The Issue The issue is whether Petitioner's application for licensure as a real estate instructor should be approved.
Findings Of Fact Based upon all of the evidence, the following findings of fact are determined: Mr. Haller is a highly educated individual, having received two undergraduate degrees, two master degrees, and a law degree from the University of Florida. He is licensed as a real estate broker, having received his license in 1978; is a licensed commercial pilot (and a current member of the Civil Air Patrol); and is certified by the State as a teacher in the areas of chemistry, mathematics, general science, and exceptional student education. Also, Mr. Haller was just accepted for admission to the University of North Florida in the Master of Science in Computer and Information Sciences program for the 2004 summer term. Mr. Haller was licensed as a member of The Florida Bar in 1982 and for a number of years maintained a law practice as a sole practitioner in Gainesville, Florida. Much of his work involved real estate transactions. Around 1996, however, he suffered a nervous breakdown, which resulted in his hospitalization. During that illness, he was unable to attend to client matters, which resulted in several complaints being filed against him by former clients, and led to the filing of charges by The Florida Bar. (However, no criminal charges arose out of these complaints, and the clients never pursued the matter in civil court.) Pending the outcome of the disciplinary matter, he was placed on The Florida Bar's inactive list on December 26, 1996. Because of his fragile state of health, rather than contesting the charges, Mr. Haller chose to voluntarily resign from The Florida Bar on June 19, 1997, with leave to seek readmission after five years, effective nunc pro tunc (retroactive) to December 26, 1996. He has not yet applied for readmission but says he intends to do so. Since The Florida Bar matter, and with the exception of the corollary matter described in Finding of Fact 4, there have been no other blemishes on Mr. Haller's record in any respect. Based on The Florida Bar's action, on July 9, 1998, the Department filed an Administrative Complaint against Mr. Haller, as a real estate broker, charging him with having had a registration suspended, revoked, or otherwise acted against in violation of Section 475.25(1)(s), Florida Statutes (1997). (The record shows that the Department and Commission had a complete record of all allegations pending against Mr. Haller when he resigned from The Florida Bar.) On October 14, 1998, and after an informal hearing in which he admitted the allegations of fact, the Commission entered a Final Order suspending Mr. Haller's real estate license for three months and requiring that he reimburse the Commission in the amount of $240.00 for investigative costs. The license was subsequently reinstated after the suspension time had expired and remains in good standing at this time. Mr. Haller is currently employed as a chemistry teacher for the Duval County School District. He is also a mathematics instructor at Florida Community College in Jacksonville. In July 2003, he was offered a position as a real estate instructor at the Watson School of Real Estate in Jacksonville, Florida. He has been offered a similar position at Florida Community College. In order to be employed as an instructor, Mr. Haller needed to secure a real estate instructor's license from the Commission. To that end, he filed an application with the Commission on September 15, 2003. However, it was denied by the Commission on the ground that his law "registration" had been disciplined by the Florida Bar in 1997. It is fair to infer from the Transcript of the Commission's meeting on February 18, 2004, that the Commission did not believe that Mr. Haller was completely candid when he responded to an inquiry regarding the circumstances surrounding his resignation from The Florida Bar. The Commission's denial triggered the filing of the request for a hearing. As clarified by the parties at the hearing, in order to become licensed, Mr. Haller must demonstrate that he is now qualified for licensure "because of lapse of time and subsequent good conduct and reputation, or other reason deemed sufficient," so that it affirmatively appears that the "public and investors will not likely be endangered by the granting of the registration." § 475.17(1)(a), Fla. Stat. In other words, Mr. Haller must demonstrate that since his resignation from The Florida Bar in mid-1997 (which is the disqualifying offense), his conduct and reputation have been such that it is unlikely that if he is licensed as a real estate instructor, the public and investors will be endangered. Mr. Haller has been, and is now, employed as a public school teacher in Duval County, as well as in the community college system. In these positions, he