04-UIS” STATE OF FLORIDA FLORIDA REAL ESTATE COMMISSION FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, Petitioner, Vv. FDBPR Case N° 2008003282 2008003290 CHARLES EDGAR STALLIONS AND CHARLES STALLIONS REAL ESTATE SERVICES, INC. Respondents. / ADMINISTRATIVE COMPLAINT State of Florida, Department of Business and Professional Regulation, Division of Real Estate (“Petitioner”) files this Administrative Complaint against Charles Edgar Stallions and Charles Stallions Real Estate Services, Inc. (“Respondent”) 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. CADocuments and Settingdjennifer.mccarthy\Local Setting’Temporary Internet FileSOLKBistallions charles282.doc 1 FDBPR v. Charles Edgar Stallions “Case No. 2007003282 Administrative Complaint 2. Respondent Charles Edgar Stallions is and was at all times material hereto a licensed Florida real estate broker, issued license number 610125 in accordance with Chapter 475 of the Florida Statutes. The last license issued was as a broker at Charles Stallions Real Estate Services, Inc., 2106-8 Creighton Road, Pensacola, Florida 32504. 3. Respondent Charles Stallions Real Estate Services, Inc. is and was at all times material hereto a corporation registered as a Florida real estate brokerage having been issued license number 1016736 in accordance with Chapter 475 of the Florida Statutes. The last license issued was at the address of 2106-8 Creighton Road, Pensacola, Florida 32504. 4. At all times material hereto, Respondent Charles Edgar Stallions was licensed and operating as qualifying broker and officer of Respondent Charles Stallions Real Estate Services, Inc. 5. On or about January 16, 2008 Respondents’ escrow accounts were audited by Petitioner’s Investigator Jack Case. A copy of the audit is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 6. At all times material, Respondents failed to prepare monthly reconciliation reports for the rental security deposit C:\Documents and Settingajennifer.mccarthy\Local Setting&’Temporary Internet FileSOLKB\stallions charles282.doc 2 FDBPR v. Charles Edgar Stallions Case No. 2007003282 Administrative Complaint escrow account no. 83549-8 since the account was opened in 2003. 7. Respondents failed to prepare monthly reconciliation reports comparing the escrow account bank balances with broker’s liability. 8. Respondents failed to prepare monthly reconciliation reports for the rental distribution escrow account no. 83550-1 since the account was opened in 2003 comparing bank balances with broker’s liability. 9. Respondents failed to keep, maintain and make available to Investigator Case records for the rental security deposit escrow account no. 83549-8. 10. Respondents failed to keep, maintain and make available to Investigator Case broker’s records for the rental distribution escrow account no. 83550-1. COUNT ONE Based upon the foregoing, Respondent Charles Edgar Stallions is guilty of failure to preserve and make available to the Petitioner, all books, records, and supporting documents and failed to keep an accurate account of all trust fund transactions in violation of Rule 61032-14.012(1) of the Florida Administrative Code and, therefore, in violation of Section 475.25(1)(e), the Florida C:\Documents and Settingajennifer.mccarthy\Locat Setting’Temporary Internet FilesSOLKB\stallions charles282.doc 3 FDBPR v. Charles Edgar Stallions : Case No. 2007003282 Administrative Complaint Statutes. COUNT TWO Based upon the foregoing, Respondent Charles Edgar Stallions is guilty of failure to prepare the required written monthly escrow statement-reconciliations in violation of Rule 6172-14.012(2) and _ (3) of the Florida Administrative Code and is, therefore, in violation of Section 475.25(1)(e), Florida Statutes. COUNT THREE Based upon the foregoing, Respondent Charles Stallions Real Estate Services, Inc. is guilty of failure to prepare the required written monthly escrow statement-reconciliations in violation of Rule 61732-14.012(2) and (3) of the Florida Administrative Code and is, therefore, in violation of Section 475.25(1)(e), Florida Statutes. COUNT FOUR Based upon the foregoing, Respondent Charles Stallions Real Estate Services, Inc. is guilty of failure to preserve and make available to the Petitioner, all books, records, and supporting documents and failed to keep an accurate account of all trust fund transactions in violation of Rule 61J2-14.012(1) of the Florida Administrative Code and, therefore, in violation of Section CADocuments and Settingajennifer.mcecarthy\Local SettingaTemporary Internet FileSOLKB\stallions charles282.doc 4 FDBPR v. Charles Edgar Stallions Case No. 2007003282 Administrative Complaint 475.25(1) (e), the Florida 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 $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; or any combination of the foregoing which may apply. See Section 475.25(1), Florida Statutes and Florida Administrative Code Rule 61d2-24.001. 