ALJDEC decisions subject to certification as final

18F-DI-068-REL · Department of Real Estate · 2017-12-04

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In the Matter of the Real Estate Broker License of:

LETHBRIDGE, JOSHUA, holder of license number BR108041000,

Respondent.

No. 18F-DI-068-REL

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: November 29, 2017

APPEARANCES: Joshua Lethbridge (“Lethbridge” or “Respondent”) did not appear. Assistant Attorney Ryan Krench appeared on behalf of the Arizona Department of Real Estate (“Department”).

ADMINISTRATIVE LAW JUDGE: Suzanne Marwil

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FINDINGS OF FACT

On or about December 6, 2001, the Arizona Department of Real Estate (“Department”) issued to Reynolds an original broker license, BR108041000. That license is currently suspended and will expire on December 31, 2017.

Lethbridge was the Designated Broker for Liberty Management Group Inc. (“Liberty’”), license number CO109640000, until September 8, 2017.

On August 8, 2017, in Yavapai County Superior Court, Lethbridge was convicted of Theft, a class 3 felony, Forgery, a class 4 felony, Fraudulent Schemes and Artifices, a class 2 felony, and three additional counts of Forgery, all of which were class 4 felony counts, in case number P1300-CR2016-1206. Lethbridge was sentenced to twelve and one half years in prison and seven years of probation upon his release from prison.

On September 8, 2017, the Department issued to Reynolds an Order of Summary Suspension and Notice of Opportunity for Hearing. The Department exercised this authority under A.R.S. §§ 32-2153 and 32-2157; A.R.S. § 41-1092.1(1)(B). (See Exhibit 4 - Department's Summary Suspension Order).

Lethbridge did not appeal that Order of Summary Suspension.

On October 23, 2017, the Department issued its Notice of Hearing and Complaint seeking to revoke Respondent’s license because he had allegedly violated various statues by being convicted of multiple felonies, engaging in fraud, or dishonest dealing, and demonstrated a lack of good character. The Department mailed the Notice of Hearing to Respondent at both his address of record with the Department and to the Yuma Cheyenne Unit where he is currently incarcerated.

Although Lethbridge had notice of the hearing, he did not ask to appear telephonically and so did not provide any testimony or evidence in this matter.

At the hearing, the Department presented its case through the testimony of Robin King, its Manager of Auditing and Investigations, and submitted 5 exhibits. King indicated that the Department is pursuing revocation in this matter based on Lethbridge’s multiple felonies, which involved fraud and the lack of good character as shown by the theft. She explained that Lethbridge was charged and pled guilty to stealing $250,000.00 from a homeowner’s association over a ten year period. Ms. King acknowledged that Mr. Lethbridge would be in prison for years and that his license was suspended and due to expire shortly, but said the Department did not like to leave matters such as these unresolved and hanging out there without a formal resolution.

CONCLUSIONS OF LAW

The Commissioner has jurisdiction over Respondent and the subject matter in this case.

Pursuant to A.R.S. § 41-1092.07(G)(2) and A.A.C. R2-19-119(B), the Department has the burden of proof in this matter. The standard of proof is by a preponderance of the evidence. See A.A.C. R2-19-119(A).

With regard to the summary suspension, A.R.S. § 32-2157(C) provides:

The department may issue a summary suspension when the department receives notice that a person licensed pursuant to this chapter has been convicted of a felony offense and is currently incarcerated for the conviction, paroled or under the supervision of a parole or community supervision officer or is on probation as a result of the conviction. This subsection does not limit the commissioner's authority to seek revocation of a license or other disciplinary action pursuant to this chapter.

The evidence of record established that Respondent was convicted in a court of competent jurisdiction of Theft, a class 3 felony, Forgery, a class 4 felony, Fraudulent Schemes and Artifices, a class 2 felony, and three additional counts of Forgery, all of which were class 4 felony counts, within the meaning of A.R.S. § 32-2153(B)(2). Respondent is currently incarcerated. As such, the imposition of a summary suspension was warranted and the Department has grounds to exercise its discretion to revoke Respondent’s license.

Respondent’s conviction of these felonies violates multiple rules and statutes adopted by the Commissioner in violation of A.R.S. § 32-2153(A)(3).

Respondent’s convictions for the felonies of Theft, Forgery and False Artifices and Schemes demonstrate that he is guilty of conduct involving fraud or dishonest dealings in violation of A.R.S. § 32-2153(B)(5).

Respondent’s convictions also show that he is not a person of honesty, truthfulness and good moral character in violation of A.R.S. § 32-2152(B)(7). Respondent admitted to theft and forgery over a ten year period, directly placing his character in question.

Similarly, the evidence established that the above convictions involved fraud, substantial misrepresentation or dishonest dealings in violation of A.R.S. § 32-2153(B)(10).

Upon review of all the evidence, the Tribunal finds that it was appropriate to summarily suspend and is appropriate to revoke Respondent’s real estate broker’s license under the present circumstances.

RECOMMENDED ORDER

Based on the foregoing, it is recommended that Respondent’s broker's license BR108041000 be revoked on the effective date of the Order entered in this matter.

In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be 40 days from the date of that certification.

Done this day December 4, 2017.

/s/ Suzanne Marwil

Administrative Law Judge

Transmitted electronically to:

Judy Lowe, Commissioner

Arizona Department of Real Estate