wo ... » STATE OF FLORIDA _ ~e ‘| L, & DEPARTMENT OF BUSINESS AND PROFESSIONAL Pox ~ BOARD OF AUCTIONEERS [0 May _ 4 py I 26 DEPARTMENT OF BUSINESS AND ap pki Visio OF PROFESSIONAL REGULATION, MIST Rp Petitioner, | ; “O01 07 Vv. Oi ve ttn ; DBPR Case Nos. 97-14988, 97-13240 DARRELL TYRONE COKER, d/b/a 97-13980, 97-13423, 97-14046, 97-14775 JEWELRY AUCTION, INC., Respondent. ADMINISTRATIVE COMPLAINT Petitioner, the Department of Business and Professional | Regulation, (" *Petitioner" or "Department"), files this Administrative Complaint against Respondent, DARRELL TYRONE ~:. COKER, (“Respondent"), and alleges: 1. Petitioner is the State agency charged with regulating the profession of - Auctioneers, apprentices and Auction Businesses, pursuant to Section 20.165, and Chapters 455 and 468, Part VI, Florida Statutes. | 2. Respondent is and has been at all times material hereto, the owner of Jewelry Auction, Inc. 3. Jewelry Auction, Ine. was issued license number AB-0000837 on February 11, ~ 1992, which \ was s revoked by the Board of Auctioneers (Board) on or about February 16, 1998. : ) : . 4, Respondent is not, and has’ not been’ ‘at all times material hereto, a licensed tioneer in the State of Fl 5. Respondent’s address of record is 1490 South Highway 17-92, Longwood, Florida re he - Hil linina all Mai — ill wssemyy y nae Ae we em 6. racketeering in connection with changes that he sold "phony art" at inflated prices during 10. 11. 12. In November 1996 32750. On or about January 28, 2000, _ Respondent | was convicted on 16 counts of auctions throughout the State of Florida from 1993 to 1997. COUNT ONE (Case No. 97-14988) An advertisement appeared in the Stuart News announcing an auction to be held ‘by Respondent in June 1996, at the St. Lucie Civic Center. During the auction, Respondent was actively engaged in auctioning activities, _ calling and accepting bids, even though he was not licensed as an auctioneer or auctioneer apprentice in the State of Florida. At the auction, Respondent used auctioneer license number AU-0001859, which belonged to his son, Darrell Robert Coker. During the auction, David Hokenson ("Hokenson") purchased two bronze sculptures that were advertised as originals: "The Bolter by C.M. Russell (8932. 00) nd "The Warrior" by Frederic Remington ($677. 70). Additionally, Respondent issued appraisal certificates to Hokenson estimating the value of "The ; Bolter" at $8,500.00 and for "The Warrior" at $65,000.00. i Subset, Hokenson discovered. that the original sculptures by Russell and - Remington were not made available for public auctions, such as the auction _were either in museums or private collections. Art") and was a vised tha ly mi Hokenson telephoned The Fine Art Bronze Cénpay ("Fine _ 0 bronze sculptures, i ae ili a alk itl dh 13. 14. 15. 16. “17. MM Wo ad which were purchased by Hokenson, for the Coker auction. Furthermore, the wife of the owner of Fine Art stated to Hokenson that any bronze sculpture that was stamped "approved by Remington" or "approved by Russell", was made of the cheapest materials and was not the original piece. Section 468.389(1)(j), Florida Statutes, states that violating a statute or administrative rule regulating practice under this part or a lawful disciplinary ~- order of the Board or the Department shall be grounds for disciplinary action. Rule 61G2-5.001(1), Florida Administrative Code, states that any auction, which is subject to the provisions of Chapter 468, Part VI, Florida Statutes, must be conducted by an auctioneer who has an active Florida auctioneer license or an apprentice who has an active Florida apprentice auctioneer license and who has received prior written sponsor consent, Rule 61G2-5.001(2)(@), Florida Administrative Code, asserts that the principal auctioneer who calls and accepts bids at an auction shall be a licensed auctioneer or apprentice in the State of Florida. Section 468. 389(1)(b). F Florida Statutes, states that the misrepresentation of property for sale at auction or the making false promises concerning the use, _. value, or condition of such property by an auctioneer or an auction business by anyone acting : as an agent of or "with the consent of the auctioneer or auction ne: 1 be grounds for disciplinary action. = Moreover, Section 468. 