Nv) Y rom STATE OF FLORIDA Fif rs ip) DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATIQN | °° ~ FLORIDA REAL ESTATE COMMISSION ue “9PM Iso FLORIDA DEPARTMENT OF BUSINESS A ok a Ng SIGN OS AND PROFESSIONAL REGULATION, HEY ° TRAY rive DIVISION OF REAL ESTATE, SRINGS Petitioner, vs. FDBPR Case N° 99-83127 99-83126 JOHN R. WOOD, 99-83125 DOROTHY D. BABCOCK, 2000-82457 PATRICIA A. BIERNAT, AND JOHN R. WOOD, INC., Respondents. / ADMINISTRATIVE COMPLAINT State of Florida, Department of Business and Professional Regulation, Division of Real Estate (hereinafter "Petitioner") files this Administrative Complaint against John R. Wood, Dorothy D. Babcock, Patricia A. Biernat and John R. Wood, Inc. (hereinafter "Respondents") and alleges: ESSENTIAL ALLEGATIONS OF MATERIAL FACT 1. Petitioner is a state government licensing and regulatory agency charged with the responsibility and duty to prosecute Administrative Complaints pursuant to the laws of the State of Florida, in particular § 20.165, Fla. Stat., Chapters 120, 455 and 475, Fla. Stat., and the rules promulgated pursuant thereto. 2. Respondent John R. Wood (“Wood”) is and was at all times material hereto a licensed Florida real estate broker, issued license number 0098021 in accordance with Chapter 475, Fla. Stat. The last license issued was as a broker, c/o John R. Wood, Inc., 3255 Tamiami Trail N., ND, ww) FDBPR v. John R. Wood Case No. 9983127 Administrative Complaint Naples, Florida 34103. 3. Respondent Dorothy D. Babcock (“Babcock”) is and was at all times material hereto a licensed Florida real estate broker, issued license number 0232047 in accordance with Chapter 475, Fla. Stat. The last license issued was as a broker, c/o John R. Wood, Inc., 3255 Tamiami Trail N., Naples, Florida 34103. 4. Respondent Patricia A. Biernat (“Biernat”) is and was at all times material hereto a licensed Florida real estate broker, issued license number 0503039 in accordance with Chapter 475, Fla. Stat. The last license issued was as a broker-salesperson, c/o St. Joe Real Estate Services, Inc., 300 S. Park Place Blvd. #150, Clearwater, Florida 33759. 5. Respondent John R. Wood Inc. is and was at all times material hereto a corporation registered as a Florida real estate broker having been issued license number 0195090 in accordance with Chapter 475, Fla. Stat. The last license issued was at the address of 3255 Tamiami Trail N., Naples, Florida 34103. 6. At all times material hereto, Respondents Wood and Babcock were licensed and operating as qualifying brokers and officers of Respondent John R. Wood, Inc. 7, At all times material hereto, Respondent Biernat’s employer was Respondent John R. Wood, Inc. 8. On or about May 2, 1999, Cecile LeBlanc (“seller”) entered into a listing agreement with Arvida Realty to list his real property located at 705 Pine Creek Lane, Naples, Florida for sale (“real property”). 9. On or about May 6, 1999, Respondent Biernat as real estate salesperson working under the direction, control and management of Respondents Wood and Babcock, presented seller a FDBPR v. John R. Wood Case No. 9983127 Administrative Complaint contract from Reynolds Machine Co. (“buyer”) offering to purchase seller’s real property. (A copy of the contract is attached hereto, incorporated herein and made a part hereof by reference as Administrative Complaint Exhibit 1. 10. Pursuant to the contract the buyer had provided an initial deposit of $5,000 and Respondent Biernat acknowledged receipt of the buyer’s initial deposit. 11. The contract failed to close and the seller made a demand upon the buyer’s $5000 deposit. A copy of the demand is attached hereto, incorporated herein and made a part hereof by reference as Administrative Complaint Exhibit 2. 12. On or about May 26, 1999, Respondent Babcock sent a memorandum to seller’s agent advising that the buyer never provided the initial $5,000 as indicated in the contract. A copy of the memorandum is attached hereto, incorporated herein and made a part hereof by reference as Administrative Complaint Exhibit 3. 13. On or about May 28, 1999, Respondent Babcock sent a second memorandum to seller’s agent indicating Respondent John R. Wood, Inc. never received the $5,000 initial deposit from the buyer. A copy of the second memorandum is attached hereto, incorporated herein and made a part hereof by reference as Administrative Complaint Exhibit 4. COUNT I Based upon the foregoing, Respondent John R. Wood is guilty of culpable negligence, or breach of trust in any business transaction in violation of § 475.25(1)(b), Fla. Stat. FDBPR v. John R. Wood Case No. 9983127 Administrative Complaint COUNT I Based upon the foregoing, Respondent Dorothy D. Babcock is guilty of culpable negligence, or breach of trust in any business transaction in violation of § 475.25(1)(b), Fla. Stat. COUNT II Based upon the foregoing, Respondent Patricia A. Biernat is guilty of fraud, misrepresentation, concealment, false