Findings Of Fact Petitioner, Mike Somogyi, filed an application for registration as a real estate salesman with the Respondent, Board of Real Estate, on or about April 16, 1980. By Order dated June 23, 1980, Respondent denied Petitioner's application because Petitioner had not made it appear to the Board that he was honest, truthful, trustworthy, and of good character as required by Section 475.17, Florida Statutes. Respondent based its denial on Petitioner's arrest in 1980 for possession of controlled substances, i.e., marijuana, quaaludes and narcotic equipment. A five count information was filed against Petitioner on March 4, 1980, in Martin County. Petitioner entered a not guilty plea and was subsequently approved for the Pretrial Intervention Program. Petitioner's required involvement with the program will expire on January 15 1981, and if the program is successfully completed, all charges pending against Petitioner will be dismissed. Respondent further relied upon Petitioner's arrest on September 1, 1976, in Dade County, Florida, for resisting arrest. However, that charge was dismissed in October, 1976. Petitioner has no other record of arrests or convictions.
The Issue At issue is whether respondent's license as a real estate salesman should be disciplined for the alleged violations set forth in the administrative complaint. Based on the evidence, the following facts are determined:
Findings Of Fact At all times relevant thereto, respondent, Kevin P. Sheehy, held real estate salesman license number 0203610 issued by petitioner, Department of Professional Regulation, Division of Real Estate. The license is currently in an involuntary inactive status. On October 14, 1983, respondent was convicted in the United States District Court for the Middle District of Florida on the charges of (a) conspiracy to import marijuana and (b) importation of marijuana. For this he received a four year sentence on each count to run concurrently and a special parole term of five years. According to his counsel, he began serving his sentence on September 5, 1985 at Eglin Air Force Base. He is eligible for parole around April, 1987. Prior to his conviction, respondent was employed as a real estate salesman in a real estate firm in Tavanier, Florida. When Sheehy is released, his former broker intends to offer him a job as a salesman, assuming Sheehy holds a license, for the broker found Sheehy to be honest, trustworthy, productive, and a hard worker. This was corroborated by another person in the community. Both witnesses urged that Sheehy, who is 27 and afflicted with juvenile diabetes, be given the opportunity to pursue a livelihood when he is paroled. There is no evidence that Sheehy failed to notify the Division of Real Estate of his felony conviction within thirty days after the date of his conviction.
Recommendation Based on the foregoing findings of fact and conclusions of law, it is RECOMMENDED that respondent be found guilty as charged in Counts VII and VIII of the administrative complaint, and that ,, his real estate salesman license be suspended for eighteen months. The remaining charge in Count XIX should be DISMISSED. DONE and ORDERED this 9th day of January, 1986, in Tallahassee, Florida. DONALD R. ALEXANDER, Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32399 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 9th day of January, 1986.
The Issue The issues are whether Respondent is guilty of failing to account for and deliver a share of a real estate commission, as required by Section 475.25(1)(d)1., Florida Statutes, and, if, so, what penalty should be imposed.
Findings Of Fact At all material times, Petitioner has been a licensed real estate broker, holding license number 0314643. Petitioner does business under the name, Blue Ribbon Realty. Petitioner employs several real estate salesmen in her brokerage business. Virginia M. Poole is a licensed real estate salesman. During 1988, she was looking for a house to buy. At the time, she was working in a hotel as a cashier. While working at the hotel, Ms. Poole met Mary Asian, who was also working at the hotel. At the same time, Ms. Asian was and remains a real estate salesman working at Blue Ribbon Realty. In a period of several weeks, Ms. Asian showed Ms. Poole several houses and presented at least one offer with a small deposit. One day while driving on her own, Ms. Poole came across a house that appealed to her. At or prior to this time, Ms. Poole had placed her salesman's license with Blue Ribbon Realty. Ms. Poole negotiated a sales contract with the seller. The contract was signed by Ms. Poole and the seller on November 10, 1988. By a separate commission agreement signed the same date, the seller agreed to pay Respondent a commission equal to 3% of the sales price. The closing took place on December 14, 1988. The closing agent duly paid Respondent the sum of $2172, which represents 3% of the purchase price. Respondent cashed the check and received the proceeds thereof. Under the agreement between Ms. Poole and Respondent, Ms. Poole was to be paid one-half of all commissions that she earned for Blue Ribbon Realty. At the closing, Ms. Poole asked about her share of the commission. Refusing to pay anything to Ms. Poole, Respondent told her, "You get it any way you can." Respondent believed that Ms. Asian, not Ms. Poole, was due the salesman's share of the commission, which by agreement was one-half of the sum paid to Blue Ribbon Realty. Ms. Poole, who never listed or sold any properties for the two or three months that her license was placed with Respondent, had placed her license with another broker over ten days in advance of the December 14 closing. Under the agreement between Respondent and her salesmen, no commission was due any salesman who left Blue Ribbon Realty more than ten days prior to a closing. The reason for this policy was that much work had to be done in the ten days preceding a closing, and it was unfair to require others to perform the work while paying the salesman's share of the commission to a departed salesman. After repeated attempts to obtain payment of the $1086 due her, Ms. Poole filed a legal action against Respondent in Orange County Court. The defenses raised by Respondent apparently proved unavailing. On April 12, 1989, Ms. Poole received a final judgment in the total amount of $1197.44, including interest and costs. Although the filing date does not appear from the face of the exhibit, a Notice of Appeal was served on Ms. Poole on June 30, 1989. Subsequent attempts to recover on the judgment were unsuccessful. At this point, Ms. Poole filed a complaint with Petitioner. Respondent never requested the Florida Real Estate Commission to issue an escrow disbursement order determining who was entitled to the disputed half of the commission, never sought an adjudication of the dispute by court through interpleader or other procedure, and never submitted the matter to arbitration with the consent of the parties. The only thing that Respondent has done in this regard is to deposit the contested sum in the trust account of her attorney, apparently pending the resolution of the appeal.
