ALJDEC decisions subject to certification as final

20F-405-REL · Department of Real Estate · 2021-03-15

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In the Matter of the Real Estate Salesperson's License of:

KEVIN JACOBS, holder of License No. SA564866000,

Respondent

No. 20F-405-REL

ADMINISTRATIVE LAW JUDGE

DECISION

HEARING: March 9, 2021

APPEARANCES: Assistant Attorney General Holly Wan represented the Arizona Department of Real Estate. Senior Investigator Linda Bevins appeared as a witness. Assistant Attorney General James Rolstead was present as an observer. Respondent Kevin Jacobs failed to appear.

ADMINISTRATIVE LAW JUDGE: Sondra J. Vanella

FINDINGS OF FACT

On or about September 21, 2018, Kevin Jacobs (“Respondent”) entered into a Consent Order with the Arizona Department of Real Estate (“Department”) pursuant to which Respondent’s application for a real estate salesperson’s license was approved, and Respondent was issued a two-year provisional real estate salesperson’s license. That license expired on September 30, 2020.

One of the terms of the Consent Order specified, “Respondent shall remain law abiding and in compliance with Title 32, Chapter 20 of the Arizona Revised Statutes, and Title 4, Chapter 28 of the Arizona Administrative Code. (Commissioner’s Rules).”

On or about December 23, 2019, the Arizona Department of Public Safety (“DPS”) sent the Department a letter regarding the suspension of Respondent’s Level One Fingerprint Clearance Card due to an arrest for felony DUI on December 21, 2019.

Thereafter, the Department conducted an investigation and discovered that on February 21, 2020, Respondent pleaded guilty to and was convicted of DUI, a Class 1 Misdemeanor, in Lake Havasu City Justice Court, in Case Number JCR-2020-00030. Respondent was sentenced to five years of unsupervised probation, alcohol counseling, and a $2,000.00 fine.

Respondent did not disclose the conviction to the Department as required by statute and rule.

On May 20, 2020, the Department sent Respondent a letter by certified mail as well as through the Department’s message center, notifying Respondent that he was required to submit no later than June 1, 2020, a signed written statement regarding the conviction.

Respondent failed to respond to the May 20, 2020 letter by the June 1, 2020 deadline.

On June 5, 2020, Linda Bevins, Senior Investigator for the Department, spoke to Respondent by phone. Respondent told Ms. Bevins that he would submit the required written statement by June 8, 2020.

Respondent failed to submit a written statement by June 8, 2020.

On June 9, 2020, Respondent submitted a written statement to the Department that indicated that he and his broker determined that Respondent was not required to report a misdemeanor conviction to the Department, but rather was only required to report felony convictions.

The Department argued that Respondent’s conduct constituted violations of A.R.S. §§ 32-2153(A)(3) and (A)(24); A.A.C. R4-28-301(F); and A.A.C. R4-28-303(D) and warranted the revocation of his license.

Respondent failed to appear for the hearing notwithstanding proper notice. Therefore, Respondent did not present any evidence to refute the evidence presented by the Department.

CONCLUSIONS OF LAW

Pursuant to A.R.S. § 32-2153(E), the lapsing or suspension of a license by operation of law or by order or decision of the Commissioner or a court of law or the voluntary surrender of a license by a licensee shall not deprive the Commissioner of the jurisdiction to proceed with any investigation of or action or disciplinary proceeding against the licensee or render a decision suspending or revoking the license.

The Department 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 bears 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).

The evidence of record established that Respondent was convicted in a court of competent jurisdiction of DUI, a Class 1 Misdemeanor, and failed to report that conviction despite having a two-year provisional real estate salesperson’s license granted to him pursuant to which he was to remain law abiding.

The Department established it has grounds to revoke Respondent’s license pursuant to A.R.S. § 32-2153(A)(3); A.R.S. § 32-2153(A)(24); and A.A.C. R4-28-301(F); and A.A.C. R4-28-303(D).

RECOMMENDED ORDER

IT IS ORDERED revoking Kevin Jacob’s Real Estate Salesperson’s License No. SA564866000.

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 shall be five (5) days from the date of the certification.

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-137160-45720000Done this day, March 15, 2021.

/s/ Sondra J. Vanella

Administrative Law Judge

Transmitted electronically to:

Judy Lowe, Commissioner

Arizona Department of Real Estate

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001

-137160-45720000