FILED Department of Business and Professional Regulation Deputy Agency Clerk CLERK Evetle Lawson-Proctor Date 3/21/2019 STATE OF FLORIDA File # DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, Petitioner, v. Case No. 2018-015036 VICTOR SECONDO ESCALONA, Respondent. ji ADMINISTRATIVE COMPLAINT The Department Of Business And Professional Regulation (‘Petitioner’) files this Administrative Complaint before the Florida Real Estate Commission against Victor Secondo Escalona (“Respondent”), and alleges: L Petitioner is the state agency charged with regulating the practice of real estate pursuant to Section 20.165, Florida Statutes, and Chapters 120, 455, and 475, of the Florida Statutes. 2: At all times material hereto, Respondent was licensed as a Real Estate Broker in the State of Florida, having been issued license number BK 3178768. 3. Respondent’s address of record with Petitioner is 11338 NW 72" Lane, Doral, Florida 33178. 4. At all times material hereto, Respondent was a licensed qualifying broker of record for Global Kingdom LLC (“Global”), a licensed real estate corporation in the State of Florida, having been issued license number CQ 1044602. 5. In April of 2016, Respondent met with Alejandra Garcia, Maria Merces Lora, and Maria Lucia Gallego, (collectively “Complainants”) to discuss purchasing foreclosed properties at court auctions for the purpose of re-selling said properties for a profit in Florida. 6. Respondent assured Complainants that he would investigate each foreclosed property and remove all risk involved in purchasing a foreclosed property in Florida. 7. On or about April 19, 2016, based on these assurances, Complainants agreed to allow Respondent and/or Global to purchase a foreclosed property at auction in Florida. 8. Respondent required from Complainants the amount of the purchase price at auction for a foreclosed property in Florida, along with any other costs involved in the purchase. 9. Respondent required from Complainants a $1,000.00 fee to access the list of foreclosed properties available at auction in Florida, which was prepaid by Complainants. 10. Respondent required from Complainants a $1,500.00 fee for eviction proceedings in the event there was a tenant in a foreclosed property to be purchased at auction in Florida, which was prepaid by Complainants. 11. Respondent required from Complainants a commission payable to Respondent and/or Global for the purchase of a foreclosed property at auction in Florida. 12. On or about April 28, 2016, on behalf of the Complainants, Respondent and/or Global purchased a foreclosed property in Florida commonly known as 15560 SW 104" Terrace, #626, Miami, Florida 33196 (“Subject Property”), for a total of $70,724.40 including bid price, costs, and fees. 13. The Subject Property did not have a tenant; however, Respondent and/or Global did not refund the $1,500.00 fee prepaid in the event an eviction proceeding was needed. 14. Respondent and/or Global charged Complainants $1,500.00 for “Gastos Administrativos” or Administrative Expenses in the purchase of the Subject Property. 15, Respondent and/or Global charged Complainants $5,512.00 for “Servicio de Subasta” or Auction Service in the purchase of the Subject Property. 16. | Respondent and/or Global did not inform Complainants prior to the purchase of the Subject Property that the Biscayne Beach Club Condominium Association (“Biscayne”) had a claim of approximately $43,000.00 to $44,000.00 for unpaid maintenance assessment for the Subject Property. As of June 29, 2016, the total claim was $44,378.94. 17. Respondent and/or Global did not resolve, or assist in the resolution of the unpaid maintenance assessment claim from Biscayne, nor did Respondent and/or Global re-sell the Subject Property for a profit. Respondent and/or Global ceased all communication with the Complainants shortly after the purchase of the Subject Property. 18, On or about June 9, 2017, a Final Judgment of Foreclosure was entered in case number 16-023741-CA in the Eleventh Judicial Circuit in and for Miami-Dade County, Florida wherein Biscayne was awarded $58,176.59 from Complainants to be paid by July 27, 2017, or the Subject Property would be sold at auction. 19. During the course of an official investigation, on or about June 26, 2018, Petitioner requested from Respondent and/or Global a complete and accurate copy of the transaction file for the purchase of the Subject Property. To date, Petitioner has received no response from Respondent and/or Global. COUNT ONE 20. This is an action for violation of Section 475.25(1)(b), Florida Statutes. 