Recommendation Adequate grounds having been demonstrated by the Petitioner, it is therefore recommended the Respondent's license be revoked. DONE and ORDERED this 10th day of May, 1976, in Tallahassee, Florida. KENNETH G. OERTEL, Director Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304 (904) 488-9675 COPIES FURNISHED: William A. Hatch, Esquire Staff Attorney Department of Business Regulation The Johns Building Tallahassee, Florida 32304 Emmett Abdoney, Esquire First Financial Tower Suite 2115 Tampa, Florida 33602 Charles Nuzum, Director Division of Beverage Department of Business Regulation The Johns Building Tallahassee, Florida 32304
Findings Of Fact Respondent, C.S.G., Inc., d/b/a The Arena, holds alcoholic beverage license no. 62-427, Series 4-COP. The licensed premises is located at 4469 49th Street North, St. Petersburg, Florida. During the period relevant to this proceeding, Sam I. Ferrara, Jr. was the sole officer and stockholder of C.S.G, Inc. On November 19, 1980, prior to Ferrara's purchase of the C.S.G., Inc., Eugene O'Steen submitted a license application for transfer of alcoholic beverage license no. 62-427, from Edward Mickler, Jr. to C.S.G., Inc., showing O'Steen as the sole corporate officer and stockholder of C.S.G., Inc., and Ferrara as the manager. O'Steen's license application was not accepted as the application end accompanying documentation were incomplete. The initial application included a lease for the licensed premises signed by O'Steen over the whited-out signature of Sam I. Ferrara, Jr., dated October 9, 1980. O'Steen had negotiated the purchase of beverage license no. 62-427 from Edward Mickler, Jr., for $78,500. O'Steen intended to fund the purchase with a $2,000 down payment from personal assets and a $76,500 loan from the Central Bank of Tampa. However, O'Steen voluntarily withdrew his application on November 26, 1980, due to the possible filing of criminal charges which could have resulted in denial of the application. On the same day that O'Steen withdrew his application, Ferrara initiated a new application for transfer of alcoholic beverage license no. 62- 427. Ferrara's application was also in the name of C.S.G., Inc. showing Ferrara as the sole corporate officer and stockholder of this corporation. On December 2, 1980, Ferrara advised Petitioner's Beverage Officer Maggio that he, Ferrara, had negotiated the same contract to purchase beverage license no. 62-427, as had O'Steen. Said beverage license was to he purchased by Ferrara (C.S.G., Inc.) for a total of $78,500. A deposit of $2,000 had been made and a balance of $76,500 was due at closing on purchase of this license. Ferrara further advised that he (C.S.G., Inc.) was obtaining an $80,000 loan from the Central Dank of Tampa to finance the purchase of the beverage license and that he (C.S.G., Inc.) was obtaining a $20,000 loan from Attorney Matthews to reimburse O'Steen for remodeling expenses incurred on the licensed premises. On December 3, 1980, Ferrara submitted a personal questionnaire (PX-10) listing finances concerning the license application as follows: Central Bank of Tampa $80,000 Eugene O'Steen - [Crossed through] $20,000 John Matthews - $20,000 On December 3, 1980, Ferrara provided Beverage Officer Maggie with a completed license application (PX-9) together with a letter of commitment for a loan to C.S.G., Inc. in the amount of $80,000 signed by Orlando Garcia, President of the Central Bank of Tampa. This letter was dated December 3, 1980 (PX-1) On December 3, 1980, Ferrara was questioned by Beverage Officer Maggie as to the completeness and accuracy of his license application (PX-9) and his personal questionnaire (PX-10) Ferrara advised Maggie on that date that both referenced documents were complete and accurate. Additionally, on the same date, Maggie reviewed with Ferrara his answers to all questions and both of the referenced documents. Ferrara's answers contained in the referenced documents were sworn and made under oath. Section 7 of Ferrara's license application (PX-9) reads: List below the names of all those connected, directly or indirectly, in the business for which the license is sought: (This includes partner(s), spouse, director(s), stockholder(s), chief executive, limited and general partner(s), corporation(s), or any form of entity which is connected with the business. Name office (if corporation) or other title if any. Nature of interest including stock percentage. In response to this question, on his license application (PX-9), Ferrara identified himself as President, Secretary, Treasurer and 100 percent stockholder. No other person or entity was listed as interested directly or indirectly. Subsequent to December 3, 1980, Beverage Officer Maggio transmitted Ferrara's license application (Px-9) and related documentation to Petitioner's Tallahassee office with a recommendation that the application be approved. Thereafter, on December 5, 1980, C.S.G., Inc. was issued a temporary beverage license. The permanent beverage license, number 62-427, Series 4-COP, was issued on January 7, 1981. On December 1, 1980, prior to the letter of commitment from the Central Bank of Tampa (PX-1), and Ferrara's submission of his license application (PX-9) and personal questionnaire (PX-10), and also prior to Ferrara's oral statements to Beverage Officer Maggio, the Central Bank of Tampa issued a loan closing statement (PX-8) concerning C.S.G., Inc.'s (Ferrara) $80,000 loan. This loan closing statement (PX-8) reflected an $80,000 loan to C.S.G., Inc. and P & O, Inc. jointly, not solely to C.S.G., Inc. as indicated in the loan commitment letter (PX-1), Ferrara's oral statement, and Ferrara's license application (PX-9). Said loan closing statement reflected collateral for this loan which included beverage license no. 62-427, Series 4-COP (C.S.G., Inc. license) and an alcoholic beverage license held by P & O, Inc. On December 5, 1980, a bank note, number 55-25549 (PX-6) was executed in the amount of $80,000 with C.S.G., Inc. and P & O, Inc. as co-makers. This note was signed by Ferrara on behalf of C.S.G., Inc., and by Charles and Olga Pitisci on behalf of P & O, Inc. Said note (PX-6) corresponds to the loan closing statement dated December 1,1980 (PX-8). Pursuant and subsequent to the execution of the bank note discussed above (PX-6), a cashier's check, number 312768 (Px-3), was drawn on the Central Bank of Tampa and issued December 5, 1980 to C.S.G., Inc. and P & O, Inc. jointly, in the amount of $70,278.25. This cashier's check represented the proceeds from the loan generated on bank note 55-25549 (PX-6). These proceeds were deposited in the Central Bank of Tampa to the account of C.S.G., Inc. On December 5, 1980, a separate cashier's check (PX-2) number 312502 was issued by the Central Bank of Tampa payable to Edward Mickler, Jr in the amount of 576,500. Funds for this check came from C.S.G., Inc.'s account. The purpose of this check (PX-2) was to pay the balance of the purchase price due on beverage license no. 62-427. On December 5, 1980, another cashier's check (PX-4) number 312503 was issued by the Central Bank of Tampa in the amount of 52,775.25, to C.S.G., Inc. This check represented the balance of the loan proceeds from the Central Bank to P & O, Inc. and C.S.G., Inc. jointly (See PX-2 and PX-6). Collateral pledged as security for said loan (PX-6) includes real property of P & O, Inc., a beverage license of P & O, Inc., the beverage license of C.S.G, Inc., together with certain equipment of C.S.G., Inc. P & O, Inc. and C.S.G., Inc. executed a mortgage to the Central Bank of Tampa to secure said lean (PX-6) and the Central Bank of Tampa, effective December 5, 1980, insured said lean in the amount of 575,000 as evidenced by a fund mortgage form (Px-5) Neither C.S.G., Inc., the Central Bank of Tampa nor Ferrara in his oral statements to Petitioner's representative, disclosed the fact that P & O, Inc. was a co-maker of the $50,000 loan (PX-6) from the Central Bank of Tampa, or that P & O, Inc. had pledged real property and a beverage license as collateral for said loan. At all times pertinent to this procedure, P & O, Inc. was owned by Charles Pitisci, Olga Pitisci and Carlten O'Steen. At all times pertinent Charles Pitisci, Olga Pitisci and Eugene O'Steen were corporate officers of P & O, Inc. The testimony of Ferrara and Eugene O'Steen established that a close personal relationship existed between Ferrara and the owners of P & O, Inc. Ferrara's testimony established that the Central Hank of Tampa demanded additional security, and that P & O, Inc. principals cosigned the note as a personal favor to Ferrara and not to obtain an interest in the licensed business. This evidence was not rebutted by Petitioner. Ferrara did not believe he was under any duty to disclose the role of the Pitiscis and P & O, Inc. with respect to the Central Bank of Tampa loan since he did not believe they had acquired any direct or indirect interest in C.S.G., Inc. or beverage license no. 62-427.