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, CADocuments and Settingajennifer.mccarthyLocal Setting’Temporary Internet FileSOLKBi\stallions charles282.doc 5 FDBPR v. Charles Edgar Stallions Case No. 2007003282 Administrative Complaint 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 Section 455.227, Florida Statutes and Florida Administrative Code Rule 61J2-24.001. SIGNED this&\ day of N\q, Pa 0) ) , 2008. Professional Regulation Thomas O’Bryant, Jr. Director, Division of Real Estate C:\Documents and Settingdjennifer.mccarthyLocal Settings3Temporary Intemet FilesSOLKB'stallions charles282.doc 6 FDBPR v. Charles Edgar Stallions Case No. 2007003282 Administrative Complaint ATTORNEY FOR PETITIONER Patrick James Cunningham Senior Attorney Florida Bar N°469221 Division of Real Estate Department of Business and Professional Regulation, Legal Section - Suite N 801 Hurston Bldg. North Tower 400 West Robinson Street Orlando, Florida 32801-1757 (407) 481-5632 (407) 317-7260 FAX /k PCP: SWE/MV 3/08 NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under Section 120.573 of the Florida Statutes, 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 allowed by law, a hearing to be conducted in this matter in accordance with Sections 120.569 and 120.57 of the 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 C:\Documents and Settingdjennifer.mccarthy\Local SettingdTemporary Internet FilesSOLKB\stallions charles282.doc 7 FDBPR v. Charles Edgar Stallions Case No. 2007003282 Administrative Complaint 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. C:\Documents and Settingsjennifer.mccarthy\Local SettingiTemporary Internet FilesOLKB\stallions charles282.doc 8 DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION Division of Real Estate ; oe OFFICE INSPECTION & ESCROW/TRUST ACCOUNT AUDIT FORM DATE jJiefes 2 NAME OF BROKER CHanles G7allvows NAME OF BROKER 2 BROKER LICENSE # | {| | | | | BROKER LICENSE # | a , lo 12s “a NAME OF BROKER NAME OF BROKER = sonst BROKER LICENSE # | | | | | | BROKER LICENSE # | | { ub | I NAME OF BROKERAGE BROKERAGE LICENSE # PHONE NUMBER Charles STRil ows Ne. Ese Services Bc Jo} LU&L Bo/ NN E~ WW STREET ADDRESS CITY COUNTY ZIP Niok -F. Che enToe Rd Gemsacel a Escanhin Bray REMARKS OFFICE (RULE 61J2-10.022 & .023) REQUIRED OFFICE SIGN (RULE 61J2-10.024) AGENCY OR TRANSACTION BROKER DISCLOSURE (F.S.475.276 &.278) we Recomtlistrs Mepocps om ETRRK MdoenT Since Cfenea in, 2983 STATEMENT RECONCILIATIONS (RULE 61J2-14.012 SALES: TOTAL TRUST LIABILITY. RECON BANK BALANCE : — (SHORT/OVER) AMOUNT ‘ SECURITY DEPOSIT: TOTAL TRUST LIABILITY bs? lS. od Ne Sales Es¢nauy ®cceu Sp Nv Snlésg Escenas Manteinga Bank xg Gem sacala, BIS yey BGS O87 ¢ RECON BANK BALANCE Z gS 1ey (SHORTQ@VERDAMOUNT B Ses, RENTAL DISTRIBUTION: TOTAL TRUST LIABILITY Séc¢_ SL gmnnky—> RECON BANK BALANCE RasiGen Peeng Qe pskebe dey Ream cl, ry Sig meg ae iT Ey h i & Bala ' ach ne ana eT Se ea eS 7, aTe, a iGat Baleweg sri aah ks oe (SHORT/OVER }) AMOUNT REMARKS: Case SKS erm fen Yarlene Te Npsgenls Thee merde Gee flécenesli pe reves Ae ts ~ an 4 — Fodenctel\a. genkey Na. dire wa &sca ew Qemcs en CANNS 83 oat Bee is fen T ml wombs ip bee, | HEREBY CERTIFY THAT TO THE BEST OF MY KNOWLEDGE ALL RECORDS PERTAINING TO MY SALES ESCROW/TRUST ACCOUNT(S) AND MY RENTAL PROPERTY MANAGEMENT ACCOUNT(S) HAVE BEEN PROVIDED TO THEINVESTIGATOR . THE ABOVE VIOLATIONS WERE BROUGHT TO MY DAYS AND PROVIDE DBPR WITH PHOTOS, »_ Hy 6& {SIGNATURE OF ER) (DATE) RE OF INVESTIGA {COMPUTER ID #) (DATE) | Te be CITATION iSSUED ves NO) #: COMPLAINT DOCKETER YES} NO #: Qrouiden NOTICE OF NON-GOMPLIANCE YES. NO. X SKETCHES AND DOC! OF THE CORRECTIVE ACTION TAKEN. Pursuant to s. 455.225 (3), F.S., the Commission sets forth rules which are considered minor violations for which the DBPR shall provide a licensee with @ notice of noncompliance. A violation of a rule is considered minor violation if it does not result in economic or physical harm to a person or adversely affect the pubiic health, safety, or welfare or create a significant threat of such harm. The notice of noncompliance shall be issued _for_an initial offense of a minor violation. areror secta mine * ATIVE COMPLAINT VIOLATION: SrerarTee A ea an CORRECTIVE ACTION: PEGE It 0F WHITE COPY ~ FIELD OFFICE YELLOW COPY — LICENSEE