FILED Department of Business and Professional Regulation Deputy Agency Clerk STATE OF FLORIDA CLERK Evette Lawson-Proctor DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATY pate 12/30/2011 File # DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, Petitioner, Vv. Case No. 2010-038416 DAVID GIUSEPPE HOLBROOK, Respondent. / ADMINISTRATIVE COMPLAINT Petitioner, Department of Business and Professional Regulation (Petitioner), files this Administrative Complaint before the Department of Business and Professional Regulation, against DAVID GUISEPPE HOLBROOK (Respondent), and alleges: 1. Petitioner is the state agency charged with regulating the practice of community association management pursuant to Section 20.165, Florida Statutes, and Chapters 455 and 468, Florida Statutes. 2. At all times material to this Complaint, Respondent was licensed as a Community Association Manager in the State of Florida, having been issued license number CAM 30292. 3. Respondent's address of record is 1740 NW 12‘ Road, Gainesville, Florida 32605. 4, At all times material to this Complaint, Respondent was responsible for providing Community Association Management Filed February 8, 2012 1:30 PM Division of Administrative Hearings (CAM) services to the Seagle Building Condominium Association (Association) through his company, The Holbrook Group, Inc. 5. On or about November 4, 1997, The Holbrook Group, Inc. filed its Articles of Incorporation with the Florida Department of State. 6. On or about March 19, 2002, Respondent filed Corporation Reinstatement papers with the Department of State. At the time of its reinstatement, The Holbrook Group, Inc. had two (2) initial directors on the Board of Directors: David and Jenny Holbrook, 408 West University Avenue, Penthouse, Gainesville, FL 32601. 7. At no times material to this Complaint, was The Holbrook Group, Inc., licensed as a Community Association Management Firm within in the State of Florida 8. At all times material to this Complaint, Respondent was a Board member of the Association, and also served as President, Treasurer, and Director of the Association. 9. At all times material to this Complaint, Respondent owned five (5) of the sixteen (16) residential units which comprise the Association. 10. On February 11, 2009, Respondent entered into a court approved settlement agreement with a group of minority owners of the Association building, and agreed to an independent audit (Audit) of the Association records. 11. The Audit, completed on December 18, 2009, concluded that the Association, during the period of January 1, 2003 through September 30, 2008, “was not in compliance with Florida Statutes and the Florida Administrative Code, and overspent expenses by $109,227.64.” 12. The Audit also made the following conclusions: o The Association over-expended on management services to Respondent. The Association issued payments for services to the Respondent personally for which there was not proper documentation or receipts. (c.) The Association issued payments for services to members of the Respondent’s family for which there was not proper documentation or receipts. (d.) The Respondent used Association funds for personal legal defense expenses. (e.) The Respondent used Association funds to pay for personal mobile phone services. (f.) The Respondent failed to keep proper documentation or receipts for a number of purchases for the Association. (g.) The Respondent failed to transfer proper funds to the Association reserve accounts as per the Association budget. The Respondent collected rent payments from a commercial tenant, Echostar, for an antenna mounted on the roof of the Association building on behalf of the Association but failed to deposit those funds into Association accounts. (i.) The Respondent failed to notice and/or failed to maintain records of notices for Association Board meetings. w COUNT ONE 13. Petitioner realleges and incorporates by reference the allegations set forth in paragraphs one (1) through twelve (12) as though fully set forth herein. 14. Section 455.227(1) (9), Florida Statutes (2010), Nn subjects a licensee to discipline for [aJiding, assisting, procuring, employing, or advising any unlicensed person or entity to practice a profession contrary to this chapter, the chapter regulating the profession, or the rules of the department or board.” 