STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

STATE OF FLORIDA, DEPARTMENT OF ) BANKING AND FINANCE, DIVISION ) OF SECURITIES, )

)

Petitioner, )

)

vs. ) CASE NO. 89-3886

) HABERSHEIR SECURITIES, INC.; )

RAYMOND HAYDEN as Officer; ) SHARIEFF MUSTAKEEM as Officer; ) and FRANK J. HURT, III, )

)

Respondents. )

)

RECOMMENDED ORDER

Pursuant to notice, the Division of Administrative Hearings, by its duly designated Hearing Officer, Claude B. Arrington, held a formal hearing in the above-styled case on January 22, 1990, in Tallahassee, Florida.

APPEARANCES

For Petitioner: Randall L. Rubih, Esquire

Assistant General Counsel Office of the Comptroller

401 N.W. 2nd Avenue, Suite 708N Miami, Florida 33128

For Respondent, Frank J. Hurt, III, pro se

Frank J. Hurt, III: 6666 Powers Ferry Road, Suite 202

Atlanta, Georgia 30339

For Respondents, Habersheir Securities, Inc.; Raymond Hayden,

and Sharieff Mustakeem: No Appearance

STATEMENT OF THE ISSUES

Whether Respondents committed the offenses set forth in the Administrative Complaint and, if they did, the penalties, if any, which should be imposed.

PRELIMINARY STATEMENT

This proceeding began on May 17, 1989, when Petitioner filed an "Order to Cease and Desist, Administrative Charges and Complaint with Notice of Rights" against the following: Habersheir Securities, Inc.; Raymond Hayden as Officer; Frank J. Hurt, III; Sharieff Mustakeem as officer; Preston Spears as Officer;

Rahim Davoudpour as Director; Dennis Befumo; and Edward Rogers. Habersheir Securities, Inc., Raymond Hayden, and Sharieff Mustakeem filed a joint response to the Order and requested a formal hearing as to the charges contained therein. Preston Spears and Frank J. Hurt, III, filed separate responses to the Order and also demanded a formal hearing as to the charges contained therein No demand for formal hearing was filed by or on behalf of Rahim Davoudpour, Dennis Befumo, and Edward Rogers.

A Voluntary Dismissal was taken by Petitioner against Preston Spears.- Although he did not request a formal hearing, a Voluntary Dismissal was also taken by Petitioner against Rahim Davoudpour.

The only administrative charges contested at the formal hearing in this matter were those brought against Frank J. Hurt, III, Habersheir Securities, Inc., Raymond Hayden, and Sharieff Mustakeem.

Habersheir is a corporation with its principal office in Atlanta, Georgia. Hayden and Mustakeem are officers of Habersheir who operate out of the Atlanta office. Hurt was a salesman employed by Habersheir in its Atlanta office.

The charges brought against these Respondents centered on the operation of a branch office of Habersheir in Fort Lauderdale, Florida. The administrative complaint alleges that the Fort Lauderdale branch office transacted business in Florida prior to Habersheir's branch office being registered in Florida with Petitioner, that the branch office failed to keep adequate business records, that the branch office transacted business during a period of time that Habersheir had been suspended by the National Association of Securities Dealers, and that Habersheir and the responsible officers failed to supervise the branch office. The gravamen of the complaint against Hurt is that he failed to supervise the branch office.

At the formal hearing, Petitioner presented the testimony of two witnesses and introduced 5 exhibits which were accepted into evidence. Respondent, Frank

1. Hurt, III, testified on his own behalf and introduced 4 exhibits which were accepted into evidence. By Order Imposing Sanctions entered November 30, 1989, a default pursuant to Rule 1.380(b)(2)(C), Florida Rules of Civil Procedure, was entered against Habersheir Securities, Inc.-, Raymond Hayden, and Sharieff Mustakeem. No appearance was made by Habersheir, Hayden, or Mustakeem at the formal hearing, although Notice of Hearing was served upon them.