is entrusted to teach and interact with students on a daily basis. A letter from one of his supervisors corroborates Mr. Haller's testimony that he is performing those tasks in a reputable and competent manner. In addition, Mr. Haller currently holds an active real estate broker's license, which allows him to conduct transactions on behalf of investors and members of the public. There is no evidence in the record that he is a threat to investors or the public in his role as a real estate broker. Indeed, the evidence shows that he is not. If the instructor's license is issued, instead of dealing with investors and members of the public in a broker's capacity, Mr. Haller will be teaching applicants who are seeking a real estate license. Testimony by an active investor who has been involved in at least 2,000 real estate transactions in the Alachua County area over the last 30 years or so, some handled by Mr. Haller, established that Mr. Haller is a "veteran of real estate transactions" since the 1970s, and that his honesty and integrity since his resignation from The Florida Bar have not been questioned. A member of the Endowment Board for Santa Fe Junior College, which has raised almost $30 million for the college, and who is a long-time realtor, further established that Mr. Haller possesses the humility, education, and character necessary to be a good real estate instructor. Another witness testified that he would have no hesitation in using Mr. Haller for a real estate transaction. Finally, a retired certified public accountant who is now employed by the University of Florida testified that Mr. Haller possesses the character, intelligence, and experience to be licensed as an instructor and would be an asset to the profession. The foregoing evidence supports a finding that Mr. Haller has sufficiently rehabilitated himself since his resignation from The Florida Bar through meaningful employment in the public and community college school systems, and that he will pose no threat to the public or investors as a real estate instructor. The evidence further supports a finding that Mr. Haller enjoys a good reputation in the community, and that his conduct since mid-1997 has been good. Because the statutory criteria have been satisfied, the application should be approved.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Florida Real Estate Commission enter a final order granting Petitioner's application for licensure as a real estate instructor. DONE AND ENTERED this 20th day of July, 2004, in Tallahassee, Leon County, Florida. S DONALD R. ALEXANDER Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 20th day of July, 2004.
Findings Of Fact At all times pertinent to this proceeding, Martin S. Steinhardt was president of FGCRE and was a qualifying real estate broker for this corporation. Steinhardt was also the president and operator of Gold Coast School of Real Estate III, Inc. (GCSRE), which is not a party to this proceeding, during the pertinent period. On May 8, 1979, Steinhardt, on behalf of GCSRE, entered into a lease with Robin Cook pertaining to two units of a condominium office building in West Palm Beach. Numerous problems arose thereafter culminating in the eviction of GCSRE by Court Order issued on September 30, 1981. Petitioner established that the lease was in violation of the condominium association by-laws. This was, however, the responsibility of the lessor who was a member of the association and bound by its rules. The disputes which arose over parking, noise, damage to property, etc. were landlord-tenant matters and are not relevant to the statutes under which Respondents are charged here. Steinhardt and GCSRE violated local ordinances by failing to obtain an occupation license, a building permit, and a certificate of occupancy. However, these violations were resolved when the necessary documents were secured, and no formal legal action was taken. Vannoy Banks was associated with Steinhardt in the operation of FGCRE. He obtained a listing on a house which was subsequently purchased by an employee of FGCRE. Banks believed he was entitled to 50 percent of the $1,300 sales commission, which had been reduced and deferred to accommodate the buyer. Following this sale, Banks and Steinhardt dissolved their relationship and have subsequently been involved in disputes and litigation over other matters. Banks has not been paid a share of this commission nor has he received an accounting on the transaction. The testimony of the buyer and seller established that a commission of $1,300 was paid on the transaction. Steinhardt concedes that he did not deliver any of these funds to Banks nor did he furnish a formal accounting. However, he contends that Banks was not due a separate commission since he shared in the corporate profits and that Banks never demanded a commission share or an accounting.
