Findings Of Fact On May 11, 1977, at an establishment advertised as Mr. Big Stuff's Bedroom, female topless dancers were observed either straddling customers legs or dancing between customers legs while either placing their breasts close to or touching the customers' faces. No evidence was introduced purporting to establish that any of the performers were agents, servants or employees of Central Florida Clubs. Accordingly, it is found, as a matter of fact, that the performers were not agents, servants or employees of Central Florida Clubs. No evidence was introduced purporting to demonstrate whether, to the average person applying contemporary community standards, the dominant theme of the dance, taken as a whole, appealed to prurient interests. Accordingly, it is found, as a matter of fact, that to the average person, applying contemporary community standards, the dominant theme of the dance presented at Mr. Big Stuff's Bedroom, taken as a whole, did not appeal to prurient interests. No evidence was introduced purporting to demonstrate whether Mr. Big Stuff's Bedroom was operated under the auspices of the licensee, Central Florida Clubs. Accordingly, it is found, as a matter of fact, that Mr. Big Stuff's Bedroom was not operating under the auspices of the licensee, Central Florida Clubs. On May 11, 1977, an unidentified person declared that if one drink were purchased, then a second drink, at a reduced price, would be provided for a waitress. No evidence was introduced as to the identity of the person nor purporting to establish that such person was an agent, servant or employee or entertainer of Central Florida Clubs. Accordingly, it is found, as a matter of fact, that the unidentified person was not an agent, servant, employee or entertainer of Central Florida Clubs. No evidence was introduced purporting to establish that Harold Ernest Squires, Jr., was an agent, servant or employee of Central Florida Clubs, or that Harold Ernest Squires, Jr., did knowingly permit one Joyce Marie Polakowski to loiter in or about the licensed premises for the purpose of begging or soliciting a person, customer or visitor, to purchase a beverage. Accordingly, it is found, as a matter of fact, that Harold Ernest Squires, Jr., was not an agent, servant or employee of Central Florida Clubs and that Harold Ernest Squires, Jr., did not knowingly permit Joyce Marie Polakowski or any other person to loiter in or about the license premises for the purpose of begging or soliciting a customer to purchase a beverage.
Findings Of Fact At all times pertinent to the allegations contained herein, Respondent FCB, Inc., d/b/a Unicorn Liquors Fantasy Show Bar (Show Bar) was the holder of Florida Alcoholic Beverage License Series 4-COP, No. 15-00398 for the Fantasy Show Bar located at 104 Cleveland Avenue, Cocoa Beach, Florida. During the course of an ongoing investigation by the United States Division of Alcohol, Tobacco and Firearms, (DATF); the United States Drug Enforcement Agency (DEA); and the Florida Department of Alcoholic Beverages and Tobacco, investigators and agents of all three agencies had been in the Cocoa Beach area since the end of February, 1984, regarding a list of some twenty (20) bars and lounges in the area about which complaints, regarding drugs had been received. During this time, using a investigator, Beverage Officer Smith had made friends with one of the dancers at the Show Bar, a woman named Janice Becker, who use the stage name "Angel." At approximately 10:30 p.m. on April 3, 1984, Smith and DATF Agent Altman, working together in an undercover capacity, entered the Show Bar. The bar was more well lit than most bars and they were able to see quite clearly. They took seats near the runway and shortly afterwards observed what to them appeared to be a surreptitious transfer of contraband from one dancer to another. The subject of the transfer, a small clear envelope of a white powdery substance was wrapped by both dancers in a napkin when not in their purses except for the time it fell to the floor and was observed by Altman. One dancer then handed money to the other in return. When Smith approached one of the two dancers involved, Nora, and asked for some cocaine for herself, Nora indicated she had none available but tried unsuccessfully to get some from another dancer, Lynn. Just at this time, Angel came up and engaged in a discussion regarding cocaine with Smith and Altman. She stated that she had some cocaine herself that she would give them after she danced for some customers. Some thirty (30) minutes later Angel came back and placed a folded $1.00 bill in Altman's hand. Altman gave the hill to Smith who immediately took it into the 1dies' restroom where she opened it and found a white powdery substance later properly determined to be cocaine. When Altman asked Angel what he owed her for the substance, she replied that it was a gift from her. She also stated that if he needed more in the future she could make it available in quantities of one half (1/2) or one (1) gram and would deliver to their residence or to the Show Bar. Altman and Smith again went into the Show Bar at about 10:30 p.m. on April 10,1954. When they entered, Angel came up to them and said she could not get the cocaine that Smith had previously ordered by phone for delivery at the Show Bar. Angel said that Barbie, another dancer at the bar, could get it in quantities of one half (1/2) to one (1) gram for $50.00 and $100.00 respectively. When Smith asked for one (1) gram and asked Angel what she wanted for her trouble, Angel said she would take a "line". Angel then made a call from a pay phone after which she told Smith the cocaine would be delivered by her source, Tony, within a short while. Angel then went off to dance after a short conversation and, when finished, returned to Smith and Altman and asked them for $100.00 for the cocaine. When Altman paid her, she went over to another table where she talked with a male identified as Tommy. After speaking with him for a few minutes, she came back and said that since Tony had not contacted him, he did not have a full gram. When Altman heard this, he took back the $100.00 bill and gave Angel $50.00 for one half (1/2) gram. Angel went back to Tommy's table, then went into the dancer's dressing room, and returned to Altman and Smith's table where she made delivery of the substance later identified as cocaine. When Altman asked Angel if she needed a blade to take her "line", she replied that there was a blade in the dressing room that all the girls used. Altman and Smith came back to the Show Bar early on the evening of April 19, 1984. When they came in, Nora, one of the dancers they had seen involved in the surreptitious exchange on April 3, came up to Smith and asked her if she wanted any. When Smith indicated she did, they all went into the main bar and ordered drinks. During this time Nora mentioned she had given some cocaine to Barbie, another dancer. When Smith asked Nora how much she was charging, she was told $50.00 for one half (1/2) gram. Nora then told Smith to come with her into the restroom where when the transfer was made. Smith gave Nora $50.00 and Nora gave Smith a substance later identified as cocaine. On April 27, 1984. Smith and Altman, this time accompanied by DEA Agent Eslinger, entered the Show Bar at about 11:15 p.m. This time they were approached by a dancer, Samantha, with whom they discussed cocaine use in general, but made no buy. Somewhat later, a female patron known to Smith as Deosia, came up to Smith and indicated she had some good "stuff" for sale. Smith was then told to go to the restroom and Deosia would get some cocaine for her. When she got there, Smith paid Deosia $80.00 and the two women left. On the way out of the restroom, Deosia stopped to talk with a male she identified as Doug and asked him for some cocaine. Smith went back to her table from which she saw Doug leave the premises, only to return ten (10) minutes later. Somewhat later, Deosia came to Smith's table and gave her two small packages subsequently identified as cocaine, from which, she said, she had taken out her "lines" as a finder's fee. The three investigators came back to the Show Bar the following night, April 28, hoping to find Nora and Deosia, and sat at a table. Shortly thereafter, Deosia came up and said she had started to work there as a dancer that night. She sat down beside Smith and told her she could get her one-eighth (1/8) ounce of cocaine and that it was much cheaper to buy it that way. The agents discussed among themselves, in front of Deosia who then went and made a phone call; returning shortly to say the deal had been set up. She then wrote out the address where they could pick up the cocaine and asked for and received from Eslinger a $20.00 fee for setting up the deal. The officers subsequently went to the address which Deosia had given them where they paid for and received a substance subsequently identified as cocaine. When Smith, Altman and Eslinger next went back to the Show Bar on the night of May 2, 1984, they were approached by the dancer, Samantha, who sat down next to Smith. They talked for a while about who had cocaine available and Samantha left to go dance. After she left, two males known to the agents to be drug dealers came up and sat down to talk. While they were there, Deosia came up and Smith asked her if she could get one eighth (1/8) of an ounce of cocaine. Deosia started to talk with one of the two men (Hair) and later asked Smith if she had $225.00. When Smith said she did, Deosia told her to come to the restroom where Smith gave Deosia $225.00. Deosia than talked to Hair after which she told Smith the cocaine was available for pick-up at a near by bottle club. After some discussion, it was decided that Altman would go with Deosia to get the cocaine and Smith and Eslinger would wait at the Show Bar. While Smith and Eslinger were waiting, another dancer, named Brandy, came up to Smith and engaged her in a discussion about cocaine transactions. When Deosia came back with Altman, she asked Smith to come into the restroom with her. In there, she pulled a substance later identified as cocaine out of her waistband, cut out her "line" which she "snorted" right there, and turned over the rest to Smith. Smith also bought cocaine from Brand, a dancer at the Show Bar, when she and her associates went in on the nights of May 4, 1984. Brandy told Smith she had fronted $50.00 for cocaine for her earlier in the evening when the source had come in. Smith gave Brandy $50.00 whereupon Brandy got up and went to the dressing room. When she came back five (5) minutes later, she gave Smith a folded $1.00 bill which contained what was later identified as cocaine. In a discussion there at the table, Brandy said, in response to an inquiry by Smith, that she could get cocaine in one eighth (1/8) ounce quantities and more. Smith gave her $50.00 for more cocaine to be delivered later. During their discussion, Brandy indicated that before coming to work at the Show Bar, she did not use cocaine but that she does now because it was so prevalent there. The three agents did not come back to the Show Bar again until the night of June 5, 1984. When they entered that night, they were met at the front