Recommendation From the foregoing findings of fact and conclusions of law, it is RECOMMENDED: That Petitioner enter a final order dismissing the Administrative Complaint/Notice to Show Cause. DONE and ENTERED this 28th day of June, 1982 at Tallahassee, Florida. R. T. CARPENTER, Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 28th day of June, 1982. COPIES FURNISHED: John A. Beggs, Esquire Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301 Paul Antineri, Jr., Esquire 601 E. Twiggs Street Tampa, Florida 33602 Charles A. Nuzum, Director Division of Alcoholic Beverages and Tobacco Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301 Gary R. Rutledge, Secretary Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301
The Issue This case was presented through a Notice to Show Cause/Administrative Complaint filed by the Petitioner, State of Florida, Division of Alcoholic Beverages and Tobacco, against the Respondent, Norma D. Kettering, t/a Fancy Dancer, in which the requested relief is for the imposition of civil penalty, suspension or revocation of the beverage license allegedly held by Norma D. Kettering. The Notice to Show Cause/Administrative Complaint contains the following accusations: "1. On or about the 27th of March, 1980, you, NORMA D. KETTERING, licensed under the beverage law, your agent, servant or employee, to wit "JOHN DOE" on your licensed premises, a public place, did unlawfully sell or deliver, or possess with intent to sell, or deliver, a controlled substance to wit; METHAQUALONE to one Robert R. Jones, Beverage Officer, for the sum of $3.50 each, U.S. Currency, contrary to F.S. 561.29 to wit F.S. 893.13. On or about the 27th of March, 1980, you, NORMA D. KETTERING, licensed under the beverage law, your agent, servant or employee, to wit; DEBORAH MARIE ALTIZER, a/k/a "GINGER", dancer, on your licensed premises, a public place, did unlawfully sell or deliver or possess with intent to sell or deliver a controlled substance to wit; METHAQUALONE, to one ROBERT R. JONES, Beverage Officer, for the sum of $3.50 each, U.S. Currency, contrary to F.S. 561.29 to wit; F.S. 893.13. On or about the 27th of March, 1980, you, NORMA D. KETTERING, licensed under the beverage law, your agent, servant or employee, to wit; TAMMIE R. FRANCIS, a/k/a "RINA", dancer, on your licensed premises, a public place, did unlawfully offer to commit an act of prostitution, by giving her body for sexual intercourse to one ROBERT R. JONES, Beverage Officer, for the sum of $50.00 U.S. Currency, contrary to F.S. 561.29 to wit; F.S. 796.07(3) (A). On or about the 9th of April, 1980, you, NORMA D. KETTERING, licensed under the beverage law, your agent, servant or employee, to wit KATHY JEANETTE BROWN, a/k/a "KATHY", dancer, on your licensed premises, a public place, did unlawfully offer to commit an act of prostitution, by giving her body for sexual intercourse to one C. E. LLOYD, Beverage Officer, for the sum of $100.00, U.S. Currency, contrary to F.S. 561.29 to wit F.S. 796.07(3) (A). On or about the 9th of April, 1980, you, NORMA D. KETTERING, licensed under the beverage law, your agent, servant or employee, to wit; KATHY JEANETTE BROWN, a/k/a "KATHY", dancer, on your licensed premises, a public place, did unlawfully offer to commit an act of prostitution, by giving her body for sexual intercourse to one C. E. LLOYD, Beverage Officer, for the sum of $100.00 U.S. Currency, contrary to F.S. 561.29 to wit F.S. 796.07(3) (A). On or about the 12th of April, 1980, you, NORMA D. KETTERING, licensed under the beverage law, your agent, servant or employee, to wit; "CINNAMON", dancer, did unlawfully offer to commit an act of prostitution on your licensed premises, a public place, by giving her body for sexual intercourse to one B.A. WATTS, JR., Beverage Officer, for the sum of $20.00 U.S. Currency, contrary to F.S. 561.29 to wit F.S. 796.07(3)(A). On or about the 12th of April, 1980, you NORMA D. KETTERING, licensed under the beverage law, your agent, servant or employee, to wit; TAMMIE R. FRANCIS a/k/a "RINA", dancer, did unlawfully offer to commit an act of prostitution on your licensed premises, a public place, by giving her body for sexual intercourse to one M. L. IMPERIAL, Beverage Officer, for the sum of $50.00 U.S. Currency, contrary to F.S. 561.29 to wit F.S. 796.07(3) (A). On or about the 13th of April, 1980, you, NORMA D. KETTERING, licensed under the beverage law, your agent, servant or employee, to wit; "TAMMY", dancer, did unlawfully offer to commit an act of prostitution on your licensed premises, a public place, by giving her body for sexual intercourse to one B.A. WATTS, JR., Beverage Officer, for the sum of $75.00, U.S. Currency, contrary to F.S. 561.29 to wit F.S. 796.07(3)(A). On or about the 13th of April, 1980, you, NORMA D. KETTERING, licensed under the beverage law, your agent, servant or employee, to wit; "LICORICE", dancer, did unlawfully offer to commit an act of prostitution on your licensed premises, a public place by giving her body for sexual intercourse to one M. L. IMPERIAL, Beverage Officer, for the sum of $75.00 U.S. Currency, contrary to F.S. 561.29 to wit F.S. 796.07(3)(A). On or about the 13th of April, 1980, you NORMA D. KETTERING, licensed under the beverage law, your agent, servant or employee, to wit; DEBORAH MARIE ALTIZER, a/k/a "GINGER", dancer, did unlawfully sell or deliver, or possess with intent to sell or deliver on your licensed premises, a public place, a controlled substance to wit; METHAQUALONE to one ROBERT R. JONES, Beverage Officer, for the sum of $4.00 each, U.S. Currency, contrary to FS. 561.29 to wit F.S. 893.13."
Findings Of Fact The Petitioner has complained against the named Respondent pursuant to those accusations as set forth in the issues statement of this Recommended Order. The Respondent requested a formal hearing to be conducted in accordance with the provisions of Subsection 120.57(1), Florida Statues, and although the Respondent did not attend the hearing, the Respondent having requested the hearing, the Petitioner's case was presented. The Petitioner in this cause, State of Florida, Division of Alcoholic Beverages and Tobacco, is an agency of the State of Florida which has its responsibility the licensure and regulation of the several beverage license holders in the State of Florida. Norma D. Kettering, who trades under the name of Fancy Dancer, is the holder of License No. 69-293, Series 2-COP, which allows for the consumption of alcoholic beverages on the premises. The license is for a premises at Highways 17 and 92, Fern Park, Florida. The facts reveal that Beverage Officer Robert R. Jones went to the licensed premises on March 27, 1980, to investigate alleged Beverage Law violations. Those violations dealt with offers by the agents, servants or employees of the licensee to commit acts of prostitution. Once inside the premises, Officer Jones was approached by a dancer in the premises whose stage name is "Ginger", who commented to Officer Jones that she was loaded on "Quaaludes". (The word "Quaalude" refers to the substance Methaqualone.) Officer Jones asked "Ginger" if she knew where he could get "Quaaludes". In response to this request, "Ginger" left the officer and went to an unknown white male who was seated in a chair in the establishment. He took two Methaqualones from his person and gave them to "Ginger", who in turn gave them to Officer Jones in return for money. On that same date, March 27, 1980, "Ginger" was seen to dance for the patrons while attired In a "G" string costume. She danced both on the main stage and in the area of the audience and was seen to receive money in exchange for her dancing. She was also referred to by the master of ceremonies as "Ginger". On March 27, 1980, Officer Jones was additionally approached by another dancer known as "Rina" who had been referred to by that name by the master of ceremonies who was announcing appearance of the dancers who were dancing on the main stage in the licensed premises. "Rina" then asked Jones if he wanted a "fuck." She explained to the officer that it would cost him $50.00; and that he would have to get rid of Beverage Officer Blanton, who was with Jones at the time. "Rina" also stated that she would "go more than once if she liked the first time". This conversation took place in the licensed promises. On April 13, 1980, Officer Robert R. Jones returned to the licensed premises and encountered the dancer, "Ginger" and paid her $4.00 each for two Methaqualone which she obtained after going to the dancers' dressing room in the licensed premises and returning to Officer Jones. On that date, "Ginger" was still performing as a dancer in the licensed premises. Beverage Officer C. E. Lloyd went to the licensed premises on April 9, 1980, as part of the investigation. While in the licensed premises, he was approached by a dancer, Kathy Brown, whose stage name is "Kathy", who asked Officer Lloyd if she could dance for him. He agreed to allow her to "lap dance". Beverage Officer Lloyd paid "Kathy" $5.00 for a "lap dance" she performed. This is a form of dance where the female dancer sits on the lap of the male patron and goes through a series of gyrations while a record is played. Officer Lloyd asked Brown what would happen when she "got things started". Brown stated that she could take care of everything for him after she got off from work for a price of $100.00. He asked her what that meant and she replied she could "give you a fuck for $100.00". After this conversation, dancer Brown was called by the master of ceremonies to dance for the benefit of those patrons in the licensed premises and she danced on the stage. She was wearing a bikini-type costume. The conversation between Lloyd and Brown was overheard by Beverage