Recommendation From the foregoing findings, it is RECOMMENDED: The Petitioner enter a Final Order dismissing the Administrative Complaint. DONE and ENTERED this 6th day of October, 1982, in Tallahassee, Florida. R. T. CARPENTER, 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 October, 1982. COPIES FURNISHED: Cynthia G. T. Allen, Esquire Gerald S. Lesher, Esquire 189 Bradley Place Palm Beach, Florida 33480 Rod Tennyson, Esquire 325-C Clematis Street West Palm Beach, Florida 33401 Vernon J. Quigley 8920 North Military Trail Palm Beach Gardens, Florida 33410 Frederick H. Wilsen, Esquire Department of Professional Regulation P.O. Box 1900 Orlando, Florida 32802 C. B. Stafford, Executive Director Florida Real Estate Commission Post Office Box 1900 Orlando, Florida 32802 Samuel R. Shorstein, Secretary Department of Professional Regulation 130 North Monroe Street Tallahassee, Florida 32301
The Issue Whether Petitioner's application for registration as a real estate salesman should be approved. Petitioner appeared at the hearing without legal counsel. He was advised of his rights in an administrative proceeding and indicated that he understood the same and desired to represent himself in this proceeding.
Findings Of Fact On February 9, 1978, Petitioner Robert Marquis Levy of Miami Beach, Florida, filed with the Respondent an application for registration as a real estate salesman. In answer to question 6 on the application form concerning prior arrests or charges, Petitioner attached a list of prior arrests and convictions on criminal charges during the period 1970-1977, together with an accompanying explanation. By Order, dated April 10, 1978, Respondent denied the application based on Petitioner's criminal record. Petitioner thereafter requested an administrative hearing. (Respondent's Exhibit 1) At the hearing, Respondent presented evidence establishing the following criminal convictions of Petitioner: On September 14, 1971, Petitioner was convicted in the United States District Court for the Eastern District of Pennsylvania, Case No. 71-391, upon his plea of guilty to three counts of the offense of making or causing to be made false, fictitious and fraudulent statements in representations to an agency of the United States of America, in violation of 18 USC, Section 1001. He was sentenced to a suspended prison sentence and placed on probation for a period of five years. However, his probation was revoked in 1974 and he was sentenced to confinement for a period of two years. On December 16, 1974, in the United States District Court for the District of Maryland, Docket No. Y-74-0446, Petitioner, on his plea of guilty, was convicted of the offense of bail jumping in violation of 18 USC, Section 3150, and sentenced to imprisonment for a period of one year. On September 29, 1975, in the United States District Court for the Northern District of Georgia, Case No. CR 75-51A, upon his plea of guilty, Petitioner was convicted of the offense of transporting and causing to be transported in interstate commerce, a falsely made and altered security, in violation of 18 USC, Section 2314. He was sentenced to imprisonment for a period of two years for this offense. On October 5, 1977, in the Circuit Court of Dade County, Florida, based on four 1973 informations on worthless check charges in violation of Section 832.05, Florida Statutes, Petitioner having been placed on probation for such offenses, was ordered to make full restitution in the total amount of $1,206.40 to the Fountainbleau Hotel, Jordan Marsh, Burdines, and Peruvian Import and Sales Corporation. (Bill Andrews) (Respondent's Composite Exhibit No. 2) In addition to the foregoing, Petitioner conceded in his application to a 1970 New Jersey conviction of defrauding innkeeper for which he was fined $25.00, and a 1972 Virginia conviction of grand larceny by embezzlement, for which he was sentenced to three years in 1974. (Respondent's Exhibit No. 1) Petitioner testified at the hearing and submitted numerous documents in support of his testimony concerning good character and reputation in the community. In June 1977, Petitioner was released from federal prison and commenced employment with a Miami Beach television sales and service firm. In July 1978, he became the editor and business manager of the Miami Beach Citizen's News, a monthly news publication. During the period since his release from prison, Petitioner became active in the affairs of the Miami Beach Chamber of Commerce as chairman of various committees and member of the Board of Governors. In this connection, he became involved in a multitude of civic projects, including improved road signs, safe streets program, revitalization of Washington Avenue and Lincoln Road, and other community, civic and charitable activities. (Testimony of Petitioner, Petitioner's Exhibits 1-7) On February 9, 1978, the State Office of Executive Clemency issued Petitioner a Certificate of Restoration of Civil Rights for all felony convictions in the State of Florida and restoration of civil rights in the State of Florida for any and all felony convictions in other state or federal courts. (Petitioner's Exhibit 8)
