ALJDEC decisions subject to certification as final

22F-098-REL · Department of Real Estate · 2023-06-30

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In the Matter of the Real Estate License of:

SLAPP, ALEXIS, holder of license number SA698392000

Respondent.

No. 22F-098-REL

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: June 13, 2023

APPEARANCES: Respondent Alexis Slapp (Respondent) did not appear. Assistant Attorney General Raya Gardner appeared on behalf of the Arizona Department of Real Estate (Department).

ADMINISTRATIVE LAW JUDGE: Velva Moses-Thompson

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1. Respondent holds inactive provisional real estate salesperson’s license number SA698392000, issued by the Department on September 20, 2021. See Exhibit 002. The license is scheduled to expire on September 30, 2023. See id.

2. On September 14, 2021, Respondent filed an application for a real estate salesperson’s license. See Exhibit 004.

3. In the application, Respondent disclosed two criminal convictions, namely: (1) UNLAWFUL PHARMACY ACT, a misdemeanor conviction entered on January of 2014, and (2) DRIVING UNDER THE INFLUENCE, a misdemeanor conviction entered on October 14, 2016. See Exhibit 005.

4. On September 17, 2021, after reviewing Respondent’s application, the Department issued its Decision on Application for Original Real Estate Salesperson’s License Number: SA69 8392000 Candidate (Decision). In the Decision, the Department notified Respondent that it would not be offering her an unrestricted license at that time based, in part, on her misdemeanor convictions. In lieu of an unconditional denial, the Department offered to grant Respondent a provisional license that would allow her to work as a real estate salesperson subject to the terms and conditions of a Consent Order (Order). The Department attached a proposed Order to the Decision and informed Respondent that she could accept the provisional license by signing the attached Order.

5. On the same day, Respondent executed the Order with the Department and was granted a two-year provisional real estate salesperson’s license. See Exhibits 007-0014.

6. Upon executing the Order, Respondent agreed to comply with all of the terms and conditions listed therein. Among other requirements, the Order required Respondent to comply with the Commissioner’s rules and submit quarterly affidavits stating that she has been in compliance with the terms of the Order and provisional license. See Exhibits 007-0014.

7. On September 20, 2021, the Department sent Respondent an Introduction Packet via mail and email that contained instructions for complying with the Order and advised Respondent that her first quarterly affidavit was due on December 17, 2021. Additionally, the Introduction Packet provided, in bold print, that quarterly affidavits were still required during the entirety of the two-year provisional period, regardless of license status. See Exhibits 0016-021.

8. Respondent did not submit her first quarterly affidavit by or on December 17, 2021.

9. On January 5, 2022, after two weeks had passed without receiving Respondent’s first quarterly affidavit, the Department sent a message to Respondent through the Department’s message center informing her that she was out of compliance with the Order for failing to submit the quarterly affidavit. See Exhibit 0023. In the same correspondence, the Department extended the submission deadline to January 17, 2022. Respondent did not submit the quarterly affidavit by or on the extended deadline. See id.

10. On January 21, 2022, the Department sent a Notice of Non-Compliance with Commissioner’s Order (Notice) to Respondent via certified mail to her mailing address on record, email, and the Department’s message center. See Exhibits 025-026. The Notice provided another extension to January 31, 2022. See id at Exhibit 025.

11. On February 1, 2022, a Department representative spoke with Respondent on the phone regarding her noncompliance. During the conversation, the Department extended the deadline once more to February 14, 2022.

12. On February 18, 2022, Respondent submitted her first quarterly affidavit.

13. On February 22, 2022, the Department received the Notice dated January 21, 2022 returned from USPS as “return to sender, unclaimed, unable to forward.”

14. Respondent’s second quarterly affidavit was due on March 17, 2022. Respondent did not submit her second quarterly affidavit by or on the initial deadline.

15. On March 18, 2022, the Department sent Respondent a message through the Department’s message center informing her that she was of compliance and extending the submission deadline to March 28, 2022. Respondent read the message on the Department’s message center the same day it was sent.

16. On March 29, 2022, Respondent submitted her second quarterly affidavit.

17. Respondent’s third quarterly affidavit was due on June 17, 2022. Respondent did not submit her third quarterly affidavit by or on the initial deadline.

18. On June 28, 2022, after the Department had still not received the quarterly affidavit, the Department sent Respondent a message through the Department’s message center informing her that she was out compliance and extending the submission deadline to July 10, 2022. See Exhibit 030. On July 12, 2022, Respondent submitted her third quarterly affidavit.

19. Respondent’s fourth quarterly affidavit was due on September 19, 2022. Respondent did not submit her fourth quarterly affidavit by or on the initial deadline.

20. Consequently, on September 27, 2022, the Department sent Respondent a message through the Department’s message center informing her that she was out of compliance and extending the submission deadline to October 8, 2022. See Exhibit 030.

21. As of October 24, 2022, the Department had not received Respondent’s fourth quarterly affidavit. As a result, the Department contacted Respondent via telephone and left a voicemail extending the deadline to October 28, 2022. On the day of the second extended deadline for the fourth quarterly affidavit, Respondent returned the Departments’ call and asked for another extension, which was granted until November 2, 2022.