Recommendation Based on the foregoing, it is hereby RECOMMENDED that Petitioner enter a Final Order finding Respondent guilty of failing to account or deliver a share of a commission to one of her salesmen, issuing a written reprimand, and imposing an administrative fine in the amount of $1000. ENTERED this 23 day of May, 1990, in Tallahassee, Florida. ROBERT E. MEALE Hearing Officer Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, FL 32399-1550 Filed with the Clerk of the Division of Administrative Hearings this 23 day of May, 1990. COPIES FURNISHED: Steven W. Johnson, Senior Attorney Division of Real Estate P.O. Box 1900 Orlando, FL 32802 Attorney Raymond O. Bodiford P.O. Box 1748 Orlando, FL 32802 Darlene F. Keller Division Director Division of Real Estate 400 West Robinson Street Post Office Box 1900 Orlando, FL 32801 Kenneth Easley General Counsel Department of Professional Regulation 1940 North Monroe Street Tallahassee, FL 32399-0792
Findings Of Fact The Respondent, Ann K. Croasdell, was a registered real estate broker at all times material hereto. She has been issued License No. 0141344. In 1977 or 1978, Respondent met William Young at a neighborhood barbecue. About a year after this initial meeting, Young attended a real estate school owned and operated by Respondent. At that time a business relationship developed between them which lasted until approximately September, 1980. In 1980, Bruce Rhodes, then an investigator with the Maitland Police Department, was assigned a case wherein residences up for sale were being burglarized. There were no signs of forcible entry to these homes and each one had a multi-lock box used by realtors to show the homes. Thus, the person who was burglarizing the homes was referred to as the "multi-lock burglar". During the course of the investigation, evidence was obtained which pointed to William Young as the multi-lock burglar. The evidence consisted of statements from various witnesses. Subsequently, a search warrant was issued and served on William Young's apartment. Young was eventually arrested and pled guilty to grand theft in the second degree and other unrelated charges. He is currently serving a seven and a half year prison sentence at Lawty Correctional Institute, Lawty, Florida. 5.. During the investigation into Young's activities, Respondent was interviewed by the Maitland Police Department on several occasions. The first such interview took place on November 13, 1980, at the Maitland Police Department and was conducted by Sergeant Walter Steeb and Investigator Bruce Rhodes. The Respondent was not under arrest nor was she compelled to appear, but came voluntarily at the request of the Maitland Police Department. At the initial interview, the Respondent acknowledged accompanying Young to residences with multi-locks that were for sale, but stated she did not see Young take anything. On December 1, 1980, the Respondent again appeared at the Maitland Police Department at their request. She again appeared voluntarily and was not under subpoena, under arrest or charged as a suspect. At this December 1, 1980, interview, Respondent gave three separate statements to Investigator Bruce Rhodes of the Maitland Police Department. These statements and her subsequent statements differ substantially from the information she gave to the Maitland Police Department on November 13, 1980. Two of the three December 1, 1980, statements concern the return of property. One statement acknowledged the returning of a set of golf clubs to Officer Rhodes on Thursday, November 20, 1980. In this statement, Respondent stated that while she was with William Young, he entered the garage of a house in Sweetwater and came out with a man's set and a Woman's set of golf clubs which he placed in the trunk of her car. Respondent admitted, both at a prior deposition and at the final hearing, that she knew these golf clubs were stolen. At the deposition, she stated she intended to keep the set of woman's golf clubs, knowing they were stolen. The circumstances surrounding the taking of the golf clubs corroborates the fact that the Respondent knew these clubs were stolen. On the day in question, the Respondent and William Young were out looking at homes and pulled up in the driveway of a house that was for sale. The house had no multi-lock, but Young gained entrance through an open side door to a garage. He entered the garage and removed a man's and a woman's set of golf clubs, which he placed in Respondent's car. Respondent did not go into the garage with Young, but remained in the car. She did, however, get out of the car to open the trunk for Young to put in the two sets of golf clubs. In addition to the facts surrounding the golf clubs, Respondent has also admitted, on several occasions, to having taken two sets of yellow towels from a home in Wekiva. These admissions came in the form of the December 1, 1980, statement made to Bruce Rhodes, and subsequently, at a deposition taken on August 17, 1981, in the case of State of Florida v. William Young. At her deposition of August 17, 1981, Respondent explained how she entered the house with a multi-lock key and took the towel sets which consisted of two towels, two hand towels and two washcloths. Additionally, in response to the question as to whether she stole the two sets of towels, she answered "yes," that she did. Respondent did not alert the authorities to these burglaries, nor did she attempt to turn in the stolen golf clubs or towels. Her only excuse for her activities was a claimed fear of William Young. Although Respondent established that Young was abusive to women, there was no indication that she or a member of her family was in any real danger. Rather, she participated with Young as a willing accomplice.