21. Petitioner re-alleges and incorporates by reference the allegations set forth in paragraphs one (1) through seventeen (17), as if fully set forth herein. 22. Section 475.25(1)(b), Florida Statutes, subjects a real estate licensee to discipline for committing fraud, misrepresentation, concealment, false promises, false pretenses, dishonest dealing by trick, scheme, or device, culpable negligence, or breach of trust in any business transaction in this state or any other state, nation, or territory; has violated a duty imposed upon her or him by law or by the terms of a listing contract, written, oral, express, or implied, in a real estate transaction; has aided, assisted, or conspired with any other person engaged in any such misconduct and in furtherance thereof; or has formed an intent, design, or scheme to engage in any such misconduct and committed an overt act in furtherance of such intent, design, or scheme. 23. Based on the foregoing, Respondent violated Section 475.25(1)(b), Florida Statutes. COUNT TWO 24. This is an action for violation of Section 475.25(1)(d)1., Florida Statutes. 25. Petitioner re-alleges and incorporates by reference the allegations set forth in paragraphs one (1) through four (4), ten (10), and thirteen (13), as if fully set forth herein. 26. Section 475.25(1)(d)1., Florida Statutes, subjects a real estate licensee to discipline for failing to account or deliver to any person, including a licensee under this chapter, at the time which has been agreed upon or is required by law or, in the absence of a fixed time, upon demand of the person entitled to such accounting and delivery, any personal property such as money, fund, deposit, check, draft, abstract of title, mortgage, conveyance, lease, or other document or thing of value. 27. Based on the foregoing, Respondent violated Section 475.25(1){d)1., Florida Statutes. COUNT THREE 28. This is an action for violation of Section 475.25(1)(e), Florida Statutes. 29. Petitioner re-alleges and incorporates by reference the allegations set forth in paragraphs one (1) through four (4), and nineteen (19), as if fully set forth herein. 30. Section 475.25(1)(e), Florida Statutes, subjects a real estate licensee to discipline for violating any provision of Chapter 475, and any lawful order or rule made or issued under the provisions of Chapters 475 or 455, Florida Statutes. 31. — Section 475.5015, Florida Statutes provides that “[e]ach broker shall keep and make available to the department such books, accounts, and records as will enable the department to determine whether such broker is in compliance with the provisions of this chapter. Each broker shall preserve at least one legible copy of all books, accounts, and records pertaining to her or his real estate brokerage business for at least 5 years from the date of receipt of any money, fund, deposit, check, or draft entrusted to the broker or, in the event no funds are entrusted to the broker, for at least 5 years from the date of execution by any party of any listing agreement, offer to purchase, rental property management agreement, rental or lease agreement, or any other written or verbal agreement which engages the services of the broker.” 32. Based on the foregoing, Respondent violated Section 475.25(1}(e), Florida Statutes, by failing to comply with Section 475.5015, Florida Statutes. WHEREFORE, Petitioner respectfully requests the Florida Real Estate Commission enter an order imposing one or more of the following penalties: suspension or permanent revocation of Respondent’s license, restriction of practice, imposition of an administrative fine, issuance of a reprimand, placement of Respondent on probation, corrective action, assessment of costs related to the investigation and prosecution of the case, and any other relief that the Commission deems appropriate. Signed this 11° day of March, 2019, HALSEY BESHEARS, Secretary Department of Business and Professional Regulation By: _/s/ Daud W. thing PCP Date: 03.11.19 PCP Members: D. Fryer / C. Boring David W. Aring Assistant General Counsel Florida Bar No. 0621471 Office of the General Counsel 2601 Blair Stone Rd. Tallahassee, Florida 32399 (850)717-1216 Telephone (850)617-4412 Facsimile NOTICE OF RIGHTS 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 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 T: 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 Respondent in addition to any other discipline imposed.

Docket for Case No: 19-003880PL