Findings Of Fact The respondent, Elizabeth V. T. Roache, has been a registered real estate broker in Florida since 1957. Charles Woods and Miriam Woods had their house and property located at 601 North Mashta Drive in Key Biscayne, Florida on an open listing at a selling price of $155,000.00. Mrs. Roache contacted Lorne A. Smith, with whom she had previously had one business dealing (jointly purchasing and reselling a lot) in the past. Mr. Smith offered to buy the Woods' property for $140,000.00. On or about December 10, 1972, Mrs. Roache prepared a deposit receipt contract listing "Lorne A. Smith and/or assigns" as the purchaser and stating a purchase price of $140,000.00. Mr. Smith signed this document and the respondent Roache signed as a witness. On the same date, respondent delivered this document to the Woods and the Woods rejected the offer. (Exhibit 1). There is some dispute in the evidence as to the timing of the events which transpired. Respondent Roache and Mr. Smith testified that Smith asked Roache to go in with him as a copurchaser of this property after the offer of $140,000.00 was rejected. The investigator for the Commission, Mr. Albert W. Lotus, Jr., testified that Smith told him on two occasions that this was a fifty-fifty proposition "from the beginning". In any event, Mrs. Roache and Mr. Smith decided to go in on this together and to make an offer of $147,500.00 to the Woods. Mrs. Roache then took the same December 10, 1972, document back to the Woods on the same date. The Woods accepted the $147,500.00 offer and handwritten changes were then made on the document and initialed by the Woods and Mr. Smith. These changes related to the change in purchase price, the balance of the deposit being placed in escrow and excepting the pool heater from those appliances required to be in working order. There was also a change made in the amount of the commission to be paid to the broker, respondent herein. No changes were made in the name of the purchaser, nor did Mrs. Roache remove her name as a witness or sign as a purchaser. The respondent testified that she informed the Woods at the time of presenting the second offer on December 10, 1972, that she was to be a copurchaser and that she did not change the name of the purchaser on the deposit receipt contract because it had already been drawn up and because the words "and/ or assigns" would adequately cover her as a copurchaser. Both Mr. add Mrs. Woods testified that they were not told on December 10, 1972, that respondent was to be a copurchaser, and, indeed, did not learn that she was to be a purchaser until a day or two before the closing date of March 22, 1973. Between the dates of December 10, 1972, and March 22, 1973, Mrs. Roache spent a good amount of time at the subject property cleaning, fixing it up and supervising workmen. Mr. Woodsy did not remember seeing her working around the house, and Mrs. Woods saw respondent come in and out many times. During this time, the Woods were living in a home adjacent the the subject property. The closing occurred on March 22, 1973, and the warranty deed contained the names of Mr. and Mrs. Smith, and the respondent Roache. (Exhibit No. 2). In May of 1973, the house was resold by respondent and the Smiths for a purchase price of $170,000.00. There was evidence that the house was not resold before the March 22, 1973, closing date and that the new owners redid many of the improvement which respondent and the Smiths had caused to be made.
Recommendation Based upon the above findings of fact and conclusions of law, it is recommended that respondent be found guilty of violating 475.25(1)(a) and that her registration as a real state broker be suspended for a period of ninety days. Respectfully submitted and entered this 14th day of November, 1975, in Tallahassee, Florida. DIANE D. TREMOR, Hearing Officer Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304 (904) 488-9675 COPIES FURNISHED: Louis B. Guttmann, III, Esquire 2699 Lee Road Winter Park, Florida 32789 Mrs. Elizabeth V. T. Roache 910 Harbor Drive Key Biscayne, Florida 33149 ================================================================= AGENCY FINAL ORDER ================================================================= FLORIDA REAL ESTATE COMMISSION ALBERT W. LOFTUS, JR., Petitioner, vs. PROGRESS DOCKET NO. 2664 DADE COUNTY ELIZABETH V.T. ROACHE, DOAH CASE NO. 75-1169 Respondent. /
The Issue The issue presented is whether Charles Simon violated subsections 475.25(1)(b) and (f), Florida Statutes (1985) by pleading guilty to crimes involving moral turpitude or fraudulent and dishonest dealing, i.e. grand theft and trafficking in stolen property by reissuing and refunding airline tickets without making payment for them.