15. Section 468.432(2), Florida Statutes (2010), states in part: “a community association management firm or other similar organization responsible for the management of more than 10 units or a budget of $100,000 or greater shall not engage or hold itself out to the public as being able to engage in the business of community association management in this. state unless it is licensed by the department as a community association management firm in accordance with the provisions of this part.” 16. Based upon the facts sel forth above, Respondent violated Section 468.432(2), Florida Statutes (2010), through a violation of Section 455.227(1) (4), Florida Statutes (2010), when he assisted The Holstein Group, Inc., in providing CAM Firm services to the Seagle Building Condominium Association while not licensed by the Department. 17. Respondent violated Section 468.432(2), Florida Statutes (2010), through a violation of Section 455.227(1) (4), Florida Statutes (2010), by assisting in the unlicensed practice of a profession. COUNT TWO 18. Petitioner realleges and incorporates by reference the allegations set forth in paragraphs one (1) through twelve (12) as though fully set forth herein. 19. Section 468.436(2) (b) (5), Florida Statutes (2010), subjects a licensee to discipline for committing acts of gross misconduct or gross negligence in connection with the profession. 20. Rule 61E14-2.001(6) (d), Florida Administrative Code, states that “[a] licensee or registrant shall not, to the extent charged with the responsibility or 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.” 21. Based on the foregoing, the Respondent violated Section 468.436(2) (b) (5), Florida Statutes, through a violation of Rule 61F14-2.001(6) (d), Florida Administrative Code, in one or more of the following ways: o (a.) Failing to acquire or maintain proper documentation for services provided to or items purchased for the Seagle Building Condominium Association; and (b.) Failing to maintain records of notices for Seagle Building Condominium Association Board meetings. 22. Respondent violated Section 468.436(2) (b) (5), Florida Statutes (2010), through a violation of Rule 61E14-2.001(6) (d), Florida Administrative Code, for failing to maintain the records of the Seagle Building Condominium Association. COUNT THREE 23. Petitioner realleges and incorporates by reference the allegations set forth in paragraphs one (1) through twelve (12) as though fully set forth herein. 24. Section 468.436(2) (b) (5), Florida Statutes (2010), subjects a licensee to discipline for committing acts of gross misconduct or gross negligence in connection with the profession set forth in Rule 61EF14-2.001, Florida Administrative Code. 25. Rule 61B14-2.001(7), Florida Administrative Code, states that “[a] licensee or registrant shall use funds received by him or it on the accounl of any communily association or ils members only for the specific purpose or purposes for which the funds were remitted.” 26. Based on the foregoing, Respondent violated Section 468.436(2) (b) (5), Florida Statutes (2010), through a violation a of Rule 61E14-2.001(7), Florida Administrative Code, when he failed to deposit rent payments he received from Echostar into Seagle Building Condominium Association accounts. 27. Respondent violated Section 468.436(2) (b) (5), Florida Statutes (2010), through a violation of Rule 61E14-2.001(7), Florida Administrative Code, for committing acts of gross misconduct or gross negligence in connection with the profession. WHEREFORE, Petitioner respectfully requests that the Department of Business and Professional Regulation enter an order imposing one or more of the following penalties: permanent revocation or suspension of Respondent’s license, restriction of practice, imposition of an administrative fine, issuance of a reprimand, placement of Respondent on probation, assessment of costs, corrective action and/or any other relief that the Board deems appropriate. (SIGNATURE PAGE FOLLOWS) Signed this 29™ day of December, 2011. By: PC Found: December 29, KEN LAWSON, Secretary Department of Business and Professional Regulation Cristin Erica White Cristin Erica White Assistant General Counsel Florida Bar No. 0641340 Department of Business and Professional Regulation Office of the General Counsel 1940 N. Monroe Street, Ste.42 Tallahassee, FL 32399-2202 (850) 717-1203 Telephone (850) 414-6749 Facsimile 2011 Pc Found By: White. E. /kms « 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, Florida Administrative Code, provides in part that if Respondent fails to request a hearing within twenty-one (21) days of receipt of an agency pleading, Respondent waives 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), Florida 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.

Docket for Case No: 12-000521PL