door by a gentlemen they knew as Jim Knox who had previously been identified as the assistant manager of the club. Knox asked them to join him at his table which Smith did, while Eslinger and Altman stopped to talk with another patron. While Smith was sitting at Knox's table with Knox, Brandy came up and asked her if she wanted to buy some cocaine, to which Smith said she would buy one half (1/2) gram. Brandy left and shortly came back and sat down next to Smith and told her her source was going to another club to get the cocaine. Smith then gave Brandy a $50.00 bill and continued her conversation with Knox who had been sitting there all along. Shortly thereafter, Knox left and Brandy came back and placed a match box on the table indicating that the cocaine was in it. She then left to dance. Smith picked up the match box, opened it, and took out a plastic bag containing a white powder which was subsequently identified as cocaine. Lowell M. Tatum, a certified polygraph operator was asked by Fred Burgett, owner of the Show Bar, about eight or nine months prior to the hearing to do a series of polygraph examinations of his employees covering such areas as prostitution, drugs, thefts of merchandise, and the like. As a result he ran tests of the managers and cashiers, bouncers, waitresses and dancers, several times per month, with questions relating to the examinee's knowledge of the use or sale of drugs on the premises. These examinations were run more than once on each person and the results were furnished to Mr. Burgett. As a result of these examinations, management became aware of the possibility of drugs in the Show Bar and the suspects were discharged. John W. Lageman was hired as manager by Mr. Burgett approximately three and a half months before the closure. He was briefed on management's policies which included a strict prohibition against drugs and underage drinkers. When he was hired, he was not made aware of any problem regarding prostitution or drugs nothwithstanding Mr. Burgett's feeling, as indicated by his testimony, that in any bar of this size, there will always be some drug and prostitution activity. His instructions were to terminate any employee found involved in prostitution or drugs and to call the police when he had information a patron was dealing in drugs. Whenever he did that, however, the police would not arrest the offender but let him go. Mr. Burgett, who is a full time employee of the National Aeronautics and Space Administration at Kennedy Space Center and who operated this and another bar as an investment, has been in the bar business for twelve years. In that time he has never had a beverage citation in any capacity. Just recently, he contends, a representative of Department of Alcoholic Beverage and Tobacco advised him his operation was "fine". In order to combat what he recognizes as the very real risk of drugs and prostitution in any bar, he has arranged for not only the polygraph tests mentioned above, but also stress analysis of his employees, and uses spotters from outside the club. His anti-drug/prostitution efforts cost him about $1,000.00 per month. Nora was fired because she was suspected of prostitution and Samantha and her cousin Sonya also left. The management got information on Brandy's actions on June 8th, 1984 and were about to discharge her. Coincidently, the Emergency Order of Closure was served before that could be done. There is some sort of program within Department of Alcoholic Beverage and Tobacco to assist licensed holders to keep out drug activity and prostitution. Notice of this policy was contained in a letter dated March 8, 1984 from the Director of Department of Alcoholic Beverage and Tobacco to all licensees. Unfortunately, Kevin Ashcroft, an agent in the Department of Alcoholic Beverage and Tobacco office in Rockledge, Florida, did not know much about their program and could not recall providing any assistance to any licensee in the area. He contends that while Respondent's efforts are laudatory, they are insufficient per se because they did not work and, therefore, Respondent must be liable. It is his opinion that it is the responsibility of the licensee to insure that whatever steps he takes are successful. The Division of Administrative Hearings has jurisdiction over the parties and the subject matter of the proceedings. In subparagraphs 1 - 3 and 5 - 7 of the Notice to Show Cause, the Petitioner alleges that on diverse occasions during April through early June, 1984, employees of the Respondent either sold or delivered a controlled substance, cocaine, to State or Federal agents, on the licensed premises in violation of Sections 893.13 and 576.29(1)(a), Florida Statutes (1983). Section makes it unlawful to sell or otherwise transfer controlled substances of which cocaine is one. Section 561.29(1)(a) provides that a liquor license may be disciplined upon the showing of: Violation by the licensee or his its agents, officers, servants, or employees, on the licensed premises, or elsewhere while in the scope of employment; of any of the laws of this state or of the United States, or violation of any municipal or county regulation in regard to the hours of sale, service, or consumption of alcoholic beverages, or engaging in or permitting disorderly conduct on the licensed premises, or permitting another on the licensed premises to violate any of the laws of this state or of the United States; except that whether or not the licensee or his or its agents, officers, servants, or employees have been convicted in any criminal court of any violation as set forth in this paragraph shall not be considered in proceedings before the division for suspension or revocation of a license except as permitted by chapter 92 or the rules of evidence. The testimony of Agent Smith, uncontradicted by the Respondent, is sufficient to support a conclusion that these violations, as alleged, took place. In Subparagraph (4) of the Notice To Show Cause, Petitioner alleges that on April 28, 1984, an employee of Respondent aided and abetted the sale or delivery of cocaine to the agent as alleged. The additional statutory provision cited here is Section 777.011, Florida Statutes, which makes the aider and abettor of an offense punishable as a principal. The other statutes allegedly violated here are the same as discussed in the paragraph next above. Again, the evidence presented by the Petitioner, uncontradicted by the Respondent, clearly establishes the violation. In paragraph 8 of the Notice To Show Cause, Petitioner alleges that during the period alleged and described in the Findings of Fact, supra, Respondent maintained a public nuisance on its licensed premises by maintaining it as a place used for the keeping, selling, and delivery of controlled substances in violation of Section 823.10, Florida Statutes. The evidence taken as a whole indicates the licensed premises repeatedly served as the locus for the sale and delivery of cocaine, a controlled substance, by several different employees of the license holder, and this allegation has clearly been established. The same evidence also clearly establishes the violation alleged in subparagraph of the Notice To Show Cause. The prosecuted conduct here is a violation of Section 893.13(2)(5), Florida Statutes, which makes it a misdemeanor of the first degree to keep a place which is used for the selling of controlled substances and, as well, a violation of Section 561.29(1)(a) and (c), Florida Statutes. Once it is established, as here, that the offenses alleged, in fact occurred, the questions then remains as to what, if anything, can and should be done about it. It is clear that the Petitioner has the authority to discipline a license holder when it finds that either the licensee or its agents have violated certain laws of the State on the licensed premises. 23 A showing of only one isolated violation, when combined with a showing that the licensee otherwise took pains to obey the law, would not normally support a revocation or, perhaps, even discipline. If, however, the evidence shows that the law has been repeatedly and flagrantly violated by the licensee's employees, an inference arises that the violations were fostered, condoned or negligently overlooked by the licensee; Pauline v. Lee, 147 So.2d 359 (Fla. 2nd DCA, 1962); Lash, Inc., v. State, Department of Business Regulation, 411 So 2d 276 (Fla. 3rd DCA 1982). A licensee, therefore, has the obligation to maintain sufficient intelligence with regard to its own establishment so as to know, at least generally, what its employees are doing, and its failure of proper management; G&H of Jacksonville, Inc. v. State, Department of Business Regulation, (371 So2d 138 (Fla. 1st DCA 1979). In this case, the evidence shows that not merely one but several of the dancers employed by the licensee not only used but also dealt in cocaine. Though some effort was made to conceal these transactions by wrapping the cocaine in dollar bills or napkins, or by effecting the transfers in the ladies' restroom, many were consummated in the lounge and by far the greatest part of the negotiations were carried on there. Respondent made much of his effort to keep drugs out of the licensed premises but it is obvious that either he failed to get the word to his assistant manager, Jim Knox, or that gentleman did not take it seriously. No doubt Respondent did make some effort in that direction but as an owner who did not spend his full time as management, he failed to insure that those he left in charge supported his policies. This is not, however, to adopt the attitude of Mr. Ashcroft that if efforts do not work, they are inadequate. The law does not impose that strict a degree of liability. Consequently, while the Respondent had the responsibility to properly supervise its establishment and clearly failed to do so here, and though the sales were repeated and by several different employees, it cannot be said that the Respondent's negligence justifies revocation under the circumstances of this case. See also Rex Allen Jones, t/a Happy Hour v. State, Division of Alcoholic Beverages and Tobacco, Case No. AO-132 (Fla. 1st DCA 1984), Opinion filed March 30, 1984. RECOMMENDED ACTION Based on the foregoing Findings of Fact and Conclusions of law, it is, therefore, RECOMMENDED that Respondent FCB, Inc. d/b/a Unicorn Liquors Fantasy Show Bar, pay a fine of $5,000.00. DONE and RECOMMENDED this 10 day of August, 1984, in Tallahassee, Leon County, Florida. ARNOLD H. POLLOCK, Hearing Officer Division of Administrative Hearings 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 10 day of August, 1984. COPIES FURNISHED: William A. Hatch, Staff Attorney Department of Business Regulation The Johns Building 725 South Bronough Street Tallahassee, Florida 32301 James R. Dressler, Esquire 110 Dixie Lane Cocoa Beach, Florida 32931 Howard M. Rasmussen, Director Department of Business Regulation Division of Alcoholic Beverages and Tobacco 725 South Bronough Street The Johns Building Tallahassee, Florida 32301 Gary R. Rutledge, Secretary Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301
The Issue The central issue in these cases is whether the Respondents are guilty of the violations alleged; and, if so, what penalty should be imposed.
