FILED

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D111put Agency Clerk

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c"" 1/10/2011

STA"rE OF FLORIDA

DEPARTMENT OF' BUSINESS AND PROFESSIONAL REGULATION

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION,

Petitioner,

v. Case No. 2009-066407

MICHAEL M. SCHLOSS,

Respondent.

                                                                            I

ADMINISTRATIVE COMPLAINT

The Department of Business and Professional Regulation ("Petitioner"), files this Administrative Complaint before the Department of Business and Professional Regulation against MICHAEL M. SCHLOSS ("Respondent"), and alleges:

1. Petitioner is the state agency charged with regulating the practice of cornrnunity association management pursuant to Section 20,165, Florid.a Statutes, and Chapters 455 and 468, Florid.a Statutes.

2. At all times material to this Complaint, Respondent was licensed. as a Cornrnuni ty Association Manager in the State of Florid.a, license number CAM 30867.

3. Respondent I s address of record is 750 NE 175 Street, North Miami Beach, FL 33162.

   
   

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4. At all times material to this complaint, Respondent was responsible for management services at Fairview House Condominium Association (Fairview).

5, Respondent's responsibilities as manager of Fairview

included among other things the following: preparation of monthly financial reports, main'tenance of computerized financial records, payment of invoices and other legitimate expenses.

6. Respondent failed to provide financials for the 2009 fiscal year despite numerous requests from a Board member at Fairview.

7, Upon cancellation of Respondent's management contract, Respondent failed to turn over all records to the new management company.

1. Respondent failed to adequately maintain financial and accounting records as required by his contract.

2. Respondent contracted to have work done on Fairview without Board approval.

10, As a result of Respondent's failure to maintain financial records and his contracting work without approval, Respondent caused construction liens to accrue on Fairview.

COUNT I

1. Subsection 468.436(2)(b)5, Florida Statutes, states that "committing acts of gross misconduct or gross negligence in

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   connection with the profession constitutes acts for Which disciplinary actions may be taken."

2. Rule 6lE14-2.001(6)(d), Florida Administrative Code, states: "A licensee or registrant shall not, to the extent charged with the responsibility of maintaining records, fail to maintain his or its records, and the records of any applicable comrnuni ty association, in accordance with the laws and documents requiring or governing the records."

3. Based on the foregoing, Respondent violated Subsection 468.436(2)(bl 5, Florida Statutes, through a violation of Rule 61El4-2,001 (6) (d), Florida Administrative Code, when he caused liens to accrue against the association he managed due to his negligence in failing to maintain adequate financial records.

   COUNT rr

4. Subsection 468.436(2)(b)5, Florida Statutes, states that "committing acts of gross misconduct or gross negligence in connection with the profession constitutes acts for which disciplinary actions may be taken."

5. Rule 61E14-2.001(4)(a), Florida Administrative Code, states: "A licensee or registrant shall exercise due professional care in the performance of community association management services."

6. Based on the foregoing, Respondent violated Subsection 468.436(2)(b)5, Florida Statutes, through a violation of Rule

   
   

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   61El4-2.001(4)(a), Florida Administrative Code, when he caused liens to accrue against the association he managed due to his negligence in contracting for work without board approval.

   COUNT III

   
   

7. Subsection 468.436(2)(b)5, Florida Statutes, states that "committing acts of gross misconduct or gross negligence in connection with the profession constitutes acts for which disciplinary actions may be taken."

8. Rule 61E14-2.001(6)(a), Florida Administrative Code, states: "a licensee or registrant shall not withhold possession of and original books, records, accounts, funds, or other property of a community association when requested by the con unity association to deliver the same upon reasonable

   notice.,.,.

   
   

9. Based on the facts set forth above, Ree,pondent violated Subsection 468.436(2)(b)5, Florida Statutes, through a violation of Rule 61El4-2.001 (6)(a), Florida Administrative Code, in one or more of the following ways:

   1. By failing to provide records for the 2009 fiscal year to a Board member of Fairview despite numerous requests for the same.

   2. By failing to provide all records to the new management company after Respondent's management contract was cancelled.

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10. Based on the foregoing, Respondent violated Subsection 468.436(21 (b)5, Florida Statutes, through a violation of Rule 61E14-2. 001 ( 6) (a}, Florida Administrative Code, when he failed to turn over association records to those entitled to them by law.

    COUNT IV

    
    

11. Subsection 468. 436(2) (b) 5, Florida Statutes, states that "committing acts of gross misconduct oi:- gi:-oss negligence in connection with the profession constitutes acts for which disciplinary actions may be taken."

12. Rule 61E14-2. 001(6) (d), Florida Administrative Code, states: "a licensee or registrant shall not, to the extent charged with the responsibility of maintaining records, fail to maintain his or its records, and the records of any applicable community association, in accordance with the laws and documents requiring or governing the records."

13. Based on the facts set forth above, Respondent violated Subsection 468. 436(2) (b) 5, Florida Statutes, through a violation of Rule 61E14-2. 001( 6) (d}, Florida Administrative Code, by failing to adequately maintain and reconcile the financial and accounting records of the association which he managed.

WHE:R E FORE 1 Petitioner respectfully requests the Department enter an order imposing one or more of the following penalties:

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suspension or permanent revocation of Respondent's license, restriction of Respondent's practice, imposition of an administrative fine not to exceed $5,000 for each count or separate offense, issuance of a reprimand, placement of Respondent on probation subject to specified conditions, corrective action, assessment of costs related to the investigation and prosecution of the case excluding costs

associated with an attorney's time, or any other relief that the Department is authorized to impose pursuant to Chapters 455 and

468 Part VIII, Florida Statutes, and the rules promulgated thereunder.

Signed this 7th day of January, 2011.

PC F'ound:

Pc Found By:

CHARLIE LIEM, Secretary Department of Business and

Professional Regulation

By: 1oay£ane

Jody Lane

Assistant General Counsel Florida Bar No. 0568971 Department of Business and

Professional Regulation Office of the General Counsel 1940 N. Monroe Street, ste.42 Tallahassee, FL 32399-2202

(850) 414-8123 Telephone

(850) 414-6749 Facsimile

December 27, 2010 Jody Lane

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NOTICE OF' RIGHTS

Respondent has the right to request a hearing to be conducted in accordance with Sections 120.569 and 120.57, florida Statutes, to be represented by counsel or other qualified representative, to present evidence and argument, to call and cross-examine witnesses and to have subpoenas and subpoenas duces tecum issued on his or her behalf if a hearing

is requested. Rule 28-106.111, F'lorida Administrative Code, provides in part that if Respondent fails to request a hearing within twenty-one (21) days of receipt of an agency pleading, Ree,pondent waivee, the right to request a hearing on the facts alleged.

NOTICE REGARDING ASSESSMENT Of COSTS

Respondent is placed on notice that Petitioner has incurred costs related to the investigation and prosecution of this matter. Pursuant to Section 455.227(3)(a), F'lorida Statutes, the Board, or the Department when there is no Board, may assess costs related to the investigation and prosecution of the case excluding costs associated with an attorney's time, against the Respondent in addition to any other discipline imposed,

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Docket for Case No: 11-001176PL