STATE OF FLORIDA
DIVISION OF ADMINISTRATIVE HEARINGS
DANNY JOE HOLMES )
)
Petitioner, )
)
v. ) CASE NO. 86-1500
) DEPARTMENT OF BANKING AND FINANCE, ) DIVISION OF SECURITIES, )
)
Respondent. )
) DEPARTMENT OF BANKING AND FINANCE, ) DIVISION OF SECURITIES, )
)
Petitioner, )
)
v. ) CASE NO. 86-1501
)
THOMAS H. HOLMES, )
)
Respondent. )
)
RECOMMENDED ORDER
Pursuant to notice, a formal hearing was held in these consolidated cases on July 16 and 17, 1987, in Jacksonville, Florida, before the Division of Administrative Hearings, by its designated Hearing Officer, Diane K. Kiesling.
APPEARANCE
For Petitioner: Charles E Scarlett, Esquire
Suite 1302, The Capitol Tallahassee, Florida 32309
For Respondents: Bruce A. Minnick, Esguire
Edward W. Dougherty, Esquire Post Office Box 11127 Tallahassee, Florida 32302
ISSUES
The ultimate issues in these two consolidated cases are whether Danny Joe Holmes is entitled to licensure as an associated person with Thomson McKinnon Securities, Inc., in the State of Florida, and further, whether the license as an associated person with Thomson McKinnon Securities, Inc., issued to Thomas H. Holmes, should be revoked based upon the facts and violations alleged in the Notice of Administrative Charges.
BACKGROUND AND PROCEDURAL MATTERS
The Department of Banking and Finance, Division of Securities (Department), presented the testimony of William F. Reilly, Jr., Alex Basarab, Irene Davis, William Bird, Sr., and Lonnie Otis Ratley, Jr. The Department's Exhibits 1-19 were admitted in evidence. Danny Joe Holmes (Danny) and Thomas H. Holmes (Tommy) presented the testimony of Thomas H. Holmes, Mary E. Haggen, William L. Brown, Jr., Amos Preston Milton, Rodney R. Weisman, William F. Reiley, Jr., and Danny Joe Holmes. Holmes Exhibits 2-27 and 30-40 were admitted in evidence.
Additionally, Tommy's Exhibits THI-6 and 9, and Danny's Exhibits DHI-3 and 5 were admitted in evidence.
The transcript of these proceeding was filed on August 18, 1987. The parties filed proposed findings of fact and conclusions of law on September 17, 1987. All proposed findings of fact have been considered and a specific ruling on each proposed finding of fact is made in the Appendix attached hereto and made a part of this Recommended Order.
FINDINGS OF FACT
The Florida Department of Banking and Finance (Department) first received an application for registration as a securities broker/dealer from GIC Government Securities, Inc., (GIC), a Tennessee corporation, on May 5, 1982. GIC was owned by John T. Kilpatrick (50%) and Paul Sanders (50%). Norman Allbright was then GIC's registered principal.
At the time of application, there were numerous pending or past administrative and judicial actions involving securities violations against GIC, John Kilpatrick and others, arising in several states including Florida, Alabama, Georgia, Kentucky, Mississippi, Missouri, Tennessee and Wisconsin.
Notwithstanding all the other litigation and administrative disciplinary actions taken or pending against GIC, John Kilpatrick and others, the Department allowed GIC's registration as a broker/dealer to become effective June 8, 1982, with Paul Sanders serving as GIC's president and its registered principal.
On November 23, 1982, the Department received an application from Lonnie Kilpatrick (brother of John Kilpatrick) for registration as an agent or associated person for GIC; Lonnie Kilpatrick's registration was granted, effective December 13, 1982.
On December 23, 1982, John Kilpatrick filed an application for registration as a principal of GIC, but withdrew same on January 12, 1983 "in view of (the Department's) request for additional disciplinary information."
The record does not indicate when GIC first began selling securities in Florida; however, the Department conducted field examinations of GIC operations in November, 1982, and again in October, 1983.
In August 1983, GIC notified the Department that Paul Sanders had resigned or withdrawn from the company and that John Kilpatrick had assumed 100% ownership of GIC. Also, on August 25, 1983, Lonnie Kilpatrick filed an application for registration as GIC's financial and operations principal; his application was granted on August 29, 1983.
Also in August, 1983, Lonnie Kilpatrick applied for and received approval for registration of GIC Investment Corporation (a Florida corporation) as a limited' broker/dealer, with himself as owner and registered principal.
At the same time, Lonnie Kilpatrick formed a third company, GIC Securities Corporation, (a Florida corporation) in August 1983, and then sought registration as a full broker/dealer in December 1983. Kilpatrick also applied for registration as an associated person with GIC Securities Corporation in December 1983. The Department denied both applications by separate orders entered April 16, 1984. The basis of denial in both cases was Lonnie Kilpatrick's association with GIC and it's past problems, and his failure to report same truthfully.
GIC relocated it's corporate headquarters from Memphis, Tennessee to Olive Branch, Mississippi, sometime in March 1984. On May 21, 1984, the Department received amended broker/dealer registration forms from GIC, detailing additional disciplinary actions in Tennessee, Connecticut, Indiana, Missouri, Mississippi, Florida, Arkansas, and Alabama.
On July 3, 1984, the Department agreed to withdraw it's earlier denials of registration for GIC Securities Corporation and Lonnie Kilpatrick, provided they agree to not apply again for a period of one year.
By January 1985, GIC had eight active branch offices and approximately
33 persons registered as associated persons selling securities in Florida. In March 1985, the Department conducted a field investigation based upon information that GIC was selling short-term non-exempt securities not registered for sale in Florida called GNMA Trust Notes and GNMA Investment Notes. As a result of that examination, on April 9, 1985, the Department took the following actions:
Entered an Order to Cease and Desist directed at Lonnie Kilpatrick and GIC Securities Corporation; and
Filed Administrative Charges and Complaint against GIC.
Negotiations were held between the Department and the attorneys for Lonnie Kilpatrick, GIC and GIC Securities Corporation and further investigations were made by the Department.
On June 27, 1985, the Comptroller of Florida entered into a Stipulation and Consent Agreement with Lonnie Kilpatrick and GIC Securities Corporation.
On June 27, 1985, the Comptroller of Florida entered into a Stipulation and Consent Order with GIC through Lonnie Kilpatrick, as GIC's principal. By the terms of the Order (among other things) GIC agreed to stop selling the two trusts until they were registered, and to liquidate the trusts and refund all monies collected from the sales of same to all customers by November 1, 1985.
On June 28, 1985, the Department filed an order vacating it's April Administrative Charges and Complaint.
GIC had begun refunding the monies paid into the two trusts in April 1985, to all customers who had invested less than $25,000. GIC continued liquidating the trust assets and refunding the proceeds to all customers, in
accordance with the Consent Order. However, GIC failed to comply with certain documentation and reporting requirements, thereby causing additional investigations in September 1985.
During the September 1985, investigation, the Department learned that GIC was offering a new short-term investment called Zero Coupon Treasury Instruments (ZCTI's), which were sold to customers under a 90-day repurchase agreement. While the bonds themselves were exempt from registration, the Department took the position that the repurchase agreement itself was an unregistered security. More important, however, was the Department's belief that GIC was selling zero coupon bonds which GIC did not actually have. Accordingly, the examiners recommended immediate revocation of GIC's registration, impoundment of assets, and appointment of a receiver to prevent any further illegal activities.
On October 1, 1985, the Comptroller of Florida summarily revoked GIC's registration, and filed administrative charges and complaint against GIC, GIC Investment Corporation, and Lonnie Kilpatrick. The next day, October 2, 1985, the Comptroller issued a press release concerning the Department's actions of the day before, and also filed for receivership against GIC in Hillsborough County Circuit Court.
The next day, October 3, 1985, GIC filed bankruptcy proceedings in federal court, which effectively prevented Florida from gaining receivership or control over GIC or GIC's assets. Since October 3, 1985, the bankruptcy court has had complete control over all of GIC's assets and business affairs, including delivery of securities and return of investments to all investors
Danny Joe Holmes went to work in the securities industry in October 1982, when he was employed by GIC Government Securities, Inc. (GIC). Upon completing his National Association of Securities Dealers (N.A.S.D.) training program and successfully passing the required examination, on January 6, 1983, Danny filed for and was granted registration in Florida, as an associated person with GIC in the Jacksonville office. Later he became branch manager in Jacksonville, where he worked until October 1, 1985. At least by January 8, 1985, Danny became a Director on the Board of Directors of GIC
Between August 1983, and October 1985, Danny was also an associated person with GIC Investment Corporation, but was not ever associated with GIC Securities Corporation.
Danny was named branch manager in the Jacksonville office in early 1983. In that capacity, he supervised one other securities salesman position and one secretary. As branch manager, Danny was responsible for the general
day-to-day supervision of the small Jacksonville office, but his primary job was selling securities.
Danny hired Thomas H. Holmes, his brother, in October 1984. Tommy worked in the Jacksonville office seven months, when he left to become branch manager in the Sarasota office.
GIC's main business was selling exempt government securities such as GNMA bonds to customers These bonds were by nature long-term investments, and since they were backed by U.S. Government guaranteed mortgages, they were also considered very safe. Danny and Tommy spent most of their time selling these securities.
G.I.C. also offered short-term investments in government securities, in the form of the so-called GNMA/U.S. Treasury Trust Notes and GNMA/Mortgage- Backed Collateral Notes. Instead of receiving a GNMA bond, each investor received a GIC certificate to evidence their investment in one of the six-month trusts. In turn, the trusts were said to be composed of GNMA and other similar government securities owned by GIC.
Since the underlying government securities owned by GIC were exempt from registration, GIC took the position that the two trust notes were also exempt under Florida law. Therefore, GIC never registered the GNMA/U.S. Treasury Trust Notes and GNMA/Mortgage-Backed Collateral Notes in Florida. By its April 1985, administrative action to stop the sale of the trust notes, the Department declared that the trust notes were unregistered securities.
Neither Danny nor Tommy were parties to the April 1985, administrative actions filed against GIC and claim that they never saw the administrative charges, complaint, consent order, or order vacating the complaint. They also claim that the only "official" information they obtained was informal via telephone, when Danny called the Department's Tallahassee office in April, 1985, to inquire about a newspaper article he saw regarding GIC's problems selling the trusts. The Department's official position at the time was that the charges against GIC were technical violations, and that GIC was still registered and able to sell government securities in Florida.