Findings Of Fact This matter deals with three licensed premises all owned or controlled by the Respondent, Myriam Grau. Ms. Grau is either the sole proprietor or the sole corporate officer and shareholder for each of the named businesses. Feelings Restaurant located on Palm Avenue in Hialeah, Florida, holds series 2 COP license no. 23-15849. Hialeah Dolphin also located on Palm Avenue in Hialeah, holds series 2 COP license no. 23-02256. Feelings Restaurant II which is located on East 4th Avenue holds series 2 COP license no. 23-15990. It is undisputed that Ms. Grau, her husband, and her mother-in-law are responsible for the day-to-day operations of the three licensed premises. The Petitioner is the state agency charged with the responsibility of regulating licensed premises which sell or dispense alcoholic beverages. Special Agent Addy Mesa, formerly employed by the Division of Alcoholic Beverages and Tobacco, conducted an undercover investigation at the Feelings located on Palm Avenue. On or about January 13, 1995, while engaged in such investigation, Special Agent Mesa went to the Hialeah Dolphin along with Detective Barbara Rivera and spoke with the Respondent, Ms. Grau. At that time and in that place, Special Agent Mesa asked for cocaine but Ms. Grau advised her that she did not have any. Ms. Grau requested that she wait as she was expecting a delivery. Special Agent Mesa waited approximately ten minutes but was unable to purchase the cocaine. After confronting Respondent regarding the delay, Ms. Grau directed Special Agent Mesa to Feelings (also on Palm Avenue) and told her to ask for Carlos or Carmen. When Special Agent Mesa arrived at Feelings and found Carlos, he advised the women to wait as he, too, was waiting on someone to come. Eventually, Special Agent Mesa observed a Latin male enter the licensed premises and confer with Carlos. At that time Carlos was standing behind the bar but took the Latin man behind a door to an area presumed to be a back room. When Carlos returned to the bar area, Special Agent Mesa purchased illegal narcotics from him. During the sales transaction, Carlos was at the bar and, in exchange for $40.00, passed two clear plastic bags to Special Agent Mesa containing a white powder substance which was later tested and proved to be cocaine. This transaction took place in the licensed premises and could have been observed by the six or seven patrons then at the bar. On another occasion, Special Agent Mesa went to the Hialeah Dolphin Restaurant with Heidi Puig. Again, as indicated above, Special Agent Mesa was working undercover. On this occasion Special Agent Mesa met a man who introduced himself as "Ricardo" and who told her he was the manager for the business. Ricardo had access to a back room in which he apparently resided and gave Special Agent Mesa a business card, a copy of which has been admitted into evidence in this cause as DABT exhibit 2. Such card contains the handwritten words "Ricardo" above the printed line denoting manager and "ask for Miriam" along the bottom of the card. The remainder of the card contains the printed information for the business. After talking with Ricardo for a short time, Special Agent Mesa purchased two packets of cocaine for $40.00. Special Agent Mesa returned to the Dolphin on still another occasion with Detective Rivera. On this visit there were approximately six or seven patrons in the bar and Ricardo approached them when they entered. After engaging in conversation for a few moments, Special Agent Mesa asked to purchase cocaine and Ricardo accommodated the undercover agent. While Special Agent Mesa waited at the bar, Ricardo went to his back room and returned with two baggies of cocaine wrapped inside a napkin. In return for the twenty dollar bills from Special Agent Mesa and Detective Rivera, the two packets containing cocaine were delivered inside the bar. Thereafter, Special Agent Mesa did not return to the premises until the search warrant was executed on February 10, 1995. All of the foregoing transactions took place while Special Agent Mesa was working in an undercover capacity and utilizing language that is common to transactions of this nature. Given the successfulness of her efforts to purchase illegal narcotics it is found that Special Agent Mesa communicated her intent to Respondent Grau, Carlos, and Ricardo in such a manner that they knew she was attempting to purchase cocaine. Carlos and Ricardo conducted themselves in a manner which gave the appearance of being employees of the licensed premises. Both men had access to the area behind the bar. Both utilized areas presumed to be private from the public. On at least one of the occasions Ricardo advised Special Agent Mesa of jobs available. The conduct of the transactions was inside the licensed premises, repeated on several occasions, and open to the view of bar patrons. Elio Olivia is a detective with the Hialeah Police Department. During January, 1995, while working in an undercover capacity, Detective Olivia was investigating illegal narcotic activities at the Feelings located on Palm Avenue in Hialeah. On or about January 12, 1995, Detective Olivia entered the licensed premises and spoke with Carlos who was behind the counter. For twenty dollars Detective Olivia purchased, and the individual Carlos sold, one packet of a white powdered substance which was tested and proved to be cocaine. Later, on January 18, 1995, Detective Olivia returned to the Palm Avenue Feelings and, again, purchased cocaine from Carlos. On this occasion Carlos went from behind the bar to an office, returned to the bar, and delivered the packet. Detective Olivia went to Feelings on a third date and repeated the process. Again, Carlos was observed behind the counter at the time of the transaction and Detective Olivia presumed him to be an employee of the premises based upon the manner in which he conducted himself. On at least one of the occasions, Detective Olivia observed another patron at the bar purchase a packet from Carlos. While the contents of the observed packet are unknown, the manner of the transaction was consistent with Detective Olivia's experience with purchasing cocaine from Carlos. Detective Olivia did not observe Respondent Grau on the licensed premises during any of the times he was there. The transactions involving the purchase of illegal narcotics took place in the licensed premises and could have been viewed by the patrons of the facility. Given the fact that Detective Olivia observed at least one such transaction himself, it is found that the actions of Carlos were open and notorious to the public. Michael Barsky is a detective employed by the Hialeah Police Department. At all times material to this matter, Detective Barsky was working undercover investigating illegal narcotics. On or about June 15, 1994, Detective Barsky went to the Feelings located on 4th Avenue. While there, he conversed with a male later known to him as Ricardo. Detective Barsky presumed Ricardo to be an employee at the business as it appeared he had the "run of the place." That is to say, Ricardo went behind the bar, went throughout the premises, and paid winnings to patrons who prevailed on a gambling machine that was located within the business. Detective Barsky went to the 4th Avenue Feelings again on October 14, 1994. On this date he met Ricardo and in exchange for twenty dollars purchased a small packet of a white powder substance which was later tested and proved to be cocaine. Although the transaction was discussed in the bar area in front of approximately five patrons, Ricardo took Detective Barsky to the mens room to make the exchange. From October 14, 1994 through December 7, 1994, Detective Barsky returned to Feelings on six occasions. For each visit he purchased cocaine from Ricardo as described above except on the later occasions the exchange took place at the bar instead of in the mens room. From the time of his first visit through December 7, 1994, Detective Barsky observed Respondent Grau on the licensed premises only once or twice. While the date of the arrest is not certain, Ricardo was arrested for illegal drug possession sometime during Detective Barsky's investigation at Feelings (4th Avenue). There came a time after Ricardo was arrested when Detective Barsky no longer observed him at the Feelings on 4th. In fact, when Detective Barsky returned to the licensed premises on January 12, 1995 (he had had a tip sales were still being made at the location), he met with an individual known as Orlando who claimed to be the new manager who could help him. As with Ricardo, Detective Barsky observed that Orlando appeared to have the run of the place. He was behind the counter, went into the DJ's booth, and was never reproached by the servers who were assisting bar patrons. Additionally, Detective Barsky observed and heard Orlando giving directions to the females who "did everything" in the kitchen area. In doing so, Orlando entered areas of the premises not available to the general public. As had occurred with Ricardo on the first buy, Orlando took Detective Barsky into the mens room and in exchange for twenty dollars the cocaine was purchased. On the next visit, on or about January 18, 1995, Detective Barsky purchased cocaine from Orlando at the bar. Orlando took a packet from his pocket and slipped it to Detective Barsky in a secretive manner. Detective Barsky returned to Feelings on several occasions thereafter. On each visit he successfully purchased cocaine from Orlando. On one occasion Orlando went to the back room before he delivered the packet to Detective Barsky. On one of the later visits, on or about January 27, 1995, Detective Barsky observed the Respondent Grau with an unknown male enter the premises and exchange money for what appeared to be drugs packaged in small zip baggies. This transaction took place in the licensed premises in view of the detective. Detective Barsky purchased cocaine at the Feelings on 4th Avenue at least twelve times for the period October 14, 1994 through February 3, 1995. On January 18, 1995, Detective Barsky went to the Dolphin and observed the male he knew as Ricardo at that licensed premises. Ricardo was fixing lights at a pool table when the detective confronted him and sought to purchase cocaine. On this occasion as in the past, Detective Barsky purchased a twenty dollar amount of a substance which was later tested and proved to be cocaine. Subsequently, Detective Barsky returned to the Dolphin and purchased cocaine from Ricardo on four additional visits. On one such visit, February 2, 1995, Detective Barsky observed Ricardo and a bar patron "do" cocaine at the bar counter. This was in plain view of bar patrons and was open and notorious. Respondent Grau knew that Ricardo had been arrested for illegal drugs prior to allowing him to reside at the Dolphin premises. Respondent Grau did not ask Ricardo to vacate the premises or to stay away from the licensed premises. At least six of the cocaine purchases occurred after Respondent Grau knew Ricardo had been arrested for drugs. Cocaine is a controlled substance the sale of which is prohibited by law.