Recommendation That the application of Petitioner Robert Marquis Levy for registration as a real estate salesman be approved, subject to any further necessary requirements for registration. DONE and ENTERED this 7th day of September, 1978, in Tallahassee, Florida. THOMAS C. OLDHAM Hearing Officer Division of Administrative Hearings 530 Carlton Building Tallahassee, Florida 32304 (904) 488-9675 COPIES FURNISHED: Robert Marquis Levy 10350 West Bay Harbor Drive #2T Miami Beach, Florida 33154 Manuel E. Oliver, Esquire Staff Attorney Florida Real Estate Commission Post Office Box 1900 Orlando, Florida 32802
Findings Of Fact In January, 1985, Petitioner was convicted of thirteen felony counts involving 12 fraudulent applications for FHA and VA loans, obstruction of justice, add failure to report income for federal income tax purposes. For the counts involving a conspiracy to defraud agencies of the federal government in connection with loan applications, obstruction of justice, and falsifying an income tax return, Petitioner received a sentence of two years. This sentence was later modified, and Petitioner was given five years' probation for all counts. Petitioner's probation ends in about two years. The criminal acts concerning the loan applications were done in order to assist a real estate brokerage firm in Illinois owned by Petitioner and his wife, who was also named in the indictment, to sell homes with VA and FHA guaranteed and insured financing. Petitioner was convicted of knowingly causing the making of loan applications showing inflated purchase prices and nonexistent gifts as sources of downpayments. The net effect of these practices was to leave the mortgage lender undersecured. On or about November 2, 1987, Petitioner submitted an application for licensure as a real estate salesman. In his application, he disclosed the above felony convictions, the revocation of his Illinois real estate broker's license which took place as a result of the convictions, and the denial of an earlier application for Florida licensure as a real estate salesman which denial was due to his convictions and the revocation of his Illinois broker's license. By letter filed December 2, 1987, Respondent notified Petitioner that his application for licensure as a real estate salesman had been denied because he failed to meet the requirements that he be "honest, truthful, trustworthy, and of good character, and shall have a good reputation for fair dealing." The letter cited as reasons for this determination the same reasons cited in the earlier denial plus a recommended order filed on July 27, 1987, in DOAH Case No. 87-2018, in which it was recommended that the application be denied. Although Petitioner has not regained his Illinois real estate broker's license, he received an Illinois real estate salesman's license in the fall of 1986. Since his conviction, Petitioner has taken various educational programs useful in the real estate business. On March 17, 1987, Petitioner graduated with a Bachelor of Science degree in Business Administration from California Coast University. On November 1, 1987, Petitioner completed the Florida Real Estate Commission Course #1 sponsored by the Gold Coast School of Real Estate. By letter dated November 30, 1987, L. Edward Holmes, a licensed real estate broker, notified Respondent that he was willing to supervise personally Petitioner if he were granted a license. By letter dated March 10, 1987, V. A. Indovina, M.D., who is staff psychiatrist with the DuPage County (Illinois) Health Department, notified Respondent that he (or she) felt that Petitioner has learned the consequences of his past behavior and will not engage in illegal behavior in the future. On or about November 24, 1987, Petitioner applied for a Florida contractor's license with the Construction Industry Licensing Board. He clearly disclosed his convictions in the application. Shortly prior to the hearing, the Construction Industry Licensing Board informed Petitioner that he was eligible to take the next contractor's examination. Respondent entered a final order on August 19, 1987, adopting the recommended order of June 17, 1987, in DOAH Case No. 87-2018, and denying Respondent's earlier application for licensure as a real estate salesman.