22. On November 2, 2022, Respondent submitted the fourth quarterly affidavit.

23. Respondent’s fifth quarterly affidavits was due on December 19, 2022. Respondent did not submit her fifth quarterly affidavit by or on the initial deadline.

24. On January 20, 2023, after a month from the initial deadline had passed without receiving a quarterly affidavit submission, the Department sent Respondent a message through the Department’s message center informing her that she was out of compliance and extending the submission deadline to January 30, 2023. See Exhibit 024. Respondent read this message on the day it was sent. See id.

25. On February 3, 2023, the Department contacted Respondent via telephone about her noncompliance. During this conversation, Respondent told the Department that she had moved to the east coast. The Department reminded her that her submissions were still due under the Order and extended the submission deadline to February 6, 2023. Respondent did not submit the quarterly affidavit by or on February 6, 2023.

26. On February 8, 2023, the Department sent a message to Respondent through the extending the Department message center reminding her that her affidavit had been due two days prior and extending the deadline to February 18, 2023. Respondent read the message on the same day it was sent. Respondent did not submit the affidavit by or on February 18, 2023. See Exhibit 036.

27. As a result, on February 28, 2023, the Department sent a Notice of Non- Compliance with Commissioner’s Order (Notice) to Respondent via certified mail return receipt requested to her mailing address on record, email, and the Department’s message center. See Exhibit 038. The Notice provided another extension to March 14, 2023. See id.

28. On February 28, 2023, in the same correspondence in which the Department attached the Notice through the message center, the Department referenced the telephone conversation where Respondent had stated she moved to the east coast and notified her of the Commissioner’s rule requiring licenses to notify the Department of any change in personal information. See Exhibit 038.

29. On March 8, 2023, the Department was informed through the tracking number provided for the certified Notice from February 28, 2023 that the Notice had been delivered to an address in Pennsylvania. See Exhibit 041.

30. Respondent has not responded to the Department’s multiple attempts to communicate with her regarding the submission of her fifth quarterly affidavit, has not submitted the affidavit as required, and has not updated her personal information with the Department.

31. On June 13, 20223, a hearing was held. The Department submitted exhibits 1 through 13, and presented the testimony of its Compliance Officer, Lauren Abril.

32. Respondent did not request to appear or that the hearing be continued. Although the start of the duly noticed hearing was delayed approximately fifteen minutes, Respondent did not appear, personally or through an attorney. Consequently, Respondent did not present any evidence to defend her real estate salesperson’s license.

CONCLUSIONS OF LAW

The Department bears the burden of persuasion. Ariz. Rev. Stat. § 41-1092.07(G)(2).

The standard of proof on all issues in this matter is that of a preponderance of the evidence. Ariz. Admin. Code § R2-19-119.

A preponderance of the evidence is:

The greater weight of the evidence, not necessarily established by the greater number of witnesses testifying to a fact but by evidence that has the most convincing force; superior evidentiary weight that, though not sufficient to free the mind wholly from all reasonable doubt, is still sufficient to incline a fair and impartial mind to one side of the issue rather than the other.

Black’s Law Dictionary 1373 (10th ed. 2014).

Ariz. Rev. Stat. § 32-2153(B) provides in pertinent part:

The commissioner may suspend or revoke a license, deny the issuance of a license, issue a letter of concern to a licensee, issue a provisional license or deny the renewal or the right of renewal of a license issued under this chapter when it appears that the holder or applicant has:

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3. Disregarded or violated any of the provisions of this chapter or any rules adopted by the commissioner.

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24. Violated any condition or term of a commissioner's order.

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Ariz. Admin. Code § R4-28-303(D) provides, in relevant part, as follows::

A salesperson or broker shall notify the Department in writing within 10 days of any change in the individual's personal information or qualifications. The salesperson or broker shall include in the notice the individual's name, signature, license number, and:

......................................

3. If changing residence address or residential mailing address, written notice stating the prior address, new address and the date of the change;

......................................

The preponderance of the evidence shows that Respondent has violated rules adopted by the Commissioner, which is a violation of Ariz. Rev. Stat. § 32-2153(B)(3).

The preponderance of the evidence shows that Respondent has violated terms of a commissioner’s order, which is a violation of Ariz. Rev. Stat. § 32-2153(B)(24).

The Department established by a preponderance of the evidence that

Respondent failed to notify the Department of her new address, which is a violation of Ariz. Admin. Code § R4-28-303(D)(3).

9. Based on the proven violations, the Department has authority to revoke

Respondent’s license. See Ariz. Rev. Stat. §§ 32-2153(B)(3), (B)(24), and Ariz. Admin. Code § R4-28-303(D)(3). Considering the facts and circumstances of this matter, Respondent’s license should be revoked.

ORDER

IT IS ORDERED that Alexis Slapps’s real estate salesperson license No. SA698392000 is revoked.

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 forty (40) days from the date of that certification.

-54864001

001

-137160-45720000Done this day, June 30, 2023.

/s/ Velva Moses-Thompson

Administrative Law Judge

Transmitted by either mail, e-mail, or facsimile to:

Susan Nicolson, Commissioner

Arizona Department of Real Estate

By: OAH Staff