Recommendation Based on the foregoing, it is, hereby, RECOMMENDED: That the Department of Business and Professional Regulation, Division of Alcoholic Beverages and Tobacco, enter a final order revoking the licenses nos. 23-15849, 23-02256, and 23-15990. DONE AND RECOMMENDED this 30th day of June, 1995, in Tallahassee, Leon County, Florida. JOYOUS D. PARRISH Hearing Officer Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 30th day of June, 1995. APPENDIX TO DOAH CASE NOS. 95-0703, 95-0704, and 95-0705 Rulings on the proposed findings of fact submitted by the Petitioner: Paragraphs 1 through 19 are accepted. Paragraph 20 is clarified in the findings above as to the manner of the delivery of the cocaine (which in some instances did include a secretive manner), therefore, as drafted the paragraph is inconsistent with the total evidence presented in the case. Rulings on the proposed findings of fact submitted by the Respondent: Paragraphs 1 through 6 are rejected as comments or argument regarding Petitioner's proposed findings of fact. Paragraph 7 is rejected as not supported by the weight of the credible evidence. COPIES FURNISHED: Miquel Oxamendi Senior Attorney Department of Business and Professional Regulation Northwood Centre 1940 North Monroe Street Tallahassee, Florida 32399-1007 Louis J. Terminello TERMINELLO & TERMINELLO, P.A. 2700 S.W. 37th Avenue Miami, Florida 33133-2728 Howard Sohn 2534 Southwest Sixth Street Miami, Florida 33135-2926 Lynda L. Goodgame General Counsel Department of Business and Professional Regulation 1940 North Monroe Street, Suite 60 Tallahassee, Florida 32399-0792 John J. Harris, Director Division of Alcoholic Beverages and Tobacco Department of Business and Professional Regulation 1940 North Monroe Street, Suite 60 Tallahassee, Florida 32399-0792
Findings Of Fact At all times pertinent to the allegations in the Notice to Show Cause herein, Respondent, Grand Saloon Tavern, Inc., was the holder of a valid alcoholic beverage license number 15-00028, Series 4-COP issued by Petitioner (DABT) to Respondent for the Inner Room located at 74 North Orlando Avenue, Cocoa Beach, Florida. On the evening of April 24, 1984, Beverage Investigator Gloria Smith and Special Agent Terry Altman, both in an undercover capacity, entered Respondent's licensed premises and took a seat near the disc jockey's booth. Smith asked an employee of the bar, a dancer named Janice Decker, who used the stage name "Angel," whom she had met weeks previously and established a friendship with, if Angel could get her some cocaine. Angel agreed and made arrangements for some cocaine, which she told Smith and Altman would arrive in about a "half hour." Somewhat later, Angel came up to the two agents where they were sitting in the bar, told them the cocaine had arrived, and received a $100 bill from Smith. Smith saw Angel engage in an exchange between Angel and the courier known to Smith as "Tommy" after which Angel came back to the agents' table and delivered to them a match box and told them it contained cocaine in two half-gram packages. When Angel left the table, Smith opened the match box and observed it contained two clear plastic bags which both had a white powder in them subsequently properly identified as cocaine. She took one of the bags out of the match box to check it. In Altman's opinion, the disc jockey saw her do this but that individual denies having done so. He contends that, given her position in the booth, with the lights adjusted as they are, he cannot see the people sitting at the tables below him and he knows nothing of any sale of drugs by Angel to Smith. Smith and Altman had gone into the Inner Room as a part of an ongoing investigation of several establishments to see if they could purchase drugs in them. Smith had met Angel at the Show Bar, another Cocoa Beach bar, in early March when Angel, who was working there at the time, did a personal dance for Agent Altman. After that, she made several purchases from Angel at the Show Bar using the cover story that she the, widow of an older man, who had been left a good income, and was now out looking for some "fun" with some younger man of whom Altman was supposed to be one. She said she wanted the cocaine for recreational use. The first time she want into the Inner Room she went in part to meet people and see the atmosphere of the place. On the first occasion, when she asked for Angel, Angel was not there. Smith returned to the Inner Room on May 10, 1984, this time in the company of United States Drug Enforcement Agency (DEA) Special Agent Eslingor and the two of them sat along the east wall of the lounge. On this occasion, she met Mr. Johnson, one of the owners who introduced her to the other owner, Mr. Crockett. The licensed premises is divided into three general areas--a small lounge, a larger lounge, and a game room. The east wall, where Smith sat, is in the area near the disc jockey's booth. Smith spoke with Angel about Angel's inability to deliver the cocaine she had promised on a previous occasion and asked her if she knew of anyone else who might have any cocaine for sale. When inquiry by Angel failed to reveal any available sources that evening, Smith gave Angel $100.00 for 1 gram of cocaine to be delivered the next night. Just about that time, Smith observed another dancer, Danielle, going into the restroom and followed her in. She went after Danielle because, based on information she had received from a third dancer, Deosia, she thought Danielle might have some for sale. When she got into the restroom, Smith asked Danielle if she had any cocaine to which Danielle replied she had only a little in her personal stack, of which she could give Smith a "line." Danielle then poured some white powdery substance, subsequently identified as cocaine, from a plastic triangular bag into a cellophane cigarette wrapper and handed it to Smith. Smith does not recall if Danielle asked for payment, but when Smith handed her $5.00 and when asked if that was enough, Danielle replied, "That's what I usually get." When Smith and Eslinger went back the following night, approximately 11:15 p.m., Angel, to whom Smith had given $100.00 the previous evening, told her that she had the cocaine Smith had asked for. She then delivered the substance, later identified as cocaine, and stated that she had taken a "line" for herself out of it. Smith agreed to that. Smith does not recall if the cocaine was delivered in a matchbook or in a folded $1.00 bill. In either case, however, consistent with her routine practice, upon delivery she checked the delivered substance out in the open by opening the package, tapping the enclosure on the table, and examining it, a procedure, he feels, that takes about 10 seconds. On this occasion, as on all other occasions, when she was in this lounge, she sat in an area off to the side of the bar which is visible from all other areas of the bar except the entrance. There are also other tables there as well. On May 25, 1984, Smith, Altman and Eslinger went into the Inner Room, actually at about 12:15 a.m. on May 28. On this occasion, Angel told Smith she had gotten rid of the cocaine she had promised to get for Smith because she had fronted the money for it. However, she stated she would have her husband bring some more, and later the same evening came back to the table where Smith and the others were sitting, sat down with them, and handed Smith a folded $1.00 bill for which Smith gave her $100.00. From this $1.00 bill, Smith took a small plastic bag which contained a substance later identified as cocaine. Not all cocaine sales ware arranged at the licensed premises, however. On June 4, 1984, Agent Smith phoned Angel at home and suggested that Angel get her some cocaine and deliver it at the Inner Room. She thereafter took $100.00 to Angel at her home and made the definite arrangements for the delivery of the cocaine at the licensed premises. When Smith, Altman, and Eslinger went to the Inner Room at approximately 9:30 p.m. that evening, Angel came over to them and delivered a cigarette package to Smith. After Angel left, Smith took a plastic bag from the cigarette pack and checked it on top of the table so that it could be seen by other patrons and Hank, the manager, was standing over near the disco booth talking with two men who appeared to be Cocoa Beach police officers. Smith cannot say that her actions were seen by these people, but the package contained what was later identified as cocaine. Smith was not arrested by these police officers even though they did not know she was an undercover agent. This leads to the conclusion that her "checking out" of the deliveries was not so open or notorious as, by Smith's own admission, had they seen what she was doing, they probably would have had cause to arrest her. When Smith first bought cocaine from Angel in the Inner Room, she had already made two or three purchases from her at another bar in the area and it was always Smith who made the purchases. She also paid Angel to "dance" for her "boyfriend" Altman several times and for each "dance" paid Angel $3.00. Over the period of the investigation, including this establishment and others, she got to know Angel and liked her. In doing so, she built up Angel's trust in her which Angel contends was the only reason she sold Smith cocaine. Smith purchased from only Angel and Danielle at the Inner Room. There is no evidence of other drug sales by other employees to other agents nor does Smith have any personal knowledge of any drugs on the premises except for those forming the bases of the allegations here. Altman played the part of the hanger-on sponging off a rich lady consistent with Smith's cover story. He was introduced to one of the co-owners, Mr. Johnson, on one occasion but had no conversations with him or anyone else regarding drugs. He made no drug purchases because his DATF investigation related to firearms. Though he was in the Inner Room quite a few times with and without Smith, he never saw any independent opportunity to buy drugs except for Smith's buys and he has no personal knowledge of anyone other than Angel or Danielle who had drugs for sale or were dealing drugs there. While in the Inner Room, Smith had several general conversations with