STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION 47, Op Wis si te FLORIDA REAL ESTATE COMMISSION eds re Ho Ve FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, Petitioner, vs. FDBPR Case N° 2002011942 2002011941 JAMES ANDREW LINN, 2002011943 CAROLE E. DAVIS AND ANNE S. MELTON, INC., OA- © 7 \& Respondents. / ADMINISTRATIVE COMPLAINT State of Florida, Department of Business and Professional Regulation, Division of Real Estate (“Petitioner”) files this Administrative Complaint against James Andrew Linn, Carole E. Davis and Anne S. Melton, Inc. (“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 Section 20.165 and Chapters 120, 455 and 475 of the Florida Statutes, and the rules promulgated pursuant thereto. 2. Respondent James Andrew Linn is and was at all times material hereto a licensed Florida real estate broker, issued license number 359649 in accordance with Chapter 475 of the Florida Statutes. The last license issued was as an active broker at Anne S. Melton, Inc., 3015 Front Road, FDBPR vs Anne S. Melton, Inc. FDBPR Case N° 2002011943 Administrative Complaint Jacksonville, Florida 32257. 3. Respondent Carole E. Davis is and was at all times material hereto a licensed Florida real estate broker, issued license number 160585 in accordance with Chapter 475 of the Florida Statutes. The last license issued was as an active broker at Anne S. Melton, Inc., 3015 Front Road, Jacksonville, Florida 32257. 4. Respondent Anne S. Melton, Inc. is and was at all times material hereto a corporation registered as a Florida real estate broker having been issued license number 169126 in accordance with Chapter 475 of the Florida Statutes. The last license issued was at the address of 4540 Southside Boulevard 902, Jacksonville, Florida 32257. 5. Atall times material hereto, Respondents Carole Davis and James Linn were licensed and operating as qualifying brokers and officers of Respondent Anne S. Melton, Inc. 6. On or about October 3, 2002, pursuant to an audit, Petitioner’s investigation revealed a shortage of $6,477.51 in Respondents’ rental distribution account. 7. The audit further revealed that $1,274.94 of the shortage resulted from payment of bills for which Respondents had not received funds. 8. The audit further revealed that $1,106.33 of the shortage resulted from maintenance and repairs Respondents paid for without first collecting the funds. COUNT I Based upon the foregoing, Respondent James Linn is guilty of failure to maintain trust funds FDBPR vs Anne S. Melton, Inc. FDBPR Case N° 2002011943 Administrative Complaint in the real estate brokerage escrow bank account or some other proper depository until disbursement thereof was properly authorized in violation of Section 475.25(1)(k), Florida Statutes. COUNT II Based upon the foregoing, Respondent James Linn is guilty of culpable negligence, or breach of trust in any business transaction in violation of Section 475.25(1)(b), Florida Statutes. COUNT II Based upon the foregoing, Respondent Carole Davis is guilty of failure to maintain trust funds in the real estate brokerage escrow bank account or some other proper depository until disbursement thereof was properly authorized in violation of Section 475.25(1)(k), Florida Statutes. COUNT IV Based upon the foregoing, Respondent Carole Davis is guilty of culpable negligence, or breach of trust in any business transaction in violation of Section 475.25(1)(b), Florida Statutes. COUNT V Based upon the foregoing, Respondent Anne S. Melton, Inc. is guilty of failure to maintain trust funds in the real estate brokerage escrow bank account or some other proper depository until disbursement thereof was properly authorized in violation of Section 475.25(1)(k), Florida Statutes. COUNT VI Based upon the foregoing, Respondent Anne S. Melton, Inc. is guilty of culpable negligence, or breach of trust in any business transaction in violation of Section 475.25(1)(b), Florida FDBPR vs Anne S. Melton, Inc. FDBPR Case N° 2002011943 Administrative Complaint Statutes. 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 of the Florida Statutes, 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, 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. (2001) and Fla. Admin. Code R. 61J2-24.001. The penalties which may be imposed for violation(s) of Chapter 455 of the Florida Statutes, 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. FDBPR vs Anne S. Melton, Inc. FDBPR Case N° 2002011943 Administrative Complaint See § 455.227, Fla. Stat. (2001) and Fla. Admin. Code R. 61J2-24.001. SIGNED this_/'¥ dayof__ De ¢ , 2002. Professional Regulation By: Director, Division of Real Estate ATTORNEY FOR PETITIONER Nancy P. Campiglia Florida Bar N° 0164259 et flerg 7 — - ; Senior Attorney ae ’ Department of Business and V2. \ 16 | eZ Professional Regulation, Date ope remem Legal Section - Suite N 308 Hurston Bldg. North Tower 400 West Robinson Street Orlando, Florida 32801-1772 (407) 481-5632 (407) 317-7260 FAX NPC/k PCP: NM/PH 12/02 NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under Section 120.573, Florida Statutes, is not available for administrative disputes involving this type of agency action. PLEASE BE FURTHER ADVISED that pursuant to this Administrative 5 FDBPR vs Anne S. Melton, Inc. FDBPR Case N° 2002011943 Administrative Complaint 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, Florida Statutes; 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.

Docket for Case No: 03-000786