promises, false pretenses, dishonest dealing by trick, scheme or device, culpable negligence, or breach of trust in any business transaction in violation of § 475.25(1)(b), Fla. Stat. COUNT IV Based upon the foregoing, Respondent John R. Wood, Inc. is guilty of culpable negligence, or breach of trust in any business transaction in violation of § 475.25(1)(b), Fla. Stat. WHEREFORE, Petitioner respectfully requests the Florida Real Estate Commission, or the Department of Business and Professional Regulation, as may be appropriate, to issue a Final Order as final agency action finding the Respondent(s) guilty as charged. The penalties which may be imposed for violation(s) of Chapter 475, Fla. Stat., depending upon the severity of the offense(s), include: revocation of the license or registration or permit; suspension of the license, registration or permit for a period not to exceed ten (10) years, imposition of an administrative fine of up to $1,000 for each count or offense; imposition of investigative costs; issuance of a reprimand; imposition of probation subject to terms including, but not limited to, requiring the licensee, FDBPR v: John R. Wood Case No. 9983127 Administrative Complaint registrant or permitee to complete and pass additional real estate education courses; publication; or any combination of the foregoing which may apply. See § 475.25(1), Fla. Stat. and Rule 61J2- 24.001, Fla. Admin. Code. The penalties which may be imposed for violation(s) of Chapter 455, Fla, Stat., depending upon the severity of the offense(s), include: revocation of the license, registration, or permit; suspension of the license, registration, or permit for a period not to exceed ten (10) years; imposition of an administrative fine of up to $5,000 for each count or offense; imposition of investigative costs; issuance of a reprimand; imposition of probation subject to terms including, but not limited to, requiring the licensee, registrant, or permitee to complete and pass additional real estate education courses; publication; restriction of practice; injunctive or mandamus relief; imposition of a cease and desist order; or any combination of the foregoing which may apply. See § 455.227, Fla. Stat. and Rule 61J2-24.001, Fla. Admin. Code. SIGNED this_/ 2° day of Jp ue. , 2000. PYepartment of Mea Professional Regulation By: Herbert S. Fecker, Jr. Director, Division of Real Estate FDBPR v. John R. Wood Case No. 9983127 Administrative Complaint ATTORNEY FOR PETITIONER aei>uie 142572, | ‘aniel Villazon N° 0956090 Chief Attorney, Real Estate Department of Business and Professional Regulation, Legal Section - Suite N 308 Hurston Bldg. North Tower 400 West Robinson Street Orlando, Florida 32801-1772 (407) 481-5632 (407) 317-7260 FAX DV/k PCP: MV/JS 6/00 NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under § 120.573, Fla. Stat, is not available for administrative disputes involving this type of agency action. PLEASE BE FURTHER ADVISED that pursuant to this Administrative Complaint you may request, within the time proscribed, a hearing to be conducted in this matter in accordance with Sections 120.569 and 120.57, Fla. Stat.; that you have the right, at your option and expense, to be represented by counsel or other qualified representative in this matter; and that you have the right, at your option and expense, to take testimony, to call and cross-examine witnesses, and to have subpoena and subpoena duces tecum issued on your behalf if a formal hearing is requested. PLEASE BE FURTHER ADVISED that if you do not file an Election of Rights form or some other responsive pleading with the Petitioner within twenty-one (21) days of receipt of this Administrative Complaint, the Petitioner will file with the Florida Real Estate Commission a motion requesting an informal hearing and entry of an appropriate Final Order which may result in the suspension or revocation of your real estate license or registration. Please see the enclosed Explanation of Rights and Election of Rights form. ; lth infos? Cler Cunt for yon, Fee rs your fering abc ant SA | : (NOT FOR CONDO; i rooms: 206 Dieu. Creek Ln together with fixtures, including builtin appllances, Fetrigerator, atove, washer, dryer, from lens. Tha following items 1) PURCHASE PRICE: The total purchase thal be {U.2.) paysive as follows: ~ eee seneescee (8) Intel depose in SacrOW at This ime of moet eteemsaneeenans 0) cnr Ercerfent bs ncshadhn socom anor bee ge ‘ter Efoctve Dety an dened below ine smnourt Jusc is 49 Sole 2 CAGSING ANO POSSESSION DATE: Clasng whan a sit £0 pce select by Buyee WY Coun in the nected, But pon resonable noice fo Fe Some Cae Per tat de wh ne wrtaen conamet ore Pereroagy net]. Porton he et was eT 8. SNSTRUCTIONS FOR TITLE: Ay tenet 15 se an Bape rad dart Sater a ramet ft), maneoe in which ie . onan and Bey seeorenta) thay rota MO MINPIDT te nat Daa nD colo a oa a Bi en MAIO oe 844 sons