Recommendation Based on the foregoing, it is hereby RECOMMENDED that a Final Order be entered denying the application of Petitioner for licensure as a real estate salesman. DONE and RECOMMENDED this 10th day of May, 1988, in Tallahassee, Florida. ROBERT E. MEALE 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 10th day of May, 1988. COPIES FURNISHED TO: LAWRENCE S. GENDZIER, ESQUIRE ASSISTANT ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS 400 WEST ROBINSON STREET ROOM 212 ORLANDO, FLORIDA 32801 ROGER WOZNIAK 14 HICKORY HILL ROAD TEQUESTA, FLORIDA 33469 DARLENE F. KELLER EXECUTIVE DIRECTOR FLORIDA REAL ESTATE COMMISSION POST OFFICE BOX 1900 400 WEST ROBINSON STREET ORLANDO, FLORIDA 32801 WILLIAM O'NEIL GENERAL COUNSEL DEPARTMENT OF PROFESSIONAL REGULATION 130 NORTH MONROE STREET TALLAHASSEE, FLORIDA 32399-0750
The Issue Whether Respondent committed the violations alleged in the Administrative Complaint issued against him and, if so, what penalty should be imposed.
Findings Of Fact Based on the evidence adduced at hearing, and the record as a whole, the following findings of fact are made: Respondent is now, and has been at all times material to the instant case, a Florida-certified general real estate appraiser, holding license number RZ 2678 and doing business as Easthill Valuation and Consulting (Easthill). He has been doing real estate appraisal work since 1986. Respondent also holds a Florida real estate broker license. HBK Investments (HBK) is a hedge fund headquartered in Dallas, Texas. On June 23, 2006, HBK entered into a written agreement with Easthill in which Easthill agreed, for a $7,500.00 fee, to appraise for HBK the value of the remaining unsold inventory of an uncompleted high-rise, residential condominium project being developed by WCI Communities, Inc., on a barrier island in Pompano Beach, Florida (Ocean Side Project). The agreement did not specify, nor did HBK indicate at any time during the negotiations leading to the agreement, that time was of the essence in completing the appraisal. The agreement2 read, in pertinent part, as follows: * * * The purpose of this appraisal/consultation is to estimate the market value of the fee simple estate reflecting the unsold inventory in the subject property. The report is intended to be used in making internal management decisions related to potential investment by [HBK] related to specific properties, interests, direct investments and/or securities issued by WCI. The assignment is to be a limited appraisal in a summary report format in conformance with, and subject to, the Standards of Professional Practice and Code of Ethics of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice (USPAP) developed by the Appraisal Standards Board of the Appraisal Foundation. The scope of [Easthill's] assignment is to evaluate the subject property based upon the estimated remaining inventory as of the date of value for the current development based upon information obtained by the appraiser through market research and analysis. [HBK] hereby acknowledges that the subject property is owned, controlled and in the process of development by WCI. [HBK] understands and agrees that [Easthill] will receive information for the report from third party sources and that [Easthill] bears no responsibility (and shall not be liable) for the accuracy or completeness (or lack thereof) of such information. [HBK] understands that despite [Easthill's] best efforts to obtain accurate direct data pertinent to the analysis, such as but not limited to the number of sold and/or unsold units, actual transaction prices, actual or proposed development costs, current price schedules, documents pertaining to the declaration and proposed operation of the condominium development, may not be available. [Easthill] will incorporate market derived information in an effort to estimate these variables in the analysis. [HBK] acknowledges that market derived estimates may vary considerably from the actual amounts expended by WCI and can therefore reflect diverged value indicators which reflect a higher degree of subjectivity versus an analysis performed had the actual information been made available. * * * [Easthill's] fee for this assignment will be $7,500.00 and requires a 50% retainer payment prior to commencement of work with the balance due upon delivery of the report. [Easthill] will provide one bound hard copy and one electronic copy of the report via email in PDF format. The report will be completed and delivered to [HBK} within approximately four (4) to six (6) weeks from receipt of this fully executed engagement