutes.

   
   

9. The Department of Banking and Finance may deny a license to one who is guilty of a violation of Section 494.055(1), Florida Statutes. See Section 494.052(6), Florida Statutes.

10. Petitioner, having been disbarred by the Supreme Court of Florida which also triggered his disbarment in the State of Oklahoma, has been subject to disciplinary action within the purview of Section 494.055(1), Florida Statutes, and the Respondent may, based on that action, deny a mortgage broker's license to Petitioner. Section 494.055(1)(i), Florida Statutes. In issuance of its Order, the Supreme Court made specific findings of fraud, dishonesty and moral turpitude on Petitioner's part. That Order is therefore, as a matter of law, sufficient grounds to deny Petitioner's application. That determination, having been made less than two years ago, should not be revisited herein in the absence of any showing by Petitioner's pleadings herein which in any manner tends to show that there are changed circumstances. This is especially so herein based on the face that Petitioner, continued to practice law after his disbarment and his admission that he filed civil law suits against individuals who filed complaints against him with the State Attorney's Office lends further support to the conclusion that Petitioner has not now rehabilitated himself or is otherwise competent to handle the financial affairs of others with due regard to the paramount interests of the public to the experience, background, honesty, truthfulness, integrity and competency of those entrusted to handle financial transactions. For these reasons, it is concluded as a matter of law that Respondent has not, and cannot satisfy his burden of demonstrating eligibility for licensure as a mortgage broker and it is so concluded. Petitioner's application must therefore be denied.

RECOMMENDATION

Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED:

Petitioner's application to take the examination to be licensed as a mortgage broker be DENIED.

DONE and ORDERED this 28th day of January, 1988, in Tallahassee, Florida.

JAMES E. BRADWELL

Hearing Officer

Division of Administrative Hearings The Oakland Building

2009 Apalachee Parkway

Tallahassee, Florida 32301

(904)488-9675

Filed with the Clerk of the Division of Administrative Hearings this 29th day January, 1988.

COPIES FURNISHED:

Scott William Katz

361 Midpines Road

Palm Springs, Florida 33461

Lawrence S. Krieger Assistant General Counsel

Department of Banking and Finance Office of Comptroller

111 Georgia Avenue

West Palm Beach, Florida 33401-5293

Honorable Gerald Lewis, Comptroller, State of Florida The Capital

Tallahassee, Florida 32399-0350

Charles L. Sutts General Counsel Plaza Level

The Capitol

Tallahassee, Florida 32399-0350

Docket for Case No: 87-005408

Orders for Case No: 87-005408