Officer James A. Jones, Jr., who was with Lloyd on the date in question. She told Jones that he could drive Lloyd and her in the car while she serviced Lloyd and then she said she would "fuck" Jones, also for $100.00. Lloyd and Jones left the licensed premises and Brown followed them and upon entering the officers' vehicle, Brown was arrested for offering to commit prostitution. On April 12, 1980, Beverage Officer Bethel Watts, Jr., was dispatched to the licensed premises to continue the investigation. While in the licensed premises on that date, he was approached by a female dancer whom he had seen perform on the stage as a dancer while wearing only a "G" string. This dancer had been referred to as "Cinnamon", with that reference being made by the master of ceremonies in the licensed premises. "Cinnamon" asked the Respondent if he wanted a "lap dance". He replied, "Yes" and the dancer sat on his lap and squirmed around for the duration of one record. The dancer then told Officer Watts that she could "give you anything you want right here." He stated that he could not afford it and she asked if he had $20.00. She further stated that she could, "give him a 'quickie'". The dancer then went back to the stage area. Officer Watts paid the dancer "Cinnamon" $3.00 for the "lap dance". Officer Watts had gone to the licensed premises on April 12, 1980, with another Beverage Officer, Michael Lee Imperial. On that same date, a dancer who had been performing in the licensed premises who was known as "Rina" approached Officer Imperial and asked if he would like her to "lap dance". He agreed and she sat on his lap and performed the "dance" through three different records for a price of $5.00 each, a total price of $15.00. He asked the dancer if she did anything other than dance, to which she asked if he were a policeman, and he answered, "no". "Rina" then patted down the Beverage Officer to check to see if he were carrying any form of police identification. She then stated that she got off at 1:30 a.m. and would come by his room. She asked the Beverage Officer how much he could afford and he said "$50.00" and she indicated that she would give him "anything and everything he wanted" for the $50.00. Officers Watts and Imperial returned to the licensed premises on April 13, 1980. While in the licensed premises, Officer Imperial was approached by a dancer who was known as "Licorice" and she asked if he wanted her to "lap dance". He responded, "Yes" and she "danced" one record for a cost of $5.00. Officer Imperial stated to the dancer that she "sure felt good" and stated that he "bet" she was good in bed. She responded by stating that, "I am" and in turn he stated that he "bet" that, "I'll never find out", to which she responded that he could find out for $75.00. In turn the officer wanted to know what he would get for $75.00 and the dancer said, "You will get whatever you want me to do". Officer Imperial said that he would pick her up at seven o'clock. Nothing further occurred concerning this event. On the same date, April 13, 1980, Officers Watts and Imperial were sitting together and in the course of the conversation which Imperial had with one of the dancers, Imperial turned to Watts and asked Watts if he (Watts) wanted the dancer to get a girl for Watts. After some discussion, the dancer arranged to have another dancer whose stage name was "Tammy" and who had danced in the licensed premises and been referred to by the master of ceremonies by that name was brought and introduced to Officer Watts. (Watts had asked the other dancer to ask "Tammy" if she "would party". The other dancer responded that "Tammy" "would party" but it would cost $75.00.) Watts asked "Tammy" if she "would party" and she responded by saying that for $75.00 she would do anything that he wanted up to two hours, at which point she had an appointment in the licensed premises. The conversation terminated at the point when Watts stated that he would pick up a bottle of whiskey.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that Counts One (1), Two (2), Three (3), Five (5) and Ten (10) of the Notice to Show Cause/Administrative Complaint be DISMISSED and that the Respondent not be held for further answer. It is FURTHER RECOMMENDED that the license held by the Respondent, Norma D. Kettering, No. 69-293, Series 2-COP, be REVOKED in view of the violations as established through Counts Four (4), Six (6), Seven (7), Eight (8) and Nine (9) in the Notice to Show Cause/Administrative Complaint. DONE AND ENTERED this 3rd day of October, 1980, in Tallahassee, Florida. CHARLES C. ADAMS, Hearing Officer Division of Administrative Hearings Room 101, Collins Building Tallahassee, Florida 32301 (904) 488-9675 COPIES FURNISHED: James N. Watson, Jr., Esquire Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301 Norma D. Kettering, t/a Fancy Dancer 236 Highways 17 & 92 Fern Park, Florida
The Issue Whether petitioners' application for approval of a change in corporate officers of an existing corporate licensee should be granted, or denied on the ground that a disqualified person--a convicted felon--is interested either directly or indirectly in the business.
Findings Of Fact On or about February 18, 1980, Richard Zabel and Anita Grizaffi ("applicants") negotiated for the purchase and sale of the stock of Cowboy's, Inc., holders of beverage license No. 16-6859 SRX. On that date, Richard Zabel and Anita Grizaffi, his sister, entered into a contract for the sale and purchase of all of the outstanding stock of the corporation called Cowboy's, Inc. The purchase price of said stock was to be $300,000. The closing for the purchase of the stock ownership in Cowboy's, Inc., was scheduled to be held in Fort Lauderdale on or about April 23, 1980. Originally, the applicants intended to purchase the stock by borrowing $300,000 entirely from Bern Builders, Inc. Bern Builders, Inc., is solely owned and operated by Anita Grizaffi and Bernard Grizaffi. Prior to the closing and in anticipation of borrowing the purchase price entirely from Bern Builders, Inc., applicants filed with DABT their Notice of Stock Ownership and Certificate of Incumbency showing that they were the new officers, directors, and stockholders of the licensee corporation. In addition, applicants filed with DABT their personal data questionnaires and disclosed in the appropriate block that they intended to borrow the $300,000 from Bern Builders, Inc. Just prior to the scheduled date of the closing, the sellers informed the purchasers that for reasons totally unrelated to any matters pertinent to this proceeding, they would not close the deal. Applicants and their corporate attorney from Chicago, Irv Ribstein, forced the sale of the stock and the closing took place on April 23, 1950. In order to close the deal and since it was impossible for the applicants to receive the $300,000 from Bern Builders, Inc., as originally hoped, it was necessary for them to generate sufficient funds from other sources to pay the sellers. Those funds were obtained and then repaid in full in the following manner: Anita Grizaffi borrowed $150,000 from the Commercial Bank of Chicago. This $150,000 obligation was paid in full from the proceeds of the ownership interest of Anita Grizaffi in a yacht. The sale of this yacht took place pursuant to a Brokerage Purchase and Sales Agreement made April 14, 1980. Anita Grizaffi borrowed $100,000 from the Chicago bank collateralized by her ownership of Certificates of Deposit. This $100,000 was repaid by Anita Grizaffi. A personal loan from Bern Builders, Inc., was obtained in the amount of $50,000. This loan was repaid by the applicants on July 1, 1981. Subsequent to the closing and the original filing of the Certificate of Incumbency and the personal data questionnaires showing the financial arrangements, DABT notified the applicants that while it was not taking final action at that time, it was DABT's intention to deny the change of corporate officers because it believed that there was a person either directly or indirectly involved in the beverage license who was statutorily disqualified. Prior to DABT sending out its official notification of its denial of the change of corporate officers, the applicants filed with DABT the supplemental financial information described in paragraph 8. It showed how the purchase of the stock actually was consummated. DABT, on August 8, 1980, after receiving this supplemental financial information, sent its final agency action letter denying the applicants' request for a change of corporate officers. The basis for DABT's denial of the application was that it believed that the husband of Anita Grizaffi, Bernard Grizaffi, was a convicted felon and that he was directly or indirectly involved in the beverage license. The parties agree that a loan of $50,000 to the applicants from a corporation which had as one of its officers, directors, and stockholders, a convicted felon, would have given Bernard Grizaffi a direct interest in the beverage license in violation of the applicable provisions of the Beverage Law when that transaction occurred. After the applicants had filed the additional supplemental information and DABT had denied the change of corporate officers, a deposition was taken in Tallahassee of Barry Schoenfeld, the Chief of Licensing for DABT. At said deposition, each source of financial investment utilized by applicants to purchase all of the stock of Cowboy's, Inc., was disclosed and thoroughly considered. Every dollar of the total investment was accounted for and through cancelled checks, every dollar lent to applicants by Bern Builders, Inc., was shown to have been paid back in full solely from' the proceeds of the operation of Cowboy's, Inc., and that no outstanding financial