The Issue This is a license discipline proceeding in which the Petitioner seeks to take disciplinary action against the Respondent on the basis of allegations that the Respondent has violated Section 550.105(6), Florida Statutes and Rule 61D-1.006(3)(a)2, Florida Administrative Code, by having unpaid financial obligations that directly relate to racing being conducted at a pari-mutual facility within this state.
Findings Of Fact At all times material to this case, David Monaci, an individual, held three pari-mutuel wagering occupational licenses, to-wit: Thoroughbred Trainer, DPMW license number 1079030-3050; Authorized Agent, DPMW license number 1079030- 1047; and an Unrestricted "U1" Professional license, DPMW license number 1079030-1081. David Monaci has some form of interest in, or relationship with, a corporation that is named either David Monaci Stable Inc., or D. Monaci Stable, Inc. The nature and extent of David Monaci's interest in, or relationship with, that corporation is not revealed by the evidence in this case. 3/ At some time during 1993, David Monaci, acting on behalf of the corporation named David Monaci Stable, Inc., or D. Monaci Stable, Inc., entered into an agreement with the Country Western Store in Davie, Florida, pursuant to which the Country Western Store would supply food and other necessities for the race horses being handled by David Monaci at the Gulfstream Park horse race track. The food and other necessities supplied by the Country Western Store were invoiced to "David Monaci Stable, Inc.", at an address in New Jersey. After the invoices went unpaid for a number of months, the Country Western Store quit providing anything for the race horses being handled by David Monaci. Shortly thereafter, the Country Western Store filed a lawsuit in Circuit Court in Broward County, Florida, against David Monaci Stable, Inc., seeking to recover the amount owed for the food and necessities it had furnished for race horses handled by David Monaci. On September 8, 1994, a Final Judgement was entered in favor of the Country Western Store and against David Monaci Stable, Inc. The Final Judgement provides, in pertinent part: 2. Plaintiff does have and recover from the Defendant, DAVID MONACI STABLE ,INC., the sum of $20,013.46 for damages, $224.76 for costs, $605.00 for attorneys fees, and $915.19 for interest, for all of which let execution issue. As of the date of the formal hearing in this case, nothing has been paid towards the satisfaction of the Final Judgement described immediately above. The Country Western Store did not sue David Monaci individually. The Country Western Store does not have a Final Judgement against David Monaci individually. The extent, if any, to which David Monaci in his individual capacity may or may not be responsible for the debts of David Monaci Stable, Inc., is not revealed by the evidence in this case.
Recommendation On the basis of all of the foregoing, it is Recommended that a Final Order be issued in this case dismissing all charges in the Administrative Complaint on the grounds that the evidence is insufficient to prove that the license holder, David Monaci, is responsible for any of the debts or obligations. DONE AND ENTERED this 14th day of August, 1996, in Tallahassee, Leon County, Florida. MICHAEL M. PARRISH, 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 14th day of August, 1996.
The Issue The Department adopts and incorporates in this Final Order the Statement of the Issues in the Recommended Order. The Department's exceptions to the Statement of the Issues in the Recommended Order are not material and are therefore withdrawn.