Findings Of Fact Charles Simon was at the times material to this proceeding licensed as a real estate broker in the State of Florida holding license number 0123689. The last license was issued to him as a broker at 90 Beacon Boulevard, Miami, Florida 33135. On about October 15, 1986, Mr. Simon pled guilty to six counts of an indictment alleging violations of the Racketeer Influenced and Corrupt Organizations Act (RICO Act), grand theft and trafficking in stolen property for issuing and refunding of airline tickets without making payment for them. Adjudication of guilt was withheld and Mr. Simon was placed on community control for a period of twenty-four months to be followed by a period of probation of eight years, and he was ordered to pay $50,000 in restitution and court costs. By letter dated October 9, 1986, Respondent informed the Commission of having pleaded guilty to a felony. By letter dated January 6, 1987, Mr. Simon wrote again to the Commission, stated that he had received no reply to his letter of October 9, 1986 and enclosed a carbon copy of the October 9, 1986 letter. The Commission never received his first (October 9, 1986) letter, although it did receive a copy of it when attached to the January 6, 1987 letter. The Department relies solely upon the records of the conviction to make its case. It did not dispute Mr. Simon's explanation of the events underlying his guilty plea. Mr. Simon's version of the events is accepted, in part because his testimony was not contested by the Department, and in part because the explanation is plausible. In May of 1983, Mr. Simon's wife owned a travel agency in Dade County. His real estate office was located in the same suite of offices. While clerical employees of the travel agency would sometimes perform work for the real estate office they were wholly separate businesses. Mr. Simon was not an officer or employee of the travel agency and received no money from it. In May, 1983 Mr. Simon's wife put the agency up for sale. Travel agencies are approved by the Air Traffic Corporation (ATC) to write airline tickets on generic ticket stock if they meet certain requirements. ATC affiliation is important to a travel agency because it makes accounting to airlines for tickets sold much simpler. ATC serves as a clearinghouse; at the end of the week a travel agency sends one check to ATC for all tickets written during the week. ATC separates the billings according to airline, and writes one check to each airline for all tickets sold by the agents belonging to ATC. Blank ticket stock is valuable and purchasers must qualify through ATC to buy a travel agency that is an ATC member. Otherwise an untrustworthy new owner could write tickets out, collect money and never pay the ATC who in turn would not be able to pay the airlines. Mrs. Simon was familiar with people who expressed an interest in purchasing her agency, but they asked her not to tell ATC of the sale. When notified of the impending sale ATC would investigate the qualifications of the proposed new owners, and their previous employer or present employer would be contacted by ATC. The potential buyers were currently working at another travel agency. They wanted to buy Mrs. Simon's agency and move their clients to their new agency (Mrs. Simon's agency). They did not want to tip off their present employer of their intentions by having ATC contact the present employer. Mrs. Simon agreed to withhold notification to ATC to facilitate the sale of the travel agency. After the ownership of the travel agency was transferred and most of the purchase price had been paid, Mrs. Simon was informed that the new owners had ticket stock from other travel agencies at the agency she had sold. Although this is not a violation of any statute, it violates ATC rules and alerted Mrs. Simon that something was wrong. She realized that the reason the purchasers did not want to notify the ATC of the transfer was that they were engaging in a "bust out" of the agency, i.e., issuing valid airline tickets without receiving payment for them. The tickets would then be returned to the airlines for cash refunds (although they had never been paid for) or resold to others at less than their face value. Ultimately, ATC revoked the agency's authority to issue tickets, but by then the owners had defrauded the airlines of many thousands of dollars. Mrs. Simon panicked and Mr. Simon agreed to try to handle the situation. Instead of reporting the matter to the police Mr. Simon tried to cover it up so that Mrs. Simon would not be implicated in wrongdoing. Precisely what Mr. Simon did in his attempt to keep his wife from being implicated in the purchasers' scheme was not explained at the hearing. Those individuals involved in the "bust out" were ultimately arrested and convicted. Mr. Simon was also charged because of his