obligation existed to Bern Builders, Inc., or Bernard Grizaffi, individually. At the deposition of Mr. Schoenfeld, affidavits from bankers in Chicago were submitted showing conclusively that a total of $600,000 would have and could have been loaned to Anita Grizaffi, individually, secured and collateralized by her independent financial interests" at any time during the year of 1980. Bernard Grizaffi executed an affidavit stating that it was never his intention to have any interest whatsoever in the beverage license or the stock of Cowboy's, Inc.; that he had not, was not, and would not exercise any dominion and control whatsoever in the operation of Cowboy's, Inc.; that he was not owed any monies whatsoever by Cowboy's, Inc.; and that he would not be entitled to any benefit whatsoever from the operation of Cowboy's, Inc. On May 16, 1980, the sworn statements of four principal managers and employees of Cowboy's, Inc., who were employees prior to, during, and subsequent to the actual closing of the sale and purchase of the stock of Cowboy's, Inc., were taken. Each manager or employee categorically stated that Bernard Grizaffi had no interest whatsoever in Cowboy's, Inc. ; that he had absolutely no power to control Cowboy's, Inc.; that he had never exercised any dominion or control in Cowboy's, Inc.; that they would only take orders from the applicants; and if Bernard Grizaffi ever tried to give them directions or orders, they would first check with applicants prior to doing anything. The only times Bernard Grizaffi had ever been observed in the licensed premises were on obvious social occasions and only on a couple of occasions. On August 22, 1981, the applicants wrote to DABT and indicated that they had and could further demonstrate their financial independence from the otherwise disqualified person. In reply to that letter, DABT clearly demonstrated its policy of permitting changes of corporate officers under like circumstances. Those documents state in applicable part: My client is in a position to show the Division [DABT] that she can and could have, at the time of the actual purchase of the stock occurred finance(d) the entire pur- chase solely from her signature loan. The fact that she chose not to do so at the time of the closing has previously been explained to the Division [DABT] as solely the result of the last minute exigencies necessitated by the sellers at the time of the closing of the deal. My client is prepared to provide to the Division [DABT] affidavits from various bank officers in and around the Chicago area who will attest that each of them would have lent Mrs. Grizaffi, on her signature only, and collateralized by her interest solely, suf- ficient funds to finance the purchase of the stock and the corporation holding the license. At present we possess letters from at least three banks who have indicated that they would have and would today lend to Mrs. Grizaffi in the manner herein contemplated, an amount in excess of $600,000. In addition7 I am prepared to provide to the Division [DABT], an affidavit of the husband that he never intended nor does he have today, nor has he had at any time dur- ing these proceedings, any interest, directly or indirectly, in either the financial acqui- sition of the stock or any right to any financial remuneration from the proceeds of the business. Nor does he have any right nor desire to, nor has he at any time dur- ing these proceedings, run the business. The only connection between himself and the Cowboy's, Inc. is his marital status. (Memorandum from Dennis E. LaRosa, Staff Attorney, to Mary Colson, Assistant Chief of Licensing.) Re: Cowboy's, Inc. In reference to Mr. Curtis's letter to you of August 22, 1980, my opinion is that if Mrs. Grizaffi can demonstrate financial independence of her husband in the manner and method therein described, then the Divi- sion may consider issuing the license. Also, an affidavit from Mr. Grizaffi concerning his interests and intentions would be appro- priate. Please advise if further opinion is required. (From note dated September 2, 1980, from Mary Colson to Barry Schoenfeld, Chief of Licensing.) I agree with Dennis--It would not be the first time we have accepted such documen- tation--your comments, please. Whereupon, applicants, owners of 100 percent of the stock of Cowboy's, Inc., requested a formal administrative hearing challenging the authority of DABT to deny their application for change of corporate officers. Applicants, each individually, meet all of the requirements and qualifications to hold a beverage license.
Recommendation Based on the foregoing, it is RECOMMENDED: That petitioners' application to change the corporate officers of Cowboy's, Inc., be granted. DONE AND RECOMMENDED this 15th day of March, 1982, in Tallahassee, Florida. R. L. CALEEN, JR. Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 15th day of March, 1982. COPIES FURNISHED: Charles L. Curtis, Esquire 1177 Southeast Third Avenue Fort Lauderdale, Florida 33316 James N. Watson, Jr., Esquire Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301 Richard A. Boyd Division of Beverage Post Office Box 8276 Lauderhill, Florida 33310 Charles A. Nuzum, Director Division of Alcoholic Beverages and Tobacco 725 South Bronough Street Tallahassee, Florida 32301
The Issue The issue herein is whether Respondent is guilty of the allegations in the Notice to Show Cause.
Findings Of Fact Based upon all the evidence the following Findings of Fact are determined: Respondent, Annie L. Wright d/b/a Coffee's Draft Beer, is the holder of license number 26-1716,License Series 2-COP, issued by Petitioner, Department of Business Regulation, Division of Alcoholic Beverages and Tobacco (Division). The license authorizes Respondent to operate an establishment at 2601 Pearl Street, Jacksonville, Florida to sell beer and wine with consumption on premises. On or about August 12, 1982, Division Beverage Officer Hamilton visited Respondent's licensed premises for the purpose of purchasing illegal drugs. The officer sat at the bar and ordered a beer. While seated at the bar, he observed a card game in progress on the premises in which U.S. currency was being transferred between the players. He also observed two individuals named Red and Wesley who were smoking two cigarettes that the officer believed to be marijuana. When the officer asked a patron where he could purchase marijuana, he was directed to Nell, a cardplayer, who sold him a manila envelope allegedly containing marijuana for $5.00. A drug analysis performed at a later date confirmed that the envelope did indeed contain 2.6 grams of cannabis. The purchase of the drug was made in plain view of the card players, bartender and other patrons seated at the bar. At no time did the bartender (Faye) attempt to stop the gambling, use of drugs or the sale of drugs or to ask the individuals to leave the premises. On or about August 21, 1982, Officer Hamilton returned to Respondent's licensed premises around 11:15 a.m. Faye was on duty as bartender. While there the officer observed a female named Doris Jean Johnson take out a cigarette and smoke it in the presence of the bartender and another female patron. The cigarette was passed to the other female patron who also smoked it. Based upon the odor emanating from the cigarette, Officer Hamilton believed it was marijuana. While smoking the cigarette Faye cautioned Johnson to be careful since police officers occasionally visited the premises. The beverage officer also observed four unidentified males on the premises playing cards. United States currency was being bet on each game and transferred between the card players upon the completion of the games. On or about August 28, 1982, Beverage Officer Junious visited Re5pondent'5 licensed premises around 6:30 p.m. He sat at the bar and ordered a beer from a bartender named Tommy. Officer Junious asked Tommy where he could purchase some "grass". He was told someone on the premises should have some for sale but he (Tommy) wasn't exactly sure whom. While seated at the bar Officer Junious saw six hand-rolled cigarettes being smoked by patrons in plain view of the bartender and other patrons. Based upon their odor and the manner in which they were smoked, the officer believed the cigarettes to be marijuana. On or about September 4, 1982, Beverage Officer Hamilton visited the licensed premises around 4:10 p.m. and ordered a beer from an unidentified male bartender. He observed a card game in progress in which U.S. money was being bet and transferred between the players. The bartender also took a "cut" from the pot on several occasions. During the game Wesley, a card player, pulled a manila envelope from his pocket, had a female patron roll a cigarette from its contents, and then smoked it. Based upon its odor and the manner in which it was smoked, Officer Hamilton believed the cigarette to be marijuana. On or about September 29, 1982 Beverage Officer Hicks executed a search warrant on the premises and arrested Doris Jean Johnson for possession of cannabis. A laboratory analysis later confirmed that Johnson was in possession 8.6 grams of cannabis. Respondent stated that when the above events occurred, she was working another full-time job. For that reason she hired Faye to manage the establishment. When Faye was hired she was instructed not to permit gambling or smoking on the premises. She also posted a sign on the front of the building which read "No drugs allowed on premises. Because of her full-time job, and the fact she had no transportation and did not live nearby, Respondent visited the premises only at night. When she learned that drugs and gambling had been discovered at her business, she fired all employees who were working during that period of time.