Findings Of Fact Kjell Bergh operates a Volvo dealership in Minnesota. He also has other business interest in the United States and abroad. In 1986, he received approval from Volvo to open a Volvo dealership in the area of Boca Raton, Florida. Boca Raton zoning makes it very difficult to locate automobile dealerships there. Mr. Bergh therefore located a suitable five acre site to build the Volvo dealership in nearby Delray Beach, Florida. The property was purchased in 1987 solely to build the automobile dealership on it. At some point Mr. Bergh also received a Volkswagen franchise, and operates both the Volvo and the Volkswagen franchises on the Delray Beach property. Title to the land was taken individually in the names of Kjell and his wife Mary Bergh, as joint tenants, on the advice of their tax counsel. The purchase price for the land was approximately one million dollars. The automobile dealership is operated by Borton Motors Incorporated, a Florida corporation organized in 1986. It is owned 75 percent by the Petitioners, Kjell and Mary Bergh, and 25 percent by the vice president and general manager, Loren Sheffer, who has also invested money in the dealership. It is common in the automobile industry for local managers to have a personal stake in automobile dealerships they manage for absentee owners. The manager, however, has only a minority interest, and the automobile manufacturer, Volvo, holds Mr. Bergh responsible for the operation of the dealership. The Berghs financed the purchase of the land and the buildings used as the automobile dealership facilities through the Barnett Bank of Palm Beach County. On July 23, 1987, the Berghs executed a note and mortgage for $2,000,000 in favor of the Barnett Bank for the purchase of the property along with a construction loan agreement to build the dealership facility. The rate and mortgage were modified to increase the amount borrowed to $2,250,000 in May and June of 1988. The land was then leased to Borton Motors, Inc., the legal entity which operated the automobile dealerships. As a condition of obtaining the loan from Barnett Bank, the bank required that Borton Motors, Inc., guarantee the loan which the bank had made to Mr. and Mrs. Bergh, and also required the Berghs to assign the lease to Barnett Bank. The terms of the mortgage give Barnett Bank the right to collect rents and other payments from the property, and prohibits the termination or cancellation of the lease without Barnett's permission. Barnett Bank had the right to approve the lease provisions and to set the amount of the rent so that the debt service coverage ratio would be no less than 1.2 times the amount borrowed. In connection with the loan by Barnett Bank, on July 27, 1987, Borton Motors, Inc., gave to Barnett Bank "its continuing and unconditional guarantee of the payment in full when due of any and all indebtedness of Debtor [Kjell and Mary Bergh] to Bank to the same extent as if Guarantor [Borton Motors, Inc.] were the principal debtor of the indebtedness" (Exhibit 1D). From the inception of the transaction, it was intended that the entity operating the automobile dealership, Borton Motors, Inc., would finance the purchase of the real estate on which the automobile dealership would be located, and the construction of necessary improvements. This was accomplished through the rental payments Borton Motors, Inc., would make to the Berghs, who had actually taken title to the land. Through its guarantee, Borton Motors, Inc., was as liable to Barnett Bank as were the Berghs, from the inception of the loan. The Berghs hoped to receive a return on monies they invested in the automobile dealership, whether for real estate, improvements to the real estate, inventory in the form of cars, or parts, or for payments made for labor to its sales force and service technicians. It is misleading to state that the Berghs intended to receive a return on the real estate investment they made. The return on the real estate is not the result of a separate investment made by the Berghs, it is instead a part of the overall operation of the dealership. The Berghs are not investors in real property who happened to lease property to a tenant who happens to operate a automobile dealership on that property. The Berghs do take a federal income tax deduction for interest paid on the note to Barnett Bank and report the rent received from Borton Motors, Inc., as income on their federal income tax returns. Petitioners have acquired other debt on behalf of the corporation and do not receive any money from the corporation over and above the amount of the mortgage and other indebitness. The Barnett Bank of Palm Beach County eventually sold its loan to the Berghs to Volvo Finance North American, Inc., in late April 1992. This sale has no effect on the taxation of the transaction of issue. On February 8, 1991, the Department of Revenue sent to the Petitioners a form requesting them to file a "application for Sales and Use Tax Registration" and asking them to report the rental income they had received from Borton Motors, Inc., on the dealership property for the period February 1986 through February 1991. The Berghs filed the application and supplied the rental figures to the Department, but maintained no tax was due because the "amount paid reflects the actual debt service." The Department sent the Berghs a Notice of Assessment on February 28, 1991, stating that they owed $71,043.29 in tax, penalties and interest, representing a sales tax at the rate of 6 percent upon the lease payments they had received from Borton Motors, plus penalties and interest. The Department also gave them notice of a right to protest the assessment. The Berghs did protest the assessment to the Department's Bureau of Hearings and Appeals, which sustained the assessment, but agreed to reduce the penalty involved. The Berghs paid $7,043.50 plus interest of $2,327.98 which represents the amount of payments from Borton Motors, Inc., in excess of the debt service due to Barnett Bank.