owner Johnson during which she says she may have mentioned her "mid-life crisis" cover story. She denies any conversations with him, however, in which she tried to entice him into using drugs with her or when he said he did not use drugs or permit them on the premises. She does not recall them discussing what steps he took to keep drugs out. She did not notice any posted rules or notices regarding drugs. On each occasion Smith was in the Inner Room, either one or both of the owners were there in addition to a manager. She does not know what this latter individual's responsibilities were. There were also always men at the door but she does not knew what their function was other than to collect the entrance fee. Angel, whose real name is Janice M. Decker, was employed at the Inner Room as a dancer. She had just returned there prior to April 24, 1984, after working at the Show Bar, another club in Cocoa Beach, for 9 months. Prior to that, she worked at the Inner Room for 3 1/2 years. When she was first hired, she was instructed by owners that their rules included no drugs, no alcohol, and no solicitation for prostitution on the premises and during the first 3 1/2 years she worked there, she never had any drugs or saw any there. She first met Agent Smith at the Show Bar in July 1983 and developed a friendship with her. Smith did not make any requests for cocaine until their fourth meeting. By this time, Angel had accepted Smith's cover story and thought she was a nice lady. They had talked of going shopping together and of going out to dinner with their respective man as couples. In fact, Smith gave Angel her home phone number, but whenever Smith would call Angel, she would say she was out of town. Smith's first request for cocaine from Angel came at the Show Bar. Angel contends that even though she did not use cocaine and did not have any, because of her friendship for Smith and the fact that she felt sorry for her, she agreed to try to get some from someone. She found a source and whenever she bought any for Smith, she would deliver all she got and keep more for herself. She also felt close enough to Smith to front the money for these purchases and each time Smith requested cocaine, the purchase details ware always secondary to social conversation and "girl talk." When Angel quit the Show Bar and went back to the Inner Room, though she had fears about bringing drugs into the premises because she knew the owners' anti-drug policy, she did so because: (1) she knew her reputation there was as a "straight," and (2) she felt sorry for Smith and wanted to help her. As a result, she deceived her employers. On several of the occasions alleged, Angel didn't want be deliver on the premises but Smith insisted she deliver there. Their agreement was to meet outside for the transfer on two occasions, but each time Smith was not there and since Angel had to go to work, she had to go inside and when Smith showed up deliver there. Aside from the sales to Smith, Angel contends she has never had any drugs inside the Inner Room, nor has she ever seen any other employee with it in their possession there. She got the cocaine from a supplier she knows as Terry who she would meet at McDonald's-- never her husband. When she would get cocaine for Smith, she would keep it in her work purse with her in the lounge and not in her street purse in her locker. Neither she nor her locker has ever been searched for drugs. In her opinion, the licensees run a legitimate operation. They are strict about people who break the rules and seem to know what is going on there. Either one or both owners are on the premises every night along with two security people. This opinion is shared by other club employees like the dancers Angie and Danielle. Angie worked for the licensees for 11 months before they closed on June 8 and never saw any drug dealings or employees with drugs on the premises. Customers have asked her about drugs on various occasions but she always refused to get involved. When she was hired, she was advised that the club rules included no use or sale of drugs and called for the employee to be fired if this rule was violated. Danielle, who has worked there for 9 or 10 months, had the same understanding of the rules. When she was hired, she was given a copy of the posted rules and the owners have periodic meetings of the employees at which they are reminded of the rules regarding no alcohol, no drugs, no prostitution, and the need to report any infractions. She knew that a violation of those rules would result in termination. Regarding the sale to Smith, Danielle admits the transfer, but contends she at first refused and gave Smith the cocaine only after Smith said it was for her boyfriend who needed it badly. She didn't ask Smith for any money, intending it to be a gift even though she had never met Smith before. After the transfer, Smith threw her $5.00 and left. She is concerned about her job even though she has not been told she was fired. The disc jockey, Ken Carlin, who has worked at the Inner Room for 4 years, relates much the same story regarding the owners' efforts to keep drugs out as do the dancers. There are frequent meetings of all personnel regarding illegal activities and anyone caught involved in them is fired. Whereas the dancers disclaim any knowledge of any employees involved in drugs, Mr. Carlin, however, indicates at least one a month is fired. This must be for other reasons, however, because, according to him, he has seen drugs on the premises only once about a year ago and had fired the dancer who had them immediately. In addition to his job as disc jockey, his responsibilities also include policing the premises on a frequent basis and this includes inspecting the dancers' dressing room which he does about three times each night. When he does these inspections, he does not go into the house, however. In addition to the owners, the managers and Carlin, all of whom exercise the responsibility to check the premises for drugs, Gary O. Greenwald, one of the doormen and bouncers, also patrols the inside for violations. He has bean briefed regarding certain known drug users or dealers who are barred from entering the club. He has also been instructed to throw anyone suspected of possessing drugs out and if anyone is caught with it, he is to hold that person and call the police. During the three months he has worked there, ha has not observed any drugs on the premises. The Inner Room's reputation with at least a portion of the Cocoa Beach police force is high. William McDonald, who has been an officer for 11 years, has visited the licensed premises two or three times a week for 11 years and has never, at any time, seen any drug activity there. He has been called there by the owners several times (never for drugs) and has made some arrests for such offenses as drunk and disorderly, firearms, and assaults. In his opinion, none of the bars in the area are completely drug-free, but comparing this bar with others in the area, it is run better because the owners are more conscientious. Mr. Johnston has talked with him repeatedly about the effort made to keep drug activity out of the bar and considering the fact that the owners are not police, he feels they do a good job of it. So, too, does David E. Schoch, also a Cocoa Beach Police Officer who has gone into the Inner Room three to four times a week on duty and at least one night a week off duty for the past several months. In all that time, he has never seen drugs on the premises except one time when he was called there on duty. By the time he arrived, one of the owners and the bouncer had the situation under control and had confiscated some cocaine. He finds this bar to be one of the better and safer bars in the area due to the preventive actions of the management. He is convinced it is one of the more drug-free bars in the area due primarily to these efforts and considers that, considering their lack of training, the owners do a good job of it. Lamar L. Johnston has been a co-owner of the Inner Room with Jesse Crockett for 8 1/2 years. During that time, the bar has never been cited for any infractions of the beverage laws. He has what is to him a lot of money invested in this bar and to keep from losing it, he has worked hard and been through in indoctrinating his people on the no drug policy. He has published a list of employee rules which are made known to every employee at monthly meetings and are posted in the dancers' dressing room, behind the bar, and in the disc jockey booth. He keeps tabs not only on his employees but also on his clientele and if he sees someone in the bar who he knows to be involved in any type of illegal activity, he advises his bouncers to keep that person out. He personally patrols the bar on a regular basis each night and has his disc jockey, managers, 2 bouncers, and security men do the same. He requests the Police Department to come in on duty and has given off-duty policemen passes to come in without paying the admission charge. With the exception of the one occasion described by Officer McDonald, he has never seen any drugs in his club. With regard be the personnel he hires, he keeps tabs on all dancers in the area including as far away as Orlando and Daytona Beach, by real and stage names, who have been arrested or fired for prostitution or drugs. If one of these apply for work, he will not hire them. However, he contends he cannot prevent an employee from breaking a rule if that person is bent on doing so. All he can do is publicize the rules and warn his employees of the consequences of breaking them. He checks the dressing room six times a night and, recognizing that thirty pairs of eyes are better than one, put into effect the rule relating to firing employees who have knowledge of but fail to report drug activity. His bar is not brightly lighted because, in his experience, bar patrons do not like a brightly lighted bar. Because of that, he tries to patrol as much as possible. On top of that, his lounge caters to a higher element clientele such as engineers from Cape Kennedy Space Center, Administrators from Brevard Community College, and professional people. His bouncers are instructed to keep the lower element out and a dress code is enforced.
