STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

IN THE MATTER OF: )

Eugene V. Stewart, Applicant for ) Registration as a Securities )

Salesman with Nies Financial ) CASE NO. 75-028 Corporation, )

)

Petitioner. )

) IN THE MATTER OF: )

Stewart Securities Corporation ) Applicant for registered )

securities dealer, and Eugene V. ) CASE NO. 75-042 Stewart, registered securities )

dealer, )

)

Petitioners. )

)

RECOMMENDED ORDER

Pursuant to notice, the Division of Administrative Hearings by its duly designated hearing officer, G. Steven Pfeiffer, held a public hearing in this case on September 8 and 9, 1975, in Tallahassee, Florida.

The following appearances were entered: Carl E. Rude, Jr., Ervin, Varn, Jacobs and Odom, Tallahassee, Florida, for Petitioners; and Barry E. Chapnick, Assistant General, Office of the Comptroller, Tallahassee, Florida, for the Respondent.

These cases were commenced under Florida Statute, Sections 120.57(1), 120.60, upon the filing of petitions for administrative hearing by Eugene V. Stewart, applicant for registration as a securities salesman with Nies Financial Corporation, and by Stewart Securities Corporation, applicant for registration as a securities dealer and Eugene V. Stewart, applicant for registration as a securities salesman. Petitioner, Eugene V. Stewart, in case number 75-028, asserts that he has complied with all requirements for registering as a securities salesman for a duly registered dealer. Petitioner, Stewart Securities Corporation, in case number 75-042, asserts that it has complied with all requirements for registering as a securities dealer.

Petitioners asserted in their respective cases that proceedings initiated by the Division of Securities were properly brought, that allegations contained in the orders * of the Division of Securities are inaccurate and not sufficient to show violations of law, and that they are entitled to a reasonable attorney's fee.

The Respondent answered the Petitioners' allegations, asserting that Petitioners violated the provisions of Florida Statute Chapter 517 by engaging in the sale of securities when the Petitioners were not properly registered, by falsifying certain books and records, by failing to keep certain records current, and by failing to deliver securities to customers after sale. The cases were consolidated for the purposes of discovery and final hearing due to the fact that the justification for the Respondent's action is the same in each case. The final hearing was originally scheduled to be conducted on June 25, 1975, in St. Petersburg, Florida. The parties jointly requested a continuance, and the final hearing was scheduled to be conducted on September 8, 1975, by order entered July 16, 1975.

* NOTE: Portions of the Agency Final Order text are unreadable and therefore not a part of this ACCESS document.

The Division of Securities called the following witnesses: Larry DeFrancis, an attorney formerly employed by the Division of Securities; and Clifton T. Straughn, Jr., the Division of Securities Bureau Chief in charge of registering securities as Agency Exhibits 1, 2 and 3, were received into evidence. Agency Exhibit 4 is the deposition of E. W. Behrens. The deposition was received in evidence except that the following lines were stricken:

At page 6, lines 6-11;

At page 9, lines 6, 10-12, 16, and the word "corrected"

in line 20;

At page 13, lines 12 and 13;

At page 14, lines 12-17;

At page 15, line 15, the word "corrected"; At page 16, line 2, the word "corrected"; At page 18, lines 19-21, and 25;

All of page 19;

At page 20, lines 1-12;

At page 21, line 3 through the rest of the page;

* NOTE: The remaining text of this Recommended Order is unavailable at this Division and therefore not

a part of this ACCESS document. The Recommended Order Issue Date below has been taken from the Docket Sheet.

G. STEVEN PFEIFFER Assistant Director

Division of Administrative Hearings The Oakland Building

2009 Apalachee Parkway

Tallahassee, Florida 32301

(904) 488-9675

Filed with the Clerk of the Division of Administrative Hearings this 4th day of November, 1975.

================================================================= AGENCY FINAL ORDER

=================================================================

DEPARTMENT OF BANKING AND FINANCE DIVISION OF SECURITIES

IN THE MATTER OF:

Eugene V. Stewart, Administrative Proceeding

Applicant for Registration Number 75-028 as a Securities Salesman

with Nies Financial Corporation,

Petitioner,

/

IN THE MATTER OF:

Stewart Securities Corporation, Administrative Proceeding Applicant for registered Number 75-042

securities dealer, and Eugene

1. Stewart, registered securities dealer,

   
   

   Petitioner,

   /

   
   

   ORDER

   
   

   Based upon the Hearing Officer's Report, Findings of Fact, and Conclusions of Law in the above-styled proceedings, it is hereby,

   
   

   ORDERED as follows:

   
   

   1. That all applications for renewal of registration as an authorized securities dealer heretofore filed with the Department of Banking and Finance, Division of Securities by Stewart Securities Corporation, and all original applications for registration as a securities dealer heretofore filed with the Department of Banking and Finance, Division of Securities by Steward Securities Corporation, or by Gene Stewart Securities Corporation be, and they hereby are, denied.

   2. That all applications for registration as a securities salesman filed with the Department of Banking and Finance, Division of Securities, by or on behalf of Eugene V. Stewart be, and they are hereby, denied.

DONE AND ORDERED at Tallahassee, Florida, on this 28th day of January 1976.

GERALD A. LEWIS, as State

Comptroller and Head of the Department of Banking and Finance

DONALD A. REIT, Director Division of Securities

Docket for Case No: 75-000028

Orders for Case No: 75-000028