   
   

   No transcript of the proceedings has been filed. Specific rulings on the proposed findings of :act submitted by Petitioner are in the appendix to this Recommended Order. No post-hearing submittal was filed by any of the Respondents.

   
   

   FINDINGS OF FACT

   
   

   1. On May 15, 1989, Petitioner filed an Order to Cease and Desist, Administrative Charges and Complaint with Notice of Rights against several parties including the following Respondents to the instant proceeding: Habersheir Securities, Inc. (Habersheir); Raymond Hayden (Hayden); Sharieff Mustakeem (Mustakeem); and Frank J. Hurt, III (Hurt).

      
      

   2. By Order Imposing Sanctions entered November 30, 1989, a default pursuant to Rule 1.380(b)(2)(C), Florida Rules of Civil Procedure, was entered against Habersheir, Hayden, and Mustakeem. No appearance was made by Habersheir, Hayden, or Mustakeem at the formal hearing, although Notice of Hearing was served upon them.

   3. Habersheir is a corporation whose main office in Atlanta, Georgia, has been registered with Petitioner as a broker/dealer since June 22, 1987.

      
      

   4. The Florida branch office of Haersheir was located at 100 West Cypress Creek Road, Suite 810, Fort Lauderdale, Florida 33309. The branch office was registered with Petitioner on September 29, 1988.

      
      

   5. At all times pertinent hereto, Mustakeem was the president of Habersheir and the majority owner of its stock, while Hayden was a vice- president of Habersheir. At the time of the final hearing, neither Mustakeem nor Hayden was registered with Petitioner.

      
      

   6. At all times pertinent hereto, Hurt was qualified for registration with Petitioner as a principal. Hurt's registration with Petitioner had not, prior to the filing of this matter, been disciplined. The application submitted by Habersheir to Petitioner on September 7, 1988, listed Hurt as the "Designated Manager in Charge Registered as Principal in Florida". Form BD is a form required by Petitioner in the application process. On Schedule E of the Form BD filed by Habersheir on November 14, 1988, Hurt is listed as the "Supervisor" of the Florida Branch. Hurt's name and his registration with Petitioner as a principal were used in connection with the registration of the Florida Habersheir branch to gain a favorable review of the application by Petitioner. Such use was without compensation to Hurt, but was with his knowledge and permission.

      
      

   7. Hurt was a salesman who had been employed by Habersheir for a short period of time when the application for the Florida branch office was filed. He was not an officer of Habersheir and had no managerial authority. At no time did Hurt intend to serve the Florida branch office of Habersheir in any capacity and at no time did he have any authority to supervise or otherwise manage that office.

      
      

   8. Representatives of Habersheir transacted business in Florida between September 7, 1988 and September 28, 1988, prior to Habersheir's branch office being registered in Florida with Petitioner on September 29, 1988.

      
      

   9. Associated persons working for Habersheir sold securities in or from the branch office in Fort Lauderdale, Florida prior to the associated persons being registered with the Petitioner.

      
      

   10. Habersheir's branch office in Fort Lauderdale, Florida, failed to maintain records and make available for Petitioner's inspection its cash receipt and disbursement blotter, securities received and delivery blotter, order tickets, and customer confirmations on all transactions as required by Section 517.121, Florida Statutes, and by Rule 3E-600.014(4), Florida Administrative Code. Habersheir also failed to maintain copies of its associated persons files as required by Rule 3E- 600.0014 (5)(a), Florida Administrative Code.

       
       

   11. At all times pertinent to this proceeding, Habersheir was a member of the National Association of Securities Dealers (NASD). Between November 7, 1988, and November 30, 1988, Habersheir's authority to transact business was suspended by NASD. Habersheir failed to notify its Fort Lauderdale, Florida, branch office of its suspension by NASD. Consequently, business was transacted by that branch office while Haersheir's authority to transact business was suspended by NASD.

       CONCLUSIONS OF LAW

       
       

   12. The Division of Administrative Hearings has jurisdiction over the subject matter of and the parties to this proceeding. Section 120.57(1), Florida Statutes.

