P | LED OO UNIS py 72 05 Oly {S104 ADE iN a OF STATE OF FLORIDA HE MsTea ATIVE ‘DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION CONSTRUCTION INDUSTRY LICENSING BOARD DIVISION I DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, Qo- LY G 3 Petitioner, DBPR Case No. 98-17604 & 98-16795 v. ° | THOMAS H. SHAROW, Respondent. / $° ADMINISTRATIVE COMPLAINT & ee Petitioner, DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, ("Petitioner"), files this Administrative Complaint before the Construction mn Industry Licensing Board against THOMAS H. SHAROW, “ (“Respondent”), and says: 1 _ Petitioner is the state agency charged with regulating the practice of contracting pursuant to o Section 20. 165, ‘Florida Statutes, ‘and Ch Chapters 455 and 489, Florida Statutes. — Respondent J is and has been at all times material hereto, a Certified General Contractor in the State of Florida, having been issued license number CG C012384. _ 3. - “ Respondent’ s last ‘known address is 435 Tremingham Way, Venice, FL 34293. Ae _ AL all times material hereto, Respondent v was the licensed qualifier for Royal Caribbean ‘Homes, nc. (OB 0005806). ee ; ‘provides ‘hat all primary qualifying ‘5. Section 489. 1195011, Florida Stat agents for a business organization are jointly and equally responsible for supervision ¢ “Of all operations of the business organization; for all field work at all sites; and for financial matters, both for the organization in general and for each specific job. FACTS-PERTAINING TO CASE 98-16795- 6. On or about March 11, 1996, Ronald A. Reed ("Reed") entered into a written - contractual agreement with Royal Caribbean Homes, Inc. ("Royal Caribbean”) to construct a single family residence at 11210 River’s Bluff Circle, Bradenton, Florida. . 7. The ontract failed to contain a written statement explaining the consumer's rights under the Construction Industries Recovery Fund as required by Section 489. 1425(1), Florida Statutes. : 8. é. The contract failed to contain Respondent's license number as required by Section 489.119(6)(b), Florida Statutes. 9. The contract price, including change orders, was one hundred ninety-two thousand fifty-five dollars ($192,055.00). 10. On or about September 26, 1997, the Manatee County Building Department . issued permit number 9709017 and work began on the project. 41. In or about April 1998, Respondent ceased performing construction on the project. ones 12. At the time construction ceased, Royal Caribbean has accepted one hundred ten thousand dollars ($110,000.00) from Reed on the contract. 13. During the construction process, Respondent failed to pay subcontractors and/or materialmen for work performed on the Reed project. 2 vee through ‘twenty 3 f Statutes by co t failing to pay subcontractors for work and/or “14. As a rest of “Respo: . supplies, valid fiens- were ‘placed on Reed's property, including but not limited to, Rimal Lumber ($8,888.39) and Stark Truss Fla., Ine. ($7,809.20). 15. Respondent failed to have the liens removed from Reed's property within seventy-five (75) days of the dates of the respective liens. 16. _ On or about June 29, 1988, a foreclosure action was filed by Kimal Lumber _ --Company on Reed's property. Wn - On or about April 27, 1999, A Notice of Lis Pendens was sent to Reed ‘informing him of, the intent Stark Truss Fla., Inc. to foreclose on its lien on his property. 18. Reed paid Kimal Lumber and Stark Truss to prevent foreclosure on his home. “19. Reed. was forced to hire subsequent contractors and to perform much of the work himself to complete his residence. 20:. Reed paid a total of approximately one hundred eighty thousand eight hundred ninety dollars and fifty cents ($180, 890.50) to complete his residence and to satisfy the aforementioned lienholders which i is approximately ninety-eight thousand eight hundred thirty- five dollars and fifty cents (898, 835. 50) above the original contract price. _ COUNT! 7 21. Petitioner reglleges and incorporates the allegations set t forth in paragraphs one though fly set forth herein. 22. Based upon the foregoing, Respondent violated Section 489. 