STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

DIVISION OF SECURITIES, )

DEPARTMENT OF BANKING AND )

FINANCE, )

)

Petitioner, )

)

vs. ) CASE NO. 77-1558

)

ROY RAY SEATON, )

)

Respondent. )

)

RECOMMENDED ORDER

Pursuant to notice, an administrative hearing was held before Michael R.N. McDonnell, Hearing Officer for the Division of Administrative Hearings at 9:00 a.m., on January 24, 1978, in Room 104, Collins Building, Corner of Gaines and Adams Streets, Tallahassee, Florida.

APPEARANCES

For Petitioner: S. Craig Kiser, Esquire

Respondent: Did not appear at the appointed time and place.

The Division of Securities, Department of Banking and Finance (hereafter the Division), has brought administrative charges against Respondent, Roy Ray Seaton (hereafter Seaton) an applicant for registration as a salesman of securities under the provisions of Section 517.12, Florida Statutes. The Division seeks to establish that, pursuant to the provisions of Section 517.16(1)(h), Seaton has demonstrated his unworthiness to transact the business of being security salesman and that his application for registration should be refused.

Notice of Hearing was furnished to Seaton at the address he last provided the Division, however, Mr. Seaton did not appear to present any evidence in his behalf or to cross examine the witnesses against him.

FINDINGS OF FACT

1. Seaton made application to the Division under the provisions of Section 517.12, Florida Statutes, for registration as a salesman of securities. Subsequently, the Division issued its intent to refuse or deny license or registration along with administrative charges and complaint alleging that Seaton was unworthy to transact the business of a salesman.

   
   

2. On February 22, 1977, the Securities Commissioner of the State of South Carolina issued his order to cease and desist directed to Seaton on the dual grounds that Seaton engaged in conduct inconsistent with just and equitable

   principles of trade in that he offered for sale limited partnerships constituting securities while failing to register them as required and that Seaton failed to register as a broker, dealer or agent in South Carolina.

   
   

3. On June 7, 1977, the District Business Conduct Committee for District number 4 of the National Association of Securities Dealers, Inc., issued its complaint against Seaton for violations of Article III, Sections 1, 18 and 27 of the Rules of Fair Practice of the National Association of Securities Dealers, Inc.

   
   

   CONCLUSIONS OF LAW

   
   

4. Rule 3E-30.10(2), F.A.C., provides that prima facie evidence of unworthiness to transact the business of a salesman in the State of Florida shall include:

   
   

   Any injunction, suspension, prohibition, revocation, denial or administrative order by any state or federal agency, national securities exchange, or national securities association, involving a security or any aspect of the securities business, and any injunction or administrative order by a state or federal agency regulating banking, insurance, finance or small loan companies, real estate, mortgage brokers, or other related or similar industries, or any court of competent jurisdiction.

   
   

5. The order to cease and desist issued by the Securities Commissioner of the State of South Carolina constitutes an injunction, prohibition and administrative order by a state agency involving the securities business.

   
   

6. The complaint issued by the National Association of Securities Dealers, Inc., consists solely of bare allegations and does not constitute an injunction, suspension, prohibition, revocation, denial or administrative order as contemplated by the aforementioned rule.

   
   

7. The Division has established a prima facie case that Seaton has demonstrated his unworthiness to transact the business of a salesman and, accordingly, it is

RECOMMENDED that Seaton's application for registration be refused.

DONE and ENTERED this 27th day of January, 1978, in Tallahassee, Florida.

MICHAEL R. N. MCDONNELL

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 27th day of January, 1978.

COPIES FURNISHED:

S. Craig Kiser, Esquire Assistant General Counsel Office of Comptroller

The Capitol

Tallahassee, Florida 32304

Mr. Roy Ray Seaton 5844 South Roanoke

Springfield, Missouri 65807

Docket for Case No: 77-001558

Orders for Case No: 77-001558