       
       

   13. Section 517.12, Florida Statutes, provides, in pertinent part, that:

       
       

       * * *

       (5) No dealer or investment adviser shall conduct business from a branch office within this state unless the branch office is registered with the department pursuant to the provisions of this section.

       
       

   14. Petitioner established that Habersheir violated the provisions of Section 517.12(5), Florida Statutes, by conducting business from its Fort Lauderdale branch office before that office was registered with the Petitioner.

       
       

   15. Section 517.121(1), Florida Statutes, provides, in pertinent part, as follows:

       
       

       1. A dealer, investment adviser, branch office, or associated person registered under S. 517.12 shall maintain such books and records as the department may prescribe by rule.

          
          

   16. Rule 3E-600.014, Florida Administrative Code, provides for the type records and books that registrants are required to keep. Petitioner has established that Habersheir did not keep and maintain the books and records required by this rule and, consequently, violated the provisions of Section 517.121(1), Florida Statutes.

       
       

   17. Section 517.161, Florida Statutes, provides, in pertinent part, as follows:

       
       

       1. Registration under S. 517.12 may be denied or any registration granted

          may be revoked, restricted, or suspended by the department if the department determines that such applicant or registrant:

          1. Has violated any provision of this chapter or any rule or order made under this chapter;

             * * *

             (h) Has demonstrated his unworthiness to transact the business of dealer, investment adviser, or associated person;

   18. Rule 3E-600.011, Florida Administrative Code provides, in pertinent part, as follows;

       
       

       Prima Facie evidence of unworthiness to transact the business of a dealer, investment adviser, principal, or agent in the State of Florida shall include, but shall not be limited to:

       * * *

       1. Any ... suspension ... by any national securities association ...

          
          

   19. Petitioner has established that Habersheir is unworthy to transact business in the State of Florida within the meaning Section 517.161, Florida Statutes, by virtue of its transaction of business in Florida while suspended by the National Association of Securities Dealers and by its multiple violations of Florida law.

       
       

   20. Habersheir misrepresented to Petitioner the role Hurt was to play in the management of the Florida branch. However, Petitioner' did not allege that Habersheir or the individual Respondents made false statements during the application process in violation of Section 517.301(1)(c), Florida Statutes.

       
       

   21. Petitioner has failed to establish that Hurt had any authority for the operation of the Florida branch or that he is personally liable for, or subject to being disciplined for, the violations of Chapter 517, Florida Statutes, which resulted from Habersheir's operation of its Florida branch.

       
       

   22. While Petitioner did establish that Sharieff and Hayden exercised partial control of Habersheir, Petitioner failed to establish that Sharieff and Hayden committed acts as individuals which rendered them personally liable for, or subject to being disciplined for, the violations of Chapter 517, Florida Statutes, which resulted from Habersheir's operation of its Florida branch.

       
       

   23. Section 517.221(3), Florida Statutes, provides as follows:

       
       

       1. The department may impose and collect an administrative fine against any person found to have violated any provision of this chapter, any rule or order promulgated by the department, or any written agreement entered into with the department in an amount not to exceed $5,000 for each such violation.

       
       

   24. Petitioner has adopted no disciplinary guidelines that are pertinent to these proceedings.

RECOMMENDATION

Based on the foregoing findings of facts and conclusions of law, it is RECOMMENDED that the State of Florida, Department of Banking and Finance,

Division of Securities, enter a final order which:

1. Revokes all registrations presently held by Habersheir Securities, Inc., and which assesses an administrative fine against Habersheir Securities, Inc. in the amount of $10,000.00 for its violations of Sections 517.12(5), and 517.121(1), Florida Statutes; and

   
   

2. Which dismisses the administrative complaint against Sharieff Mustakeem, Raymond Hayden, and Frank J. Hurt, III. DONE AND ENTERED this 27th day of February, 1990, in Tallahassee, Leon County, Florida.

