ALJDEC decisions subject to certification as final

18F-DI-083-REL · Department of Real Estate · 2017-12-26

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In the Matter of the Real Estate Licenses of:

SPENSER IATRIDIS, holder of license number SA625649000,

BRENDYN IATRIDIS, holder of license number SA627322000,

TELLES, ARTHUR, holder of license

number SA543007000,

IATRIDIS, DAPHNE, holder of license

number BR046661000,

Respondents.

Nos. 18F-DI-083-REL

18F-DI-084-REL

18F-DI-085-REL

18F-DI-086-REL

CONSOLIDATED ADMINISTRATIVE LAW JUDGE DECISION

HEARING: December 18, 2017

APPEARANCES: Spenser Iatridis appeared telephonically on his own behalf. Brendyn Iatridis, Arthur Telles and Daphne Iatridis are all incarcerated, did not ask to appear telephonically and did not appear. Assistant Attorney Ryan Krench appeared on behalf of the Arizona Department of Real Estate (“Department”).

ADMINISTRATIVE LAW JUDGE: Suzanne Marwil

_____________________________________________________________________

FINDINGS OF FACT

On or about May 6, 2008, the Department issued to Spenser Iatridis a real estate salesperson’s license, SA625649000, That license is currently suspended and will expire on March 31, 2018.

On or about June 13, 2008, the Department issued to Brendyn Iatridis a real estate salesperson’s license, SA627322000. That license is currently suspended and will expire on June 30, 2018.

On or about June 4, 2003, the Department issued to Arthur Telles a real estate salesperson’s license, SA543007000. That license is currently suspended and expired on July 31, 2017.

On or about October 14, 2003 the Arizona Department of Real Estate Department issued to Daphne Iatridis an original broker’s license, BR046661000, That license is currently suspended and expired on October 31, 2017.

On August 4, 2017, in the United States District Court for the District of Arizona, Spenser Iatridis pled guilty to of Misprision of a Felony, a class E felony, in case number CR 010602-001-PHX-NVW. Spenser Iatridis was sentenced two years of probation.

On August 4, 2017, in the United States District Court for the District of Arizona, Brendyn Iatridis pled guilty to of Misprision of a Felony, a class E felony, in case number CR 010602-001-PHX-NVW. Brendyn Iatridis was sentenced ten months in prison and twelve months of supervised probation.

On August 25, 2016, in the United States District Court for the District of Arizona, Arthur Telles pled guilty to violating Title 18 U.S.C. § 371, Conspiracy to Commit Mail Fraud, Wire Fraud and Tax Evasion, a class D felony, in case number CR 010602-001-PHX-NVW. Arthur Telles was sentenced to 30 months in prison, three years of supervised probation upon release and forfeiture of assets.

On August 25, 2016, in the United States District Court for the District of Arizona, Daphne Iatridis pled guilty to of violating Title 18 U.S.C. § 371, Conspiracy to Commit Mail Fraud, Wire Fraud and Tax Evasion, , a class D felony, in case number CR 010602-001-PHX-NVW. Daphne Iatridis was sentenced to 30 months in prison, three years of supervised probation upon release and forfeiture of assets.

On September 14, 2017, the Department issued to all four Respondents Orders 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).

Respondents did not appeal those Orders of Summary Suspension.

On November 9, 2017, the Department issued its Notices of Hearing and Complaint seeking to revoke each Respondent’s license because he or she had allegedly violated various statues by being convicted of a federal felony, engaging in fraud, or dishonest dealing, and demonstrated a lack of good character. The Department mailed the Notice of Hearing to each Respondent at the address on record with the Department and where possible to the address where a Respondent was incarcerated.

Although Brendyn Iatridis, Daphne Iatridis and Arthur Telles had notice of the hearing, he or she did not ask to appear telephonically and so did not provide any testimony or evidence in this matter.

Spenser Iatridis appeared telephonically and did not oppose revocation of his license by the Department. He only wanted to go on record as saying he was not involved with the underlying scheme to illegally buy Fannie Mae homes under the names and forged documents of others. He noted that his only crime was failing to report the scheme to federal authorities once he learned of it.

At the hearing, the Department presented its case through the testimony of Robin King, its Manager of Auditing and Investigations, and submitted 4 exhibits for each Respondent. King indicated that the Department is pursuing revocation in this matter based on each Respondent’s commission of a federal felony, which involved fraud and the lack of good character as shown by the scheme and failure to report the illegal activities to the relevant authorities. She explained that the Indictments and plea agreements for the Respondents revealed that Daphne Iatridis was a broker for Fannie Mae homes, which have restrictions on who can purchase them, and Daphne Iatridis and Arthur Telles unlawfully violated these restrictions by buying the homes under the names of relatives and friends who knew nothing of the scheme. Brendlyn Iatridis assisted his mother and stepfather in forging these notarized documents. Spenser Iatridis learned of his family’s illegal activities, but failed to report these activities to federal authorities.

Ms. King acknowledged that Daphne Iatridis, Brendyn Iatridis and Arthur Telles would all be in prison for some time and that their licenses are suspended and either due to expire shortly or have already expired, but said the Department did not like to leave matters such as these unresolved and hanging out there without a formal resolution. As to Spenser Iatridis, Ms. King said his license would expire shortly and the Department was statutorily prohibited from renewing it while he was on probation.

CONCLUSIONS OF LAW

The Commissioner has jurisdiction over each Respondent and the subject matter in each of these cases.

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 Spenser Iatridis and Brendyn Iatridis was convicted in a court of competent jurisdiction of Misprision of a Felony, a class E felony, while Daphne Iatridis and Arthur Telles were convicted in a court of competent jurisdiction of violating Title 18 U.S.C. § 371, Conspiracy to Commit Mail Fraud, Wire Fraud and Tax Evasion, a class D felony, within the meaning of A.R.S. § 32-2153(B)(2). As such, the imposition of a summary suspension was warranted and the Department has grounds to exercise its discretion to revoke all of the Respondents’ licenses.

Daphne Iatridis and Arthur Telles’ conviction for Conspiracy to Commit Mail Fraud, Wire Fraud and Tax Evasion,, a class D felony, violates multiple rules and statutes adopted by the Commissioner in violation of A.R.S. § 32-2153(A)(3).

Daphne Iatridis and Arthur Telles’ convictions for Conspiracy to Commit Mail Fraud, Wire Fraud and Tax Evasion demonstrate that they are guilty of conduct involving fraud or dishonest dealings in violation of A.R.S. § 32-2153(B)(5).

All of the Respondent’s convictions also show that they are not persons of honesty, truthfulness and good moral character in violation of A.R.S. § 32-2152(B)(7). Respondents admitted to either Misprision of a Felony or Conspiracy to Commit Mail Fraud, Wire Fraud and Tax Evasion directly placing their 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 Respondents’ real estate salespersons and broker’s license under the present circumstances.

RECOMMENDED ORDER

Based on the foregoing, it is recommended that

(1) Spenser Iatridis’ salesperson’s license number SA625649000 be revoked on the effective date of the Order entered in this matter;

(2) Brendyn Iatridis’ salesperson’s license number SA627322000, be revoked on the effective date of the Order entered in this matter;

(3) Arthur Telles’ salesperson’s license number SA543007000, be revoked on the effective date of the Order entered in this matter; and

(4) Daphne Iatridis’ broker’s license number BR046661000, 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 27, 2017

Suzanne Marwil

Administrative Law Judge

Transmitted electronically to:

Judy Lowe, Commissioner

Arizona Department of Real Estate