GIC immediately began refunding money to all customers holding less than $25,000 in trust notes and also began negotiations to settle all other problems raised in the April complaint. The Holmes brothers claim they were never told anything more specific about the problem, except that the small investors had to be refunded, because the trust itself was supposed to be limited to investments of $25,000 or more, to be considered exempt.
GIC also stopped offering investments in the trusts, and Danny and Tommy never offered or sold another of these trust instruments after the April complaint was received by GIC.
Before the April complaint, Tommy sold these unregistered securities, GNMA/U.S. Treasury Trust Notes, to the following individuals:
Virginia Priz 10339 Dobell Road
Jacksonville, FL 32216 (RFA-304)
Eglal Henein
284 Harvard Street #41
Cambridge, MA (RFA-305)
John T. Kelly
2641 Eagle Bay Drive
Orange Park, FL 32073 (RFA-306)
Marian D. Carey General Delivery
Orange Springs, FL 32682 (RFA-307)
Betty J. Dwyer
2303 Buttonwood Drive
Jacksonville, FL 32210 (RFA-308)
James Miller
1704 Whitman Street
Jacksonville, FL 32210 (RFA-309)
Harriet Cameron 812 Talbot Avenue
Jacksonville, FL 32205 (RFA-310)
Olive B. Ericson
822 South 13th Street
Palatka, FL 32077 (RFA-311)
Romaine C. Phillips
623 Seventh Avenue North
Jacksonville Beach, FL 32250 (RFA-312)
Geraldine Hooten Route 1, Box 622
Starke, FL 32091 (RFA-313)
Robert W. Nail, Sr. 904 Nightingale Road
Jacksonville, FL 32216 (RFA-314)
Before the April Complaint, Danny Holmes made sales of GNMA/U.S. Treasury Trust Notes to the following individuals in the following amounts:
Virginia B. or Ernest C. Wright $ 7,000 5201 Atlantic Boulevard
Apartment #276
Jacksonville, FL 32207 (RFA-104)
Burton or Helen Willner $20,000 3212 Lakeshore Boulevard
Jacksonville FL 32210 (RFA-105)
Vivian S. or Gary Lynn Williams $ 7,000 Sutton Place
8208 Kensington Square
Jacksonville, FL 32217 (RFA-106)
Majorie L. Townsend $ 8,000
7201 Arlington Expressway #50 Jacksonville, FL 32211 (RFA-107)
Billy L. or Jerwann Slate $20,000 7924 Jolliet Drive
Jacksonville, FL 32217 (RFA-108)
Agnes W. Smith or $20,000
Cathleen H. Kirill
1449 Orange Circle South
Orange Park, FL 32073 (RFA-109)
Timothy M. Or Bonnie B. Smith $10,000 Box 604
Blountstown, FL 32424 (RFA-110)
Phyliss B. or Larry G. Wys $42,000 Route 1, Box 23B
Astor, FL 32202 (RFA-111)
Winnie G. or John R. Touchton $10,000 5201 Atlantic Boulevard, Apartment 276 Jacksonville, FL 32207 (RFA-112)
John A. or Linda G. Seiler $ 80,000 2066 Foxwood Drive
Orange Park, FL 32073 (RFA-113)
Sadie Rosen or Bernice Gaber $ 44,000 5611 S.W. 8th Court
Plantation, FL 33317 (RFA-114)
Scott C. or Deborah Miller $150,000 12815 Aladdin Road
Jacksonville, FL 32223 (RFA-115)
Virginia Lofts $ 30,000
4 Water Oak
Amelia Island, FL 32034 (RFA-116)
Frank L. or Martha Brown Johns $ 10,000 1405 Edgewood South
Jacksonville, FL 32205 (RFA-117)
Tse-lok Ho or Honor Ho $ 40,000 3529 Sandburg Road
Jacksonville, FL 32211 (RFA-118)
John T. Higgins $112,000
3758 Packard Drive
Jacksonville, FL 32216 (RFA-119)
Ronald G. or Ethel W. Davis $ 30,000 2400 Via Del Ray
Fernandina Beach, FL 32034 (RFA-120)
Ernestine or Harold W Cryer $ 15,000
39 Lake Grove Drive
Crescent City, FL 32012 (RFA-121)
Merl H. or Lucille D. Corbett $ 10,000 3309 Saxon Drive
New Smyrna Beach, FL 32069 (RFA-122)
John J. or Toby Hicks $ 10,000 5422 S.E. 113th Street
Bellevue, FL 32620 (RFA-123)
Bernice Crews or $ 5,000
Barbara J. Brooks 3322 Myra Street
Jacksonville, FL 32205 (RFA-124)
Sylvia Ethel Davis $ 10,000
4052 Harwood East Century Village Deerfield Beach, FL 33441 (RFA-125)
Beatrice Boles-Doobe $ 7,000
599 Alhambra Lane
Ponte Vedra Beach, FL 32082 (RFA-126)
Frank L. or Martha Brown Johns $ 10,000 1405 Edgewood Avenue South
Jacksonville, FL 32205 (RFA-127)
Albert J. or Dorothy J Jackson $ 10,000 Box 457
Pamona Park, FL 32081 (RFA-128)
Sherod W. or Joyce B. Hodges $ 15,000 5625 Hyde Park Circle
Jacksonville, FL 32210 (RFA-129)
David R. or Bessie L. Lazarus
7061 Old Kings Road, South $10,000 Apartment #3
Jacksonville, FL 32217 (RFA-130)
Miss Laurence Lanahan or $15,000 Miss Gilliane M. Buzzell
919 Phillip Street
Jacksonville, FL 32207 (RFA-131)
Cathy R. Kuhnle
1858 Mandarin Estate Drive $10,000 Jacksonville, FL 32223 (RFA-132)
Earl R. or Hazel A. Kraft $15,000 Route 1, Box 1060
Lawtey, FL 32058 (RFA-133)
Peter F. or Lucy K. Kammes
819 N. Dement Avenue, North $ 5,000 Dixon, IL 61021 (RFA-134)
Bernice Jordan $ 5,000
P.O. Box 175
Deltona, FL 32725 (RFA-135)
Honor Ho, Custodian for $10,000 Daphne Ho
3529 Sandburg Road
Jacksonville, FL 32211 (RFA-136)
Betty B. or Xan Rawls or Dave Rawls, Jr. 830 Arlington Drive #224 Jacksonville, FL 32211 (RFA-137) | $15,000 | |
Lonnie O. Ratley, Jr. or Mary N. Ratley 3931 Collins Road Orange Park, FL 32073 (RFA-138) | $20,000 | |
James G. and Dorothy W. Potter 308 10th Terrace Indialantic, FL 32903 (RFA-139) | $ 7,000 | |
Jayne W. Monk or Jayne Rodgers 5039 Tlmuquana Road Apartment #44 Jacksonville, FL 32210 (RFA-140) | $ 5,000 | |
Jayne W. Monk or Jayne Rodgers 5039 Timuquana Road Apartment #44 Jacksonville, FL 32210 (RFA-141) | $ 5,000 | |
James or Dorothy Montgomery 1901 S Riverside Drive Edgewater, FL 32032 (RFA-142) | $ 5,000 | |
Shirley Mae Bohannon Post Office Box 311 Fernandina Beach, FL 32034 (RFA-143) | $10,000 | |
William D. Bird Sr., Viola L. Bird 7350 Pineville Drive Jacksonville, FL 32244 (RFA-144) | $10,000 | |
Daniel L. or Geraldine B. Blue Box 23238 Jacksonville, FL 32241 (RFA-145) | $ 5,000 | |
Alan Blonder 1125 W. Avenue #804 Miami Beach, FL 33139 (RFA-146) | $ 5,000 | |
Larry G. or Phyliss B. Wys Route 1, Box 2313 Astor, FL 32202 (RFA-147) | $15,000 | |
Note: When used throughout, RFA- designates | the Request for | Admission |
which established the fact.
Following the entry of the Stipulation and Consent Order entered June 27, 1985, GIC began refunding all investments in all trusts, intending to complete the entire refunding by November 1, 1985.
Neither Danny or Tommy had anything to do with the refunding of the trusts by GIC. All liquidation efforts and repayments were done by Lonnie Kilpatrick and other high-ranking GIC officials, or related companies owned and controlled by Lonnie Kilpatrick. The GIC officials and companies ran into serious financial problems in attempting to liquidate the trusts and refund the
10.3 million dollars in the 90-day period given them under the order.
Meantime, GIC had also (legally) sold "zero coupon" government securities (also called "strips"). These were long term government bonds that had been "stripped" of their interest payment coupons, which thereby reduced their present market value to a small fraction of their stated or face value. GIC owned and kept an inventory of zeros on hand for resale to customers.
Danny and Tommy both attended a sales meeting held in mid-June 1985, at which Lonnie Kilpatrick first announced his new sale and repurchase plan, whereby GIC would sell its zero coupon securities to customers for 90 days, and agreed to buy them back at a profit.
Danny testified that he understood that, since they were actually selling zero coupon government bonds, they were still exempt transactions, just as they always had been, regardless of the repurchase agreement.
When the Department became aware of the new repurchase agreements, in late August 1985, immediate investigations revealed that GIC did not have a sufficient inventory of zeros to deliver to its customers, and GIC had not used the proceeds from the sales to purchase the zeros.
As of August 31, 1985, Department investigation reports indicated that GIC, through its sales force, had sold some $5.4 million worth of ZCTI's to some
310 investors. These ZCTI's were never registered in Florida.
Danny testified that he sold $50,000 worth of zero coupon trust instruments to four long-time customers, two of which were his close friends or business-related friends. However, the Requests for Admission show that he admitted selling ZCTI's to the following investors in the listed face amounts:
James H. or Anne 907 Jamaica Road Jacksonville, FL | M. Rowell N. 32216 | $100,000 (RFA-98, 407) | (7/9/85) |
Blanche S. Stock Elizabeth Thies 831 Leonie Circle Jacksonville, FL | or 32211 | $100,000 (RFA-99, 408) | (9/3/85) |
Blanche S. Stock Elizabeth Thies 831 Leonie Circle Jacksonville, FL | or 32211 | $100,000 (RFA-100, 409) | (9/9/85) |
Nancy W. Royal or Eva B. Waddell $300,000 (9/6/85) 1140 Hickman Road
Jacksonville, FL 32216 (RFA-100, 409)
Gary A. or Linda J. Adams $100,000 (7/18/85) 4735 Osprey Court
Jacksonville, FL 32217 (RFA-101,410)
Frederick H. or $200,000 (7/18/87) Irene A. Davis or Barbara Davis Winn
935 Park Forest Lane
Jacksonville, FL 32211 (RFA-102,411)
Tommy did not sell any ZCTIs.