CLAUDE B. ARRINGTON

Hearing Officer

Division of Administrative Hearings The DeSoto Building

1230 Apalachee Parkway

Tallahassee, Florida 32399-1550

(904) 488-9675

Filed with the Clerk of the Division of Administrative Hearings this 22nd day of February, 1990.

APPENDIX TO THE RECOMMENDED ORDER IN CASE 89-3886

The following rulings are made on the findings of fact submitted by Petitioner:

1. The proposed findings of fact In paragraphs 1-10 are adopted in material part by the Recommended Order.

   
   

2. The proposed findings of fact In paragraph 11 are adopted in part by paragraph 1 of the Recommended Order, and are rejected in part as being unnecessary to the findings made.

COPIES FURNISHED:

Randall L. Rubin, Esquire Assistant General Counsel Office of Comptroller

401 N.W. 2nd Avenue Suite N-708

Miami, Florida 33128

Oliver Lee, Esquire Troutman, Sanders, Lockerman & Ashmore

Candler Building, Suite 1400

127 Peachtree Street, N.E. Atlanta, Georgia 30303-1810

Frank J. Hurt, III 6666 Powers Ferry Road Suite 202

Atlanta, Georgia 30339

Preston Spears

91 Farmington Drive Woodstock, Georgia 30188

Rahim Davoudpour 1972 Benthill Drive

Marietta, Georgia 33062

Honorable Gerald Lewis Comptroller, State of Florida Department of Banking and Finance The Capitol

Tallahassee, Florida 32399-0350

William G. Reeves General Counsel

Department of Banking and Finance The Capitol

Plaza Level, Rm. 1302 Tallahassee, Florida 32399-0350

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

AGENCY FINAL ORDER

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

STATE OF FLORIDA DEPARTMENT OF BANKING AND FINANCE

DIVISION OF SECURITIES AND INVESTOR PROTECTION

IN RE: Administrative Proceedings No.: 1067-5-4/89

HABERSHEIR SECURITIES, INC.; DOAH Case No.: 89-3886

RAYMOND HAYDEN as Officer; FRANK J. HURT, III;

SHARIEFF MUSTAKEEM as Officer PRESTON SPEARS as Officer RAHIM DAVOUDPOUR as Officer DENNIS BEFUMO and EDWARD ROGERS,

Respondent.

/

FINAL ORDER REVOKING REGISTRATION AND FINING HABERSHEIR SECURITIES, INC.; ORDERING HAYDEN AND MUSTAKEEM TO CEASE AND DESIST AND

DISMISSING COMPLAINT AGAINST HURT, SPEARS AND DAVOUDPOUR

The Comptroller of the State of Florida, GERALD LEWIS, as administrative head of the Florida Department of Banking and Finance (hereinafter "the Department"), being authorized and directed to administer the provisions of Chapter 517, Florida Statutes, the Florida Securities and Investor Protection

Act, and the rules duly promulgated thereunder, after due consideration and review of the complete record of these proceedings hereby adopts in part, and rejects and modifies in part, the recommended order of the Hearing Officer entered in this cause and in connection therewith, dismisses the Department's Administrative Complaint against Frank J. Hurt, III, (hereinafter Hurt), hereby revokes the registration of HABERSHEIR SECURITIES, INC., (hereinafter "Habersheir"), as a broker/dealer and fines same $10,000.00, and pursuant to Section 517.161, Florida Statutes, RAYMOND HAYDEN, ("HAYDEN"), and SHARIEFF MUSTAKEEM, ("MUSTAKEEM"), are hereby ordered to cease and desist as more particularly set forth hereinafter. Furthermore, the earlier voluntary dismissals of the administrative complaints against Respondents Preston Spears (Spears) and Rahim Davoudpour (Davoudpour) are herein affirmed. The cases against Respondents Dennis Befumo (Befumo) and Edward Rogers (Rogers) were settled by prior stipulation and Final Order. The grounds for issuance of this Final Order are:

FINDINGS OF FACT

1. The Department has jurisdiction over the Respondents and over this proceeding.

   
   

2. On or about May 17, 1989, the Department entered an Order to Cease and Desist, Administrative Charges and Complaint and Notice of Rights against the above named Respondents which pleading, although not attached hereto, is incorporated herein by reference. The Administrative Complaint charged Respondents with numerous violations of Chapter 517, Florida Statutes and the rules duly promulgated by the Department. Upon Petition for formal hearing filed by the Respondents, this cause was transferred to the Division of Administrative Hearings for the assignment of a hearing officer, to which Case #89-3886 was assigned.