Recommendation From the foregoing, it is RECOMMENDED: That Petitioner enter a final order suspending Respondent's real estate broker's license for a period of five years. 2/ DONE and ENTERED this 21st day of March, 1983, 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 21st day of March, 1983.
The Issue Whether Respondent violated Sections 475.25(1)(f) and (p), Florida Statutes (1993), and if so, what penalty should be imposed.
Findings Of Fact Petitioner, Department of Business and Professional Regulation, Division of Real Estate (Department), is a state licensing and regulatory agency charged with the responsibility and duty to prosecute administrative complaints pursuant to Section 20.165 and Chapters 120, 455, and 475, Florida Statutes, and the rules promulgated pursuant hereto. Respondent, Richard G. Cash (Cash), has been a licensed Florida real estate broker since 1993. His broker's license number is BK-0267856. Prior to becoming a broker, Cash had been a licensed real estate salesperson since approximately 1973. On or about July 22, 1994, Michael J. Provost, Assistant State Attorney for the Twentieth Judicial Circuit of the State of Florida, charged Cash, by information, with aggravated battery. The charge arose from a domestic dispute involving Cash and his former wife, when she appeared uninvited at his home late one night under the influence of drugs and demanded to take their four year-old daughter. His former wife was considerably taller and heavier than Cash, and a struggle ensued in which Cash hit her with a stun gun. Both Cash and his former wife received injuries as a result of the altercation. On or about December 15, 1994, in the Circuit Court of the Twentieth Judicial Circuit for Collier County, Florida, Cash entered a plea of nolo contendere to Count I of the information, which was aggravated battery, a second degree felony. Adjudication was withheld, and Cash was placed on probation for five years. As a condition of probation, Cash was to pay his former wife $4,000 within 30 days of the sentencing and another $4,000 within 12 months of sentencing. In exchange, the former wife agreed to release Cash from any civil liability arising from the incident. Cash paid the $8,000 to his former wife. Cash did not notify the Florida Real Estate Commission that he had pled nolo contendere to a second degree felony. His explanation for failure to do so was that he understood from his attorney that because adjudication had been withheld, he had not been convicted of a crime. On or about January 16, 1998, a warrant was issued for Cash for violation of probation for having shotguns and handguns at his home without first obtaining consent from his probation officer. On April 17, 1998, Cash pled guilty to violation of probation. He was adjudicated guilty of violating probation and aggravated battery, his probation was revoked, and he was sentenced to three years, seven months, and fifteen days with credit for fifteen days already served.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED: That a final order be entered finding that Richard G. Cash violated Sections 475.25(1)(f) and (p), Florida Statutes (1993), and that his broker's license be suspended for one year or until he is released from the custody of the Florida Department of Corrections, whichever occurs first. DONE AND ENTERED this 29th day of September, 1999, in Tallahassee, Leon County, Florida. SUSAN B. KIRKLAND 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 29th day of September, 1999. COPIES FURNISHED: Herbert S. Fecker, Division Director Division of Real Estate Department of Business and Professional Regulation 400 West Robinson Street Orlando, Florida 32801 Barbara D. Auger, General Counsel Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-0792 Daniel Villazon, Esquire Division of Real Estate Department of Business and Professional Regulation 400 West Robinson Street, Suite N-308 Orlando, Florida 32801 Richard G. Cash Fort Pierce CCC 1203 Bell Avenue Fort Pierce, Florida 34982
Findings Of Fact Respondent, George May, at all times relevant thereto, was a licensed real estate broker-salesman, having been issued license number 0056693 by Petitioner, Department of Professional Regulation, in 1976 (Petitioner's Exhibit 1). On or about October 8, 1979, Respondent filed an application for licensure as a broker-salesman to associate himself with Lee Holliday, a registered real estate broker with offices at 6191 SW 45th Street, Davie, Florida (Petitioner's Exhibit 1). The application was signed by both May and Holliday on October 4, 1979, and received by the Department on October 8, 1979. Prior to that time, May's license had been in an inactive status for approximately eight months. May registered with Holliday with no intention of actively engaging in real estate transactions. He simply desired to keep his license active in the event other opportunities arose. May subsequently left Holliday some "two or three weeks" later. During his association with Holliday, neither May nor Holliday consummated any real estate transactions. In November, 1979, May became a salesman for Riken Realty, Inc., located at 1742 NE 163rd Street, North Miami Beach, Florida. The exact date was never disclosed. However, May was observed at Riken Realty by a Department investigator on or about November 15, 1979, and signed rental agreements on behalf of Riken shortly thereafter, which corroborate the approximate date of employment given by May. On November 13, 1979,May signed a Form 400.5 to transfer his registration to Riken Realty. This form is used to request a registration certificates for a number of categories, including "a change of broker or owner by a salesman or broker-salesman". A change of an employer by a salesman requires that both the salesman and the broker-employer execute the form. After May signed the form, he gave it the same day to Steve Mishken, the office manager. Mishken filled out a portion of the space where the broker is to sign, and then gave it to Gerald Rosen, the active broker of the firm. The date on which Mishken gave it to Rosen was not disclosed. Rosen eventually signed the form on December 11, 1979. The form itself reflects receipt by the Florida Real Estate Commission on December 11, 1979, and by the Board of Real Estate on January 11, 1980. 