Florida Record

Sunday, September 22, 2019

Miami attorney suspended 3 years over alleged conflict of interest in short sale

Discipline

By Karen Kidd | Sep 3, 2019


TALLAHASSEE (Florida Record) — Miami attorney Orlando Delgado has been suspended following a July 3 Florida Supreme Court order over allegations he engaged in a conflict of interest in a short sale, according to a recent announcement by The Florida Bar.

"Delgado engaged in a short sale transaction in which his ex-wife was the seller and a limited liability corporation in which Delgado held exclusive ownership interest was the buyer," the state bar said in its Aug. 29 announcement of the discipline and the state Supreme Court's order. "Four years later, ownership was transferred to Delgado. The short sale was required to be arms-length but Delgado’s interest in the limited liability corporation was not disclosed to the lender."

Delgado also failed to timely respond to the state bar's official inquiries in the disciplinary proceedings against him, according to the announcement.

In its two-page order, the Supreme Court approved the uncontested referee's report filed in the matter before suspending Delgado for three years. Delgado already was under an indefinite suspension, which meant his latest suspension was effective immediately. The high court also ordered Delgado to pay $1.340 in costs.

Florida court orders are not final until time to file a rehearing motion expires. Filing such a motion does not alter the effective date of Delgado's suspension.

Delgado was admitted to the bar in Florida on Oct. 24, 1996, according to his profile at the state bar website.

That Delgado was the exclusive owner of the limited liability corporation purchasing the house from his ex-wife was not disclosed to the lender, according to the consent judgment filed with the court. The consent judgment also includes Delgado's conditional guilty plea.

"[Delgado] contends that this was an arm's-length transaction as he and his ex-wife were divorced at the time of the short sale transaction and did not have a close personal or business relationship at the time," the consent judgment said.

Delgado was indefinitely suspended in February 2018 following a Supreme Court order after he was found in contempt for failure to respond to official state bar inquiries.

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