389(DO)> Florida Statutes, ‘states that : any conduct in connection with a a sales transaction which demonstrates bad faith o or - dishonesty shall constitute grounds for disciplinary action. 3 pees og IRE IEEE moe 18. 19, 20. 21. 22. 23, Vv ind Based on the foregoing, Respondent, Darel Tyrone Coker, has violated Sections AB. 38000); (e) and Gj), Florida Statutes and Rules 61G2- 5. o01(1) and (2)(a), Florida Administrative Code. COUNT TWO (Case No. 97-13240) Petitioner realleges and incorporates paragraphs one through six as stated herein. On or about July 3, 1995, an advertisement appeared in the Tallahassee Democrat announcing an auction to be held July 4, 1995, at the Holiday Inn Capital Plaza in Tallahassee, Florida. During the auction, Respondent was actively engaged in auctioning activities, calling and accepting bids, even though he was not licensed as an auctioneer or auctioneer apprentice in the State of Florida. . At the auction, Respondent used auctioneer license number AU-0001859, which belonged to his son, Darrell Robert Coker. At the auction, Michael A. Sawula ("Sawula") purchased "The Bear", which Respondent represented as an authentic Frederic Remington sculpture. In addition, Sawula purchased five sculptures that were also represented as authentic ~ by Respondent: “Victor Hugo Bust", "Mignon Bust", "Cathedral", "Eternal S ingtime”, and "The Kiss". Sawula also purchased "The Crane", which, likewise, was represented as an original piece. “ : : Respondent issued appraisals to Sawula for each of the pieces. According to the __ appraisals, the "Victor Hugo Bust" had an estimated value of $45,000.00; the “Mignon Bust" had an estimated value of $40,000.00; the "Cathedral" had an ‘estimated value of $21,000.00; the "Eternal Springtime" had an estimated value 4 25. 26. 27. 28. ‘of $16,000.00; and "The Kiss" had an estimated value of $36,000.00. Interestingly, the Remington sculpture, "The Bear", and "The Crane" were not provided an appraisal certificates. In total, Sawula paid $8,120.00 for the seven sculptures. Through research Sawula learned that "The Crane" and "The Bear" were not authentic sculptures. Moreover, after further investigation and consultation with ~.the Rodin Museum in Philadelphia, Pennsylvania, Sawula discovered that the Rodin sculptures were not authentic. Actually, the sculptures were purchased “through the Henry Bonnard Bronze Company in Longwood, Florida, where Respondent serves as the principal officer. Section 468.389(1)(j), Florida Statutes, states that violating a statute or « administrative rule regulating practice under this part or a lawful disciplinary -order of the Board or the Department shall be grounds for disciplinary action. Rule 61G2-5.001(1), Florida Administrative Code, states that any auction, which is subject to the provisions of Chapter 468, Part VI, Florida Statutes, must be conducted by an auctioneer who has an active Florida auctioneer license or an _. apprentice who has an active Florida apprentice auctioneer license and who has received prior written sponsor consent. 30. auctioneer who calls and accepts bids at an auction shall be a licensed auctioneer or apprentice in the State of Florida. Section 468.389(1)(b), Florida Statutes, states that the misrepresentation of property for sale at auction or the making false promises concerning the use, oes a ee eee ae 31. 32. 33. 34, 35. 36. 37. vw value, or condition of such property by an auctioneer or an auction business by “anyone acting as an agent of or with the consent of the auctioneer or auction business shall be grounds for disciplinary action. Moreover, Section 468.389(1)(e), Florida Statutes, states that any conduct in connection with a sales transaction which demonstrates bad faith or dishonesty shall constitute grounds for disciplinary action. Based on the foregoing, Respondent, Darrell Tyrone Coker, has violated Sections 468.389(1)(b), (e) and (j), Florida Statutes and Rules 61G2-5.001(1) and (2)(a), Florida Administrative Code. | COUNT THREE (Case No. 97-13980) Petitioner realleges and incorporates paragraphs one through six as stated herein. On or about July 2, 1995, an advertisement appeared in the Northwest Daily News announcing an auction to be held on mn July 2, 1995, at the Holiday Inn in Fort