Recommendation Based on the foregoing, it is recommended that a final order be entered withdrawing the assessment of tax. DONE AND ENTERED this 28th day of September, 1993, in Tallahassee, Leon County, Florida. DON W. DAVIS Hearing Officer Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Fl 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 28th day of September, 1993. APPENDIX TO RECOMMENDED ORDER, CASE NO. 92-2106 The following constitutes my rulings pursuant to Section 120.59, Florida Statutes, on proposed findings of fact submitted by the parties. Petitioner's Proposed Findings: 1.-19. Adopted, though not verbatim. Respondent's Proposed Findings: 1. Accepted, excepted for last sentence which is rejected as unsupported by weight of the evidence. 2.-6. Adopted. Subordinate to hearing officer findings on this point. 8.-10. Accepted, but not verbatim. COPIES FURNISHED: Cynthia S. Tunnicliff Carlton, Fields, Ward, Emmanuel, Smith & Cutler P.A. Post Office Drawer 190 Tallahassee, Florida 32302 Mark T. Aliff, Esquire Assistant Attorney General Department of Legal Affairs Tax Section, Capitol Building Tallahassee, Florida 32399-1050 Linda Lettera General Counsel Department of Revenue 204 Carlton Building Tallahassee, Florida 32399-0100 Larry Fuchs Executive Director Department of Revenue 104 Carlton Building Tallahassee, Florida 32399-0100
Findings Of Fact Petitioner designs, manufactures, and sells the "Little Casino" video game machine. The machine is designed to enable a player, through the insertion of either one or two quarters, to play one of four games: poker, high-low, blackjack, or craps. The machine contains two switches which enable the owner to control the cost per game, whether 25 cents or 50 cents per game. Upon deposit of the appropriate amount of money, the player of the game receives 10,000 points to play the selected game. If the operator utilizes the entire 10,000 points in less than four hands or rolls, the game is over. If, however, the operator earns or wins 100,000 points by the conclusion of the fourth hand or roll, a free fifth hand or roll is allowed. If the operator earns 200,000 points by the conclusion of the fifth hand or roll, a free sixth hand or roll is allowed. The player of the game is allowed no more than six hands or rolls in the chosen game, regardless of the number of points scored. Depending upon the game option selected, cards or dice appear on the video screen. So far as can be determined from the record in this cause, the dealing of the cards or roll of the dice is entirely determined by the programming of the machine, and the player is wholly unable to control or influence the initial selection of cards or the roll of the dice. Little Casino does not allow free replays, does not accumulate free replays, and makes no permanent record of free replays. The game is not classified by the United States as requiring a federal gambling tax stamp under any applicable provisions of the Internal Revenue Code. The machine can be set to eliminate what Respondent considers to be the objectionable fifth and sixth hands.
Findings Of Fact The certified residential contractors license number CRC001528 issued to Hampton is currently inactive. On June 21, 1977, Jay Hampton Construction, Inc. , entered into a contract with Francis Merceret to enclose a carport for a total price of $7,500.00. Hampton had made application to change his contractors license to a corporate license but since the paper work was not complete, such request was never processed. The work done on the Merceret residence was done under Hampton's individual license. Construction on the project was completed in August, 1977, and Merceret paid the full amount of the contract price to representatives of Jay Hampton Construction, Inc. There are outstanding bills in the amount of $183.76 due to Best Iron Works and $273.30 due to M. P. S. Industries, which monies are owed for work done or materials furnished for the Merceret enclosed carport. Hampton satisfied another claim of lien filed by Cling Electric, Inc., for unpaid bills resulting from the work on the Merceret residence. Merceret made a total of three payments to Jay Hampton Construction, Inc. The first two payments were made to the company. After that time, Hampton called Merceret and requested that the third and final payment be made directly to him because of problems Hampton was having with his partner. Hampton agreed to put the money in escrow until the problems were worked out and lienors were satisfied. Notwithstanding these precautionary instructions, Merceret made the final payment to one Murrary Lash, who was associated with Hampton. Hampton never saw the money again nor was it properly allocated to subcontractors or material men who had not been paid. This occurred, notwithstanding Hampton's request that Merceret not pay anyone until all releases were obtained.