involvement with the sale after Mrs. Simon discovered the purchasers' scheme. Under the sentencing guidelines the charges made against him would have called for a sentence of six years in jail. The state attorney's office agreed to two years of community control, eight years probation and $50,000 restitution to the airlines, if Mr. Simon would plead guilty to the charges rather than require a trial; the state attorney also agreed that no charges would be filed against Mr. Simon's wife in return for his guilty plea. The state attorney's office further agreed to a withholding of adjudication of guilt so that Mr. Simon's real estate license would not be affected. Based on 1) the cost of going through a trial to defend himself and potentially another legal proceeding for the defense of his wife (which would exceed $50,000) and, 2) his erroneous belief that a guilty plea with a withholding of adjudication would not affect his real estate license, Mr. Simon agreed to the state attorney's offer as being in his best interest even though he believed that he had done nothing illegal. Since that time Mr. Simon's community control has been terminated and he has been placed on regular probation, which merely requires a once a month report to a probation officer which can be done by mail. It has also been agreed that Mr. Simon may return to England to live. The lightness of the sentence and the reduction of the period of community control corroborates Mr. Simon's argument that the state attorney's office knew that he had not been involved in the fraudulent plan to "bust out" his wife's travel agency, although he was not entirely forthcoming when the purchaser's plan was discovered.
Recommendation It is RECOMMENDED that a final order be entered finding Mr. Simon guilty of violation of subsection 475.25(1)(b), Florida Statutes as charged in Count I of the administrative complaint and guilty of violation of subsection 475.25(1)(f), Florida Statutes as charged in Count II of the administrative complaint and that the real estate broker's license held by Mr. Simon be revoked. DONE and ORDERED this 21st day of September, 1987, in Tallahassee, Florida. WILLIAM R. DORSEY, JR. Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 21st day of September, 1987. APPENDIX The following are my rulings on the proposed findings of fact submitted by the parties pursuant to Section 120.59(2), Florida Statutes (1985). Rulings on Proposals of the Petitioner's: Rejected as unnecessary. Covered in Finding of Fact 1. Covered in Finding of Fact 1. Covered in Finding of Fact 2. Covered in Finding of Fact 2. Covered in Finding of Fact 3. COPIES FURNISHED: Charles Simon 90 Beacon Boulevard Miami, Florida 33135 Mr. Charles Simon 10435 S.W. 76th Street Miami, Florida 33173 James H. Gillis, Esquire Department of Professional Regulation Florida Real Estate Commission P. O. Box 1900 Orlando, Florida 32802 Harold Huff, Executive Director Department of Professional Regulation Florida Real Estate Commission P. O. Box 1900 Orlando, Florida 32802 Tom Gallagher, Secretary Department of Professional Regulation 130 North Monroe Street Tallahassee, Florida 32399-0750 Joseph A. Sole, General Counsel Department of Professional Regulation 130 North Monroe Street Tallahassee, Florida 32399-0750
The Issue Did the Respondent obtain licensure by fraud or misrepresentation contrary to Section 475.25(1)(m), Florida Statutes?
Findings Of Fact The Respondent, Carl D. Hill, submitted an application for licensure to become a real estate salesperson on June 22, 1981. See Exhibit "A", a true and correct copy of the Respondent's application. Respondent admits he executed the original application in the line designated for the signature of the applicant. Said application was received by the Florida Real Estate Commission on June 26, 1981, and was approved on July 24, 1981. Based upon said application, Respondent was issued license number 0372160 as a real estate salesman. In response to question number six in the referenced application, Respondent replied "no" to the question of whether he had ever been arrested for, or charged with, the commission of an offense against the laws of any municipality, state or nation, including traffic offenses (but not parking, speeding, inspection or traffic signal violations), without regard to whether convicted, sentenced, pardoned or paroled. On June 7, 1980, Respondent was arrested by the Hillsborough County Sheriff's Office and charged with trafficking in cocaine, possession of cocaine, delivery of cocaine and possession of a firearm during the commission of a felony. See Exhibit "B". On May 12, 1981, Respondent pleaded guilty to the crime of delivery of cocaine. Upon accepting such plea, the Circuit Court for Hillsborough County imposed a sentence of five years' probation and withheld adjudication.