129(1)(h)3., Florida ing mismanagement or inisconduct in the © practice of contracting that causes financial harm toa customer. Financial mismanagement or ‘misconduct occurs when, re er CSE Corer a peer the contractor's job has been completed, and it is shown that the customer has had to pay more for the ‘contracted job than thé original contract price, as adjusted for subsequent change orders, unless such increase in cost was the result of circumstances beyond the control of the ‘contractor, was the result of circumstances caused by the customer, or was otherwise permitted by the terms of the contract between the contractor and the customer. | COUNT II 23. Petitioner realleges and incorporates the allegations set forth in paragraphs one through twenty as though fully set forth herein, 24. Based upon the foregoing, Respondent violated Section 489, 9. 129)¢h)1., Florida, Statutes, by commiting mismanagement or misconduct in the practice of contracting that causes financial ‘harm to a customer. Financial mismanagement or misconduct occurs when valid liens tigye been recorded against the property of a contractor’s customer for supplies or ~ services ofdered by the contractor for the customer’s job; the contractor has received funds from the customer t6 pay for the supplies or services; and the contractor has not had the liens removed from the property, by payment or by bond, within 75 days after the date of such liens. oe through twenty as though ‘utly set forth herein. oe 26. — Section 489. 1425(1), Florida Statutes, provides that any agreement or contract for repair, restoration, improvement, or construction to residential real property must contain a orth in ‘paragraphs one | ore mee pe ite-eere et = gen eects uneven -ceg ge ceceme emer Page gern goog em = written statement explaining the gorisimer’s righis under. the 3, Construction Industry Recovery Fund, expect where the value of of all labor and materials does not exceed $2, 500. 00. 27. Based upon the foregoing, the Respondent violated Section 489.129(1)(j), Florida Statutes, by failing in any material respect to comply with the provisions of this part or violating a rule or lawful order of the board, as here Section 489. 1425(1), Florida Statutes. COUNT IV 28. Petitioner realleges and incorporates the allegations set forth in paragraphs one ‘through iwenty as though fully set forth herein, 29. Section 489.119(1)(r), Florida Statutes, provides that the registration. or certification muber of each contractor or certificate of authority number for each business organization shall appear in each offer of services, business proposal, bid, contract, or adverisemetify regardless of medium, as defined by board rule, used by that contractor or business organization in the practice of contracting. . 30. Based upon the foregoing, the Respondent violated Section 489.129(1)(j), Florida Statutes, by failing in any material respect to comply with the provisions of this part or as here, Section 489. 119(1)(1), Florida Statutes. ’ violating ; a rule or r Lawful order of the board, - EACTS PERTAINING TO CASE 98-17604 ee oe en ne ae “On or about May 28, “1997, “Michael and Janine Mylett ("Mylett") entered into a i heteeosnct g8ls gl Ne written n contractual agreement with Royal ‘Caribbean to construct a single-family residence at 130 Mill Run East, Bradenton, Florida oa The toa contract price was two hundred twenty-one » thousand five hundred dollars ($221, 500. 00). cogieen 33. On or about August 1, 1997, the Manatee ‘County Building Department issued permit number 97061333 and work began on the project. i 34. In or about February 1998, Respondent ceased performing construction on the project. ) 35. . At the time construction ceased, Royal Caribbean had accepted two hundred three thousand five hundred dollars ($203,500.00) from Mylett on the contract. 36. During the construction process, Respondent failed to pay subcontractors for work and/or supplies performed on the Mylett project. 37. As,a result of Respondent failing to pay subcontractors for work and/or supplies, valid liens were placed on Mylett's property. - 38. Respondent failed to have the liens removed from Mylett's property within seventy-five (75) days of the dates of the respective liens. 