The Department's September 1985, examinations resulted in summary revocation of GIC's licensure as a broker/dealer, on October 1, 1985. Danny and Tommy's registrations as affiliated persons were revoked simultaneously, by operation of Florida law. See, Section 517.161(3), Florida Statutes (1985).
In particular, the revocation of G.I.C. Government Securities, Inc.'s registration was based on findings that the firm sold unregistered securities; failed to maintain required books and records; and, violated Section 517.301, Florida Statutes, by employing a device, scheme or artifice to defraud and by obtaining money from investors by means of untrue statements and omissions of material facts.
Neither Danny nor Tommy were parties to the summary revocation order entered October 1, 1985, nor the administrative charges and complaint, nor any other action filed against GIC or GIC Securities Corporation, or Lonnie O. Kilpatrick. However, copies of the summary revocation and the administrative complaint were delivered to their branch offices in the afternoon of October 1, 1985.
Tommy also made sales of securities in the forms of GNMA or Federal Home Loan Mortgage Corporation (FHLMAC) certificates, on the dates indicated, which were never delivered to the following investors:
John or Myrtle Happel 109 Domino Drive, North | $ 30,000 | (6/3/85) |
Ruskin, Florida 33570 | (RFA-1, 203) | |
Carl Tilly, Inc. or Defined Benefit Pension | $25,000 | (6/5/85) |
Plan Trust 436 Country Club Road Belleair, FL 33516 | (RFA-2, 204) | |
Carl Tilly 436 Country Club Road Belleair, FL 33516 | $ 25,000 (RFA-3, 205) | (8/8/85) |
Armistead B. Gordon or Margaret S. Gordon 2960 61st Street Sarasota, FL 34243 | $ 30,000 (RFA-4, 206) | (8/19/85) |
Armistead B. Gordon or Margaret S. Gordon 2960 61st Street Sarasota, FL 34243 | $ 80,000 (RFA-5, 207) | (9/24/85) |
Richard H. Snook 764 Village Circle Capri West | #119 | $ 25,000 | (6/4/85) |
Venice, FL 33595 | (RFA-6, 208) | ||
R. J. or Doris F. Scurlock 17 Twin Shores Boulevard Long Boat Key, FL 33548 | $ 25,000 (RFA-7, 209) | (7/3/85) | |
Bertha H. Odom or 529 Riviera | $ 25,000 | (8/20/85) | |
Venice, FL 33595 | (RFA-8, 210) | ||
Bertha H. Odorn or James A. Hightower 529 Riviera Venice, FL 33595 | $ 40,000 (RFA-9, 211) | (8/20/85) | |
Bertha H. Odom or 529 Riviera Venice, FL 33595 | $ 25,000 (RFA-10, 212) | (9/17/85) | |
Bertha H. Odom or 529 Riviera Venice, FL 33595 | $ 40,000 (RFA-11, 213) | (9/17/85) | |
William C. Conrad or Jean G. Conrad 515 Los Attos North Port, FL 33596 | $ 40,000 (RFA-12, 214) | (7/29/85) | |
Walter or Isabelle Zeidler 3543 Penbrook Drive Sarasota, FL 33579 | $ 45,000 (RFA-13, 215) | (9/3/85) | |
Edward F. Kaminski or Shannon M. Gray 3342 Ramblewood Drive South Sarasota, FL 33577 | $195,000 (RFA-14, 216) | (6/24/85) | |
Edward F. Kaminski or Shannon M. Gray 3342 Ramblewood Drive South Sarasota, FL 33577 | $ 30,000 (RFA-15, 217) | (6/24/85) | |
Keven S. Young or Sara J. Gramlich 1904 Ball Street Inglewood, FL 33533 | $ 30,000 (RFA-16, 218) | (6/26/85) | |
Charles R. Frith or Lt. Col. Lawrence W. Buck 4357 Eastwood Lane Sarasota, FL 33582 | $ 25,000 (RFA-17, 219) | (8/13/85) | |
Julie L. Hallis or Modesta Scalise | $ 25,000 | (7/16/85) |
541 S.E. 34th Street Cape Coral, FL 33904 | (RFA-18, 220) | |
Ralph S. or Carol S. Stoetzel Route 1, Box 6930 Williston, FL 32696 | $ 40,000 (RFA-19, 221) | (6/10/85) |
Robert L. Boschert or Lucille A. Boschert 8144 Pine Lake Road Jacksonville, FL 32216 | $135,000 (RFA-20, 222) | (2/28/85) |
Lucille A. Boschert 8144 Pine Lake Road Jacksonville, FL 31126 | $140,000 (RFA-21, 223) | (9/23/85) |
Emma Rand for $25,000 (6/19/85) Danielle Maia Davis
5623--80th Street North
St. Petersburg, FL 33709 (RFA-22, 224)
John H. Lindsey P.O. Box 23444 Jacksonville, FL 32241 | $ 35,000 (RFA-23, 225) | (4/5/85) |
Herbert D. or Ida B. Grant 6814--20th Avenue West Bradenton, FL 33529 | $ 25,000 (RFA-24, 226) | (6/26/85) |
Herbert D. or Ida B. Grant 6814--20th Avenue West Bradenton, FL 33529 | $ 25,000 (RFA-25, 227) | (8/5/85) |
Herbert D. or Ida B. Grant 6814--20th Avenue West Bradenton, FL 33529 | $ 25,000 (RFA-26, 228) | (8/5/85) |
Homer J. Masculine or Ellen B. Masculine 15325 Cape Drive North Jacksonville, FL 32226 | $ 25,000 (RFA-27, 230) | (3/29/85) |
Duane L. Bork, M.D. Profit Sharing Plan 2732 Trollie Lane Jacksonville, FL 32211 | $ 40,000 (RFA-28, 231) | (4/18/85) |
Mary B. Pellegrin 231 Waterway Circle, N.E. Port Charlotte, FL 33952 | $ 25,000 (RFA-29, 232) | (7/9/85) |
Mary B. Pellegrin 231 Waterway Circle, N.E. Port Charlotte, FL 33952 | $ 25,000 (RFA-30, 233) | (6/6/85) |
Laurence D. or Beth M. Brady $ 40,000 (6/13/85) 3901 Bahia Vista #123
Sarasota, FL 33582 (RFA-31, 234)
Douglas M. Hayden or $ 25,000 (5/20/85) Lucille N. Hayden
3834 San Luis
Sarasota, FL 33580 (RFA-32, 235)
Etta E. Wellman or $100,000 (9/23/85) Dr Glen Wellman or Dan Wellman
8347 Kimberlynn
Sarasota, FL 33580 (RFA-33, 236)
Etta E or Dan Wellman $100,000 (8/8/85) 8347 Kimberlynn (RFA-34, 237)
Sarasota, FL 33580 (RFA-34, 237)
Sallye K. Thomas $110,000 (5/16/85) 1938 Grove Bluff Road
Switzerland, FL 32043 (RFA-35, 238)
Phyllis P. Crow or $ 50,000 (6/6/85) Robert E Crow
511 Sheridan Drive
Venice, FL 33595 (RFA-36, 239)
Ray A. Edith A. Bloom $ 40,000 (6/6/85) 614 Barnes Parkway
Nokomis, FL 33555 (RFA-37, 240)
Frederick V. Berglund $ 25,000 (9/19/85) Hazel M. Berglund
6796 Gasparilla Pines Blvd. #26
Englewood, FL 33533 Katherine B. Wolf or | (RFA-38, 241) $ 25,000 | (6/19/85) |
Katherine E. Sessions 1850 Palmcrest Lane Clearwater, FL 33546 | (RFA-39, 242) | |
Arthur J. Lynch or Marion S. Lynch 1000 Kings Highway #233 Port Charlotte, FL 33952 | $ 25,000 (RFA-40, 243) | (8/12/85) |
Walter H. or Dorothy Berg 2251 Constitution Boulevard Sarasota, FL 33581 | $155,000 (RFA-41, 244) | (9/10/85) |
Robert D. De'Laughter or Louise V. De'Laughter 2718 Kilgore Place Sarasota, FL 33580 | $ 25,000 (RFA-42, 245) | (6/12/85) |
Vincenzo J. Grasso or Virginia Grasso or or Frank V. Grasso or Mary Cenatiempo 224 Arlington Way Ormond Beach, FL 32074 | $ 50,000 (RFA-43, 246) | (4/29/85) |
Francis W. Francke or Carolyn E. Francke 2575 Ringling Boulevard Sarasota, FL 33577 | $100,000 (RFA-44, 247) | (7/15/85) |
Francis W. Francke or Carolyn E Francke 2575 Ringling Boulevard Sarasota, FL 33577 | $ 30,000 (RFA-45, 248) | (7/30/85) |
Francis W. Francke or Carolyn E. Francke 2575 Ringling Boulevard Sarasota, FL 33577 | $ 25,000 (RFA-46, 249) | (8/6/85) |
Betty J. or John E Dwyer $ 25,000 (4/4/85) 2303 Buttonwood Drive
Jacksonville, FL 32216 (RFA-47, 250)
Herbert R. Sieloff or $ 30,000 (6/7/85) Helen R. Sieloff
2719 27th Avenue Drive West
Bradenton, FL 33505 (RFA-48, 251)
Donald W. or June Dover 1711 Vamo Drive Sarasota, FL 33581 | $ 30,000 (RFA-49, 252) | (9/4/85) |