The Issue Whether Respondent committed the violation alleged in the Administrative Complaint, and, if so, what disciplinary action should be taken against him.
Findings Of Fact Based upon the evidence adduced at the final hearing and the record as a whole, the following findings of fact are made: At all times material to the instant case, Respondent has held a pari-mutuel wagering occupational license (license number 0609951-1081) issued by Petitioner. At all times material to the instant case, Respondent and Steven Zenker were part-owners of a race horse (named Sixty- Five Roses) that Respondent and his wife, Deedre Johnson, trained at Pompano Park. Pompano Park is a harness racing facility operated by Pompano Park, Inc., the holder of a pari- mutuel permit authorizing it to conduct harness racing in the State of Florida. In April of 1997, Sixty-Five Roses sustained an injury while racing at Pompano Park. The horse was treated over a three-day period (April 12 through April 14, 1997) by Dr. Jonathon Cohen, a veterinarian employed by Dr. Paul R. Plante and Associates (PRPA). The total charge for the veterinary services rendered by Dr. Cohen was $257.00. On April 25, 1997, PRPA sent Ms. Johnson and Mr. Zenker separate bills, each for $128.50 (one-half the total charge). Ms. Johnson's bill was sent to her and her husband's Vernon, New York address (where they reside from the end of April until November each year). The bills indicated that "[a]ny account with an outstanding balance on the 25th of the month [would] be charged a 1.5% late fee or a minimum $5.00 rebilling charge." On or about May 5, 1997, Mr. Zenker paid PRPA the $128.50 he had been billed. The $128.50 that PRPA had billed Ms. Johnson, however, was not paid. PRPA sent Ms. Johnson a statement each month requesting payment. 1/ In or around November or December of 1999, Dr. Cohen, during an encounter with the Johnsons at Pompano Park, handed them a copy of the last monthly statement that had been sent and told them that they needed to make payment. Not having received any payment from the Johnsons, in early 1999, PRPA filed suit against Respondent in Broward County Court Case No. CONO 99-0010 to recover monies owed for the veterinary services provided by Dr. Cohen on April 12 through April 14, 1997, in connection with the treatment Sixty-Five Roses. On March 2, 1999, the following Default Judgment was entered in Broward County Court Case No. CONO 99-0010 against Respondent: This action having come on for consideration, and it appearing to the court the above-named Defendant [Respondent] was duly served with statement of claim and it appearing further that the said defendant failed to appear in said action and the court finding that the said Defendant is justly indebted to the Plaintiff in the sum of $244.50. It is therefore considered, ordered and adjudged that the said Plaintiff, Dr. Paul Plante and Associates, do have and recover from said Defendant the sum of $128.50 for damages, besides the sum of $116.00 for costs of this suit, and the sum of $0 for interest, all of which shall bear interest at the rate of 10% for the current year and thereafter at the prevailing rate per year as provided for by Florida Statute, for all of which let execution issue. Respondent has not made any payments to PRPA to satisfy this judgment, nor has he sought to have the judgment set aside.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is hereby RECOMMENDED that Petitioner enter a final order finding Respondent guilty of the violation alleged in the Administrative Complaint and suspending his occupational license "for a period of no less than 10 days and continuing until the Respondent provides proof that he has satisfied his outstanding financial obligation" to PRPA. DONE AND ENTERED this 1st day of May, 2001, in Tallahassee, Leon County, Florida. 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 1st day of May, 2001.
The Issue The issue in this case is whether discipline should be imposed against Respondent for operating on an expired public lodging establishment license, an offense which is deemed by rule to constitute operation without a license.