   
   

3. On or about February 22, 1990, Claude B. Arrington, the DOAH Hearing Officer, issued a Recommended Order following a hearing held January 22, 1990, in Tallahassee, Florida, a copy of which recommended order is attached hereto and incorporated herein by reference subject to the following modifications. The Respondents did not file exceptions to the Recommended Order.

   
   

4. The findings of fact 1 through 11, inclusive, in the Hearing Officer's Recommended Order are adopted by the Department and are incorporated herein. The Department, however, partially rejects and herein modifies the conclusions of law contained in the Recommended Order. Accordingly, while accepting the Hearing Officer's recommendations as to Respondents' Hurt and Habersheir Securities, Inc., the Department rejects the Hearing Officer's recommendation that the order to cease and desist and administrative complaint against Respondents Hayden and Mustakeem be dismissed.

   
   

5. The Department has undertaken a careful review of the complete record in these proceedings, including the entire transcript of the final hearing, Petitioner's exhibits #1,2,3,4,5, and Respondent Hurts exhibits 1 and 2 introduced during the hearing, and finds that a Cease and Desist Order should be entered against the Respondents Mustakeem and Hayden, for the following reasons:

   
   

   1. Sharieff Mustakeem, at all times material hereto, was a "control" person of Habersheir Securities, Inc., as listed on Form BD. (See Petitioner's Exhibit #2). Furthermore, Mustakeem, at all times material hereto, was president of Habersheir. (See Petitioner's Exhibit #2). In such capacity,

      Mustakeem was responsible for the actions and activities of Habershier, as delineated in the finding of fact number 5 of the recommended order.

      
      

   2. Raymond Hayden at all times material hereto, was a "control" person of Habersheir Securities, Inc., as listed on Form BD. (See Petitioner's Exhibit #2). Furthermore, Hayden at all times material hereto, was vice president of Habersheir. In such capacity, Hayden was responsible for the actions and activities of Habersheir, as delineated in finding of fact number 5 of the recommended order.

      
      

   3. Both Mustakeem and Hayden had defaults entered against them by the Hearing Officer (See Hearing Officer Order dated November 30, 1989, and Recommended Order) and failed to appear or otherwise defend at the final hearing.

   
   

   CONCLUSIONS OF LAW

   
   

6. The Departments adopts the Hearing Officer's conclusions of law numbered 1, 2,3,4,5,6,7,8,9, and 12. The remaining conclusions of law contained in the Hearing Officer's Recommended Order are herein rejected or modified.

   
   

7. The Department rejects the Hearing Officer's conclusions of law as set forth in paragraphs 10 and 11 of the Recommended Order, which appear to require the Department to show individual acts or knowledge by Mustakeem and Hayden (as well as Hurt) before rendering them liable for, or subject to disciplinary action for, violations of Chapter 517, Florida Statutes, resulting from Habersheir's operation of its Florida branch office. As "control" persons and corporate officers of Habershier, both Mustakeem and Hayden are deemed by law to be responsible for the violations of the corporation's branch office in Florida. The Department presented competent substantial evidence that Respondents Mustakeem and Hayden were president and vice president, respectively, of Habersheir, as well as "control persons" thereof.