1/ However, the Department considers January 11, 1980, to be the official date on which the form was received. Rosen was unable to account for the four weeks that it took him to sign the form, or why it was apparently not mailed for several weeks thereafter. Mishken, who initially received the form, could not explain the reason for the delay. The standard practice followed by Riken Realty when processing a Form 400.5 was immediate execution of the form by the broker. The broker then assumed the responsibility of promptly submitting it to the Department. After becoming associated with Riken Realty, May was actively involved in both sales and rental transactions, and received compensation for his services. Riken Realty closed its offices in early 1980. At the direction of Steve Mishken, May became associated with National Home Realty, Inc., in Hollywood, Florida, in early February, 1980. 2/ The exact date was never disclosed. National's active broker was Gerald Rosen and its principal stockholder was Mishken. May claims he signed and gave a Form 400.5 to Mishken when he transferred to the firm. However, this was not corroborated by Mishken or Rosen, who testified at the hearing, and the Department has no record of any form being filed. On February 10, 1980, a Department investigator visited the offices of National Home Realty and observed May working in the capacity of a salesman. The investigator advised Rosen and Paul Katchmere, the office manager, that a transfer of registration for May would be required. Rosen was under the mistaken impression that a transfer was not needed between corporations owned and operated by the same principals. May subsequently left National two days later (February 12, 1980) to begin his own real estate firm and the form was never executed. On February 15, 1980, May executed a Form 400.5 requesting that his registration be transferred to Real Estate Merchandisers, Inc., located at 2300 West Oakland Park Boulevard, Fort Lauderdale, Florida, a firm which May owns and operates. He has continued working as its active broker since that time. The records of the Department reflect the form was received on March 24, 1980.
Recommendation Based on the foregoing findings of fact and conclusions of law, it is RECOMMENDED that Respondent George May be found guilty of violating Subsections 475.42(1)(a) and (b), Florida Statutes, and Rule 21V-6.06, Florida Administrative Code, for failing to register as an employee of National Home Realty, Inc. in February, 1980. It is further RECOMMENDED that Respondent to be given a private reprimand for the aforesaid violations. DONE AND ORDERED in Tallahassee, Leon County, Florida, this 24th day of June, 1981. DONALD R. ALEXANDER Hearing Officer Division of Administrative Hearings Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 29th day of 1981.
Findings Of Fact Respondent Sexsmith is a licensed real estate broker, having held License Number 0079448 at all times relevant to these proceedings. Respondent Bellitto is a licensed real estate salesman, having held License No. 0204206 at all times relevant to Case No. 81-2630. Respondent Select Realty, Inc., is a licensed corporate real estate broker, having held License No. 0157174 at all times relevant to these proceedings. Respondent Sexsmith founded Select Realty, Inc., in 1975. He was a full time realtor until his employment by the Hollywood Fire Department in 1976. Select Realty thereafter became inactive. In 1979, Respondent Sexsmith was contacted by a Mr. Jim Holmes, who was seeking to register the corporate name, Select Realty. Sexsmith agreed to permit the name Select Realty to be used by Holmes and his associates to open a real estate office at 3045 North Federal Highway, Fort Lauderdale. Sexsmith also applied to Petitioner for certification as a director and active broker with this company. His application was granted in June, 1979, and he remained affiliated with Respondent Select Realty, Inc., in this capacity until about April, 1980. Respondent Sexsmith did not participate in Select Realty operations and received no compensation for the use of his name and broker's license. He was slated to open and manage a branch office in Hollywood, but this project failed to materialize. Petitioner produced Mr. Tom Ott and Ms. Terri Casson as witnesses. They had utilized the services of Select Realty, Inc., in December, 1979 (Ott) and February, 1980 (Casson). Both had responded to advertisements in which Select Realty offered to provide rental assistance for a $45 refundable fee. These witnesses understood money would be refunded if Select Realty did not succeed in referring them to rental property which met their specifications. Mr. Ott was referred to several properties which did not meet his requirements. He sought to have his fee or a portion thereof returned, but was refused. His demand for such return was made within the 30-day contract period (PX-11). Ms. Casson was similarly dissatisfied with the referrals and sought the return of her fee within the 30-day contract period (PX-7). However, she was unable to contact this company or its agents since the office had closed and no forwarding instructions were posted or otherwise made available to her.