Walton Beach, Florida. . . According’ to the advertisementthe auction was to bec conducted by Jewelry Auction, Inc., and stated Respondent as the auctioneer. ‘The advertisement also listed license 0117, neither of: whi h b longed to Respondent; AU-0000 101 is registered to Respondent's brother, John n Coker IL and AB-0001179 ds repstered to to Allen Kee Auction Business. During the auction, Respondent was actively engaged in suctioning activities, calling and accepting bids, even though he was not licensed as an auctioneer or auctioneer ~ apprentice i in the State of Florida.” At the auction, Norma P. Bastman ("Eastman") purchased four Remington replicas oe Pree ca 38. 39. 40. 41. 42. 43. 44, that were represented as being cast in solid silver of "approximately 1,000 troy ounces." An appraisal certificate that was prepared by Respondent accompanied each of the replicas. The "Bronco Buster" was appraised at $165,000.00; the "Wicked Pony" . was appraised at $145,000.00; the "Norther" was appraised at $175,000.00; and the "Outlaw" was appraised at $140,000.00. In total, Eastman paid $26,650.00 for the Remington replicas. Additionally, Eastman purchased two Marshall Mitchell sculptures for $6,127.00. After the auction, Eastman discovered that there may be a problem with the --~authenticity of the Remington replicas. Eastman contacted Respondent with her .. allegation that the replicas may not be authentic and Respondent offered to take the :.¢2.replicas back and attempt to sell them at a subsequent auction to regain her money. Eastman stated she was only interested in a refund, however Respondent was unwilling to comply with Eastman's request. Section 468.389(1)(j), Florida Statutes, states that violating a statute or administrative rule regulating practice under this part or a lawful disciplinary order of the Board or the Department shall be grounds for disciplinary action. _ Rule 61G2-5.001(1), Florida Administrative Code, states that any auction, which “Is subject to the provisions of Chapter 468, Part Vi, Florida Statutes, must be conducted by: an auctionser who has an n active Florida auctioneer license or an apprentice v who has an active Florida apprentice auctioneer license and who has received prior written sponsor consent. Rule 61G2-5. 0012)(), Florida Administrative Code, asserts s that the principal 7 gE 45. 46. 47. 48. 49. -» The auctioneer who calls and accepts bids at an auction shall be a licensed auctioneer or apprentice in the State of Florida. - Section 468.389(1)(b), Florida Statutes, states that the misrepresentation of property for sale at auction or the making false promises concerning the use, value, or condition of such property by an auctioneer or an auction business by anyone acting as an agent of or with the consent of the auctioneer or auction business shall be grounds for disciplinary action. Moreover, Section 468.389(1)(e), Florida Statutes, states that any conduct in connection with a sales transaction which demonstrates bad faith or dishonesty shall constitute grounds for disciplinary action. Based on the foregoing, Respondent, Darrell Tyrone Coker, has violated Sections 468.389()00) © and O Florida Statutes and Rules 61G2-5.001(1) and (2)(a), Florida “Administrative Code, COUNT FOUR (Case No. 97-13423) Petitioner realleges and incorporates Paragraphs one through six as stated herein. On or x about July 1 14, 1996, Liana W. Reifer (Rei attended an auction held at the rtisement for the auction mn appeared i in , the , Volusia Tambo Sperm \ Whales" was valued at $120, 000. 00; ‘and "The Double Marlins" was “8 ‘Reifer with appraisal certificates for three of the four statues. "Balancing Medium Sperm Whales" was valued at $90,000.00; the Balancing no mare pees eeu we «pyrene emer ebb te sk ae ake lll il 52. 53. - 54. 55. 56. - 57. wv | wi valued at $55,0 000. 00. After the auction, Reifer had the jewelry appraised by 7 Zetrouer Jewelers in Palm Coast; she was advised that the jewelry was not worth the money she paid. Based - -on the appraisal Reifer suspected that the statutes were not "originals." ‘A subsequent visit to Respondent's place of business confirmed Reifer's suspicion. “»y-Upon arrival at Respondents Place of business, Reifer saw exact copies of her .