Findings Of Fact The evidence presented at final hearing established the facts that follow. Lakeside is an apartment building with 19 units located at 1048 Northeast 18 Avenue, Fort Lauderdale, Florida 33304- 2408. The Division issued Lakeside a license, numbered 16- 10553-H, to operate as a public lodging establishment. According to information in the Division's official database, as reproduced in Petitioner's Exhibit 1, 1/ the "current license expiration date [for Lakeside's license] is December 1, 2000." On July 20, 2000, Division employee Robert Shaw conducted a routine inspection of Lakeside and found the apartment complex to be open and operating. On a Lodging Inspection Report that he prepared on that date, 2/ Mr. Shaw noted two minor violations, neither of which is at issue here. On the same form, Mr. Shaw inscribed the date that Lakeside's license would expire, as shown below, in the blank spaces provided for that purpose in a line that read: REMINDER: Your license expires 12 /01 /00 Petitioner's Exhibit 2. Mr. Shaw testified, however, that at the time of this inspection, he did not know whether or not Lakeside was licensed.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Division enter a final order dismissing the Administrative Complaint against Lakeside Apartments. DONE AND ENTERED this 24th day of January, 2001, in Tallahassee, Leon County, Florida. JOHN G. VAN LANINGHAM 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 24th day of January, 2001.
Findings Of Fact The WCHS maintains one checking account. The bookkeeping for the checking account is segregated into a General Account and multiple Internal Accounts. The Internal Accounts represent various interest centers at the school, e.g., athletics, welding class, auto repair, small engine repair and senior class. Each Internal Account and the General Account have separate ledger cards. The General Account is used to receive miscellaneous income such as coke machine receipts or employee reimbursements for long distance calls and to pay non-specific expenses. The Internal Accounts are used to purchase supplies for particular activities and to receive ticket proceeds, monies raised and reimbursements for parts and materials used in repair of the equipment. The bookkeeping is done by the sole bookkeeper, Mrs. Madelyn Crowson, who has been so employed for more than 15 years. Original documentation for receipt of funds includes a receipt, a deposit and a receipts journal. Original documentation for issuance of funds includes a purchase order, a check requisition with supporting documentation attached and checks. Cash on hand is kept in a safe which is normally opened between 8:15 and 5:30 a.m. by Crowson, left "latched" but not locked until late in the day. The Principal is required to prepare a Monthly Report of Internal Accounts from the Internal Account ledger cards and to certify such to the Superintendent. The WCHS is audited annually by external auditors for the WCSB. The WCHS has a Vocational Department which includes an Auto Repair Class, a Small Engine Repair Class and a Welding Class, among others. The Chairman of the department for the 1981-82 school year was Mrs. Helen Whaley, wife of Superintendent Whaley. The Auto Repair, Small Engine Repair and Welding classes all teach by having community members and students bring items which require the attention of the class (cars or small engines needing repair, or items to be welded, etc.), and the items are repaired. Vocational classes such as those noted all charge a shop fee to recover the cost of expendable items. Whether WCHS through an Internal Account acquired the parts necessary for the repair and was later reimbursed by the customer, or whether the customer brought the parts to the shop is subject to the wishes of the individual teacher and the customer. However, both methods were utilized. The financial management of the Athletic Department was the responsibility of the Athletic Director through the Athletic Fund Internal Account. For several years the Assistant Principal served as the Athletic Director. Don Mathews, a guidance counselor, was the Athletic Director for the 1981-82 school year. Income to the athletic account was derived primarily from the sale of tickets to athletic events. Tickets were acquired and controlled by the Athletic Director in rolls of 2,000, with unused tickets being maintained in an unlocked cabinet in a room also used to store the cheerleaders' equipment. Reports of tickets sold were made on a Department of Education (DOE) approved form and the funds received were noted on the DOE form, signed by Mathews and receipted by Crowson to the Athletic Fund Internal Account. Each of the Reports of Tickets Sold or Admissions contained signatures certifying that the information was true and accurate and that the persons depositing the funds were depositing all funds received. At the beginning of the 1981-82 school year, Pelham appointed Mathews to be Athletic Director and advised him that he would be in charge of the funds from athletic ticket sales. He also informed Mathews how ticket sales and funds had been handled in previous years. The