Findings Of Fact At all times pertinent to the allegations contained herein, Respondent P R of Brevard County, Inc., doing business as Shark Lounge, was the holder of Florida Alcoholic Beverage License Series 4-COP No. 15-00177 for the Shark Lounge, located at 411 North Orange Avenue, Cocoa Beach, Florida. On March 15, 1984, Terry A. Altman, a special agent for the U.S. Treasury Bureau of Alcohol, Tobacco and Firearms (BATF), in an undercover capacity and in the company of Investigator Gloria Smith of the Division of Alcoholic Beverages and Tobacco (DABT), also in an undercover capacity, entered the Shark Lounge at approximately 2:00 a.m. They had been there before on March 12, 1984, when an employee of the Respondent, the bouncer Harry Haynes, had offered to sell marijuana to Smith. On this March 15th visit, they spoke with an employee by the name of Sherry, and Smith asked if Haynes was there. When Haynes showed up, Smith asked him if he had been able to obtain any of the marijuana he had mentioned previously, whereupon Haynes told her that cocaine was easier to get than marijuana. However, Haynes made some telephone calls and shortly thereafter requested that Altman come outside with him. Altman complied, at which time Haynes requested $30. Altman paid the $30 to Haynes and then went back inside the bar. A little later, Haynes came in and motioned Altman and Smith to come outside, where Haynes handed Altman a plastic envelope containing a green leafy substance. Upon subsequent laboratory analysis, this substance was determined to be marijuana. On March 22, 1984, Altman and Smith went back to Respondent's lounge, where Smith saw Haynes behind the bar. At this time, she asked Haynes if she could get cocaine, and Haynes indicated that he had already ordered some for her. At approximately 2:00 a.m., Haynes came in and told Altman to go outside with him. Haynes quoted a price of $50 a half gram for the substance. Altman paid Haynes the $50 and went back inside, while Haynes went someplace else. A few minutes later, Haynes came back into the bar and requested that Altman again come outside. When he did so, Haynes handed him a small plastic bag of a white powder, suspected to be cocaine, which Altman took back into the lounge and gave to Smith. Sitting at the table and making no effort to conceal her actions, Smith held the package up to the light, tapped the bag to get the substance to one corner, and then put it into her purse. Haynes at that time guaranteed the quality of the substance and offered to get them more in the future if they so desired. This substance was subsequently analyzed and determined to be cocaine. Thereafter, on March 24, 1984, Smith, in the company of undercover agent Jenkins, entered the lounge at about 9:30 p.m. She introduced Jenkins to Haynes and asked Haynes if he could get some cocaine for them. Haynes replied that he could do so but that his source would not be in until later in the evening. At approximately 3:30 the following morning, while Haynes was busy attempting to break up a fight which had just started, an individual identified as Haynes' source entered the bar, and Haynes pointed out Smith to him. This source, identified as Ric, came to Smith and gave her what was subsequently identified as cocaine in a plastic bag, for which she paid him $50. By this time, the lights, which had previously been turned out in an attempt to help stop the fight, were back on, and there was no attempt on the part of Ric to conceal the transaction. Later in the evening, Haynes asked Smith if she had been taken care of. Again, on April 8, 1984, Altman entered the Shark Lounge at approximately midnight. He approached Haynes, who was acting as a bouncer at the entrance, and asked to buy a half gram of cocaine. Haynes asked Altman to step outside and agreed to procure the cocaine for Altman if he would front the money for it. Altman paid Haynes $60 in cash at the Shark Lounge, and, pursuant to the agreement between the parties, the cocaine was subsequently delivered later that afternoon at the Canaveral Pier. The transfer of money from Altman to Haynes took place near the door in front of an independent security guard hired by Respondent. Haynes explained the transfer as being a payoff of a bet. On April 17, 1984, at approximately 9:00 p.m., Smith and Altman again entered the Shark Lounge and engaged Haynes in conversation, at which time Smith indicated that she wanted some more cocaine. Haynes replied he would get it, and Altman gave him $40 to purchase a half gram of cocaine. It was understood between them that Smith and Altman would be back the following evening to pick up the cocaine. When they did come back at approximately 11:45 p.m. on April 18, Haynes, who was out in the parking lot, motioned Altman to get into an Oldsmobile car, which Altman did. Haynes then removed the package of cocaine from the car's ashtray and attempted to give it to Altman, saying that it was good stuff. Altman, however, indicated that Smith had paid for it and that Haynes should give it directly to her. The two men then got out of the car and approached Smith, who was standing near the outside of the door to the lounge. Haynes attempted to give Smith the cocaine at that time, but she would not accept it and instead went into the lounge to use the restroom. As Haynes and Altman followed Smith into the lounge, Haynes pressed the cocaine onto Altman, indicating that he wanted to get rid of it. When Smith came back from the restroom a few moments later, Haynes told her he had already given the cocaine to Altman, who took it out of his pocket and put it in Smith's lap. She examined the cocaine and put it in her purse in full view of the other patrons of the bar. This substance, delivered by Haynes to Aliman and in turn to Smith, was subsequently identified as cocaine. Neither agent went back to the bar until April 26, 1984, at approximately 1:30 a.m., when Altman and Smith, in the company of Special Agent Eslinger of the U.S. Drug Enforcement Administration (DEA), entered the bar. They contacted Haynes, who was working as a bartender at the time, and Smith asked him to get a half gram of cocaine for her. Haynes agreed to do this and told her to check with him the next day to see if he had procured it. At the time of her request, Smith gave Haynes $50 for the cocaine. No further contact was had until late in the evening of April 30, 1984, when Altman, Smith, and an unidentified confidential informant entered the lounge. Smith asked Haynes at that time if he had obtained the cocaine she had paid for on April 26, and Haynes said that he had. This conversation took place near the door, where Haynes was working as a bouncer. Haynes took a plastic envelope containing a white powder from his right front pocket and gave it to Smith, who brought it back to the table and showed it to Altman. Later, pursuant to Smith's invitation, Haynes came to their table and said that over the weekend he had obtained some sensinilla, some speed, and another substance. Smith said she would like to have some speed, and Haynes said he could get 30 capsules of it for $15, which she gave to him. At this point, Haynes showed Smith a package of a black substance which he identified as hashish and offered to sell to her for $5. Smith did not buy any, however, and she, Altman, and the informant departed the lounge after telling Haynes they would be back for the speed the next night. The white powdery substance that Smith obtained from Haynes that night was subsequently tested and found to be cocaine. When Smith went back to the lounge on May 4, 1984, at 11:00 p.m., this time with Eslinger alone, she contacted Haynes, who was working as the bouncer. Haynes told her he had the speed which she had paid for previously on April 30 and told them to go sit down. Shortly thereafter, Haynes motioned for Smith to come over to the door area, and, when she did so, he briefly stepped outside the lounge and then immediately came back. When he returned, Haynes put a package inside Smith's purse, which she saw and which he stated was only 25 capsules instead of the 30 she had paid for. At this point, Smith asked Haynes if she could pay him $50 in advance for a half gram of cocaine, which Eslinger would pick up the following day at the Canaveral Pier. When Haynes agreed, Smith gave him the $50 while they were inside the bar. Thereafter, she and Eslinger left. The capsules which Smith received from Haynes that night in the lounge did not contain amphetamines or any other determinable controlled substance. When Altman and Smith next returned to the bar on June 3, 1984, they found Haynes standing by the entrance. About a half hour after they went in, Smith asked Haynes if he had any cocaine and, when he replied in the affirmative, gave him $50 in advance for a half gram of cocaine. The arrangements made at that time were that the cocaine would be picked up on June Somewhat later, when Altman and Smith were leaving, Haynes told Smith not to leave yet, that his source was getting the cocaine out of his car. Altman and Smith waited, and a few minutes later Haynes came up to Smith at the bar and dropped into her purse a small plastic bag which contained a white powdery substance subsequently identified as cocaine. When Haynes dropped the bag into her purse, Smith took it out and examined it in plain view at the bar, which was well lighted, before putting it back into her right-hand pocket. Shortly thereafter, Altman and Smith left. The packages containing cocaine, which Smith held up to the light to examine, were approximately an inch and a half by an inch and a half in size. Although other employees were in the immediate area at the time that she held the packages up, and Altman does not know hew they could have avoided seeing what Smith was doing, Altman cannot say for sure that the employees did see it, nor can Smith. No other employees of the Respondent were involved in any of the drug deals except for Haynes. No other employees were in the immediate area when the sales were made. Neither Smith, Altman, nor Eslinger engaged in any discussion of drugs with any other employee of the bar on the numerous times they were in there. Smith contends that she first went into the bar on March 12, 1984, with Altman to pick up some drugs offered at another bar. She started talking to a male at her right and asked him if he knew where she could get some grass. This individual said yes and went to make a phone call. Later, he identified himself as Harry Haynes and said that he worked there as a bouncer but was not on duty on that particular night. The drugs were not delivered that night, either. On March 14, at 2:00 a.m., Altman and Smith again went into the lounge. Smith approached Sherry, the bartender, and asked for Haynes, who was not there. Smith told Sherry that Haynes was to get her some grass, and, in Smith's opinion, Sherry did not react to this disclosure at all. Sherry, on the other hand, denies any conversation with Smith about drugs. She indicated that Smith came to her frequently and asked for Haynes but never mentioned drugs in any capacity. Had Smith done so, Sherry states, she would have asked her to leave. This last comment stands to defeat Sherry's credibility, however. It is unlikely that the comment was made. It is also unlikely that an experienced bartender, as Sherry is, would react by asking a repeat patron to leave for mentioning that Haynes was to get marijuana. Sherry is the only one in the bar, except for Haynes, to whom Smith mentioned drugs, although she had a conversation about drugs with Haynes in front of Ric, who is apparently also a bouncer. When Smith asked about that, Haynes said that it was