Recommendation Based on the foregoing Findings of Fact and Conclusions of law, it is RECOMMENDED that Respondent be found guilty as charged in the notice to show cause, and that her beverage license number 26-1716 be suspended for a period of thirty days. DONE and RECOMMENDED this 28th day of June, 1983, in Tallahassee, Florida. DONALD R. ALEXANDER Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 28th day of June, 1983. COPIES FURNISHED: James N. Watson, Jr., Esquire 725 South Bronough Street Tallahassee, Florida 32301 Annie L. Wright 1703 North Liberty Street Jacksonville, Florida Howard M. Rasmussen, Director Division of Alcoholic Beverages and Tobacco 725 South Bronough Street Tallahassee, Florida 32301 Gary Rutledge, Secretary Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301
Findings Of Fact At all times relevant hereto, respondent, Jose Luis Rodriguez, operated a small grocery store known as Comodoro Grocery at 1412 Southwest Third Street, Miami, Florida. The establishment has been issued license number 23-01096-2APS by petitioner, Department of Business Regulation, Division of Alcoholic Beverages and Tobacco (Division) . The license authorizes the package sale of beer and wine. Around 6:00 p.m. on December 30, 1987 Division investigators Santana and Garcia visited respondent's licensed premises to ascertain whether narcotics were being sold. The visit was prompted by a complaint of unknown origin. 1/ After observing no sales on the premises, the two investigators each purchased a beer and left the establishment. They returned a few minutes later. While purchasing a second beer, they observed a young black male whom they believed to be a minor take a twelve ounce can of Budweiser beer out of the store refrigerator and carry it to the check-out counter. Respondent was working the cash register but did not ask the customer for an identification card. The customer handed respondent a one dollar bill, received some small change and left the premises with the beer in a paper bag. Investigator Santana followed the customer outside the store, stopped him, requested some form of identification and then confiscated the beer. In response to Santana's request, the customer produced a "restricted driver's license." According to Santana, the license carried the name "Julio Vargas" and reflected a birth date showing that Vargas was a minor. However, this testimony is based upon hearsay declarations and does not supplement or explain other competent evidence of record. Thereafter, Santana and Garcia arrested both the customer and respondent. The customer was cited for being a minor in possession of an alcoholic beverage while respondent was charged with unlawfully selling an alcoholic beverage to a minor. The criminal charge against respondent was later dismissed in county court while the outcome of the case against the customer is not of record. The customer (a/k/a Vargas) was not present at final hearing. Although the arresting officers contended that the customer was the same person whose name appeared on the license, and that he was a minor at the time he was arrested, there is no independent, competent proof of the customer's identity and actual age, such as the testimony of the customer or a copy of the driver's license, birth certificate or other identification. Respondent conceded that the customer in question carried a beer out of the store. However, he contended the customer was with his uncle who had already paid for the beer, that no money was taken from the customer and the nephew was simply retrieving already purchased merchandise. To the extent this version of the events conflicts with the eyewitness testimony of the investigators, it is rejected as not being credible. According to respondent's grandson, who was also working behind the counter that day, the customer paid for the beer but with money furnished by his uncle. However, no independent proof of this assertion was submitted. Respondent has operated his store for some fourteen years. There is no evidence of any prior sales of alcoholic beverages to minors or disciplinary action taken against his license for any violation of state law or agency rules. Respondent intended to present the customer as a witness at final hearing. However, when respondent arrived at the witness' residence on May 10, 1988 to transport him to the hearing, the customer was not there. The witness was not served with a subpoena by either party.
Recommendation Based on the foregoing findings of fact and conclusions of law, it is RECOMMENDED that a Final Order be entered dismissing the charge against respondent. DONE AND ORDERED this 3rd day of June, 1988, in Tallahassee, Leon County, Florida. DONALD R. ALEXANDER Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 3rd day of June, 1987
Findings Of Fact At all times material to the charges raised in this matter, the Respondent, Fresh Start, Inc., was the holder of a valid beverage license No. 62-661, Series 4-COP. That beverage license is issued to the licensed premises located at 7898 U.S. Highway 19, Pinellas Park, Florida, and known as the Strip Ahoy. Mr. Jack Leveritt is president of Fresh Start, Inc., and one of the two owners of that corporation. Mr. Tom Whitaker owns 50 percent of the stock of Fresh Start, Inc., and is vice president of that corporation. Pursuant to a stipulation entered into by and between the parties, on the record at the formal hearing, the following findings of fact are made: Count 1 - On or about March 9, 1983, Theresa Ann White, also known as Teanna, did unlawfully possess, sell and/or deliver controlled substance, diazepan, as defined in Florida Statute 893.03, to Sheriff's Deputy D. Patton, on the licensed premises. Count 2 - On or about March 9, 1983, Theresa Ann White, also known as Teanna, did unlawfully possess, sell and/or deliver a controlled substance, diazepan, as defined in Florida Statute 893.03, to Sheriff's Deputy D. Herrick, on the licensed premises. Count 3 - On or about March 10, 1983, Theresa Ann White, also known as Teanna, did unlawfully possess, sell, and/or deliver a controlled substance, diazepan, as defined in Florida Statute 893.03, to Sheriff's Deputy D. Ferdon, on the licensed premises. Count 4 - On or about March 12, 1983, Theresa Ann White, also known as Teanna, did unlawfully possess, sell, and/or deliver a controlled substance, as defined in Florida Statute 893.03, cannabis, to Sheriff's Deputy D. Ferdon, on the licensed premises. Count 5 - On or about March 20, 1983, Joyce Ann Seville, also known as Sherry, did unlawfully possess, sell and/or deliver a controlled substance as defined in Florida Statutes 893.03, Lysergic acid Diathamine, to Sheriff's Deputy C. Kanehl, on the licensed premises. Count 6 - On or about March 31, 1983, Sherry Ann Peters, also known as Carol, did unlawfully possess, sell, and/or deliver a controlled as defined in Florida Statute 893.03, cannabis, to Sheriff's Deputy D. Herrick, on the licensed premises. Count 7 - On or about April 1, 1983, Elizabeth Chader, also known as Luwanda, did unlawfully possess, sell and/or deliver a controlled substance as defined in Florida Statute 893.03, cocaine, to Sheriff's Deputy C. Kanehl, on the licensed premises. Count 8 - On or about November 29, 1983, Theresa Yerby, also known as Brandy, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, cannabis, to Sheriff's Deputy C. Kanehl, on the licensed premises. Count 9 - On or about December 15, 1983, Theresa Yerby, also known as Brandy, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, cocaine, to Sheriff's Deputy C. Kanehl, on the licensed premises. Count 10- On or about January 8, 1984, Kimberly Grenzbach, also known as Kimberly, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, cocaine, to Beverage Investigators M. Freese and B. Ashley, on the licensed promises. Count 11 - On or about January 12, 1984, Theresa Yerby, also known as Brandy, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, cocaine, to Sheriff's Deputy C. Kanehl, on the licensed premises. Count 12 - On or about January 12, 1984, Cherie Webber, also known as Cherie, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, cocaine, to Beverage Investigator M. Freese, on the licensed premises. Count 13 - On or about January 12, 1984, Kimberly Grenzbach, also known as Kimberly, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, cocaine, to Beverage Investigator M. Freese, on the licensed premises. Count 14 - On or about January 12, 1984, Kimberly Grenzbach, also known as Kimberly, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, cocaine, to Beverage Investigator B. Ashley, on the licensed premises. Count 15 - On or about January 13, 1984, Cherie Webber, also known as Cherie, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, cocaine, to Beverage Investigator B. Ashley, on the licensed premises. Count 16 - On or about January 13, 1984, Kimberly Grenzbach, also known as Kimberly, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, methaqualone, to Beverage Investigator M. Freese, on the licensed premises. Count 17 - On or about January 17, 1984, Kimberly Grenzbach, also known as Kimberly, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, methaqualone, to Beverage Investigator M. Freese, on the licensed premises. Count 18 - On or about January 17, 1984, Kimberly Grenzbach, also known as Kimberly, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, methaqualone, to Beverage Investigator B. Ashley, on the licensed premises. Count 19 - On or about January 19, 1984, Christie Howard, also known as Christie, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, methaqualone, to Sheriff's Deputy C. Kanehl, on the licensed premises. Count 20 - On or about January 28, 1984, Kimberly Grenzbach, also known as Kimberly, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, methaqualone, to Beverage Investigator M. Freese, on the licensed premises. Count 21- On or about February 3, 1984, Theresa Yerby, also known as Brandy, did unlawfully possess, sell, and/or deliver a controlled substance as defined in Florida Statute 893.03, cannabis, to Beverage Investigator B. Ashley, on the licensed premises. Count 24 - On or about the