normal procedure for football ticket sales was as follows: (1) Mathews would acquire $600.00 for change, divide the change into 3 metal cash boxes and put an adult and student roll of tickets with each box; (2) Mathews would give each of three ticket sellers a box of 2 rolls of tickets at the beginning of the game, collect each box and rolls of tickets at intervals throughout the game, put away the equipment for each gate and deliver the metal boxes to Pelham, who would lock them in the driver's education car trunk until the game was over; (3) Pelham, who was the only person attending the game with both a key to the school office and the combination to the safe, would transfer the contents of the three boxes to one box and lock it in the safe; and (4) on the following Monday morning, Crowson and Mathews would count the money, compare the money to the number of tickets removed from each roll, complete the Report of Tickets Sold or Admissions, and make the deposit. The regular season home games for WCHS were: Blountstown - September 18, 1981 Jefferson County - October 2, 1981 F.A.M.U. - October 9, 1981 Rickards - October 23, 1981 Port St. Joe - November 13, 1981 There were two play-off games played at WCHS following the regular season against Jefferson County and Bolles High School. Because the play-off games are sponsored by the Florida High School Athletics Association, the home team principal is required to be in charge of those ticket sales. Mathews was in charge of ticket sales for the regular season. During the Blountstown, Jefferson County and F.A.M.U. games, the ticket sale proceeds were not counted before Monday morning. In each game the number of tickets missing from the rolls when multiplied by the ticket price did not equal the funds reported on Monday morning. In each game Mathews and Crowson "doctored" the Report of Tickets Sold and Admissions to reflect no discrepancies. Pelham had previously instructed Mathews and Crowson to adjust these reports for the purpose of eliminating minor discrepancies. Neither Mathews nor Crowson advised Pelham of these discrepancies which they adjusted. During the Rickards game, a cash count was performed by the ticket sellers but checks were cashed and funds were intermingled sufficiently to question the accuracy of the count on either Friday night or Monday morning. During the Port St. Joe game, a cash count was conducted, but following the cash count and before the funds were recounted, several persons had access to the funds and all of the ticket sellers had made errors in their counts. Major errors in arithmetic were committed on several occasions by persons counting the money after the games. Therefore, it could not be determined with any degree of certainty that the final counts reflected missing dollars or merely corrections of earlier errors. There were a substantial number of tickets for which there was no accounting. Because of the deficiencies in ticket accounting, it cannot be determined whether there was, in fact, any money missing. None of the Reports of Tickets Sold or Admissions certified by Mathews to be accurate reflect money or tickets missing except for the report on the Port St. Joe game. However, if there was money missing from this game, the evidence is insufficient to determine if it was stolen, and if so, by whom. Pelham brought his lawn/garden tractor to the Small Engine Repair Class during the Spring of 1980 for repair by the class. This tractor is a Sears product and has an Onan engine. In the fall of 1981 the shop teacher provided Pelham with a list of the parts necessary for repair. The parts were provided and installed on the tractor by late January of 1982. However, no battery was available to start and test the equipment. The tractor was removed from WCHS in March or April of 1982 without completion of the repairs. A check requisition and check for $65.71 drawn on WCHS to Sears Roebuck & Co., a copy of a check requisition and a check in the amount of $16.62 drawn on WCHS to Whitehill Equipment Co., and a check requisition for $293.00 to Whitehill Equipment Co. were introduced. However, no positive connection was made between these documents and the associated invoices and parts to be received by Pelham or used for his benefit. In October, 1981, a check requisition and check for $27.85 drawn on WCHS were issued to Whitehill Equipment Co. by Pelham for Onan parts (Petitioner's Exhibit 10, A, B, & C). These parts were picked up at Whitehill and signed for by J. D. Jones, WCHS football coach, at Pelham's request and were delivered to him. Here, Petitioner's documentary evidence and Jones' testimony, which were unrebutted, established that Pelham utilized school funds, which he did not replace, to obtain supplies for his personal use or benefit. In December, 1980, a check requisition and check for $113.31 drawn on WCHS were issued to U.S. Games, Inc. by Pelham for a tennis net (Petitioner's Exhibits 9, A). This tennis net was procured for Pelham's personal use with school funds. Respondent did not make reimbursement of these funds, but offered to do so when presented with the Statement of Charges in February, 1982.
