Uo U os Q is yy “has 2, yo STATE OF FLORIDA 4y 0, By, DEPARTMENT OF BUSINESS AND PROFESSIONAL RECUEKEER: o> Cy ye ae 2 o DEPARTMENT OF BUSINESS AND OM PROFESSIONAL REGULATION, Petitioner, Vv. DBPR Case No. 99-04361 PAUL PALESTRINI, Respondent. / ADMINISTRATIVE COMPLAINT ” Petitioner, DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, ("Petitioner"), files this Administrative Complaint against Respondent, PAUL PALESTRINI, ("Respondent"), and alleges: 1. Petitioner is the State agency charged with regulating the practice of Community Association Management pursuant to Section 20.165, and Chapters 455 and 468, Part VII, Florida Statutes. 2: Respondent is duly licensed as a Community Association Manager in the State of Florida, having been issued license number CAM 0016796 on March 20, 1996. 3. Respondent’s address of record is 4445 N. A1A, Suite 150-A, Vero Beach, FL ; 32963. 4. Respondent is the president of CAMCO Services, Inc., hereinafter referred to as “CAMCO,” a valid Florida corporation. . 5. At all times material hereto, Respondent was the CAM for Snug Harbor Condominium Association, hereinafter referred to as “the Association.” 6. Section 468.436(1)(b)(2), Florida Statutes, states that violating any lawful order 10. 11, U — VY or rule rendered or adopted by the department or the council shall constitute grounds for which disciplinary action may be taken. Section 468.436(1)(b\(5), Florida Statutes, states that committing acts of gross misconduct or gross negligence in connection with the profession shall constitute grounds for which disciplinary action may be taken. COUNT ONE Petitioner realleges and incorporates the allegations set forth in Paragraphs One through Seven, as though fully set forth in this Count One. Rule 61-20.503(6)(a), Florida Administrative Code, states that a licensee shall not withhold possession of any original books, records, accounts, funds, or other property of a community association when requested by the community association to deliver the same to the association upon reasonable notice, These provisions apply regardless of any contractual or other dispute between the licensee and the community association, It shall be considered gross misconduct for a licensee to violate the provisions of this subsection. On or about June 29, 1999, the Association requested proof of Workman’s Compensation Insurance for every CAMCO employee that worked in the Association’s community, proof of all current insurance for Board Officers and Director’s Liability, and the CPO Certificate for poo! maintenance. To date, these records have not been received by the Association. Based on the foregoing, Respondent violated Rule 61-20.503(6)(a), Florida Administrative Code, for which disciplinary actions may be taken pursuant to Sections 468.436(1)(b)(2) and 468.436(1)(bX5), Florida Statutes. 14. 15. 16. 17. 18. 19. COUNT TWO - Petitioner realleges and incorporates the allegations set forth in Paragraphs One through Seven, as though fully set forth in this Count Two. Rule 61-20.503(6)(a), Florida Administrative Code, states that a licensee shall not withhold possession of any original books, records, accounts, funds, or other property of a community association when requested by the community association to deliver the same to the association upon reasonable notice. These provisions apply regardless of any contractual or other dispute between the licensee and the community association. It shall be considered gross misconduct for a licensee to violate the provisions of this subsection. Section S(c) of the Management Contract between the Association and Respondent states that Respondent shall turn over all Association books, records, monies, and personal property to the President of the Association or his designees on or before the termination date even where there is a dispute as to amounts owing to Respondent. On or about October 1, 1999, the Association terminated its contract with Respondent. Respondent did not turn over Association documents until February 2, 2000. Based on the foregoing, Respondent violated Rule 61-20.503(6)(a), Florida Administrative Code, for which disciplinary actions may be taken pursuant to Sections 468.436(1)(b)(2) and 468.436(1)(b)(5), Florida Statutes, COUNT THREE Petitioner realleges and incorporates the allegations set forth in Paragraphs One 20. 21. 22. 23. 24. 25. 26. 27. VU : VU through Seven, as though fully set forth in this Count Three. Rule 61-20.503(7), Florida Administrative Code, states that a licensee or registrant shal! use funds received by him or it on the account of any community association or its members only for the specific purposes for which the funds were remitted. On or about December 24, 1998, Respondent deliberately transferred $1,000.00 from the Association’s reserve account to cover a shortfall in the operating account, thus commingling the funds of the two accounts. Based on the foregoing, Respondent violated Rule 61-20.503(7), Florida Administrative Code, for which disciplinary actions may be taken pursuant to Sections 468.436(1)(b)(2) and 468.436(1)(b)(5), Florida Statutes. COUNT FOUR Petitioner realleges and incorporates the allegations set forth in Paragraphs One through Seven, as though fully set forth in this Count Four. Rule 61-20.503(4)(a), Florida Administrative Code, states that a licensee or registrant shall exercise due professional care in the performance of community association management services. Section 5(f)(3) of the Management Contract between the Association and Respondent states that Respondent shall prepare a financial report not later than the 25" day of each succeeding month. As of January 27, 1999 and February 25, 1999, Respondent failed to execute a financial reports for the Board’s monthly meetings. Based on the foregoing, Respondent violated Rule 61-20.503(4\a), Florida 28. 29. 30. 31, 32. 33, 34. U ) Y Administrative Code, for which disciplinary actions may be taken pursuant to Sections 468.436(1)(b)(2) and 468.436(1)(b)(5), Florida Statutes. COUNT FIVE Petitioner realleges and incorporates the allegations set forth in Paragraphs One through Seven, as though fully set forth in this Count Five. Rule 61-20.503(4)(a), Florida Administrative Code, states that a licensee or registrant shall exercise due professional care in the performance of community association management services. On or about August 2, 1999, Florida Power & Light posted a Disconnect Notice for the Association on the Clubhouse door, stating that the total amount due was $1,034.01 because the account was two (2) months in arrears. Respondent failed to timely pay the amount due to the electric company from the Association’s funds, thus causing the Association’s credit to suffer, Respondent failed to timely pay the Association’s C.G.D. Utilities invoices for February, March, June, and July 1999, causing late fees to be assessed to the Association. Respondent failed to timely pay the Association’s Bell South telephone bills for. February and March 1999, causing late fees to be assessed to the Association. On or about September 16, 1998, a Notice of Cancellation was sent to the Association because Respondent failed to timely pay the premiums for the Association’s insurance policy with Auto-Owners Insurance. The Association subsequently paid the late premium and had the policy reinstated on November 23, 1998. Wo ) 35. Based on the foregoing, Respondent violated Rule 61-20.503(4)(a), Florida Administrative Code, for which disciplinary actions may be taken pursuant to Sections 468 .436(1)(b)(2) and 468.436( 1)(b)(5), Florida Statutes. WHEREFORE, Petitioner respectfully requests the Regulatory Council of Community Association Managers to enter an Order imposing one or more of the penalties authorized by Sections 468.436(3), and 455.227(2), Florida Statutes. Ma SIGNED this _1" day of__Twly v Bd ee By: David K. Minacci Lead Professions Attorney Florida Bar No. 0056774 , 2000. COUNSEL FOR mee ARN : Allison H. Deison C U 0 apartment of Fl L ED. Regulation Senior Attorney wl DEPUTY CLERK Florida Bar No. 0143855 Department of Business and cure Brardnt Michele Professional Regulation 1940 North Monroe Street DATE / -2Y4-2000 Tallahassee, Florida 32399-2202 July 10, 2000 Case No. 99-0436 AHD/knb

Docket for Case No: 00-003451PL