William L. Bolen or Richard A. Jordan 3920 Balsam Court Sarasota, FL 33580 | $ 25,000 (RFA-50, 253) | (6/11/85) |
Gertrude C. Keleman 4924 Mink Road Sarasota, FL 33580 | $115,000 (RFA-51, 254) | (9/30/85) |
John or Gloria Paser 2430 Golf Course Drive Sarasota, FL 33580 | $ 25,000 (RFA-52, 255) | (8/7/85) |
Carolyn C. Gambel or Richard D. Gambel 3349 Williamsburg Street Sarasota, FL 33581 | $ 25,000 (RFA-53, 256) | (8/19/85) |
A. F. or Florence Quiett 4132 Schwalbe Drive Sarasota, FL 33580 | $ 25,000 (RFA-54, 257) | (8/15/85) |
John W. Garber Virginia H. Garber 516 Madonna North Port, FL 33596 | $ 25,000 (RFA-55, 258) | (9/16/85) |
John R. Finn or Margaret C. Finn 4521 La Jolla Drive Bradenton, FL 33507 | $ 25,000 (RFA-56, 259) | (9/15/85) |
Shirley or Joseph Tocco 141 Davinci Drive Nokomis, FL 33555 | $ 25,000 (RFA-57, 260) | (7/8/85) |
Wesley C. or Donna J. Ferrell 7825 Alhambra Drive Bradenton, FL 33529 | $ 25,000 (RFA-58, 261) | (6/8/85) |
Daniel E. Guidice or Judita A. Guidice 1807 Cherry Ridge Lane Brandon, FL 33511 | $ 45,000 (RFA-59, 262) | (7/24/85) |
Martha S. Parker Trust 2985 N. Beach Road #B.V. 10 Englewood, FL 33533 | $ 40,000 (RFA-60, 263) | (9/13/85) |
Lyle Frazier 2125 Reynold Road Lakeland, FL 33801 | $ 25,000 (RFA-61, 264) | (6/19/85) |
Wayne J. Gulseth or Thomas A. Gulseth P.O. Box 5407 Trailor Estates Bradenton, FL 33505 | $ 25,000 (RFA-62, 265) | (5/20/85) |
Wayne J. Gulseth or Thomas A. Gulseth P.O. Box 5407 Trailor Estates Bradenton, FL 33505 | $ 30,000 (RFA-63, 266) | (6/4/85) |
Lenora M. Calfee 1236 Del Webb Boulevard Sun City Center, FL 33570 | $ 25,000 (RFA-64, 267) | (6/7/85) |
Geraldine Hooten Route 1 Box 622 Starke, FL 32091 | $ 60,000 (RFA-65, 268) | (7/9/85) |
Margaret F. Gerrior 4048 Deer Wood Avenue Englewood, FL 33533 | $ 30,000 (RFA-66, 269) | (9/16/85) |
Frederick B. Hopler or $ 25,000 (6/3/85) Annette L. Hopler
1100 Desoto Road, Lot 2
Sarasota, FL 33580 (RFA-67, 270)
Elizabeth Karakay $30,000 (7/3/85) 6615 Mark Ridge Place
Sarasota, FL 33581 (RFA-68, 271)
Roy A. or Doris E. Prater $40,000 (9/11/85) 3045 Golden Terrace
Sarasota, FL 33580 (RFA-69, 272)
Hilda S. Carns or $25,000 (3/12/85) Susanne C. Richard
P. O. Box 1178
Live Oak, FL 32060 (RFA-70, 273)
Ruth P. Newhall or $ 45,000 (6/6/85) Patricia A. Newhall
3300 River View Road West
Bradenton, FL 33505 (RFA-71, 274)
Leonard or Charles Cook $ 30,000 (6/21/85)
P.O. Box 7090
North Port, FL 33596 (RFA-72, 275)
Sam or Modesta Scalise $ 25,000 (7/16/85)
541 S.E. 34th Street
Cape Coral, FL 33904 (RFA-73, 276)
Julie L. Hallas or Modesta Scalise | $ 25,000 | (7/16/85) |
541 S.E. 34th Street Cape Coral, FL 33904 | (RFA-75, 277) | |
Olive J. Knipe 5912 Richard Place Sarasota, FL 33581 | $ 25,000 (RFA-76, 278) | (8/28/85) |
Olive J. Knipe 5912 Richard Place Sarasota, FL 33581 | $ 30,000 (RFA-77, 279) | (8/28/85) |
David W. Hargrave or $40,000 (3/1/85) Mary J. Hargrave
126 Heather Way
Orange Park, FL 32073 (RFA-78, 280)
Charles Moglia $30,000 (9/5/85) 2950 Clark Road #113
Sarasota, FL 33581 (RFA-79, 281)
Luise Cristiani $25,000 (8/16/85) 6716 Quonset Road East
Bradenton, FL 34203 (RFA-80, 282)
Henry or Mildred Beckman $25,000 (8/7/85) 2364 Freemont Drive
Sarasota, FL 33583 (RFA-81, 283)
George A. Nye, Sr., or $25,000 (8/8/85) Mary Nye
6702 23rd Avenue West
Bradenton, FL 33529 (RFA-82, 284)
Robert W. Lounsbury or (8/27/85) Jennifer Lounsbury $25,000
3804 John Young Parkway
Orlando, FL (RFA-83, 285)
Charles or Hilda Corman $40,000 (9/30/85) 3277 Beneva Road, Apt. #101
Sarasota, FL 33582 (RFA-84, 286)
Dennis M. Chamberlain or $70,000 (8/23/85) Emalene M. Chamberlain
12749 N. Linden Drive
Spring Hill, FL 33526 (RFA-85, 287)
Irene Toth
3610 Aachen Drive $100,000 (5/17/85) Sarasota, FL 33577 (RFA-86, 288)
Irene Toth $ 70,000 (5/20/85) 3610 Aachen Drive
Sarasota, FL 33577 (RFA-87, 289)
Lois Van Deren $ 50,000 (6/5/85) 1460 East Turner
Clearwater, FL 33516 (RFA-88, 290)
Virginia or J. Russell Piez $ 25,000 (8/5/85) 10339 Dobell Road
Jacksonville, FL 32216 (RFA-89, 291)
Frank S. Boyce $ 25,000 (5?22/85) 3399 Espanola Drive
Sarasota, FL 33579 (RFA-90, 292)
Frank S. Boyce $ 25,000 (9/9/85) 3399 Espanola Drive
Sarasota, FL 33579 (RFA-91, 293)
Jean M. Sullivan or $ 40,000 (9/23/85) Michael J. Sullivan
Route 3 Box 3228
Melrose, FL 32666 (RFA-92, 294)
Robert E. or Richard L. Hahn $ 30,000 (9/4/85) 4260 Southwell Way
Sarasota, FL 34241 (RFA-93, 295)
Janet Patricia Young $ 30,000 (6/17/85) Post Office Box 732
Moore Haven, FL 33471 (RFA-94, 296)
James A. Hagen or $ 40,000 (6/3/85) Elizabeth J. Hagen
3014 Southern Parkway W.
Bradenton, FL 33505 (RFA-95, 297)
Walter F. Rachels or $ 55,000 (7/17/85) Sonia Rachels
1821 Reid Street
Lehigh Acres, FL 33936 (RFA-96, 298)
Raymond J. Wahlen or $45,000 (6/10/85) Margaret L. Wahlen
1280 Arobea Avenue
North Port, FL 33596 (RFA-977 299)
Raymond J. Wahlen or $ 35,000 (9/18/85) Margaret L. Wahlen
1280 Arobea Avenue
North Port, FL 33596 (RFA-98, 300)
Raymond J. Wahlen or $ 30,000 (9/23/85) Margaret L. Wahlen
1280 Arobea Avenue
North Port, FL 33596 (RFA-99, 301)
Richard B. Lyon or $ 25,000 (7/18/85) Sunny L. Lyon
2 Aztic Circle
Ft. Myers Beach, FL 33931 (RFA-100, 302)
Richard B. Lyon $ 25,000 (7/18/85) or Sunny L. Lyon
2 Aztic Circle
Ft. Myers Beach, FL 33931 (RFA-101, 303)
Danny Holmes made sales of securities in the form of GNMA and Federal Home Loan Mortgage Corporation (FHLMAC) and Treasury Bond Receipt Certificates which were never delivered to the following investors:
James H. or Anne M. Rowell $25,000 (7/12/85) 7907 Jamaica Road North
Jacksonville, FL 32216 (RFA-1, 310)
Glenn W. or Nghiep T. Gergen $25,000 (6/6/85)
439 Brighton Avenue
Orange Park, FL 32073 (RFA-2, 311)
Glenn W. or Nghiep T. Gergen $25,000 (6/6/85)
439 Brighton Avenue
Orange Park, FL 32073 (RFA-3, 312)
Donald D. Hendrickson $25,000 (5/28/85) 3710 East Olive Road
Pensacola, FL 32514 (RFA-4, 313)
Mary F. Cleaveland
8667 Purslane Place $18,000 (7/3/85) Jacksonville, FL 32217 (RFA-5, 314)
Mary F. Cleaveland
8667 Purslane Place $10,000 (8/7/85) Jacksonville, FL 32217 (RFA-6, 315)
John D. or Helen V. Boggs $35,000 (7/31/85) 7709 Misty Pines Road
Pensacola, FL 32506 (RFA-7, 316)
William D. Bird, Sr., or $55,000 (6/12/85) Viola L. Bird
7350 Pineville Drive
Jacksonville, FL 32244 (RFA-8, 317)
William D. Bird, Sr., or $45,000 (5/17/85) Viola L. Bird
7350 Pineville Drive
Jacksonville, FL 32244 (RFA-9, 318)
Marion D. Beltram
Route 3, Box 837 $30,000 (9/11/85)
Old Town, FL 32680 (RFA-10, 319)
Donald F. or Lynn A. Elliott $35,000 (8/28/85)
433 Lane Avenue South
Jacksonville, FL 32210 (RFA-11, 320)
Ronald E. or Linda M. Jackson $25,000 (9/20/85) 2148 West Road
Jacksonville, FL 32216 (RFA-12, 321)
William H. Mikell, Jr., or $60,000 (7/8/85) William H. Mikell, Sr.
Route 1, Box 249 E
Bell, FL 32619 (RFA-13, 322)
William H. Mikell, Jr. or $ 40,000 (7/9/85) William H. Mikell, Sr.