« sstatutes throughout the showroom. At that time Reifer requested a refund for all of the items she purchased at the July 14" auction. Respondent told Reifer that he would refund the money for the jewelry, but not for «the statutes. As a compromise, Respondent offered to attempt to sell the statutes for Reifer at an ensuing auction. Reifer agreed to this arrangement, however the statues were never sold. Section 468. 389(1}(0), Florida Statutes, states that the misrepresentation of Property for sale at auction or the making false promises concerning the use, value, or condition of such property by an auctioneer or an 1 auction business by anyone acting as an agent of or with the consent of the auctioneer or auction _ business shall be grounds for disciplinary action. Additionally, Section 468. 289600), Florida Statutes, states 5 that any conduct in ecm nag ee S.Asaneeretans ” cont ection with a sales transaction which demonstrates bad faith or - dishonesty shall constitute grounds for disciplinary action. Based on the foregoing, Respondent, Darrell Tyrone Coker, has violated Sections : 468.389(1)(b) and (6), Florida Statutes. peewee ewer ee a ae > ctl ibe a 58. 59. 60. 6l. 62. 6 Respondents place of business. ~ COUNT FIVE (Case No. 97-14046) ind Petitioner realleges incorporates paragraphs one through six as stated herein. On or about December 31, 1995, Ruth A. Wurth ("Wurth") attended an auction at the Lakeland Civic Center in Lakeland, Florida; Jewelry Auction, Inc sponsored the auction. - During the auction, Respondent, even though he was not licensed as an auctioneer -or auctioneer apprentice in the State of Florida, was actively engaged in auctioning activities, while Darrell Robert Coker (AU-0001859) "took and accepted" bids. At the auction, Wurth purchased the following: Five bronze statues; fourteen paintings; three diamond rings; six jade figures; three Netsukes; two Mickey Mouse watches, circa 1930; one Erte statue; one lamp; four bronze sculptures; and one vase. In total Wurth paid $23,263.80 to Jewelry Auction, Inc., for items that were represented as authentic pieces. - After the auction, Wurth had the rings appraised and was advised that the rings were grossly overpriced. _ Subsequently, Wurth discovered that Respondent had misrepresented the value and authenticity of the paintings; the bronze artwork; the . Netsukes, which were made of an ivory composite; and the t two 0 Mickey Mouse watches, which were recent reproductions. Wurth also discovered that the "Jesus Bust", purchased at the auction for $750.00, » regularly sold for $250.00 at Tn: response, Respondent offered: to take the items back and attempt to sale them at arrangement and also gave Respondent some of her personal items to sell on her ! 10 nr Pere aes cerns a 64... 65. 66. 67. 68. 69. behalf: One figurine Chinese lady valued at approximately $200.00; one owl picture by Edris valued at approximately $50. 00; one "Santos wood picture valued at approximately $50.00: one Merchaum pip set valued at approximately $300.00; and two Baumler paintings valued at approximately $400.00 each. ..To Wurth's knowledge, Respondent has not sold the aforementioned items, but has . them in storage along with an Erte statue, belonging to Wurth, which is valued at $3,500.00 Eventually, Wurth and Respondent reached a settlement agreement whereby Wurth -«would receive $5, 000.00 to arop all farther legal proceedings against Respondent. Section 468.389(1)(@), Florida Statutes, states that violating a statute or . administrative rule regulating practice under this part or a lawful disciplinary _order of the Board or the Department shall be grounds for disciplinary action. Rule 61G2-5.001(1), Florida Administrative Code, states that any auction, which is subject to the provisions of Chapter 468, Part VI, Florida Statutes, must be conducted by an auctioneer who has an active Florida auctioneer license or an apprentice who has an n active Florida apprentice auctioneer license and who has _. received Prior written sponsor consent. Section 468. 9(1)(b). Florida “Statutes,” ‘states. ‘hat the Inisrepresentation of / ‘property for sale at auction | or the making false Promises concerning the use, alue, ¢ or condition of such property bya an 1 auctioneer oran auction business by g as an agent of 0 or with the consent of the auctioneer ¢ or t auction business shall be grounds for disciplinary action. Moreover, Section 468. 