Recommendation From the foregoing findings of fact and conclusions of law, it is RECOMMENDED that Respondent Select Realty, Inc., and Gary Lee Sexsmith be found guilty as charged in Counts Three and Four of the Administrative Complaint filed in DOAH Case No. 81-2630. It is further RECOMMENDED that all other charges against these Respondents and other Respondents named in DOAH Cases 81-2630 and 81-2490 be dismissed. It is further RECOMMENDED that the corporate broker's license of Select Realty, Inc., be revoked. It is further RECOMMENDED that the broker's license of Gary Lee Sexsmith be suspended for a period of one year. DONE AND ENTERED this 18th day of February, 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 18th day of February, 1982. COPIES FURNISHED: Michael J. Cohen, Esquire Suite 101, Kristin Building 2715 East Oakland Park Boulevard Fort Lauderdale, Florida 33306 William Grossbard, Esquire Suite 6175M 6191 Southwest 45 Street 6177 North Davie, Florida 33314 Anthony S. Paetro, Esquire Bedzow and Korn, P.A. Suite C 1125 Northeast 125 Street North Miami, Florida 33161 Lawrence J. Spiegel, Esquire Spiegel and Abramowitz Suite 380 First National Bank Building 900 West 49th Street Hialeah, Florida 33012 Mr. Gary Lee Sexsmith 321 Southwest 70t Avenue Pembroke Pines, Florida 33023 Mr. Guiseppe D. Bellitto 2635 McKinley Street Hollywood, Florida 33020 Select Realty, Inc. c/o Mr. Gary Lee Sexsmith last acting Director and Trustee of Select Realty, Inc. 321 Southwest 70th Avenue Pembroke Pines, Florida 33023 Mr. Carlos B. Stafford Executive Director Board of Real Estate Post Office Box 1900 Orlando, Florida 32802
The Issue At issue in this proceeding is whether Respondent committed the offenses set forth in the Administrative Complaint and, if so, what penalty should be imposed.
Findings Of Fact The parties Petitioner, Department of Business and Professional Regulation, Division of Real Estate (Department), is a state government licensing and regulatory agency charged, inter alia, with the responsibility and duty to prosecute administrative complaints pursuant to the laws of the State of Florida, including Chapters 455 and 475, Florida Statutes. From January 24, 1994, through the present, Respondent Ernest Eric Yeghian, has been a licensed real estate broker in the State of Florida, having been issued license number BK- 0583985, as well as the broker/officer of Vikon Realty Corp., a broker corporation located at 131 South F Street, Lake Worth, Florida. For the two-year period preceding his licensure as a broker or, stated otherwise, from 1992 to January 24, 1994, Respondent was licensed as a real estate salesperson in the State of Florida. Respondent's conviction In early 1996, Respondent pled guilty to one count of bank bribery, a violation of 18 U.S.C. § 215(a)(1), pursuant to a plea agreement reached in the matter of United States of America v. E. Eric Yeghian, United States District Court, District of Rhode Island, Case No. 1:95CR00021-004. Respondent resolved, in part, to enter such plea based on advise of counsel that the banker's coercion, discussed infra, would not constitute a legal defense to the offense charged. On March 20, 1996, judgment of conviction was entered on Respondent's plea and he was sentenced to 10 months' imprisonment and fined $10,000.2 The judgment further provided that upon release from imprisonment, Respondent would be on supervised release for a term of 3 years. Respondent failed to notify the Florida Real Estate Commission of the guilty plea or his conviction within 30 days of having pled guilty or having been convicted. Respondent voluntarily surrendered to the United States Bureau of Prisons (FPC Jesup, Georgia) on April 17, 1996, and was released to a halfway house (located in West Palm Beach, Florida) on or about December 17, 1996, to serve the last 60 days of his sentence. Respondent was released from custody on or about February 14, 1997, and will have completed his probation (supervised release) on February 14, 2000. The pending complaint At some point following Respondent's licensure as a real estate broker, the Florida Real Estate Commission (FREC) requested a criminal background check by the Federal Bureau of Investigation (FBI). That investigation was completed on November 30, 1995, and revealed that Respondent had been arrested on March 30, 1995, on the charge of bank bribery. Subsequently, the Department learned of Respondent's plea and conviction, and on December 23, 1996, filed a Uniform Complaint Form which initiated an investigation to resolve whether cause existed to believe that Respondent had violated Section 745.25(1)(p), Florida Statutes, by having failed to notify FREC of his plea of guilty or conviction. By letter of December 27, 1996, the Department advised Respondent of the pendency of the complaint and investigation, and proposed to schedule a meeting to discuss the complaint. The letter further provided that "[y]ou may submit a written response to the information contained in the complaint within 20 days after receipt of this letter." Respondent was interviewed by the Department's investigator on December 30, 1996, and by letter of January 3, 1997, he submitted a written response to the complaint, as well as an excerpt from court documents that explained his version of events (Respondent's Exhibit 4), and character reference letters that had been submitted to the federal judge (Respondent's Exhibits 6-13). Respondent's response to the complaint included the following explanation regarding his arrest and conviction: In 1983, I graduated from high school. I had been accepted by the University of Massachusetts and began my studies there in the fall of that year. It soon became apparent to me that even though I was doing well at school, I had to drop out . . . to assist my family financially. . . . I began to work full time as a laborer in a scrap metal yard in the winter of 1983. As I continued