below listed dates and times, entertainers Cody, Cherie, Valerie, Kimberly, Kim and Gayla, while actively engaged as dancers on the licensed premises, did unlawfully beg or solicit, patrons, customers or visitors, Beverage Investigators B. Ashley, D. O'steen and M. Freese to purchase beverages for the entertainers. NO. DATE APPROX. TIME EMPLOYEE VICTIM 1 4-6-83 10:00 P.M. CODY, dancer O'STEEN 2 4-6-83 11:45 P.M. CODY, dancer O'STEEN 3 1-6-84 8:00 P.M. CHERIE, dancer FREESE 4 1-6-84 8:50 P.M. CHERIE, dancer FREESE 5 1-17-84 8:50 P.M. CHERIE, dancer FREESE 6 2-3-84 10:15 P.M. CHERIE, dancer FREESE 7 2-3-84 10:30 P.M. GAYLA, dancer ASHLEY 8 2-3-84 11:00 P.M. KIMBERLY, dancer FREESE 9 2-7-84 7:15 P.M. KIM, barmaid ASHLEY 10 2-7-84 7:30 P.M. VALERIE, dancer ASHLEY 11 2-7-84 11:20 P.M. KIM, barmaid FREESE The transaction referred o in Count I above, occurred on the evening of March 9, 1983. On that particular evening, Deputy D. Patton entered the licensed premises with too other undercover officers and was approached by a dancer named Theresa White. Ms. white and Officer Patton began talking and during the course of the conversation, Ms. White offered to obtain some Valium for Deputy Patton. Officer Patton indicated that he would be interested in purchasing some valium and Ms. White then left him and was seen talking with another dancer at the bar area. A short time later she came back and said there was none left at that time but that she was going to get some later in the evening. Approximately 1 1/2 hours later, she returned to Officer Patton and indicated that she had obtained the diazepan. Officer Patton paid her $5.00 and she gave four diazepan (Valium) tablets to Officer Patton. The money and the tablets were passed under the table out of sight. The purchase of cocaine referred to in Count 10 above occurred on the evening of January 8, 1964. On that particular evening, Beverage Officers B. Ashley and M. Freese, went to the licensed premises and upon entering sat along the west wall of the main lounge area. They were joined by a dancer named Kimberly Grenzbach. They had previously discussed buying some cocaine from Kimberly Grenzbach. Shortly after they arrived, Kimberly and Officer Freese went into the back room of the lounge. The Strip Ahoy Lounge is built somewhat in the shape of a ship with the bow pointing toward the north. In the northern most portion of the lounge is located an office and a dressing room separated by a wall. Just outside the office is a square bar area with stools surrounding the bar. This bar is located in the main lounge portion of the bar which is a room approximately 63 feet long and 27 feet wide. In the southwest corner of the building is located the men's and women's restroom. The back room referred to above is a room located at the southeast corner of the lounge with a doorway leading into the main lounge. This back room is used for table or lap dancing. When Officer Freese and Kimberly went into the back room, they sat at a table and Kimberly took two triangular shaped plastic baggies containing cocaine out of her purse and handed them to Freese. She made no attempt to conceal these baggies. Freese then examined the baggies and handed her $100. The money was handed to her above the table and in the open. The total purchase price of the 2 grams of cocaine was $200 and Freese told Kimberly that Ashley had the other $100. Kimberly and Freese them returned to a large lounge area and sat next to Ashley who then gave the additional $100 to Kimberly. On the evening of January 9, 1984, Officer Freese was in the Strip Ahoy Lounge and went into the back room with Kimberly to examine some cocaine she was proposing to sell him. After entering the back room, they sat at a table and Kimberly took two small plastic baggies of cocaine out of her purse and handed them to Freese. Freese then examined the baggies and said they looked short to him. About that time Cherie Webber and her ex-boyfriend came into the back room and sat at a table. Kimberly then said "Cherie would know if anyone would" whether the baggies were short. Kimberly and Freese then walked over to Cherie's table and Kimberly handed the two baggies to Cherie, who held them up and examined them. Cherie said they looked short to her and she then handed them to her boyfriend who examined them and said it looked like about $60 worth to him. On the evening of January 12, 1984, Officers Ashley and Freese returned to the Strip Ahoy and made the drug purchases referred to in Counts 12, 13, and 14 discussed above. Prior to entering the lounge that evening, the two officers had made arrangements to buy cocaine from Kimberly Grenzbach. After they entered the lounge, they sat and waited for Kimberly and were approached by another dancer named Cherie Webber. Cherie walked by and asked if they wanted any "coke." Coke is a street term or slang for cocaine. Freese and Ashley told her they had already made arrangements to buy some from Kimberly. Cherie then said that she had hers with her now and Freese asked her about the quality of the coke she had. She responded that hers was always good quality. Cherie then sat down and agreed to sell Freese a half gram and said she needed to go into the bathroom because she had a large bag in her purse and she didn't want the small baggies to fall on the fiber when she opened her purse. She went to the bathroom and returned a short time later and sat next to Freese. Ashley was seated on the other side of Freese and observed Cherie hand a small, clear plastic baggie of cocaine to Freese. Freese then handed $50 to Cherie. After completing the purchase from Cherie, Freese went into the back room with Kimberly. They sat at a table and Kimberly handed him two plastic baggies containing cocaine. He held them up and examined them very carefully because of the problem he had on January 9. He tapped the baggies as he examined them and then selected one of the two baggies. He then handed $100 to Kimberly and told her she would have to talk to Ashley about the other gram of cocaine. Handing over the cocaine and the cash was done openly and not concealed. Later, on the evening of January 12, 1984, Freese and Ashley were approached by Kimberly, who walked up and told Ashley she had his cocaine. Ashley then went into the back room with Kimberly and sat at a table. Kimberly handed a clear plastic baggie containing cocaine to Ashley. Ashley held it up at eye level and examined it and then handed cash to Kimberly. There were other patrons and dancers in the room at the time. After purchasing the cocaine from Kimberly, Freese had spoken to Cherie once again and told her that Ashley wanted another half gram. When Ashley rejoined Freese, they left the bar to obtain more money and returned after midnight. While sitting in the back room with a dancer named Brandy, Ashley was approached by Cherie who walked up and asked if he wanted the half gram. She took a large baggie out of her purse. The large baggie contained several small baggies. Ashley then told Brandy she would have to move so he could get some money out of his pocket. He handed $50 to Cherie and she handed him a small baggie containing cocaine. This transaction was openly viewed by Brandy, Kimberly Grenzbach, and Officer Freese. This purchase is referred to in Count 15 above. The purchase discussed in Count 16 above occurred on the evening of January 13, 1984. Prior to going to the Strip Ahoy, Officer Freese had telephoned Kimberly and made arrangements to buy some "gorilla biscuits" which is slang for Quaaludes or methaqualone. After entering the lounge Kimberly walked up to Freese and said she had the Quaaludes. They then went into the back room and sat at a table. Kimberly was working as a dancer this evening and when they sat down, another dancer named Nellie was performing a lap dance for a patron at the next table. Kimberly handed Freese a clear cellophane packet containing 6 capsules of methaqualone. Freese paid her $24. There was no attempt to conceal the transfer of the cash or the methaqualone. On January 17, 1984, Officers Freese and Ashley returned to the licensed premises. They had previously arranged to buy some methaqualone from Kimberly Grenzbach. Shortly after arriving, Freese went into the back room with Kimberly where he purchased three Quaaludes (methaqualone capsules). Prior to paying Kimberly the agreed $12 price, Officer Freese examined the capsules. The cash and capsules were exchanged in open view with no attempt to conceal the exchanges. After completing the transaction with Freese, Kimberly returned to the main lounge area where Ashley was waiting. She took Ashley into the back room where she took a clear cellophane cigarette packet containing 3 capsules of methaqualone out of her purse and handed them to Ashley. Ashley then handed her $12 cash. There was no attempt by either of them to conceal the transfer of the drugs or cash. Officer Freese returned to the licensed premises on January 28, 1984, and made the drug purchase referred to in Count 20 above. Freese had previously phoned Kimberly Grenzbach and arranged to buy 25 methaqualone capsules. When he entered the licensed premises, Freese sat next to the west wall in the main lounge area. He was reined by Kimberly Grenzbach, who told him she had the Quaaludes. She said she would have to go into the dressing room and get them out of the locker. She left and returned a short time later and sat next to Freese. She placed a clear plastic baggie containing the 25 methaqualone capsules on the bench seat between them. Freese picked up the bag and looked at the capsules. Someone walking by at that moment could have seen the bag and capsules. Freese then handed Kimberly $100 in cash. On the evening of February 1, 1984, Officers Freese and Ashley were again in the licensed premises. At one point Officer Freese observed Kimberly Grenzbach talking with a gentleman seated at the bar. Kimberly left the man and walked over to Freese. She said the man at the bar had asked her to go in the back room and dance for him and snort some cocaine. Later, Freese and Kimberly went into the back room and sat at a table. They observed a dancer named Nellie come into the back