okay. There is a divergence of opinion regarding the reputation of the Shark Lounge as a source of drugs. Randy Arles, a Melbourne Beach police officer on loan to the Cocoa Beach Police Department Vice Squad since mid-March of 1984 and operating undercover, was contacted previously by a confidential informant who indicated there was cocaine traffic at the Shark Lounge. Based on that information, Arles and another officer went in to try to make a buy but were unsuccessful because, as it was explained to him, his identity as a police officer had been disclosed. Information reaching him from such street sources as confidential informants and prostitutes indicated that the Shark Lounge was known as a place to buy cocaine and that Haynes, the bouncer, was the seller. This latter information, however, is hearsay testimony and, with the exception of that relative to Haynes, cannot serve as the basis for a finding of fact. The identity of Haynes as the seller is corroborated by other independent admissible evidence, however. On the other hand, Officer Charles B. Autry, who has been with the Cocoa Beach Police Department for 14 years, has come into contact with the Shark Lounge and its owner on several occasions and has been inside the lounge four or five times. To his knowledge, it is a well-run establishment, and he has never in his 14 years been called there while on duty. The owner is very businesslike and very cooperative. He runs a tight ship and encourages the police to come inside both while on and off duty. In Officer Autry's opinion, considering today's morality, any place where crowds congregate has the potential for drugs, including the Shark Lounge, which he would not class as a nuisance. This opinion was also held by Major Gary Hummel, who has been with the Cocoa Beach Police Department for 14 years. He has been in the Shark Lounge on many occasions and knows the owner personally. He considers Mr. Autry to be an upright businessman who is not himself involved in drugs. The lounge in question here is one of only two lounges in Cocoa Beach that Hummel will patronize and take his wife. Both socially and professionally, he knows of no employees who sell drugs at the lounge, but the employees know he is a police officer, and this may have some bearing on their behavior in his presence. Hummel believes the owner is tough and knows that he will fire any employee for being drunk on duty. He also discharges employees for even the slightest infractions of rules. This bar is not a nuisance in his opinion but is a good clean place where many of the Cape workers go. These sentiments were reinforced by the proffered testimony of Officers William MacDonald and Al Otto of the Cocoa Beach Police Department, who both have been in the Shark Lounge frequently both socially and professionally. They have been encouraged to come in by the owner and find the lounge to be a clean, well-run, drug-free operation. Sharon LeVaugh (Sherry) has worked at the lounge as a bartender for six and a half years and runs the floor operation. Her immediate supervisor is the owner, Mr. Autry, who, to her knowledge, has a strict policy against drugs. Anyone using them, whether it be an employee or a patron, is immediately put out of the place. There is a low turnover of employees at the Shark Lounge, because it is a good place to work. During the six and a half years she has worked there, Sherry has never seen drugs used at the bar. She had no idea that Harry Haynes was dealing in drugs and doesn't think anyone else did. The Shark Lounge is dark inside like a normal lounge. The crowd which patronizes it is made up of regulars, both young and old, with repeat patronage common. A lot of business comes from Space Center employees, and police are encouraged to come in frequently. Friday and Saturday nights are quite busy, with 200 to 300 people in attendance. The bar offers live music seven nights a week, and the music is a noisy rock and roll band. Chad J. Milkint, the manager of the Shark Lounge, has worked there for a little over a year. Before that, he worked at another bar in the area for three years and has been in the lounge business both in Florida and outside the state for more than 11 years. When Milkint was hired, the owner was very clear about the "no drug policy," and he has followed it closely. He has, on occasion, thrown people out for being intoxicated either on drugs or alcohol. There is, he claims, a practical reason for this. If a patron is intoxicated, he is not buying drinks, and they are in business to sell drinks. Milkint did not know Haynes was using drugs or selling them. If he had, he would have fired him immediately. It was not at all unusual for Haynes to go outside as part of his job. In fact, Haynes' duties included a patrol of the outside area around the bar three or four times a night. Milkint admits he did no background check on Haynes except to check with his former employer, who gave Haynes a favorable recommendation. Haynes was a part-time employee who worked two or three days a week as a backup to the main barmen in addition to his duties as a bouncer. In a normal week, Haynes would work approximately 20 hours and had been employed sporadically by the bar for only five or six months. During the period of employment at the lounge, Haynes also worked at the Canaveral Pier. When Milkint checked with the beverage manager there, he was told that Haynes' performance was satisfactory. Milkint is frequently in the bar and observes what goes on. He denies ever seeing anyone check baggies by tapping or holding them up to the light, as described by Altman and Smith. He does not believe his employees saw that, either, because he feels that if they had seen it they would have reported it. The owner also supervises on a day-to-day basis, and in Milkint's opinion the operation is a good, ethical, well-run establishment. The employees are good, the entertainment is good, and the drinks are good and sold at fair prices. Milkint does not know how he could have prevented the sales by Haynes that took place there. Gary C. Autry, sole stock owner of the Shark Lounge, has owned the establishment for eight years. He used to work more in the bar than he does now, but a recent blood condition has developed that has made him curtail his activities. When Autry came down with this condition, he hired Milkint as a manager and an individual by the name of Mike Harris as an assistant. He has known both of them for years and knew both had previous lounge experience. When he hired them, Autry told them immediately that his policy was "no drugs whatsoever." Although he cannot spend as much time in the establishment as he used to, Autry is nonetheless there seven days a week and closely supervises his operation. His bouncers are trained to handle drugs and work with the police. Had Autry known Haynes was selling or using drugs, Haynes would have been dismissed immediately. When he hires employees, he asks them their habits. He believes that because of his policies his turnover of employees is as low as it is.
The Issue The issue is whether Respondent failed to derive at least 51 percent of its gross revenues from the sale of food and nonalcoholic beverages, in violation of Sections 561.20(2)(a)4 and 561.29(1)(a), Florida Statutes, and failed to maintain its business records in English, in violation of Section 561.29(1)(e), Florida Statutes, and Rule 61A-3.014(3), Florida Administrative Code. If so, an additional issue is what penalty the Division of Alcoholic Beverages and Tobacco should impose.
Findings Of Fact At all material times, Respondent has held license number 16-15136, series 4-COP SRX. Pursuant to this license, Respondent operated a Brazilian restaurant known as Flavor of Brazil at 4140 North Federal Highway in Fort Lauderdale. On July 20, 1999, a special agent of Petitioner inspected the restaurant to determine, among other things, the percentage of Respondent’s gross receipts derived from food and nonalcoholic beverages. In response to a request, the agent received large numbers of original customer tickets, which record the food and beverage items ordered by each customer. In response to a request to visit the agent at her office and provide a statement, the president of Respondent hand wrote a statement explaining: “Records were wiritten [sic] in Portuguese. Basically because most of our staff speak and write Portuguese (being that they are Brazilians). But this problem has already been corrected.” The customer tickets are written in a language other than English, presumably Portuguese. For a person unfamiliar with the language in which the customer tickets are written, it is impossible to determine from these customer tickets which items are alcoholic beverages and which items are food and nonalcoholic beverages. A 4COP-SRX Special Restaurant License form signed on January 26, 1999, by Respondent advises that the license requires that at least 51 percent of the gross revenues of the licensee must be derived from the sale of food and nonalcoholic beverages. The form warns: “Since the burden is on the holder of the special restaurant license to demonstrate compliance with the requirements for the license, the records required to be kept shall be legible, clear and in the English language.”
Recommendation It is RECOMMENDED that the Division of Alcoholic Beverages and Tobacco enter a final order finding Respondent guilty of violating Rule 61A-3.0141(3)(a)3 and revoking Respondent’s license without prejudice to Respondent's reapplying for another CRX special license at any time after 90 days following the effective date of the final order. DONE AND ENTERED this 4th day of December, 2000, in Tallahassee, Leon County, Florida. ROBERT E. MEALE Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 4th day of December, 2000. COPIES FURNISHED: Joseph Martelli, Director Division of Alcoholic Beverages and Tobacco Department of Business and Professional Regulation Northwood Centre 1940 North Monroe Street Tallahassee, Florida 32399-3227 Kenneth W. Gieseking Assistant General Counsel Department of Business and Professional Regulation Division of Alcoholic Beverages and Tobacco 1940 North Monroe Street Tallahassee, Florida 32399-2202 Barbara D. Auger, General Counsel Department of Business and Professional Regulation Northwood Centre 1940 North Monroe Street Tallahassee, Florida 32399-0792 Flavor of Brazil 4768 North Citation Drive, No. 106 Delray Beach, Florida 33445
The Issue This case concerns the issue of whether Respondent's beverage license should be suspended, revoked or otherwise disciplined for permitting prostitution activity on his licensed premises. At the formal hearing the Petitioner called as witnesses John Harris, Kelvin Davis, Carlos Bauxalli, Lewis Terminello, Hugo Gomez, Louis Viglione, Keith Bernard Hamilton, and Alfonso Scott Julious. Respondent called as witnesses Isaac Dweck, Gary Arthur, Irene Madden, Collins Jones, Mary Scott, Debbie Heenan, Judy Pearson, Joe E. Clements, Cecil Rolle, and the Respondent himself, Eddie Lee Pittman. Petitioner offered and had admitted a videotape which was viewed during the hearing. Respondent offered and had admitted one exhibit. Petitioner also offered a composite exhibit containing police reports relating to the licensed premises for the years 1981 and 1982. That composite exhibit was admitted as hearsay to corroborate the testimony of the police officers relating to the reputation of the licensed premises. These police records were of very limited probative value and no finding of fact was based upon these records. Neither party submitted proposed findings of fact and conclusions of law for consideration by the Hearing Officer.