to work as a laborer and save my earnings, I began to learn as much as I could about the real estate business. In 1984, a friend and I pooled our savings and purchased our first property, and [sic] abandoned tenement in Providence's Armory district. I moved in and completely renovated the building from top to bottom myself. I then advertised and sold the home. We reinvested the profit into two similar properties. Fortunately, these properties also were sold at a profit. We continued to repeat this process many times over the next 3-4 years, also doing all the work ourselves. * * * In early to middle 1987, it became apparent to me that, due to the rapidly rising prices of real estate in Rhode Island, attractively priced existing properties would continue to be more and more scarce. I decided that it would be more cost effective to begin building new properties. However, since I was inexperienced at this type of development, I decided to associate with partners who were older and more seasoned. A partnership was formed to build 48 condominiums in North Providence. We agreed that my role would be to supervise the day to day construction and that they would secure the bank financing for the project. The construction began in early 1986. Most everything went well and soon we were selling the condominiums at a profit. Around that time, one of my partners introduced me to a college friend of his, an attorney named George Marderosian. Mr. Marderosian began to do work for the partnership as well as becoming my personal attorney. Early in 1987, Mr. Marderosian became aware of [a] piece of property, selling at a reasonable price, which was suitable for the same type of condominium development. Because the first project was going well, it seemed a [sic] natural to proceed and do this project as well. . . . In early 1987, . . . [my partner and I] decided to put a deposit on the land. I then spent the next 8-10 months verifying the zoning, getting permits for water and sewer service, having engineering and construction plans prepared, etc. This along with the eventual supervision of the construction was my usual role. In the course of this work, I provided all of this development information to Mr. Marderosian, who was preparing the application for the bank loan. The application was made for the loan in the fall of 1987. I learned in late 1987 that the loan was approved and was gratified because I had invested the better part of one year in preparing the project. . . . After I was told our loan was approved (and only several days before the closing) Jay Moore, my partner in both the old and new projects, explained to me that he had been approached by our loan officer, Kenneth Annarummo, who was looking for money. I am not entirely sure about the exact circumstances. However, I am sure that this first approach was not to me personally. My best recollection is that Mr. Moore explained to me that Mr. Annarummo told him he wanted $20,000 and that he had reluctantly agreed to give it to him. I do recall discussing the matter with our attorney. He told us that he, not being a customer of the bank himself, could give money to Mr. Annarummo. He instructed Mr. Moore and me to give him $10,000 and he would take care of the rest. With so much at stake and so much already invested, I simply wanted to put the problem behind us. I rationalized that it was just part of doing business. However, while I could not say exactly what law was being broken, I realized paying Mr. Annarummo was wrong. In early 1988, I found another property I felt was an excellent value. . . . I spent the first 7-8 months of 1988 doing all the due diligence work on the site. I put down a deposit on the land, spent money on engineering, environmental tests, wetlands studies, etc. By summer 1988 all the research and 3 separate appraisals seemed to indicate the property was an excellent value. In approximately August, 1988 I applied for the loan for this property. About a month later, while I was home during the work week with a broken arm I called to my office to check my messages. There was a message to call Mr. Annarummo at his bank in reference to my loan application. I called Mr. Annarummo and he told me that the loan committee had approved my loan and that the loan could close within several weeks. About one week later during the early evening I was home, again, with the same broken arm. I was not expecting anyone. There was a knock on my door, It was Mr. Annarummo and his wife. He had never been to my home before and he was not invited on that occasion. At first, I did not know why he was there. He stepped inside and told me that he wanted to speak to me about something. He said he had a car loan that he wanted to "get rid of." I genuinely did not know what he was talking about and I asked him what he meant. In response he bluntly stated that he wanted me to pay off his car loan. I did not know what to say. I responded that I would have to get back to him and, with little else said, he and his wife left. After he left, I tried to put the approach out of my mind and pretend it never happened. I thought perhaps he wouldn't bother me anymore or be too embarrassed to bring it up ever again. A few days passed and I was back at work and I got a phone call from Mr. Annarummo. He started to press me for an answer. Again, I told him I'd have to get back to him. Quite plainly, I did not want to pay him money, but I also did not know what to do. I told him I had a customer in my office and I'd have to get back to him and hung up. By then it was obvious to me that he was not going to drop the issue. I contacted Mr. Marderosian and told him what had happened and I asked him how I should handle it. Mr. Marderosian said to me that it was unfortunate that Mr. Annarummo was doing this to me but if he handled the situation for me that would solve the problem for the time being. We agreed that in future projects I should