room with the gentleman that Kimberly had previously been talking to at the bar. Nellie and the man sat at a table across the room from Freese. Freese observed the man take something out of his pocket, pour it on the table and line it up on the table. Kimberly said the man was going to snort coke with Nellie. The man then bent ever the table and made a loud snorting noise. Nellie then bent over the table and made a loud snorting noise. While this was occurring, Officer Ashley had come into the back room to look for Freese. When Ashley entered, Kimberly said, "Hey go over there and tell them you are a cop." Ashley observed Nellie and her male companion lining up a white powder on the table and then heard and observed a loud sniffing of the powder. This is typically the way cocaine is snorted or sniffed. Although the lights were fairly dim, there was sufficient light to observe people completely across the room. While on the licensed premises, Officer Ashley observed numerous other patrons and customers make drug purchases in the lounge. On the first three drug purchases made by Ashley, the dancer selling the drugs initiated the discussion and offered to sell drugs prior to any inquiry about drugs by Ashley. The Strip Ahoy is a topless bar and during the dates discussed above, the women involved in the drug purchases were working as dancers at the lounge. Each of the dancers was required to sign a contract before coming to work at the lounge. They were not paid a salary but danced solely for tips. They received no benefits such as workmen's compensation or Social Security from the Respondent. The contracts (see Respondent's composite Exhibit 2A through 2H) stated that the dancers were of three dances on a stage in an order established by Carl, the doorman. Carl Stone, the doorman and manager, would in the evenings, use a microphone and sound system to inform each dancer when it was her time to dance. While they were not dancing on the stage, the dancers would sit with patrons and perform table or lap dances for them in the back room. The lounge retained the right to approve or disapprove of a particular dancer's dance routine. Carl Stone supervised the dancers, and along with the owners, had the right to fire any dancer. Patrons, at least in part, came to the lounge to see the dancers perform. The lounge decided which dancers worked days and which dancers worked at night. Each dancer was given a copy of the House Rules and a copy was posted in the dressing room. These rules provided: Keep yourself well groomed at all times. Have attractive attire to wear when not performing. No Husbands, Boyfriends, ETC! Allowed while working. No one is to frequent club during off hours. No smoking or drinking while on stage. Only one girl on the stage at a time. No talking while on stage performing. Do not leave club except in street clothes. No sitting on stage bar. No more than two Ladies in dressing room at a time. (Except during beginning or ending of shift.) Any Dancer threatening another will be dismissed. Do not engage in any act which could be considered Lewd or Lascivious. Any Dancer stealing from a customer or other employees will be dismissed and prosecuted. Anyone suspected of Using, Buying or Selling of Drugs will be dismissed immediately. NO LOUD TALKING OR SHOUTING IN ROOM. KEEP YOUR VOICES DOWN. NO WHISTLING!! The individual who was responsible for the management and supervision of the club in the evenings from 7:00 p.m. to closing time at 2:00 a.m. was Carl Stone. He controlled the conduct of the dancers. Carl Stone was employed by the lounge as a salaried employee from April 1983 to August 26, 1983. In August, 1983, Carl Stone was also required to enter into a contract which stated he was an independent contractor and not entitled to a salary or other benefits. He was subject to the supervision, orders, advise, and direction of Respondent and was to provide management of the exotic dancers. Mr. Stone performed the same function and duties after this agreement as he did before the agreement was executed. When the owners were absent from the lounge at night, Carl was the sole person in charge. He worked at the door and collected the cover charge from 7:00 p.m. until 1:15 a.m. The first eight months of operation, Tom Whitaker was in the club almost every night. However, the last four months of operation, he generally did not come into the club until midnight or 1:00 a.m. On Friday and Saturday nights, there were two waitresses in the lounge. On other nights there was only one waitress. The waitresses were responsible for serving drinks in the lounge area and the back room and were the persons responsible for checking on the activities of the dancers in the back room on a regular basis. The back room could not be observed from the bar area, the office, or the entrance area. The door of the office has a two-way mirror which permits the owners to observe most of the main lounge from the office. During the year 1983, the owners gave polygraph exams on two occasions to all employees. One waitress, named Elizabeth Chader, had previously worked as a dancer and was fired after failing the polygraph on two questions relating to money and knowledge of drug activity on the licensed premises. This woman was also known as Luwanda and is the individual who sold drugs referred to in Count 7 discussed above. One of the owners, Jack Leverett, was questioned by the police about this dancer some time after she was fired and he gave them all the information he had. Dancers were not considered employees and were only polygraphed if a specific complaint was received. No dancers were polygraphed regarding drug activity. One dancer was fired after a bartender caught her with a needle in her arm in the restroom and reported it to the owners. Carl fired one dancer named Nikki after he observed her erratic behavior and found needle tracks on her arm. On at least two occasions, the owners called the Pinellas Park Police Department regarding suspected drug activity by patrons in the club. No such calls were made about any of the dancers at the club. When the club initially opened, a lot of "bikers" or motorcycle gang members frequented the club. The owners used a strict dress code and discouragement to eliminate these types of patrons from the club. The main lounge area and back room are dimly lit with candles on each table. The stage in the main lounge has lights in the floor and running red lights above. There are also lights in the bar area. The dim lighting makes it more difficult to observe the activities of dancers and patrons in the bar. The number of dancers in the club varied from 6 to 10 per shift. Typically, over an entire shift between 100 to 150 patrons would come into the club.
Recommendation Based upon the foregoing findings of fact and conclusions of law, it is RECOMMENDED That the Petitioner enter a final order finding the Respondent guilty of the violations as charged in the Notice to Show Cause and suspending Beverage License No. 82-661 for a period of nine (9) months and imposing a civil penalty of $10,000. DONE AND ENTERED this 15th day of March, 1984, in Tallahassee, Florida. MARVIN E. CHAVIS Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 15th day of March, 1984. COPIES FURNISHED: William A. Hatch, Esquire Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301 Joseph F. MeDermott, Esq. 544 First Avenue North Division of Administrative St. Petersburg, Florida Michael N. Athanason, Esq. 500-First Avenue North St. Petersburg, Florida 33701 Howard M. Rasmussen, Director Division of Alcoholic Beverages and Tobacco 725 South Bronough Street Tallahassee, Florida 32301 Gary R. Rutledge, Secretary Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301
The Issue Whether Respondent's beverage license should be suspended or revoked, or a civil penalty assessed, for an alleged violation of Sections 562.12 and 562.02, Florida Statutes, pursuant to Section 561.29, Florida Statutes, as set forth in Notice to Show Cause issued by Petitioner. The hearing was originally scheduled for December 8, 1977, but Respondent filed a motion for continuance which was granted by the Hearing Officer, and the hearing was rescheduled for January 18, 1978. Another hearing on that date precluded reaching the instant case and therefore the matter was again continued until January 30, 1978. At the hearing, Respondent moved to dismiss the charges on the ground that the Notice of Hearing issued by the Hearing Officer on November 21, 1977, was defective in that it did not adequately describe Petitioner's Notice to Show Cause or attach it to the Notice of Hearing. The motion was denied upon a determination that Respondent had adequately been placed on notice as to the nature of the offenses charged and due to the fact that the notice to show cause had been sent by certified mail to Respondent and that the receipt thereof on August 13, 1977, which reflected his signature, was not contested. Further, Respondent's motion for continuance indicates that his counsel was aware of the subject matter of the charges. Additionally, if such had not been the case, Respondent had more than ample opportunity during the periods in which the case was continued to seek amplification or clarification of the issues involved as set forth in the Notice of Hearing. Respondent also inquired as to whether Chapter 120, Florida Statutes, requires that the Hearing Officer have access to a hearing transcript prior to rendering a Recommended Order to the Petitioner. The undersigned Hearing Officer ruled that such a transcript is unnecessary under applicable law and regulation, specifically Rule 28-5.25(7), Florida Administrative Code, which provides that at a hearing during which the services of a court reporter have been retained, any party who wishes a written copy of the testimony shall order the same at his own expense. Upon inquiry by the Hearing Officer, both parties to the proceedings indicated that they did not intend to order a transcript of the testimony adduced at the hearing. Accordingly, the Hearing Officer advised respondent that the Recommended Order in this matter would be prepared without access to such a transcript.