Route 1, Box 249 E
Bell, FL 32619 (RFA-14, 323)
Donald N. Johnson $ 25,000 (6/21/85) 1063 South Shores Road
Jacksonville, FL 32207 (RFA-15, 324)
John J. or Dolores M. Cronin $ 30,000 (4/11/85) 1131 Westlawn Drive
Jacksonville, FL 32211 (RFA-16, 325)
Frances H. Widegren $ 25,000 (5/15/85) Route 3, Box 3101
Jacksonville, FL 32211 (RFA-17, 326)
Dorothy M. Davis $ 30,000 (5/9/85) 6238 Mercado Drive
Jacksonville, FL 32210 (RFA-18, 327)
Dorothy M. Davis $ 25,000 (8/12/85) 6238 Mercado Drive
Jacksonville, FL 32210 (RFA-19, 328)
Charles or Bonnie Gilchrist $ 27,258.58 (4/8/85) 2926 Mango Tree Drive
Edgewater, FL 32032 (RFA-20, 329)
Robert M. Reiders, $190,000 (4/28/85) Trustee for Pauline Kline
7061 Old Kings Road South Apartment #3
Jacksonville, FL 32217 (RFA-21, 330)
Robert M. Reiders, $ 50,000 (7/31/85) Trustee for Pauline Kline
7061 Old Kings Road South Apartment #3
Jacksonville, FL 32217 (RFA-22, 331)
Robert M. Reiders, $190,000 (3/28/85) Trustee for Cecilia Robinson
7061 Old Kings Road South Apartment #3
Jacksonville, FL 32217 (RFA-23, 332)
Robert M. Reiders, Trustee for $ 60,000 (7/31/85) Cecilia Robinson
7061 Old Kings Road South Apartment #3
Jacksonville, FL 32217 (RFA-24, 333)
Post & King Liquors, Inc. $ 35,000 (4/1/85) 7061 Old Kings Road South
Apartment #3
Jacksonville, FL 32217 (RFA-25, 334)
Ritz Enterprises, Inc. $ 45,000 (3/28/85) 7061 Old Kings Road South
Apartment #3
Jacksonville, FL 32217 (RFA-26, 335)
Ritz Enterprises $ 50,000 (3/28/85) 7061 Old Kings Road South
Apartment #3
Jacksonville, FL 32217 (RFA-27, 336)
Raymond G. or Kathryn C. Splinter $25,000 (7/29/85) 3751 Lilly Road North
Jacksonville, FL 32207 (RFA-28, 337)
Donald C. Cannon $30,000 (5/10/85) Post Office Box 61
Green Cove Springs, FL 32043 (RFA-29, 338)
Majorie W. Flournoy or $25,000 (8/12/85) Edith T. Wrangofski
111 Peachtree Street
St. Simons, GA 31522 (RFA-30, 339)
The Wesper Trust, Trustees for $50,000 (7/12/85) Willis H. Wesper and Lucille C. Wesper
2421 N.W. 47th Lane
Gainesville, FL 32605 (RFA-31, 340)
Florence T. Bunch $35,000 (5/14/85)
301 Oceanwood Drive
Neptune Beach, FL 32233 (RFA-32, 341)
Florence T. or Natalie K. Bunch $25,000 (8/5/85)
301 Oceanwood Drive
Neptune Beach, FL 32233 (RFA-33, 342)
Arthur R. or Doyle Ann Furst $65,000 (7/12/85) 605-11th Street, North
Jacksonville, FL 32250 (RFA-34, 343)
Graham B. or Baxter G. Wall $25,000 (6/10/85) 2002 Oakmont Drive
Jacksonville, FL 32211 (RFA-35, 344)
Lonnie O. or Mary N. Ratley $30,000 (9/16/85) 3931 Collins Road
Orange Park, FL 32073 ( RFA-36, 345)
Delores J. Christensen or $28,000 (9/23/85) Walter J. Christensen
3979 Meek Drive
Jacksonville, FL 32211 (RFA-37, 346)
Sherod W. or Joy B. Hodges $30,000 (9/3/85) 5625 Hyde Park Circle
Jacksonville, FL 32210 (RFA-38, 347)
H. I. Robertson, Jr. or $70,000 (9/16/85) Edith J. Robertson
Post Office Box 668
East Palatka, FL 32031 (RFA-39, 348)
Dr Louis or Eva Mogul $30,000 (8/29/85) 5700--Second Avenue, N.W
Apartment #507
Boca Raton, FL 33432 (RFA-40, 349)
Spencer W. Meeks, Sr. $25,000 (9/5/85) 2571 Summit Street
Jacksonville, FL 32204 (RFA-41, 350)
Florestine L. Meeks $25,000 (9/5/85) 2571 Summit Street
Jacksonville, FL 32204 (RFA-43, 351)
Burton or Helen M. Willner $25,000 (1/15/85) 3212 Lakeshore Boulevard
Jacksonville, FL 32210 (RFA-42, 352)
Burton or Helen M. Willner $45,000 (6/4/85) 3212 Lakeshore Boulevard
Jacksonville, FL 32210 (RFA-44, 353)
Homer W. or Gladys S. Davis $ 35,000 (5/28/86) 873 Orangewood Road
Jacksonville, FL 32223 (RFA-45, 354)
Myrtle or Nathan Modling $50,000 (9/13/85)
507 W. Orange Avenue
Crescent City, FL 32012 (RFA-46, 355)
Theodore or Hazel Vogel $25,000 (7/17/85) 1707 D. Sedefield Lane
Ocala, FL 32672 Frank X. or Dorothy S. Veit 1155 Ocean Shore Boulevard | (RFA-47, 356) $70,000 (3/8/85) |
Ormond Beach, FL 32074 | (RFA-48, 357) |
Frank X. or Dorothy S. Veit | $45,000 (5/16/85) |
1155 Ocean Shore Boulevard Ormond Beach, FL 32074 | (RFA-49, 358) |
Frank X. or Dorothy S. Veit | $40,000 (8/23/85) |
1155 Ocean Shore Boulevard Ormond Beach, FL 32074 | (RFA-50, 359) |
William G. or Jean H. Fidyk 48 Ozbourn Street Naval Station Mayport, FL 32227 | $50,000 (7/1/85) (RFA-51, 360) |
Betty F. or Larry S. Scaccia | $45,000 (8/28/85) |
7702 Praver Drive, West Jacksonville, FL 32217 | (RFA-52, 361) |
Verl E. or Florence J. Mangas | $75,000 (3/18/85) |
232 N. Ridgewood Avenue #31 Edgewater, Florida 32032 | (RFA-53, 362) |
Joseph T. or Mary E or Phillip R. Wood 130 Laurina Street Jacksonville, FL 32216 | $25,000 (RFA-54, 363) |
Dorothy M. Hall or $40,000 (8/28/85) Tiffany L. Whiteley
7507 Beach Boulevard
Apartment #601
Jacksonville, FL 32216 (RFA-55, 364)
Margaret V. Weiss or $25,000 (6/13/85) Margaretann B. Weiss or
Kurt M. Snyder 630 Adair Avenue
Sorrento, FL 32776 (RFA-56, 365)
T. C. Rutherford or $35,000 (8/23/85) Dorothy A. Rutherford or
Suzanne Johnson Route 1 Box 1509
Melrose, FL 32666 (RFA-57, 366)
Carson Lofts $30,000 (7/1/85)
4 Water Oaks
Amelia Island, FL 32034 (RFA-58, 367)
Phillip M. Borin or $55,000 (5/3/85) Elizabeth Thomas Borin
Post Office Box 842
Green Cove Springs, FL 32043 (RFA-59, 368)
Richard H. or Frances G. Parmelee $ 25,000 (9/25/85) 7075 Hanson Drive North
Jacksonville, FL 32210 (RFA-60, 369)
William N. or Judith M. Rogers $ 40,000 (6/6/85) 3806 Eve Drive North
Jacksonville, FL 32216 (RFA-61, 370)
Robert H. or Muriel D. Corby $ 45,000 (8/20/85) 608A Midway Drive
Ocala, FL 32672 (RFA-62, 371)
John or Pamela M. Tietjen $ 25,000 (7/18/85) 2554 West End Street
Atlantic Beach, FL 32233 (RFA-63, 372)
Harry J. or M'Elise E Buffone $ 30,000 (9/17/85) 1920 Buff Lane
Jacksonville, FL 32216 (RFA-64, 373)
Nina Michele White or $ 50,000 (6/17/85) Gina Renee Chesser
6776 Townsend Road
Box #75
Jacksonville, FL 32244 (RFA-65, 374)
Alfred or Deborah Catabia $ 60,000 (7/29/85) 6007 N.W. 60th Street
Ocala, FL 32675 (RFA-66, 375)
Gentry M. Henderson or $ 50,000 (7/16/85) Henry Parker Henderson, Jr.
8163 Sutton Place North
Jacksonville, FL 32217 (RFA-67, 376)
Jordan N. or Doris B. Branch $ 25,000 (4/25/85) 6031 Robbins Circle South
Jacksonville, FL 32211 (RFA-68, 377)
S. F. and Grace T. Evans $130,000 (8/28/85) Box 255
Welaka, FL 32093 (RFA-69, 378)
Marian Marlowe $ 30,000 (5/31/85)
3 Cunningham Place
Pensacola, FL 32506 (RFA-70, 379)
Thomas L. or Merle D. Teate $ 30,000 (2/28/85) 3969 Marianne Road
Jacksonville, FL 32217 (RFA-71, 380)
Alexander or Donald A. Thomas $ 30,000 (8/8/85)
230 E First Street, Suite 1102 Jacksonville, FL 32206 (RFA-72, 381)
Adelle B. Harvey or $ 25,000 (4/18/85) Edward F. O'Donoghue
1277 Belevedere Avenue
Jacksonville, FL 32205 (RFA-73, 382)
Frederick H. Davis or $ 45,000 (7/10/85) Irene A. Davis or Barbara Davis Winn
935 Park Forest Lane
Jacksonville, FL 32211 (RFA-74, 383)
Frederick H. Davis or $ 25,000 (7/10/85) Irene A. Davis or Barbara Davis Winn
935 Park Forest Lane
Jacksonville, FL 32211 (RFA-75, 384)
Frederick H. or Irene A. Davis $ 35,000 (7/10/85) Barbara Davis Winn
935 Park Forest Lane
Jacksonville, FL 32211 (RFA-76, 385)
Frank or Sophie Varone $ 35,000 (6/3/85)
137 Birch Lane
Lake Helen, FL 32744 (RFA-77, 386)
John A. or Linda G. Seiler $205,000 (9/13/85) 2066 Foxwood Drive
Orange Park, FL 32073 (RFA-78, 387)
Harry W. or Betty M. Adkins $ 30,000 (7/29/85) 6043 W. Triumph Lane
Jacksonville, FL 32244 (RFA-79, 388)
Marie A. or William F. Byerley $ 30,000 (8/7/85) 9640 Brewster Street
Pensacola, FL 32514 (RFA-80, 389)
Edward S. Merritt or Jane or Sid M. Merritt 2943 Doctors Lake Drive | $25,000 | (8/16/85) |
Orange Park, FL 32073 | (RFA-81, 390) | |
Robert G. or Angela H. Walker P.O. Box 165 Ponte Vedre Beach, FL 32083 | $ 50,000 (RFA-82, 391) | (7/15/85) |
William L. Brown Jr. or Rodney L. Brown or Rhonda S. Addison 332 West 21st Street Jacksonville, FL 32206 | $ 25,000 (RFA-83, 392) | (4/29/85) |
J. Todd Hicks, Sr., 7918 Praver Drive West Jacksonville, FL 32217 | $ 25,000 (RFA-84, 393) | (9/23/85) |
Pauline Hicks 7918 Praver Driye West Jacksonville, FL 32217 | $ 25,000 (RFA-85, 394) | (9/24/85) |
Helen H. Herrick or Kay Fabry 617 W. 44th Street Apartment #160 Jacksonville, FL 32208 | $ 25,000 (RFA-86, 395) | (8/6/85) |
Rose M. Bransom 8219 Grampell Drive East Jacksonville, FL 32221 | $ 25,000 (RFA-87, 396) | (7/2/85) |
Edsel D. Moody or $ 39,384.24 (7/25/85) Nina M. White or Gina R. Chesser
Orangedale Route Box 176
Green Cove Springs, FL 32043 (RFA-88, 397)
Margaret H. Hudgins or $ 30,000 (7/30/85) William H. Hudgins
2601 West Holly Point Road
Orange Park, FL 32073 (RFA-89, 398)
John J. Nadigan $ 75,000 (8/26/85) 1205 James Street
Jacksonville, FL 32205 (RFA-90, 399)
Mary D. or Charles E. Turner $ 25,000 (3/20/85) 3659 University Boulevard, N.
