STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

TODD T. CATLETTE, )

)

Petitioner, )

)

vs. ) CASE NO. 88-1161

)

OFFICE OF COMPTROLLER, )

)

Respondent. )

)

RECOMMENDED ORDER

The formal administrative hearing in this case was held before William C. Sherrill, Jr., Hearing Officer, in Tampa, Florida, on May 5, 198. The issue in this case is whether the Petitioner, Todd T. Catlette, should be granted full registration as a general securities representative. Appearing for the parties were:

For Petitioner: On his own behalf.

For Respondent: Reginald R. Garcia, Esquire

Assistant General Counsel Office of the Comptroller

Department of Banking and Finance The Capitol

Tallahassee, Florida 32399-0350

The Petitioner presented 3 exhibits which were admitted into evidence, and his own testimony. The Respondent presented 7 exhibits which were admitted into evidence, and the testimony of Don Saxon. There is a transcript. The Respondent submitted proposed findings of fact and conclusions of law. There is an appendix containing rulings upon proposed findings of fact.

FINDINGS OF FACT

1. The Petitioner, Todd T. Catlette, applied for full registration as a general securities representative. Mr. Catlette is not licensed to call or offer to sell securities in the State of Florida.

   
   

2. The Department of Banking and Finance denied the application by letter dated January 22, 1988. Ex. 3

   
   

3. The application was denied based upon the following facts:

   
   

   1. On May 3, 1988, the Petitioner pleaded nolo contendere to a third degree felony, filing a false and fraudulent insurance claim, in violation of Section 817.234(1)(a), Fla. Stat., and pleaded nolo contendere to a second degree felony, second degree grand theft, in violation of Section 812.014(2)(b), Fla. Stat. He was placed on probation for one year and ordered to make restitution to the insurance company in the amount of $2,148.00. Upon failing

      to make restitution, his probation was extended three years. He was discharged from probation on April 28, 1987.

      
      

   2. On August 3, 1979, the Petitioner pleaded nolo contendere to sale and delivery of cocaine and possession of cocaine with the intent to sell and deliver, both second degree felonies, in violation of Section 893.03(2)(a)4, Fla. Stat. He was sentenced to two years in state prison.

      
      

   3. On November 22, 1976, the Petitioner pleaded nolo contendere to possession of less then five grams of marijuana and possession of drug paraphernalia, a first degree misdemeanor; and was placed on three months probation.

      
      

4. After serving his sentences in state prison, the Petitioner obtained a college education.

   
   

5. The Petitioner testified that he was innocent of the possession of marijuana offense in 1976 and innocent of the fraudulent insurance claim and theft offenses in 1985. He presented a deposition of a detective involved in the fraudulent insurance claim case which was admitted as hearsay evidence to support his assertion of innocence. It appears from the deposition and the testimony of Mr. Cutlette that the detective relied solely upon the testimony of one witness as support for the charges of false insurance claim and theft.

   
   

6. The foregoing evidence is not sufficiently credible to prove by the preponderance of the evidence that the Petitioner was innocent of the fraudulent insurance claim and grand theft offense. When presented with an opportunity for a trail, the Petitioner pleaded nolo contendere.

   
   

   CONCLUSIONS OF LAW

   
   

7. The Division of Administrative Hearings has jurisdiction of the parties and the subject matter.

   
   

8. Section 517.161(1)(j), Fla. Stat. (1987) provides:

   
   

   (1) Registration under s. 517.12 may be denied . . . if the department determines that such applicant or registrant:

   (j) Has . . . entered a plea of guilty or nolo contendere to, a crime against the laws of this state . . . which involves moral turpitude or fraudulent or dishonest dealing.

   
   

9. Filing a false insurance claim and second degree grand theft are crimes of moral turpitude. State ex. rel. Tullidge v. Hollingsworth, 146 So. 680 (Fla. 1983); Bruner v. Board of Real Estate, 399 So. 2d 4 (Fla. 5th DCA 1982). Both are also crimes that involve fraudulent and dishonest dealing. These offenses alone are a sufficient basis for denial of registration.

   
   

10. Possession of cocaine with intent to sell is probably also be a crime of moral turpitude and an additional independent basis for denial of registration. See The Florida Bar v. Rosen, 495 So. 2d 180 (Fla. 1986).

    
    

11. It is unnecessary on this record to determine whether the offense of possession of marijuana in 1976 is a crime of moral turpitude. Compare Pearl v.

Florida Board of Real Estate, 394 So. 2d 189 (Fla. 3d DCA 1981); McClung v. Criminal Justice Standards and Training Commission, 458 So. 2d 887 (Fla. 5th DCA 1984); Adams v. Professional Practices Council, 406 So. 2d 1170 (Fla. 1st DCA 1981).

RECOMMENDATION

For these reasons, it is recommended that the Respondent issue its final order denying the application of Todd T. Catlette for full registration as a general securities representative.

DONE AND ENTERED this 24th day of June, 1988.

WILLIAM C. SHERRILL, JR.

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 24th day of June, 1988.

APPENDIX TO RECOMMENDED ORDER, CASE NO. 88-1161

The following are rulings upon proposed findings of fact which have either been rejected or which have been adopted by reference. The numbers used are the numbers used by parties.

Findings of Fact proposed by the Petitioner:

None

Findings of fact proposed by the Respondent:

1. These are matters of law, and thus not appropriate as proposed findings of fact.

3.-4., 10. These proposed findings of fact are subordinate to findings of fact that have been adopted. They are true, however, and are adopted by reference.

COPIES FURNISHED:

Todd T. Catlette

3450 Palencia Drive, No. 1317

Tampa, Florida 22618

Reginald R. Garcia, Esquire Assistant General Counsel Office of the Comptroller

Department of Banking and Finance The Capitol

Tallahassee, Florida 32388-0350

Honorable Gerald Lewis Comptroller, State of Florida The Capitol

Tallahassee, Florida 32399-0350

Charles L. Stutts, Esquire General Counsel

Office of the Comptroller Department of Banking and Finance The Capitol

Tallahassee, Florida 32399-0350

Docket for Case No: 88-001161

Orders for Case No: 88-001161