Findings Of Fact Respondent, Harold V. Edwards, holds License No. 30-23, Series 1-COP, issued to him in the name of "Edwards Store,' Chattahoochee, Florida, and held the same at the time of the alleged violations charged by Petitioner in this matter. A series 1-COP license authorizes the sale of beer for consumption on the licensed premises only. (Petitioner's Exhibit 1, Testimony of Sams) At approximately 10:00 a.m. on August 15, 1976, Petitioner's beverage officer, Gary E. Sams, drove a paid informant, Guy Williams, to a place near Respondent's place of business where they met another beverage agent, Fred Miller, who was in a separate vehicle. At that time, Sams searched Williams and determined that he had no alcoholic beverages or money on his person. Sams gave him $5.00. Williams then proceeded to drive Sams' vehicle to Edwards' Store with Sams in a prone position in the back seat. Upon arrival, Williams entered the store and ordered a half pint of Seagrams gin from a short, chunky, heavy built, white woman behind the counter. He also purchased a beer. He observed the woman go through a door in the back of the store, and she thereafter returned with a sealed bottle labeled "Seagrams Extra Dry Gin." She gave him $2.20 change from a $5.00 bill which he had given her. Williams thereupon returned to the car outside and he and Sams returned to the area where Miller had been waiting. Sams opened the bottle and determined that it was liquor by its smell. He permitted Williams to take two drinks from the bottle and Williams determined that it was gin. Sams placed an identification label on the bottle which he and Williams signed and it was later placed in Petitioner's evidence room in their Tallahassee office. On some date between August 15 and August 29, 1976, Sams inspected Respondent's premises at which time Respondent's wife, Louise Edwards, signed a state inspection form. Sams noted that she met the general description of the woman who had sold Williams alcoholic beverages on August 15. Mrs. Edwards told Sams at this time that she and her husband were the only persons who worked at the store. Sams thereafter inserted her name on the identification label of the bottle turned over to him by Williams to reflect that she had been the seller of the alcoholic beverages. At the hearing, Respondent attacked the credibility of Williams based on what are considered by the Hearing Officer to be minor discrepancies in his testimony. It is found that his testimony, in conjunction with that of Sams, is sufficient to establish that Louise Edwards sold him a half-pint bottle of Seagrams Extra Dry Gin on August 15, 1978, at Respondent's licensed premises. (Testimony of Sams, Miller, Williams, Petitioner's Exhibit 2) On August 24, 1976, a warrant was issued by the Circuit Court of Gadsden County, Florida, authorizing the search of Respondent's premises, together with the curtilage and all outbuildings. On August 29, 1976, at about 10:30 a.m., Sams, Miller, and other beverage agents and county law enforcement officials entered Respondent's store at which time Sams served the search warrant on Louise Edwards. She went to the living quarters of the building behind the store and Miller heard her go down the hallway and close a door. Miller proceeded down the hallway and found that one door at the end of the hallway was locked. When Mrs. Edwards was asked if she had the key, she replied in the negative, stating that it was her daughter's room and that no one was allowed to go in. At that point, Miller opened the lock with a jackknife. In the room, the agents found a number of cases of alcoholic beverages containing some 252 bottles of assorted sizes and brands of whiskey, vodka, rum, and gin. The bottles were found in a paper sack which Mrs. Edwards said had been given to her husband by a friend and were "not for resale." The agents inventoried the contents of the room, placed identification tags on the items and placed the seized articles in the evidence room of Respondent at Tallahassee. Although the room where the liquor was found was once a separate building, it has been joined to the main building by means of the hallway and there was free access between the structures. Respondent was in a bed in the living quarters at the time of the search. (Testimony of Sams, Miller, Petitioner's Exhibits 1-4)
Recommendation That Petitioner impose a civil penalty of $500 against Respondent, Harold V. Edwards, under the authority of Section 561.29(1)(b) and (4), Florida Statutes, for violation of Sections 562.02 and 562.12, Florida Statutes. DONE and ENTERED this 15th day of February, 1978, in Tallahassee, Florida. THOMAS C. OLDHAM Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304 (904) 488-9675 COPIES FURNISHED: Francis Bayley, Esquire Department of Business Regulation The Johns Building Tallahassee, Florida 32304 Jack A. Harnett, Esquire Post Office Box 706 Quincy, Florida 32351 Charles Nuzum, Director Division of Beverage Department of Business Regulation State of Florida Johns Building 725 South Bronough Street Tallahassee, Florida 32304
The Issue Whether or not on or about April 3, 1979, Terwell, Inc., d/b/a Nite Gallery II, licensed under the Beverage Law, its servant, agent, or employee, one Rina Norman, did solicit Robert Hutter for the purpose of committing a lewd act, to-wit; fellatio, contrary to Section 796.07, Florida Statutes, and Section 561.29, Florida Statutes. Whether or not on or about April 3, 1979, Terwell, Inc., d/b/a Nite Gallery II, licensed under the Beverage Law, its servant, agent, or employee, one Heather Lovell did commit a lewd act, to-wit; oral copulation on one Steven Lee Hobson, contrary to Section 796.07, Florida Statutes, and Section 561.29, Florida Statutes. Whether or not on or about April 12, 1979, Terwell, Inc., d/b/a Nite Gallery II, licensed under the Beverage Law, its servant, agent, or employee, one Susan Edith Laursen, did commit a lewd act, to-wit; fellatio, on one Norman Eric Williams, contrary to Section 796.07, Florida Statutes, and Section 561.29, Florida Statutes. Whether or not on or about July 20, 1979, Terwell, Inc., d/b/a Mite Gallery II, licensed under the Beverage Law, its servant, agent, or employee, one Connie Nadine Reeves did solicit Beverage Officers F. J. Dunbar and P. M. Roberts for the purposes of prostitution, contrary to Section 796.07, Florida Statutes, and Section 561.29, Florida Statutes.
Findings Of Fact The Respondent in this cause is Terwell, Inc. This corporation is the holder of beverage license No. 58-1134, Series 2-COP, to trade as Nite Gallery II at a business premises located at 1720 Lee Road, Orlando, Florida. This license is held with the Petitioner, State of Florida, Division of Alcoholic Beverages and Tobacco, which organization has the responsibility of the licensure and regulation of those several business entities within the State that sell alcoholic beverages. On April 3, 1979, Officer Robert T. Hutter of the Orlando, Florida, Police Department went to the licensed premises at 1720 Lee Road. Officer Hutter was in the company of Police Officer Barrett of the same department. The two officers entered the bar in an undercover capacity and sat down and ordered a beer. After a moment, the officers were approached by a female who was a dancer in the licensed premises. The dancer's name was Rina Norman and in conversation Norman asked the officers if they wanted a "blow job" for $25.00. (This expression pertains to an offer to commit fellatio.) Rina Norman was subsequently arrested by Officer Hutter and was allowed to go to the back of the licensed premises to a dressing room area and to change from her "go go" outfit into street clothes. The suspect, Rina Norman, had also been seen dancing as a performer on the licensed premises prior to her apprehension. On the same evening, April 3, 1979, Officer Barrett had been contacted by two females in the licensed premises and from his encounter with those individuals determined to arrest them for assignation to commit prostitution or lewdness. The officer went outside briefly and then reentered the licensed premises to look for the two suspect females. One of the areas which he examined in his search for the suspects was an area in which there are two booths with curtains across the front opening of the cubicles. These booths are located down a hall leading to the female dancers' dressing room area which is on the west side of the bar. In looking in one of the booths, Officer Barrett pulled hack the curtain and found a woman identified as Heather Lovell committing an act of fellatio on a man who was in the booth with her. Lovell was-wearing a "go go" costume at the time she was seen involved in this activity. She was placed under arrest and went to the dressing room area to put on street clothes after the arrest was effected. The dressing room area which Lovell used was the same area used by Rina Norman. Lovell had also been seen by Officer Barrett in the licensed premises at an earlier time on the evening of April 3, 1979. Officers Hutter and Barrett went back to the licensed premises in the company of Beverage Officers Wallace and Boyd on April 12, 1979. At that time, Officer Hutter went to the booth area spoken of before to investigate for lewd acts. When Officer Butter pulled back the curtain to one of the booths, he observed Susan Laursen performing fellatio on a man located in the booth with her. Laursen and the man were arrested and Laursen went back to the dressing room area mentioned before to change into her street clothes. Beverage Officers Dunbar and Boyd returned to the licensed premises on July 20, 1979, at around 11:35 p.m. for the purpose of investigating alleged prostitution which was occurring in the licensed premises. The two officers seated themselves inside the bar area and they were approached by Connie Nadine Reeves, who sat by them and asked them if they would like to have a private party in the back, which would include nude dancing and a "blow job", meaning fellatio. Officer Dunbar asked if this entertainment was free and Reeves replied that, "No, the 'blow job' (fellatio) is $25.00 and dancing is $10.00." Beverage Officer Roberts had not heard this overture from Reeves and Dunbar asked Reeves to repeat her statements, which she did. Roberts then went with Reeves to the back part of the area of the hallway and the two booths which have been mentioned before. Beverage Officer Dunbar went outside to pain the assistance of the other Beverage Officer and the local police officers for purposes of effecting an arrest of Connie Nadine Reeves. Roberts followed Reeves down the hallway and into one of the booths. Reeves had motioned Roberts to follow her to this location. Reeves repeated the statement that it would cost $25.00 for a "blow job" (fellatio) and Roberts gave her $30.00 and she replied that she would keep $5.00 for a tip. Roberts seated himself on a chair in the room and Reeves told him to "Go ahead and pull it out" and he replied that he was not turned on and that she should dance. Reeves took her clothes off and danced for a few moments and then there was some problem with the music and she yelled out of the room for someone to get the jukebox working. This problem with the jukebox occurred a couple of times. At this point, Roberts arrested Reeves for violation of Section 796.07, Florida Statutes, pertaining to lewd acts. In the interim, Beverage Officer Dunbar and the other law enforcement officers had entered or reentered the licensed premises and attempted to go up the hallway to the booth area and were confronted by a number of females in "go go" attire who tried to keep them from going into that area and in doing so stated that the area was private and was to be used by employees only, referring to the area of the booths. Officer Dunbar went back to the booth where Roberts had made his arrest and at this point Reeves was protesting her arrest and acting belligerent. Dunbar left that location and met Beverage Officer Wallace, who was talking to Ron Wells, a corporate officer of the Respondent. Wells was asked to go with Dunbar to try to convince Reeves to accompany the officers without further incident. The officers asked Wells if Reeves were his employee and Wells responded that she was. Wells was then told by Dunbar to straighten her out, meaning that if she did not get dressed they would take her into custody without clothing. Wells then talked to Reeves and she left and went to the dressing room mentioned before in this case and dressed herself. Reeves also stated that she was an employee at the licensed premises.
Recommendation It is, therefore, RECOMMENDED that the beverage license of the Respondent, Terwell, Inc., No. 58-1134, Series 2-COP, which allows the Respondent to trade as Nite Gallery II in a business premises located at 1720 Lee Road, Orlando, Florida, be REVOKED. DONE AND ENTERED this 10th day of March, 1980, in Tallahassee, Florida. CHARLES C. ADAMS, Hearing Officer Division of Administrative Hearings Room 101, Collins Building Tallahassee, Florida 32301 (904) 488-9675