develop a relationship with another bank so I would not be placed in such a tight position. (At the time, Mr. Annuarummo also controlled the day to day funding of the two major projects in which I was involved) I agreed to give him the money. Inherently, I knew then and clearly know now that what Mr. Annarummo was demanding and what George Marderosian helped me to do, was wrong. At those particular moments I felt I had only two choices. to give him the money or to refuse to do so. I did not want to give him the money because he had no right to it. Besides, I knew it was wrong and probably illegal. I did not want to refuse because I felt Mr. Annarummo had the power to ruin or at the very least severely disrupt everything I had been working to build my whole life and most importantly the livelihood and support of my family. I felt stuck in the middle with only two bad choices. Eventually, my fear of the potential ramifications of not appeasing Mr. Annarummo in conjunction with Mr. Marderosian offering an apparent way out led me to make the decision I made. It was a wrong decision. With the benefit of hindsight, I now see that there was a third choice. I could have brought Mr. Annarummo's approach to the attention of his superiors at the bank and/or the appropriate authorities. This experience is indelibly burned into my consciousness. I am older, wiser and more secure in my judgement. If ever I were to find myself confronted with this type of situation again, my reaction would be completely contrary to what I have done in the past. . . . (Respondent's Exhibit 14.) Respondent explained his failure to notify the Florida Real Estate Commission of his plea or conviction within 30 days of having pled guilty or having been convicted, as follows: . . . it was my absolute intention to address this issue with the F.R.E.C. upon returning home (which I did just 12/17/96). I clearly am in error in terms of the timetable for notification which I now understand should have been within 30 days of the plea or conviction. I, wrongly, was under the impression that notification was required prior to resuming the use of ones' license. I should have known the notification procedure and I am clearly at fault for not doing so in the required time frame. (Petitioner's Exhibit 7, at page 3.) Thereafter, on April 18, 1997, the Department filed the Administrative Complaint at issue in this proceeding which charged that Respondent violated the provisions of Section 475.25(1)(f), Florida Statutes, "by having been convicted or found guilty, regardless of adjudication, of a crime which directly relates to the activities of a licensed real estate salesperson or involves moral turpitude or fraudulent or dishonest dealing" (Count I), and Section 475.25(1)(p), Florida Statutes, by "not having informed the Florida Real Estate Commission in writing within thirty (30) days of having pled guilty or having been convicted of a felony" (Count II). According to the complaint, the disciplinary action sought for such violations was stated to be as follows: . . . The penalty for each count or separate offense may range from a reprimand; an administrative fine not to exceed $5,000.00 per violation; probation; suspension of license, registration or permit for a period not to exceed ten (10) years; revocation of the license, registration or permit; and any one or all of the above penalties. 3 At hearing, Respondent offered testimony consistent with the explanation he had previously offered the Department, discussed supra. Respondent also observed that, at the time, he was fearful that if he refused the banker's demands, the banker would interrupt the funding that had been obtained for the projects. Respondent further testified that he fully disclosed the circumstances to his attorney and on the attorney's advice delivered the funds (to the attorney) for delivery to the banker. Finally, Respondent averred that he never misrepresented or withheld any material facts regarding the projects during the loan process; had no involvement in structuring the loan transactions; and only agreed to pay the banker (on advice of counsel) to avoid disruption of the previously approved funding. In Respondent's view he was not offering money (a bribe) for something he was not entitled to, but was being extorted by the banker to receive that to which he was entitled (the approved funding). Respondent's explanation regarding the circumstances surrounding the events which led to his conviction is credited. Respondent also offered credible proof that he cooperated fully with the government; that he accepted responsibility for his actions; and that he suffered a significant penalty for his misjudgment. The proof further reveals that the events which led to his conviction occurred over 11 years ago (when Respondent was 22-23 years of age); that in the 7 years Respondent has been licensed in Florida (as a salesperson or broker) no complaints have been filed against him; that among those who know of him, Respondent is considered honorable and trustworthy; and that his involvement in the events leading to his conviction was more likely attributable to naivete than guile. Finally, the proof demonstrates that Respondent continues to provide financial support for his parents and that loss of licensure would impose a severe financial hardship on Respondent and his family.4
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that a final order be entered which finds the Respondent not guilty of the offense charged in Count I of the Administrative Complaint. It is further RECOMMENDED that the final order find Respondent guilty of the offense charged in Count II of the Administrative Complaint, and that for such offense Respondent receive a written reprimand. DONE AND ENTERED this 9th day of July, 1999, in Tallahassee, Leon County, Florida. WILLIAM J. KENDRICK 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 9th day of July, 1999.