Jacksonville, FL 32211 (RFA-91, 400)
Wesley M. or Dorothy H. Brown $ 25,000 (8/27/85) 8229 Percy Road
Jacksonville, FL 32218 (RFA-92, 401)
Eleonore M. Young $ 50,000 (6/13/85) 1332 Laura Street
Jacksonville, FL 32206 (RFA-93, 402)
Steve V. and Lucille B. Boggs $ 40,000 (6/21/85) 7287 Renault Drive
Jacksonville, FL 32244 (RFA-94, 403)
John J. or Toby Hicks $ 35,000 (6/21/85) c/o Rolling Greens
1900A Glen Eagle Road
Ocala, FL 32671 (RFA-95, 404)
John J. or Toby Hicks $ 25,000 (8/2/85) c/o Rolling Greens
1900A Glen Eagle Road
Ocala, FL 32671 (RFA-96, 405)
John J. or Toby Hicks $ 45,000 (8/2/85) c/o Rolling Greens
1900A Glen Eagle Road
Ocala, FL 32671 (RFA-97, 406)
In selling all securities, including the exempt GNMA and FHLMAC and Treasury Bond Receipt Certificates, the salesmen and branch managers sent the deposits to GIC headquarters in Tampa each day by Federal Express. The money was deposited to the GIC account. The orders for the securities were then processed through the GIC subsidiary in Olive Branch, Mississippi, Southern Bond Clearing. Delivery of the bonds was dependent on GIC and Southern Bond Clearing.
Mr. Rodney R. Weisman testified as an expert witness about certain matters pertaining to these two cases. According to Weisman there are several types of government bonds, all traded actively on the secondary market, and all are exempt from registration by federal law. Due to the nature of this industry, delivery of bonds can be fast or slow, depending upon several different factors and several different ways of doing business GIC elected to sell from "pools" that were offered by other traders. GIC would offer bonds for sale, collect the money from customers, and then send in all the money for the entire pool. When fully sold, the owner of the pool would then register the bonds in the individual investor's names, and deliver all to Southern Bond, for subsequent delivery to each customer. It is a lengthy process, which took an average of 5 months, according to Forbes magazine, in September, 1986.
Mr. Weisman worked directly with Danny in 1983, when Weisman was affiliated with the GIC companies as their compliance officer. Prior to then, Weisman had worked for the Department, in the enforcement section of the Securities Division. All bond trading and delivery was done through Southern Bond Clearing, in Mississippi. There is no government law or rule regarding when dealers must deliver bonds to their customers The average time is five
months. GIC's customer form says that GIC will deliver or refund the customer's money after 180 days, but even that is not required by law. Some transactions, if done in-house, can be done in two or three weeks; others can take much longer.
There is no simple explanation as to why a "failure to deliver" situation arises. There may be many reasons why the selling broker does not deliver his bonds to Chemical Bank, which is the only authorized registrar of these bonds in the country. All registrations of pools and individual bonds go through Chemical Bank. When failures occur, the broker/dealer expecting delivery is responsible to find alternative pools or bonds to replace the ones not delivered. There is no real penalty or adverse action taken against the seller who failed to deliver. This is a problem that is currently being investigated at the national level.
Mr. Weisman's job at GIC included visiting and inspecting the branch office, including Jacksonville, where Danny was manager. The branch offices were not responsible for preparation or retention of company accounts or records. Weisman himself assisted Danny (and other salesmen) when responding to inquiries about bond deliveries, which were all handled out of Southern Bond.
Inquiries about slow deliveries were common. Whenever a customer could not be satisfied by explanations, they gave his money back or swapped his investment for a different one, whichever the customer wanted. Mr. Weisman is unaware of any instance when a customer was not given a refund, if demanded, nor is he aware of any instance when a customer never ever got his bond. The national 5-month average was typical at GIC, because of the problems inherent in the cumbersome delivery process. The reasons for the "snags" within the delivery process are not the smaller dealer's or associated persons' fault.
Investors Frank Kamiski, Walter Berg, Charles Gorman, Robert Boschert, and Robert De'Laughter all testified that Tommy told them they would receive their certificates within four to six weeks from the date of purchase. Tommy denied making these specific representations. Because of the consistency of the investors' testimony, it is found that Tommy Holmes did make representations to these investors that the certificates would be delivered in approximately 4 to 6 weeks. These representations were made even though the standard delivery time was known to be 5 months and the GIC customer form made reference to 180 days.
Numerous investors has purchased GNMA or FHLMAC certificates from Tommy prior to June 1, 1985. In summer and early fall of 1985, Tommy became aware of an increase in investor complaints about late delivery or non-delivery of certificates. Despite this knowledge, he continued to sell these securities in September, 1985, and to represent at least to Berg and Gorman, that the certificates would be delivered in 4 to 6 weeks.
Danny Holmes sold certificates to Verl Mangus, Irene Davis and William Bird. Each had purchased securities from Danny in the past and had received their certificates within 4 to 6 weeks or in a reasonable time as represented by Danny. Danny denies representing that certificates would be delivered in "30 to
60 days at tops" or "within six weeks." Because of the consistency of the investors' testimony, it is found that Danny Holmes did make representations to these investors that the certificates would be delivered in approximately 4 to 6 weeks. These representations were made despite the standard delivery time of 5 months and the customer form reference to 180 days.
Numerous investors had purchased GNMA certificates from Danny in March and April 1985. Some of these investors did not receive delivery of the certificates. Despite the knowledge that some investors had not received certificates purchased in March and April 1985, and despite the fact that Danny was aware of complaints regarding slow bond delivery, Danny continued to sell certificates and to represent that certificates would be delivered in 4 to 6 weeks or 30 to 60 days, during September 1985, at least as to investors Wilson, Basarab, Davis, Bird, and Ratley.
In early October, 1985, Danny and Tommy filed N.A.S.D. forms U-4, attempting to transfer and report their affiliation with another securities firm in Jacksonville, Blackstock & Co. The U-4's clearly noted Tommy's recent affiliation with GIC Government Securities, on pages 1 and 2, and also on the attachment page, explaining his answer to question 22-I. Danny's U-4 reported his affiliations with both GIC Government Securities and GIC Investment Corp., as required, and also spelled out his understanding of what had happened the week before at GIC.
The Department did not approve or deny Danny's or Tommy's transfer to Blackstock. On October 25, 1985, Danny and Tommy filed an amendment to their U- 4's wherein they disclosed additional information that they had learned informally about the G. I. C. revocation.
Danny's and Tommy's complete U-4 files on the Central Registry Depository (CRD) at that time also included copies of the Department's summary order of revocation against GIC, without any mention or reference to their individual level of involvement therein, or anything else about either of them.
By December, Tommy's Blackstock application was still not approved or denied by the Department. In December 1985, Tommy went to Tallahassee to meet with Chris Anderson, but he cancelled their meeting at the last minute. Tommy then ended up talking with Don Saxon and Bill Reilly about his own GIC involvement for three hours Tommy gave Saxon and Reilly an affidavit and a copy of his customer list, and otherwise fully cooperated and explained his particular involvement in the GIC matters. Tommy testified that, notwithstanding all his explanations and willingness to assist the Department, Saxon and Reilly were unsympathetic to his position. Tommy said that Reilly told him that "as far as he was concerned, nobody that worked for GIC would ever get a license" in Florida. Saxon, Reilly's boss, was less conclusive, indicating that, since the GIC investigation was still going on, they would review the entire matter and decide later. At the hearing, Reilly denied telling Tommy that he'd never get a license again, because he worked for GIC, but admitted that the Department essentially told that to Blackstock's attorney. Reilly did admit that he told Tommy something like that, to the effect that it would be "very difficult" for Tommy to ever be licensed in Florida again, because he worked for GIC. Tommy reported these matters to Danny.
Accordingly, Danny and Tommy both left Blackstock without ever being approved or denied registration by the Department. On December 11, 1985, Blackstock filed two N.A.S.D. forms U-5, reporting their departure to the Department via the CRD.
Both U-5's erroneously report that Danny and Tommy were still under investigation by Florida for their involvement "while employed by GIC Securities," when in fact they should have said GIC Government Securities, to be accurate.
On January 7, 1986, Danny and Tommy both applied for registration in Tennessee, as security salesmen with Thomson McKinnon Securities, Inc. Both U-4 forms were typed by the same secretary in the Memphis firm's office; both forms properly reported their last employment with Blackstock & Company on page 2; both forms properly indicated "yes" responses to questions 22-E, on page 3; both forms properly included the attached explanatory statement fully disclosing their employment with "GIC Government Securities," as they had done in the Blackstock U-4s. However, both forms incorrectly reported their past employers as "GIC Investment Corporation" on page 2 in Item 19.