   
   

8. The Supreme Court of Florida has addressed the issue as to whether a showing of knowledge or intent is a prerequisite for finding a violation of Section 517.12, Florida Statutes. In State v. Houghtaling, 181 So.2d 636 (Fla. 1966), the Court, relying upon legislative history, cited a 1935 amendment of Section 71, Ch. 14899, Laws of Florida, 1931, eliminating the "good faith" provision regarding violations of the Florida Blue Sky Laws, for the proposition that the legislature had not intended "scienter" to be necessary in establishing a violation of Section 517.12, Florida Statutes. Florida and federal courts have also held "scienter" to be unnecessary in prosecutions relating to Section 517.301, Florida Statutes. Merrill Lynch, Pierce, Fenner and Smith v. Byrne, 320 So.2d 436 (Fla. 3d DCA 1975), cert. discharged, 341 So.2d 498 (Fla. 1977); Silverburg v. Paine, Webber, Jackson and Curtis, Inc., 710 F.2d 678, 690 (11th Cir. 1983); Messer v. E.F. Hutton & Co., 833 F.2d 909, 919 (11th Cir. 1987); Alna Capital Associates v. Wagner, 758 F.2d. 562, 566 (11th Cir. 1985). Furthermore, principals, such as Respondents Mustakeem and Hayden are charged by law with knowledge of corporate conduct and affairs and cannot argue that they "have nothing to do with the management of the business." Whigham v. Muehl, 500 So.2d 1374, 1378 (Fla. 1st DCA 1987); Manatee County Growers' Association v. Florida Power & Light Company, 152 So.181, 185 (1934). Consequently, evidence as to Respondents' knowledge or intent, concerning said violations is irrelevant and immaterial to this proceeding.

9. The Department therefore rejects the Hearing Officer's conclusion of law number 11 to the extent it relieves Respondents Mustakeem and Hayden from responsibility for the activities of the branch office of Habersheir Securities, Inc., resulting in violations of Chapter 517, Florida Statutes, and the rules promulgated thereunder.

   
   

10. As to Respondents Mustakeem and Hayden, in his Recommended Order, the Hearing Officer correctly notes that he entered an order imposing sanctions - that of a default - on November 30, 1989, against those named Respondents. In addition, both Respondents Mustakeem and Hayden did not appear at the final hearing in their defense or rebut any of the Department's case in chief. The Department presented competent substantial evidence, as evidenced in the Recommended Order (see Findings of Fact paragraphs numbered 8, 9, 10 and 11 thereof) showing that Respondents' branch office committed several serious violations of Chapter 517, Florida Statutes, and the rules promulgated thereunder. For these additional reasons, the Department rejects the Hearing Officer's recommendation to dismiss the Administrative Complaints against those individuals. Generally, a judgment by default entitles the moving party to the relief for which a proper predicate has been laid in the Complaint. Williams v. Williams, 227 So.2d 746 (Fla. 2d DCA 1969). Sentry Indem. Co. v. Hendrick Enterprises, 371 So.2d 1105 (Fla. 4th DCA 1979). In this case, the relief would be entry of a cease and desist order against those individuals.

    
    

11. The Department therefore concludes, as a matter of law, that the Hearing Officer erred in recommending dismissal of the Administrative Complaints against Mustakeem and Hayden, in light of 1) the prior defaults entered against those individuals 2) their failure to appear and mitigate the charges against them at the final hearing, as well as 3) the other modifications to the Hearing Officer's recommended order concerning corporate and control person liability as delineated herein.

    
    

12. Similarly, the Department, while accepting the Hearing Officer's recommendation dismissing the Department's Complaint as to Respondent Hurt, rejects the Hearing Officers' conclusion of law number 10 in his recommended order to the extent that he found that a designated Series 24 branch manager, such as Hurt, should be relieved of responsibility for the operations of the branch office which that manager has agreed to be responsible for by the execution, with that manager's (Hurt's) knowledge and consent, of the Form BD naming him as the "Designated manager in charge registered as Principal in Florida." (See finding of fact #6 of the Recommended Order). The term "Principal" is defined by Section 517.021(18) as "an executive officer of a corporation or any other person with similar supervisory functions with respect to any organization. . . ." (emphasis supplied). The designation of such an individual on the Form BD serves an important and necessary regulatory purpose - to place designated supervisory responsibility on a named individual, (such as Hurt) along with the general corporate responsibilities of officers and directors. (See transcript, P. 16, lines 19-20). See also Rule 3E- 600.004(3)(a), F.A.C.