Findings Of Fact Respondent is a licensed real estate salesman. He has held Florida license number 0046313 at all times relevant to these proceedings. On February 2, 1979, in the Circuit Court of the Fifteenth Judicial Circuit (Florida), Respondent was adjudicated guilty on three counts of failure to register as a securities salesman and three counts of failure to register securities, under Sections 517.03, 517.07, 517.12 and 517.302, F.S. (1973). He was sentenced to five years imprisonment.
Recommendation Based on the foregoing findings of fact and conclusions of law, it is RECOMMENDED: That Petitioner enter a final order dismissing the Administrative Complaint. DONE AND ENTERED this 18th day of February, 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 18th day of February, 1982.
Findings Of Fact At all times material to this case, Respondent Bruce D. Robertson ("Respondent") was a licensed real estate broker, license #0343680, operating as a president and qualifying broker for IDC Properties ("IDC") At all times material to this case, IDC was a corporation registered as a real estate broker, license #0234614, located at 17980 San Carlos Boulevard, Fort Myers Beach, Florida. By agreement dated January 16, 1990, the Respondent agreed to pay to salesperson Randy Thibault a commission of $10,362.50 upon the closing of the sale of property at "Old Pelican Bay, Inc.," to Paula E. Brown, hereinafter referred to as the "Brown transaction". On July 5, 1990, the Brown transaction closed. The Respondent received the commission funds related to the sale of the property. The Respondent subsequently issued a check in the amount of $10,362.50 payable to Mr. Thibault. When Mr. Thibault attempted to negotiate the check, he was informed that the Respondent had issued a stop payment order on the check. Mr. Thibault thereafter filed a civil complaint against the Respondent in the Circuit Court of the Twentieth Judicial Circuit in and for Lee County, Florida Case No. 90-5851-CA. The matter was heard in a bench trial. On October 3, 1991, Mr. Thibault obtained a Final Judgement in the amount of $11, 817.42 against IDC for the sum owed plus interest. On October 28, 1991, Mr. Thibault obtained a Final Judgement in the amount of $14,551.31 against IDC for the sum owed plus interest, attorney's fees and costs. On November 4, 1991, the Respondent filed a Notice of Appeal in the matter in the Second District Court of Appeal but subsequently abandoned the appeal. At hearing, the Respondent asserted that Mr. Thibault received his commission share at the closing. The Respondent presented no credible documentary evidence to support the claim. The Respondent also asserted that Mr. Thibault misled the Respondent as to Mr. Thibault's role in the sale of other unrelated property and that the Respondent intends to take legal action against him. The Respondent presented no credible documentary evidence to support the claim. The Respondent admitted that the Final Judgement obtained by Mr. Thibault remains unsatisfied and stated that stated that he will not pay the judgement pending resolution of the unrelated matter alleged above.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED: That the Department of Professional Regulation, Division of Real Estate, enter a Final Order determining Bruce D. Robertson and IDC Properties, Inc., guilty of the violations set forth herein and revoking the licenses identified herein. DONE and ENTERED this 19th day of March, 1993, in Tallahassee, Florida. WILLIAM F. QUATTLEBAUM Hearing Officer Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 19th day of March, 1993. APPENDIX TO RECOMMENDED ORDER, CASE NO. 92-6308 The Petitioner's proposed findings of fact are accepted as modified and incorporated in the Recommended Order. The Respondent did not submit a proposed recommended order. COPIES FURNISHED: Darlene F. Keller, Director Division of Real Estate Department of Professional Regulation Hurston North Tower 400 W. Robinson Street Post Office Box 1900 Orlando, Florida 32802 Jack McRay, General Counsel Department of Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-0792 Steven W. Johnson, Esquire Division of Real Estate Department of Professional Regulation Hurston North Tower 400 W. Robinson Street Post Office Box 1900 Orlando, Florida 32802 Mr. Bruce D. Robertson IDC Properties, Inc. 17980 San Carlos Boulevard Fort Myers, Florida 33931