38D), Florida a Sates states that any conduct in en Me 70. The ©. 72. 73. 74. 75. ok Sperm Whale". 76. v- Vv connection with a sales transaction which demonstrates bad faith or dishonesty shall constitute grounds for disciplinary action. —_ Based on the foregoing, Respondent, Darrell Tyrone Coker, has violated Sections 468.389(1)(b), (e) and @), Florida Statutes and Rule 61G2-5.001(1), Florida Administrative Code. COUNT SIX (Case No. 97-14775) ‘Petitioner realleges and incorporates paragraphs one through six as stated herein. On or about July 27, 1996, an advertisement in the Times Union , announcing an auction to be held on July 27, 1996, at the Moose Lodge in Jacksonville Beach, Florida. The advertisement listed Darrell T. Coker as the auctioneer and license numbers AU- ~ 0001859 and AB-0000837; neither license was registered to Respondent. During the auction, Respondent, even though he was not licensed as an auctioneer “or auctioneer apprentice in the State of Florida, was actively engaged in auctioning activities. At the auction, Kim Stanley ("Stanley") purchased six bronze statues by Max Turner that were : represented as “original” and "investment pieces. " Stanley paid i in total “$12, $53.00 for the statues: “Large ‘Sperm Whales", “Serenity”, "Large Sperm »~ Whales at Play", "The Humpback Whale’, "The Single Dolphin’, and "The Single ‘statues at: “$185 000.00, $75,000.00, $50 000. 00 $22 000. 00, $24, 000. 00, and 22,00 0, 1 respectively. _ : Respondent also agreed to provide Staley with "Certificates of Authentisiy" 12 Respondent issued Stanley appraisal certificates, which valued the Ve v , however, the certificates wore never received, 77. Subsequently, Stanley discovered that the bronze statues were not originals and disputed the amount paid for the statues with Respondent. While Stanley was in the process of disputing the amount paid, Respondent resubmitted the purchase of the statues on her Visa credit card as a new purchase to collect additional money. 78. - Section 468.389(1)(j), Florida Statutes, states that violating a statute or administrative rule regulating practice under this part or a lawful disciplinary order of the Board or the Department shall be grounds for disciplinary action. 79. Rule 61G2-5.001(1), Florida Administrative Code, states that any auction, which “is subject to the provisions of Chapter 468, Part VI, Florida Statutes, must be >» conducted by an auctioneer who has an active Florida auctioneer license or an apprentice who has an active Florida apprentice auctioneer license and who has "received prior written sponsor consent. ' | 80. Section 468.389(1)(b), Florida Statutes, states that the misrepresentation of property for sale at auction or the making false promises concerning the use, value, or condition of such property by an auctioneer or an auction business by anyone acting as an agent of or with the consent of the auctioneer or auction business shall be grounds for disciplinary action. . 81. Moreover, Section 468.389(1)(e), Florida Statutes, states that any conduct in connection with a sales transaction which demonstrates bad faith or dishonesty shall constitute grounds for disciplinary action. 82. Based on the foregoing, Respondent, Darrell Tyrone Coker, has violated Sections 468.389(1)(b), (e) and 0, Florida Statutes and Rule 61G2-5.001(1), Florida 13 Administrative Code. . WHEREFORE, Petitioner respectfully requests that the Department enter an Order imposing one or more of the penalties authorized by Section 468.389(1)(1), Florida Statutes and Rules 61G2-5.001(1) and 61G2-2.005, Florida Administrative Code. 3 day of OD > 2000. SIGNED this Thomas G. Thomas oo tn oni REE PS aa! Florida Bar No. 0865710 COUNSEL FOR DEPARTMENT: Thomas G. Thomas Chief Attorney F | L E D Department of Business and Department of Business and Professional Regulation Professional Regulation DEPUTY CLERK 1940 North Monroe Street Tallahassee, Florida 32399-2202 seme radon Teichele TGT/gaj DATE _2- $- A000 February 2, 2000 ‘ Case No 97-13240, 97-14046, 97-94-13980, 97-14775, 97-13423, and 97-14988 DBPR v. Darrell Tyrone Coker ~ PCP: Date: 0 2/03 /oo 14

Docket for Case No: 00-001907