    
    

13. Though the Department rejects the Hearing Officer's conclusions of law as they apply to Respondent Hurt, the Department nevertheless finds that (1) Hurt sufficiently mitigated to the Department's satisfaction the Department's charges at the final hearing and (2) Hurt had no prior disciplinary history before this action. The Department therefore accepts the Hearing Officer's recommendation that the Department's Administrative Complaint be dismissed against Hurt.

14. Voluntary dismissals were previously entered by stipulation in this cause against Respondents Spears and Davoudpour, which are hereby affirmed herein.

FINAL ORDER

Based upon the foregoing findings of fact and conclusions of law, as modified or rejected, in accordance with the Hearing Officer's Recommended Order, it is ordered that:

1. The license of Habersheir Securities, Inc., is hereby REVOKED and Habersheir is fined ten thousand dollars ($10,000), payable by cashier's check within 30 days after rendition of this order to the Department's Antifraud Trust Fund, c/o The Division of Securities, The Capitol, Tallahassee, Florida 32399- 0350.

   
   

2. Respondents Hayden and Mustakeem shall CEASE and DESIST from the activities charged in the Cease and Desist Order, Administrative Charges and Complaint filed May 17, 1989 and from further violating Chapter 517, Florida Statutes and the rules duly promulgated thereunder.

   
   

3. The Department's Complaint against Respondents Hurt, Spears, and Davoudpour is hereby dismissed.

DONE and ORDERED this 11th day of May, 1990, in Tallahassee, Florida.

GERALD LEWIS, Comptroller and Head of the Department of Banking and Finance, Division of Securities

COPIES FURNISHED:

Don B. Saxon, Director Division of Securities and

Investor Protection

Randall L. Rubin Assistant General Counsel Miami, Florida

NOTICE OF RIGHTS

The Respondents are advised that within thirty (30) days of the date of this Final Order Respondents may seek judicial review of the same by filing a Notice of Appeal with the Clerk of the Department of Banking and Finance, Room 1302, The Capitol, Tallahassee, Florida 32399-0350 and by filing a second copy of such Notice of Appeal together with the proper filing fee with the Clerk of the District Court of Appeal, First District, Martin Luther King Jr. Boulevard at Pensacola and West Jefferson Streets, Tallahassee, Florida 32301 or with the District Court of Appeal wherein Respondents reside.

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the foregoing Final Order was furnished by U.S. Mail to the Respondents listed on the Attachment "A" this 11th day of May 1990.

Deputy General Counsel

Department of Banking and Finance Legal Section, The Capitol Tallahassee, FL 32399-0350

(904) 488-9896

ATTACHMENT "A"

Habersheir Securities, Inc. One Securities Centre

3490 Piedmont Rd., Ste. 1206

Atlanta, GA 30305

Habersheir Securities, Inc.

100 West Cypress Creek Rd., Ste. 855 Ft. Lauderdale, FL 33309

Mustakeem Sharrieff 1004 Old Banbridge Rd. Tallahassee, FL 32303

Raymond R. Khalif (A/K/A Raymond R. Hayden) 2626 Oakshadow Lane

Atlanta, GA Preston Aubrey Spears

92 Farmington Dr.

Woodstock, GA 30188

Rahim Adbul Davoudpour 1972 Benthill Drive

Marietta, GA 30062

Frank James Hurt 111

2160 Northside Drive, N.E. Atlanta, GA 30305

Sharrieff Mustakeem 1250 Lorenzo Drive

Atlanta, GA 30310

Oliver Lee, Esq.

Troutman, Sanders, Lockerman & Ashmore Candler Building, Ste. 1400

127 Peachtree St., N.E. Atlanta, GA 30303-1810

Claude Arrington, Hearing Officer The DeSoto Building

1230 Apalachee Parkway

Tallahassee, Florida 32399-1550

Docket for Case No: 89-003886

Orders for Case No: 89-003886