39. AS a result of the aforementioned valid claims of liens, Mylett paid subcontractors to ave the liens removed from his property, including but not limited to, the following: a Overhead Door - $1,000.00 >. Franklin Lighting 92,538.63 c. Blue-Aqua $5,707.50 d. Sarasota Drywall $6,865.00 e. NCR/West Coast Insulation $2,435.00 wf. . Singletary Concrete | $9,907.23 40. Mylett was forced to hire subsequent contractors to complete his residence. OL RRS against Respondent in-the Circuit 41. On or about April 1998, Mylett filed t- Court of Manatee County, Florida, case number CA 98- 2636. 42. : On or about December 28, 1998, a Summary Final 1 Tudgment was entered against Royal Caribbean Homes, Inc., and in favor of Mylett i in Case Number CA 98-2636 in the Circuit Court of the Twelfth Judicial Circuit in and for Manatee County, Florida, in the principal amount of twenty-one thousand nine hundred twenty-four dollars and three cents ($21,924.03), plus prejudgment interest, attorneys" fees and costs. | . 43. ~ The foregoing judgment was related to the practice of contracting. 44. To,date, Respondent has failed to satisfy the judgment, in whole or part, and there is not mutually sareed payment plan to satisfy the judgment. COUNT V 45. é. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five and thirty-one though forty-four as though fully set forth herein. 46. Based upon the foregoing, Respondent violated Section 489. 129(1)(h)1., Florida Statutes, by committing mismanagement or misconduct in the practice of contracting that causes s financial harm to a customer. _ Financial mismanagement or r misconduct occurs when _ valid liens have been recorded against the property of a contractor’ s $ customer for supplies or services ordered b the contractor for the customer’ s job; the contractor has received funds Be ot from m the cu mer to pay for the supplies 0 or services; and the ¢ contractor has not t had the liens dio. rémoved from ny, oy. payment « or by vond, within 5 days afer the date of such liens. oe ta le th di Bo COUNTVI ss - 47. Petitioner realleges and incorporates the allegations se set forth in paragraphs one ts through five and thirty-one though fotty- four as though fully set forth herein. 48. Rule 61G4-17. 001(23), Florida Administrative Code, states in part that for the purposes of Section 489.129(1)(1), Florida Statutes, “reasonable time” means ninety (90) days . following the entry of a civil judgment that is not appealed. 49. Based “upon the foregoing, the Respondent violated Section 489. L9A\),, Florida Sia, by failing to satisfy within a . reasonable time, the terms of a civil judgment obtained agains the licensee, or + the business organization qualified by the licensee, relating to the practice of the licensee’s profession. WHEREFORE, Petitioner respectfully requests the Construction Industry Licensing Board “Order imposing one or more of the following penalties: place the license on probation, ‘reprimand the licensee, revoke, suspend, deny the issuance or renewal of the certificate fo enter an or registration, require financial r restitution to the consumer, impose an administrative fine not to ‘exceed ‘$5, 000 per violation, require “continuing “education, assess costs associated with _ investigation and prosecution, impose any oF all penalties delineated within Section 455.227(2), Florida. Standes, and/or any other relief that the. Board is authorized to impose pursuant to RS SEY Chapters 489, 455, Florida. Statutes, and/or the rules promulgated ‘thereunder. ah Signed this 7% dayof__ 7779) , 2000. Lokks & D oud By: Cathleen E. O’Dowd _ Lead Construction Attorney (PeP) Apri Ale, 80CcO 8 ~ Divisionz: Gene Simmons + Pou! mic Kitr ip oreepeepeeae etemme ee tne _ Ww. COUNSEL FOR DEPARTMENT: ~* Robert A. Crabill Assistant General Counsel FL Bar Number: 0134473 Department of Business and Professional Regulation Northwood Centre 1940 North Monroe Street Tallahassee, FL 32399-2202 RAC/jmh Case # 98-17604 & 98-16795 t=

Docket for Case No: 00-002493