Recommendation Having found that the Respondent violated Section 475.25(1)(m), Florida Statutes, it is recommended that the license of Respondent as a real estate salesperson be revoked. DONE and RECOMMENDED this 6th day of December, 1982, in Tallahassee, Leon County, Florida. STEPHEN F. DEAN, Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 6th day of December, 1982. COPIES FURNISHED: David P. Rankin, Esquire 4600 West Cypress, Suite 410 Tampa, Florida 33607 Jack W. Crooks, Esquire 4202 West Waters Avenue Tampa, Florida 33614 Samuel R. Shorstein, Esquire Department of Professional Regulation 130 North Monroe Street Tallahassee, Florida 32301 C. B. Stafford, Executive Director Florida Real Estate Commission 400 West Robinson Street Post Office Box 1900 Orlando, Florida 32802 William M. Furlow, Esquire Florida Real Estate Commission 400 West Robinson Street Post Office Box 1900 Orlando, Florida 32802
The Issue Whether the Respondent should be denied registration to transact business as a registered Florida Securities salesman.
Findings Of Fact The Applicant, William Russell Taylor, applied for a certificate of registration as a Securities salesman with Hibbard O'Connor & Weeks, 2740 East Oakland Park, Fort Lauderdale, Florida, on March 19, 1975. The Division of Securities, Department of Banking and Finance, refused to register Applicant-Respondent Taylor for the reason that Applicant-Respondent Taylor answered "No" on his application to sell securities with the Division of Securities, Department of Banking and Finance, to the question "16. Have you ever been arrested?". Criminal Docket 28943 of the United States District Court, Eastern District of Michigan, shows that Applicant-Respondent Taylor had in fact been arrested, was found guilty of the violation of the National Motor Vehicle Theft Act, and was committed to the custody of the Chief Probation Officer of the Court for the term and period of three (3) years. Applicant-Respondent Taylor was given due notice of the hearing before the Division of Administrative Hearings, Department of Administration, but failed to appear.
Findings Of Fact The Florida Real Estate Commission (Commission hereafter) by its representative, Charles F. Borer (Plaintiff hereafter) filed an Administrative Complaint on December 17, 1976, alleging that the Defendant, on or about April 29, 1975, was found guilty in the Twelfth Judicial Circuit Court of this state of engaging in lewd and lascivious acts or assault upon or in the presence of a child and that by reason thereof, the Defendant is guilty of a crime of moral turpitude fraudulent or dishonest dealing in violation of subsection 475.25(1)(e), Florida Statutes. Based thereon, the Commission seeks to revoke or suspend the licensee and his right to practice thereunder. The Commission introduced into evidence an Information filed January 20, 1975, against the Defendant for engaging in Involuntary Sexual Battery, Lewd and Lascivious Act or Assault upon or in the Presence of a Child in violation of Chapter 794.021(e) and Chapter 800.04 Florida Statutes. On April 29, 1975 a jury found the Defendant guilty as charged. See Commission's Exhibit #1. Chapter 475.25 Florida Statutes set forth grounds for which the Commission may revoke or suspend a registrant's license. Subsection (e) thereof provides in pertinent part that the Commission may suspend a registrant's registration based upon a finding that the registrant has "been guilty of a crime against the laws of this state or any other state or of the United States, involving moral turpitude The documentary evidence introduced and received in this case provides ample basis for a finding that the registrant has been guilty of a crime within the meaning of Chapter 475.25(1)(e). Based thereon, I make the following:
Recommendation 1. That the Defendant's registration as a real estate salesman be suspended for a period of two years. DONE and ENTERED this day of April, 1977, in Tallahassee, Florida. JAMES E. BRADWELL, Hearing Officer Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304 (904) 488-9675 COPIES FURNISHED: Bruce I. Kamelhair, Esquire 2699 Lee Road Winter Park, Florida 32789 Frank L. Pepperel c/o ITT Community Development Corp. 5225 Northwest 87th Avenue Miami, Florida 33166