According to page 2 of Danny's Form U-4 signed on January 7, 1986, from October 1982, through October 1985, Danny was a Branch Manager with "GIC Investment Corporation" and from May 1983, through October 1985, he was an account executive with "GIC Investment Corporation."
According to page 2 of Tommy's Form U-4 signed on January 7, 1986, from August 1984, through October 1985, Tommy was an account executive with "GIC Investment Corporation."
Both Danny and Tommy admit that the information regarding "GIC Investment Corporation" on page 2 of the U-4 is incorrect and both assert that the forms were incorrectly typed by the secretary at Thomson McKinnon. Both signed the incorrect forms attesting to the truthfulness of the application. Neither U-4 correctly reported on page 2 the previous employment of Danny and Tommy at GIC Government Securities, Inc. Additionally, Tommy's Form U-4 failed to disclose that he had been a branch manager for GIC.
Based upon the information given to Tommy at the December 1985, meeting with the Department representatives, both Danny and Tommy knew that the Department would not approve the application if association with GIC Government Securities, Inc., was shown on the Form U-4.
The Department received both applications via the CRD, because Thomson McKinnon is registered to sell securities in Florida. The actual Form U-4 is not forwarded on the computer screen from the N.A.S.D. Instead, selected information, primarily that on page 2, is shown on the screen. The Department can request additional information on the CRD if necessary.
The portions of the January 7, 1986, Form U-4, filed by both Danny and Tommy, which correctly show employment or involvement with GIC Government Securities, Inc., is not included with the information routinely available on the CRD. It is the type of information only available on further request by the states using the CRD.
The Department uses a "skip-out" method, whereby "buzz words" or key names of problem companies that appear on the CRD screen in Tallahassee usually cause otherwise routine applications to be taken out of the system and closely scrutinized.
Because the CRD information did not show GIC Government Securities, Inc., Tommy's application was approved on February 20, 1986. It is this license which the Department seeks to revoke in this action.
Danny's application was skipped out for closer scrutiny and it was denied. It is this denial which is at issue in this action.
CONCLUSIONS OF LAW
The Division of Administrative Hearings has jurisdiction over the parties to and the subject matter of these proceedings. Section 120.57(1), Florida Statutes.
Section 517.161, Florida Statutes, provides in part:
Section 517.161 Revocation, denial or suspension of registration of dealer, investment adviser, or associated person.
Registration under s. 517.12 may be denied or any registration granted may be revoked or suspended by the department if the department determines that such applicant or registrant:
Has violated any provision of this chapter or any rule or order made under this chapter;
Has made a material false statement in the application for registration;
Has been guilty of a fraudulent act in connection with the sale of securities, has been or is engaged or is about to engage in making fictitious or pretended sales or purchases of any such securities, or has been or is engaged or is about to engage in any practice or sale of securities which is fraudulent or in violation of the law;
Has made a misrepresentation or false statement to, or concealed any essential or material fact from, any person in the sale of a security to such person;
Has failed to account to persons interested for all money and property received;
Has not delivered, after a reasonable time, to persons entitled thereto securities held or agreed to be delivered by the dealer, broker, or investment adviser, as and when paid for, and due to be delivered;
Section 517.07, Florida Statutes, provides in relevant part:
517.07 Registration of securities.--No securities except of a class exempt under any of the provisions of s. 517.051 or unless sold in any transaction exempt under any of the provisions of s. 517.061 shall be sold or offered for sale within this state unless such securities have been
registered. .
Section 517.171, Florida Statutes, provides in relevant part:
517.171 Burden of proof.--It shall not be necessary to negate any of the exemptions
provided in this chapter in any complaint, information, indictment or other proceedings brought under this chapter; and the burden of establishing the right to any exemption shall be upon the party claiming the benefit of such exemption.
Section 517.12, Florida Statutes (1985), provides in pertinent part:
No dealer, associated person, or issuer of securities shall sell or offer for sale any securities in or from offices in this state, or from offices in this state, or sell securities in this state to persons of this state from offices outside this state, by mail or otherwise, unless the person has been registered with the department pursuant to the provisions of this section.
* * *
(11) If the department finds that the applicant is of good repute and character and has complied with the provisions of this section and the rules made pursuant hereto, it shall register the applicant. .
The Holmes brothers argued that the only issue in this proceeding concerns their character and conduct and that pursuant to Section 517.12(11), Florida Statutes, the Department must license them if they are determined to be of good repute and character. This argument is rejected. Section 517.12(11) and Section 517.161(1) relate to the same general subject matter -- licensure of applicants. Accordingly, these two sections must be read in pari materia. Read in this manner, it is clear that good repute and character comprise but one consideration to be given by the Department in determining whether to revoke or grant a license.
The Holmes brothers also argued that some degree of willfulness, knowledge, or intent must be considered as necessary elements when applying Section 517.161, Section 517.12 and Section 517.07. This argument must also be rejected. The Supreme Court of Florida made it abundantly clear in State v. Houghtaling, 181 So.2d 636 (1965), that scienter or knowledge is not necessary to find a violation of Section 517.07 and did not apply to the provisions of Section 517.12. Accordingly, it is irrelevant whether Danny and Tommy knew that they were selling unregistered securities. Both are to be held strictly liable for any sales of unregistered securities.
As it relates to the revocation of Tommy's license, he is charged with the sale of unregistered securities, a violation of Section 517.07, which in turns serves as grounds for revocation under Section 517.161(1)(a). It is also charged that Tommy failed to account to certain investors for all money and property received in violation of Section 517.161(1)(e) and failed to delivery securities which were due to be delivered in violation of Section 517.161(1)(f). Tommy is also charged with having made a misrepresentation or false statement to or having concealed an essential or material fact from persons to whom he sold securities in violation of Section 517.161(1)(d).
Danny has been denied registration as an associated person based upon alleged violations of Section 517.07, and 517.161(1)(a), in that he sold
unregistered securities. Danny is also charged with failure to account for all money and property received and failure to deliver securities which were due to be delivered, in violation of Section 517.161(1)(e) and (f). Finally, Danny is charged with having made misrepresentations to or having concealed essential facts from persons to whom he sold securities in violation of Section 517.161(1)(d).
Both Danny and Tommy admitted having sold unregistered securities. Danny sold both GNMA/U.S. Treasury Trust Notes and Zero Coupon Treasury Instrument certificates. Tommy sold only the GNMA/U.S. Treasury Trust Notes.
It is further uncontested that these securities were not registered at the time they were sold. Further, there have been subsequent determinations that neither security was exempt from registration. Pursuant to the clear holding in State
v. Houghtaling, supra, the lack of knowledge or intent on the parts of both Danny and Tommy in selling these unregistered securities is irrelevant. Accordingly, it must be concluded that both Danny and Tommy violated Section
517.07 by selling unregistered securities. It further must be concluded that the violation of that section is grounds for revocation or denial pursuant to Section 517.161(1) (a).
In regard to the allegation that Danny and Tommy violated Section 517.161(1)(e) by failing to account for all money and property received, it must be concluded that the Department failed to adduce proof that either Danny or Tommy failed to account for the monies they received. Specifically, the evidence shows that both Danny and Tommy forwarded the funds received to GIC Government Securities, Inc., and provided the customer with a confirmation copy of the sale, showing the pool number and certificate amount, the issuer, the date and all other necessary information to account for receipt of those funds. The fact that GIC subsequently was unable to account for those funds is not a matter for which Danny or Tommy may be held to be in violation of the above- cited statutes.
Danny and Tommy are also charged with violation of Section 517.161(1)(f) for having not delivered, after a reasonable time, securities to the person entitled thereto. A clear reading of that statute, however, makes it very clear that the failure to deliver rests with the "dealer, broker, or investment advisor" and not with the associated person. In the present case, the failure to deliver was the responsibility of GIC and its subsidiary, Southern Bond. The securities are not, were not, and in the normal course of events would never have been, in the possession or control of the individual associated person. Accordingly, it must be concluded that neither Danny nor Tommy have violated Section 517.161(1)(f).
Both Danny and Tommy made misrepresentations and concealed essential or material facts in sales of securities to investors. It has been found that both Danny and Tommy made representations to people regarding the time period in which they could expect delivery of bonds. Those representations were incorrect and people relied on those representations in buying the securities. Both Danny and Tommy knew by the summer of 1985 that problems were being encountered with delivery of bonds. Despite this knowledge and despite the knowledge that many bonds were not being delivered within the time limits represented, Danny and Tommy continued to represent to potential investors that their securities would be delivered within approximately four to six weeks. In fact, some securities which had been purchased as early as February, March, and April 1985, were not delivered prior to the shutdown of GIC and the filing of bankruptcy proceedings. Accordingly, it must be concluded that both Danny and Tommy are guilty of violating Section 517.161(1) (c).
Finally, the Department is alleging that Tommy's license should be revoked and Danny's application should be denied based upon the filing of false statements in their applications for registration, in violation of Section 517.161(1)(b). The false statement must be material in order for it to be a violation of this section. Both Danny and Tommy knew from having filed their Form U-4 to be associated persons with Blackstock, that they would not receive licensure if their employment with GIC Government Securities, Inc., was shown on their application. Even though both made mention in other portions of their applications that they had been involved with GIC Government Securities, Inc., neither showed that employment on page 2, Item 19, of their Form U-4. Both also were knowledgeable about the handling of applications through the CRD system in that both had been applicants on more than one prior occasion. Finally, both signed their January 6, 1986, Form U-4 attesting to the truthfulness of all statements contained therein. It is uncontested that the Department would deny the application of any person previously associated with GIC Government Securities, Inc., and therefore the disclosure of that information must be considered to be material to the decision-making process of the Department. While both Danny and Tommy state than the incorrect information on page 2, Item 19, was inadvertent and was a typographical error on the part of a secretary, both signed the applications attesting to the truthfulness of the information. Accordingly, they must be held responsible for the contents of their applications. Having concluded that statements relating to employment by GIC Government Securities, Inc., were material to the Department's determination and having determined that statements made by Danny and Tommy Holmes in their applications were false and did not reflect employment with GIC Government Securities, Inc., it must also be concluded that both Danny and Tommy are guilty of violating Section 517.161 by making material false statements in their applications for registration.
Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED:
That the Department of Banking and Finance, Division of Securities, enter a Final Order denying the application for registration filed by Danny Joe Holmes, based upon his violations of Sections 517.07 and 517.161(1)(a), (b) and (d), Florida Statutes.
That the Department of Banking and Finance Division of Securities, enter a Final Order revoking the license of Thomas H. Holmes based upon his violations of Sections 517.07 and 517.161(1)(a), (b) and (d), Florida Statutes.
DONE and ENTERED this 17th day of November 1987, in Tallahassee, Leon County, Florida.
DIANE K. KIESLING
Hearing Officer
Division of Administrative Hearings The Oakland Building
2009 Apalachee Parkway
Tallahassee, Florida 32399-1550
(904) 488-9675
FILED with the Clerk of the Division of Administrative Hearings this
17th day of November, 1987.
APPENDIX TO THE RECOMMENDED ORDER IN CASE NOS. 86-1500 and 86-1501
The following constitutes my specific rulings pursuant to Section 120.59(2), Florida Statutes on the proposed findings of fact submitted by the parties in this case.
Specific Rulings on Proposed Findings of Fact Submitted by the Holmes Brothers
Each of the following proposed findings of fact are adopted in substance as modified in the Recommended Order. The number in parentheses is the Finding of Fact which so adopts the proposed finding of fact: 1-30(1-30); 31(33); 33(34); 35(35); 36(36); 38-43(37-42); 44(44); 45-51(57-63); 53(68); 54(70); 55(71 and 72); and 70-74(48-52).
Proposed findings of fact 32, 63, 66, 80 and 81 are rejected as irrelevant.
Proposed findings of fact 34, 37, 56 and 65 are rejected as unnecessary.
Proposed findings of fact 52, 57-62, 64, 67-69 and 75-79 are subordinate to the facts actually found in this Recommended Order.
Specific Rulings on Proposed Findings of Fact Submitted by the Department Re: Danny Joe Holmes
Each of the following proposed findings of fact are adopted in substance as modified in the Recommended Order. The number in parentheses is the Finding of Fact which so adopts the proposed finding of fact: 1(63); 2(57); 3(58); 4(63); 5(57); 6-9 (61-64); 10(3 and 42); 11(43); 12 (21 and 42); 13(32); 14(27); 15(46); 16(40); 17(39); 19-22(55); 26-28 (56); 29(57); 30(61); 32(67); and 34(66).
Proposed findings of fact 18, 25, and 35 are unnecessary.
Proposed findings of fact 23, 24, 31 and 33 are surbordinate to the facts actually found in this Recommended Order.
Specific Rulings on Proposed Findings of Fact Submitted by the Department Re: Thomas H. Holmes
Each of the following proposed findings of fact are adopted in substance as modified in the Recommended Order. The number in parentheses is the Finding of Fact which so adopts the proposed finding of fact: 1(57); 2 (58); 3(63); 4(57); 5(61); 6(62); 7(63); 8(65); 9 (71); 10(3, 42); 11(43); 13(31); 14(27); 15(45); 17-21(53); 26-28(54); 29(57); 30(61); 32(67); 34(66); 35(66) and 37(65).
Proposed findings of fact 16, 24, 25, 38 and 39 are rejected as unnecessary. 3. Proposed finding of fact 12 is rejected as being unsupported by the competent, substantial evidence. 4. Proposed findings of fact 22, 23, 31, 33, and 36 are subordinate to the facts actually found in this Recommended Order.
COPIES FURNISHED:
Charles E Scarlett, Esq. Suite 1302, The Capitol Tallahassee, FL 32309
Bruce A. Minnick, Esq. Post Office Box 11127 Tallahassee, FL 32301
Honorable Gerald Lewis Comptroller, State of Florida The Capitol
Tallahassee, FL 32399-0350
=================================================================
AGENCY FINAL ORDER
=================================================================
STATE OF FLORIDA DEPARTMENT OF BANKING AND FINANCE
DIVISION OF SECURITIES AND INVESTOR PROTECTION
DANNY JOE HOLMES, Administrative Proceeding No.: 575-5-4/86
vs.
Petitioner,
DOAH CASE NO. 86-1500
DEPARTMENT OF BANKING AND FINANCE, DIVISION OF SECURITIES,
Respondent.
/
DEPARTMENT OF BANKING AND Administrative Proceeding FINANCE, DIVISION OF No.: 576-5-4/86 SECURITIES,
vs.
Petitioner,
DOAH CASE NO.: 86-1501
THOMAS A. HOLMES,
Respondent.
/
FINDINGS OF FACT, CONCLUSIONS OF LAW, FINAL ORDER AND NOTICE OF RIGHTS
The State of Florida, DEPARTMENT OF BANKING AND FINANCE, DIVISION OF
SECURITIES AND INVESTOR PROTECTION, (hereinafter "Department"), authorized and directed to administer the provisions of Chapter 517, Florida Statutes, the Florida Securities and Investor Protection Act, after due consideration of the subject matter hereof, hereby denies the application of DANNY JOE HOLMES, (hereinafter "Danny Holmes"), to be registered as a associated person of Thomson McKinnon in the State of Florida and hereby revokes the registration of THOMAS
HOLMES, (hereinafter "Tommy Holmes") , as an associated person with Thomson McKinnon in the State of Florida. The grounds for issuance of this Final Order are as follows:
FINDINGS OF FACT
Both Danny Holmes and Tommy Holmes applied for registration as associated persons with Thomson McKinnon Securities, Inc., in the State of Florida on January 7, 1986, by filing an application with the State of Tennessee which was transmitted via the Central Registration Depository (CRD) system to the State of Florida.
The application of Tommy Holmes was approved by the Department on February 20, 1986. On April 1, 1986, the Department filed its Administrative Charges and Complaint with Notice of Rights in an attempt to revoke the registration of Tommy Holmes. An amendment was filed on April 2, 1987. Said amendment to the Administrative Charges and Complaint with Notice of Rights is incorporated herein and made a part hereto by reference although not attached hereto.
The Department by Order, denied the application of Danny Holmes on April 1, 1986. The Order was amended on April 2, 1987. Said amendment to the Order is incorporated herein and made a part hereto by reference although not attached hereto.
After petition by Attorneys, Don Rett, Bruce Minnick and Edward Dougherty, of Tallahassee, Florida, representing Tommy and Danny Holmes, an administrative hearing was held before Hearing Officer Diane K. Kiesling on July
16 and 17, 1987 in Jacksonville, Florida. Each party submitted proposed recommended orders in both proceedings in a timely fashion to the Hearing Officer for review. On November 17, 1987, Hearing Officer Kiesling issued a Recommended Order to the Department containing her recommended findings of fact and conclusions of law, recommending that the registration of Tommy Holmes be revoked and that the application of Danny Holmes be denied. Neither party filed objections to the Hearing Officer's Recommended Order.
The Department hereby adopts in this Order those findings of fact contained in the recommended order.
CONCLUSIONS OF LAW
In the Recommended Order, dated November 17, 1987, the Hearing Officer concluded as a matter of law that both Danny and Tommy Holmes had violated Section 517.07, Florida Statutes, by selling unregistered securities, which in turn constitutes grounds for denial or revocation under Section 517.161(1)(a), Florida Statutes; violated 517.161(1)(d) Florida Statutes, by concealing essential or material facts from investors in the sale of securities; and violated Section 517.161(1)(b), Florida Statutes, by filing an application with the Department which failed to include all material information.
Pursuant to her recommended conclusions of law that both Danny and Tommy Holmes had violated Section 517.161(1)(a)(b) and (d), Florida Statutes, the Hearing Officer recommended that the application of Danny Holmes be denied and the registration of Tommy Holmes be revoked.
The Department hereby adopts in this Order those conclusions of law contained in the Recommended Order as though the same were set forth herein.
FINAL ORDER
Based upon the foregoing Findings of Fact and Conclusions of Law, it is hereby ordered that the application of DANNY JOE HOLMES for registration as an associated person with Thomson McKinnon Securities, Inc., is hereby DENIED.
Based upon the foregoing Findings of Fact and Conclusions of Law, it is hereby ordered that the registration of THOMAS A. HOLMES; as an associated person of Thomson McKinnon Securities, Inc., is hereby REVOKED.
DONE and ORDERED this 4th day of January, 1988, in Tallahassee, Florida.
GERALD LEWIS, Comptroller and Head of the State of Florida, Department of Banking and Finance, Division of Securities and Investor Protection
COPIES FURNISHED:
Don Saxon, Director, Division of Securities
Tamara Cain, Assistant Director, Division of Securities Charles E. Scarlett, Assistant General Counsel
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the foregoing was served by U.S. Mail, Postage Prepaid, this 4th day of January, 1988, to Don Rett, Esquire, Bruce Minnick, Esquire and Edward Dougherty, Esquire, Mang, Rett and Collette, Post Office Box 11127, Tallahassee, Florida 32302 Attorneys for DANNY JOE HOLMES (Petitioner) and THOMAS A. HOLMES (Respondent), and to Hearing Officer Diane K. Kiesling, Division of Administrative Hearings, The Oakland Building, 2009 Apalachee Parkway, Tallahassee, Florida 32399-1550.
CHARLES E. SCARLETT
Assistant General Counsel Office of the Comptroller Suite 1302, The Capitol Tallahassee, Florida 32399
(904) 488-9896
NOTICE OF RIGHT TO JUDICIAL REVIEW
A party who is adversely affected by this Final Order is entitled to judicial review pursuant to Section 120.68, Florida Statutes. Review proceedings are governed by the Florida Rules of Appellate Procedure. Such proceedings are commenced by filing one (1) copy of a Notice of Appeal with the agency clerk of the Division of Administrative Hearings and a second copy, accompanied by filing fees prescribed by law, with the District Court of Appeal, First District, or with the District Court of Appeal in the appellate district where the party resides. The Notice of Appeal must be filed within thirty (30) days of rendition of the order to be reviewed.
| Issue Date | Proceedings |
|---|---|
| Nov. 17, 1987 | Recommended Order (hearing held , 2013). CASE CLOSED. |
| Issue Date | Document | Summary |
|---|---|---|
| Jan. 04, 1988 | Agency Final Order | |
| Nov. 17, 1987 | Recommended Order | Sales of unregistered securities and other charges of misrepresentation in sale of securities and making material false statements in applications. |