Pt bak Pasta YO ee ww! VENveurs 4M N08 eae x wr) lave ree Br a . | * eeansaara Pat BIeeNaT MET TL Vv te > ERT 8 90 cats cepese peeps ty Bae ae ae ann an quenve 00 on 0 Bu tween, . Rp (ns0n eane of Heme hag Spat 686 eter ee ee eed oA YOR an temas (etomiome em. Ad Rely Rares Agena byte tame wary ——— a - pebatong “ ———, foec L§ ——_ sates ise ste! \ cae be z = = =< ——, —. w! = i — . a. 3p OF. ~. See ay 3 o See ee ne ee so . ° . Co £3 es t mS ns . _ = Qo _— : BE G Peg Oo << Pa ee S Lh ow / Val 4 9 tole Te FR \ ; Shin ig Ely Sates as on tly Kael Mil. Kejuolio © Vt Got date ‘sjiolsg sheen CY = ) Te (Ee Bil by , [Litto ak a! ( (é) ELBIT 7 Y of aaa ee r7 fy) by 5 eoid! a thy [0 , 7 ds ood [Le obrieencwaty fe Saget ; Sfal 7 EMET 2 ale > lu Oo < Oe TOTAL P.g@2 WD, WW ry ry ; id . CHB iT 3 FILED F.A.R. STANDARD FORM NO. 9 (Revised 2/72) ; 00 AUG -9 PM I: 27 RELEASE OF DEPOSIT RECEIPT DVISick DE REACTOR? ADMINISTRATIVE THIS RELEASE js entered into between the undersigned Purchasers, Hthd RIND Ssigned Sellers and the undersigned Realtor, who were parties to that certain Deposit Receipt dated__ —Mayt0. 19.99 _, covering the following described property: FLORIDA —————_____ Pelican Bay Unit 6 Site 34 OR 2042 PG 99 AKA 705 Pine Creek Lane Naples, FL 34108 WITNESSETH: That cach of the parties hereto jin consideration of each of the parties releasing all of the other parties from the aforesaid Deposit Receipt, do hereby release each of the other parties to said Deposit Receipt from any and all claims, actions oy derffands whatsoever which each of the parties hereto may have up to the date of this agreement against any of the other parties hereto by reason of said Deposit Receipt. : It is the intention of this agreement that any responsibility or obligations or rights arising by virtue of said Deposit Receipt are by this release declared null and void and of no further effect when signed by all of the above named parties. The escrow agent holding the deposit under the lerms of said Deposit Receipt is hereby directed and instructed forthwith to disburse said deposit held in escrow in the following manner: 5,000 . fia COTO Cecile LeBlanc $ TO. fesse TOL. IN WITNESS WIHEREOF the parties have hereunto set their h ands and seals the day and year below written, Witnessed By: Executed by Purchasers Datey ~ ++ (SEAL) Reynorld Machine Co. Inc. (SAL) Purchasers pet seers SI ( SS am Ir yo (Date) One enRmiy ¢¥ Memorandum Date: May 26, 1999 To: Arlene Carozza Arvida Realty Services From: Dottie Babcock eh Ay lets ye John R. Wood, Inc., Realtors ea ne Re: 705 Pine Creek Lane Following our conversation yesterday, I spoke with Pat Biernat. She indicated that in her conversations with the Buyer, he feels that he responded within the seven ; 4 day time frame stipulated in the contract. He bases this on the fact that final €. ¢+ acceptance was not communicated to him until May 11,1999. However, the issue - is further clouded by the fact that the wire transfer from the Buyer to our escrow account (due May 6, 1999) has never been received, I learned this when I spoke with Pat yesterday. She had assumed that it had been received, but upon contacting our accounting department when she received the Seller’s demand for the monies was told that it never arrived. Where do we go from here? Kecaied 0/4199 bitevosee coef Arle ; C//5G EC é g - ——_ a eS ART BO praer ; bem (7 aoe al rm vr mre EXKRAITY Jo 4g Lays okie Mein on Het De af tei, he con: i ve notified you within five days of non- Nj 7 / receipt of the deposit. This does not, however. constitute any violation under g]! uy , AANA RE. PAR £ 24h 4UL 4740 vumy K fnuuu igooz Nd Memorandum ud pe L (I pl VY To: Arlene Carozza Arvida Realty Services From: Dottie Babcock pte John R. Wood, Inc., Realtors Re: 705 Pine Creek Lane Date: May 28, 1999 Dear Arlene: As I mentioned in my prior fax, we never received the wire transfer of $5,000.00 from Reynold’s Machine Co., Inc. Therefore, we are not holding funds against which the seller can make a demand. Any claim would need to be made through - 5 g civil action against the buyer. L £. seg $l j a { F.R.E.C. Despite this oversight on the part of our agent, the reality is that the buyer could have terminated the offer and received a refund at any time during the contingency period. Further, it might be difficult for the seller to prove damages when written termination of the contract w ceived only a few hours after expirati ingency (which the buyer maintains began on ie 5/11/99 when acceptance was communicated to him), and the property remained actively for sale throughout this period, It would seem to be in the seller’s best interest to move forward, rather than become involved in a potentially lengthy and costly civil suit against the buyer. I will be happy to discuss this further by phone or personally if you feel it would be helpful. 9 ADMINIST ATIVE COMPLAINT aHEEy ts 7 Ry

Docket for Case No: 00-003256