letter, the retainer fee and any additional relevant information provided by [HBK]. In the event the assignment is canceled prior to completion, an invoice will be prepared reflecting the percentage of work completed as of that date. Any credits to [HBK] will be promptly returned or any remaining balances to the appraiser will be indicated on the invoice. * * * HBK made the "50% retainer payment" by check dated July 6, 2006. The check (in the amount of $3,750.00) was deposited in Respondent's account at BankAtlantic on July 11, 2006. Thereafter, Respondent began work on the appraisal. Matthew Luth of HBK attempted to contact Respondent by telephone to inquire about the status of the appraisal after four to six weeks had gone by and he had not heard anything from Respondent. Mr. Luth was unsuccessful in his efforts to speak with Respondent, but he did leave "voice mail" messages. Mr. Luth also sent Respondent three e-mails (on August 8, 2006, August 25, 2006, and September 8, 2006) requesting an update on the appraisal. Respondent received neither Mr. Luth's "voice mail" messages, nor the e-mails Mr. Luth had sent. Jon Mosle, HBK's General Counsel, subsequently sent the following letter, dated September 26, 2006, to Respondent: I am the General Counsel for HBK Investments L.P. On June 23, 2006, HBK engaged your company to perform an appraisal related to the Pompano Beach condominium development to be known as Oceans Side. A copy of our signed engagement letter is attached. Promptly after signing the engagement letter, HBK paid the initial $3,750 payment for your services (via our check #2611, which cleared our bank on July 11, 2006). The engagement letter stated that your appraisal would be completed and delivered within approximately four to six weeks, a time frame now long passed. To date, we have seen no evidence of any work on your part. Matt Luth (the business person at HBK, who is responsible for this project) and myself have now tried to contact you numerous times and you have chosen not to return our calls or to provide any update regarding the project. From this information, I can only conclude that you are attempting to steal our retainer. Please be assured that we will not simply stand by and let this happen. If you do not call Matt Luth in the next three days to discuss this matter, we will immediately file a complaint with the State of Florida Department of Business and Professional Regulation. We will then investigate the process for reporting this as a criminal matter to the appropriate authorities. Respondent received Mr. Mosle's letter on October 14, 2006.3 Within a day or two of receiving the letter, Respondent contacted HBK and spoke with Mr. Luth. Respondent apologetically told Mr. Luth that "the report had been delayed," but he "was finishing the assignment and would have it to [HBK] within about a week." Mr. Luth said "that would be fine." The next day, however, Respondent received a telephone call from Mr. Luth, who told him that HBK was "canceling the assignment" because it "no longer needed the report." At the time of HBK's "cancel[lation of] the assignment," Respondent "had completed just about everything there was to complete except for actually writing the narrative report." He had obtained information about the Ocean Side Project, as well 14 other, comparable projects in the area, through public records reviews, on-site visits, and discussions with project staff. The information gathering process had not proceeded as quickly as Respondent had planned inasmuch as it had turned out that project staff were not always accessible at the times it was convenient for Respondent to meet with them. Respondent spent a total of approximately 60 hours collecting and analyzing data for the appraisal. Although the percentage of work that Respondent had completed was greater than the percentage (50%) of the "consultant's fee" he had been paid, Respondent did not ask HBK to pay him any additional monies (notwithstanding that his agreement with HBK authorized the making of such a request). But for HBK's "cancel[lation of] the assignment," Respondent would have delivered the "limited appraisal in summary report format" that he had agreed to provide to HBK.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is hereby RECOMMENDED that the Board issue a Final Order dismissing the Administrative Complaint issued against Respondent in its entirety. DONE AND ENTERED this 20th day of February, 2008, in Tallahassee, Leon County, Florida. S STUART M. LERNER Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 20th day of February, 2008.