Recommendation From the foregoing, it is RECOMMENDED that Respondent be found guilty of charges set forth in paragraphs 9(1) and 9(4) of the Statement of Charges, and that he be dismissed from his position as teacher under continuing contract with the Wakulla County District School Board. It is further, RECOMMENDED that Respondent be suspended with pay, including back pay from the date of suspension without pay, pending issuance of a Final Order by the Wakulla County School Board. DONE and ENTERED this 13th day of August, 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 13th day of August, 1982.
Findings Of Fact At all times relevant hereto Scarlett P. Faulk and Scarlett Faulk and Associates, Inc. were licensed as a broker and corporate broker, respectively, by the Florida Board of Real Estate. Lily Nelson, broker at Sandpiper Realty, managed property at 1800 Gulf Boulevard, Bellaire Shores, owned by Larry and Sheena Bowa, who resided out of state. This property consisted of a residence which Ms. Nelson rented on behalf of the Bowas. Scarlett Faulk owned a residence located at 1720 Gulf Boulevard which she had purchased in June, 1986. In late June, 1986, Faulk telephoned Lily Nelson to ask if the Bowas were interested in selling their property at 1800 Gulf Boulevard as she might have a client interested in the property. Ms. Faulk's brother, Mac Phillips, was planning to move to Clearwater and was looking for a residence. Also, Faulk had another client, Clarence Trice, to whom she had sold several properties over the past few years. At the time, Trice was contemplating the purchase of property at 1420 Gulf Boulevard and had asked Faulk to join him in a joint venture to purchase this property. Faulk declined, but suggested that her brother, Mac Phillips, might be interested. On June 25, 1986, Phillips wired $62,500 to Faulk to participate in this purchase, but Trice opted to purchase the property by himself. Faulk held these funds in her escrow account (Exhibit 2). Mrs. Bowa told Lily Nelson that she would talk it over with her husband and call back. When she did call back to say they were interested in selling, she inquired about prices in the neighborhood. Mrs. Bowa then agreed to have the property listed for $600,000. This was communicated to Ms. Faulk who passed the information to Phillips. Phillips made an offer of $500,000 for the property, and Bowa countered with $525,000 which Phillips accepted. The contract to purchase the property at 1800 Gulf Boulevard was executed by the buyer on July 1, 1986, and by the sellers on July 7, 1986. Rebecca Watson, at all times relevant, was registered as a real estate sales person and associated with the Respondent. Ms. Watson had a client, Scane Bowler, whose wife was interested in having a house built on a lot facing the Gulf of Mexico. Lots on the west side of Gulf Boulevard face the Gulf of Mexico. Rebecca Watson asked Respondent Faulk if she could show the Bowlers the residence at 1720 Gulf Boulevard that Faulk had recently purchased. Faulk agreed, met Watson and her client, and allowed Watson to show the house. This was the occasion on which Faulk first met the Bowlers. This meeting occurred June 27, 1986, the day the Bowlers departed to attend the tennis matches at Wimbleton. Bowler told Watson the price Faulk was asking, $725,000, was more than the $600,000 he was willing to pay for gulf front property. Bowler asked Watson to keep looking and he would contact her when they returned from Wimbleton in about ten days. When Bowler returned to Clearwater from Wimbleton on July 10, 1986, he contacted Watson to inquire if any lots had become available. Watson showed the Bowlers 1800 Gulf Boulevard and told them that Phillips, the brother of Faulk, had a contract to purchase the property. The Bowlers liked the property and inquired if Phillips would sell the contract to them. Following some negotiation, Phillips sold the contract to the Bowlers for $100,000, and Bowler was the grantee on the deed executed by Bowa. When Bowa learned from Bowler that Bowler was paying $625,000 for the property for which Bowa was getting only $525,000, Ms. Bowa wrote a letter to the Florida Board of Real Estate. After the closing, Bowler instituted civil proceedings against Faulk.