Findings Of Fact At all times material to this proceeding the Respondent, Eddie Lee Pittman, was the holder of beverage license No. 23-371, Series 2-COP. The license is issued to the licensed premises at 1772 N.W. 79th Street, Miami, Dade County, Florida, and was originally issued to Respondent on October 6, 1965. On the evening of March 22, 1983, Beverage Officer Kelvin Davis visited the licensed premises, Eddie's Dive Inn, in an undercover capacity to investigate possible prostitution activity in the licensed premises. Officer Davis was accompanied by Beverage Officer Eddie Bauxalli. After entering the licensed premises Officer Davis was approached by a white female named Elnora Moore who engaged him in conversation. The conversation led to a discussion of voter registration cards and Ms. Moore stated that a voter registration card could get you out of jail on a misdemeanor charge. Officer Davis asked why she needed a card for that purpose and Ms. Moore said because of solicitation. She then asked Officer Davis if he would like to be solicited and asked how much money he had. He responded that he had twenty dollars and she said that would get him a "straight." "Straight" is slang or street language for sexual intercourse. He agreed to the price but told her he also had a friend (Officer Bauxalli). Ms. Moore offered to service both men for $100. Officer Davis and Officer Bauxalli agreed to this offer and the three of them prepared to leave. The conversation between Ms. Moore and Officer Davis took place next to the bar where the officers were seated. This was approximately three to five feet from the cash register where the bartender on duty was working. The conversation took place in a normal tone of voice. As Officers Davis and Bauxalli and Ms. Moore began to leave, a white female named Peggy Schultz yelled across the bar to Officer Bauxalli and asked where he was going. Officer Bauxalli yelled back that he was going to have a good time. In response, Ms. Schultz yelled back "How can you have a good time without a date?" Officer Bauxalli responded that he would figure something out. At this point Ms. Schultz walked over to Officer Bauxalli. Ms. Schultz asked Officer Bauxalli if he wanted a "date" and he asked what is a "date." She responded that a "date" is a "straight" for $20 or a "straight" and a "blow job" for $25. He agreed to a "date" and Ms. Schultz then told him to drive around to the back and she and Ms. Moore would meet them at the back door. She also stated that the owner did not like the girls to go out the front door. Officers Bauxalli and Davis then left the bar, drove around to the back door of the licensed premises and picked up Ms. Moore and Ms. Schultz, who were waiting just inside the back door of the lounge. While Officers Bauxalli and Davis were in the licensed premises, the bar was pretty crowded and there was a lot of noise from people talking. At the time Ms. Schultz solicited Officer Bauxalli, she spoke in a normal tone of voice while they stood approximately four or five feet from the cash register on the bar. Ms. Schultz was dressed in a low-cut blue silky dress that was made of a material which you could easily see through. She was wearing only panties underneath the dress. The owner, Mr. Pittman, was observed in the licensed premises on the evening of March 22, but there was no evidence that he observed or overheard any of the discussions between the two beverage officers and Ms. Schultz and Ms. Moore. On the evening of September 17, 1983, at approximate1y. 10:A5 p.m., Beverage Officer Louis J. Terminello went to the licensed premises in an undercover capacity. Immediately upon entering the licensed premises he was approached by a white female named Michelle Orfino. The bar was pretty crowded and there were a number of females in the bar and poolroom area who by their dress appeared to be prostitutes. These women were mingling with the men at the bar and in the poolroom area. A number of couples were exiting through the back entrance. When Ms. Orfino approached Officer Terminello, she walked up to him and asked if he was looking for a "date." He asked her what a "date" was and she said "a blow job." She then asked if he wanted one and Officer Terminello responded "yes." She told him the price would be $20 plus $5 for the room. As they had been talking Officer Terminello, accompanied by Ms. Orfino, walked into the poolroom area. After agreeing to the price, Officer Terminello took Ms. Orfino by the arm and started to walk out the front door of the lounge. She stopped him and said that they had to use the back door because Eddie does not allow them to leave through the front door. She then told him to drive around back and Officer Terminello responded that his car was just outside the back door. She then walked with him out the back entrance and into the parking lot. As they walked to his car Officer Terminello observed the Respondent, Eddie Pittman, in the parking lot. After driving away, Officer Terminello placed Ms. Orfino under arrest. Ms. Orfino was dressed in a very low-cut latex body suit. For at least three nights prior to September 17, Officer Terminello, while on surveillance, had observed a continuous pattern of a patron entering the bar, coming back out and driving his car to the rear entrance. A woman would then come out the back door, get in the car and they would drive away. Twenty minutes or so later the car would come back and the girl would get out and go back in. After the arrest of September 17, Officer Terminello returned to the bar in the early morning hours of September 18 to arrest two other women for prostitution. The Respondent had not been advised of the arrests on September 17. On the evening of September 15, 1983, Beverage Officer Louis Viglione went to the licensed premises, Eddie's Dive Inn. After entering the licensed premises he took a seat at the bar near the rear entrance. Shortly after entering, he was joined by two black females named Veronica and Angie. He purchased a beer for each of the two women and the three of them engaged in conversation about good times, good loving, and Pink House. The Pink House is a boarding house in the area where the licensed premises is located and is used by prostitutes for "dates." A "date" is a slang or street term used commonly by prostitutes to refer to sexual intercourse or other sexual acts for pay. During this conversation, Veronica stated that one hour with her would cost $40 or $50 and Angie stated that she charged $100 an hour. As an excuse, Officer Viglione then stated that he did not have enough money because he wanted two women at once. He remained in the lounge approximately one more hour and left. On this particular evening Veronica was wearing a short white dress and Angie was wearing a blue print dress with white stockings. Both were dressed in what Officer Viglione described as normal dress. Several other women in the lounge were dressed in a very provocative manner and appeared by their dress to be prostitutes. The lounge was approximately 3/4 full of patrons, but it was not particularly noisy or boisterous. There were also several women outside the front and rear entrances of the licensed premises who appeared to be prostitutes. The area where the licensed premises is located is an area which has a visible concentration of prostitutes and has a reputation as an area where prostitution is prevalent. At approximately 9:30 p.m. on September 16, 1983, Beverage Officer Keith Bernard Hamilton entered Eddie's Dive Inn. Upon entering the lounge, Officer Hamilton took a seat at the west end of the bar. There were approximately 40 or 50 male patrons in the lounge and at least 30 women. The women were scantily dressed in very revealing clothes and were observed by Officer Hamilton to be moving around the bar stopping and talking with the men. Several of the women left the bar after talking to one of the men who also left the bar. While seated at the bar, Officer Hamilton was approached by a young black female named Anna. Anna had been talking to a white male seated next to Officer Hamilton. She asked Officer Hamilton what he was interested in tonight. He asked what she had and she asked if he wanted to fuck. She also stated that for $35 plus $5 for the room she would give him a "suck and fuck." He said he would wait for a while and Anna left but returned several times during the evening. After Anna left, another woman walked up to Officer Hamilton and asked if he dated. He was short with her and she moved over and began talking to the white male seated next to him. A few minutes later, Officer Hamilton went to the bathroom and was stopped by a black female named Carol Lawrence. Ms. Lawrence stated that she needed money and asked if he could help her out. Officer Hamilton asked what did she have and Ms. Lawrence responded "a suck and fuck for $35." Officer Hamilton agreed to this but said he wanted to wait a while. She then left, but approached him at least three more times that evening. On the evening of September 16, 1983, there were three security guards at the licensed premises. They primarily remained outside where they regulated the crowd outside the lounge. One of the guards told one of the females that she shouldn't leave with a guy but should wait inside the rear door. The guard did not object to the woman and man leaving in the man's car. On this particular evening, the Respondent was present at the licensed premises until approximately 11:00 p.m. He was in and out of his office during the course of the evening. On September 17, 1983, at approximately 9:30 p.m. Officer Hamilton returned to the licensed premises, Eddie's Dive Inn. When Officer Hamilton entered the lounge, the Respondent was seated at the bar. The activity in the bar was about the same as the night of September 16, and there was a smaller crowd. There were about 20 women in the bar. These women were walking around the bar talking to the men. There was a man seated next to Mr. Pittman who was being kissed by one of the women. After kissing the man she moved on and began talking to another male patron. Shortly after entering the lounge one of the women in the lounge looked at Officer Hamilton and winked. Later, when Officer Hamilton was in the rear of the lounge near the bathrooms, be observed this same woman standing near the rear entrance. He asked her where she was going and she responded that she would be back. She then offered him a "suck and fuck" for $20 plus the cost of the room. As she walked out the rear entrance Officer Hamilton agreed to the offer. That same evening Officer Hamilton was again approached by Anna whom he had met the previous evening. She asked if he was ready and again told him the price of a "suck and fuck." He agreed and she told him to leave out the front door and she would wait around back. Officer Hamilton left the lounge and drove his car to the rear entrance where Anna was waiting just inside the screened door of the back entrance. On the evening of September 15, 1983, at approximately 9:15 p.m., Beverage Officer Alfonso Scott Julious entered the licensed premises. There were several men seated inside the bar and several women were walking around the bar. The women were dressed casually and some were wearing short dresses which were low cut in the front. After entering the licensed premises Officer Julious observed women from time to time leave the bar with a man and then come back. Each of the women exited through the rear door. At approximately 9:45 p.m. Officer Julious was approached by a white female named Gail Sylvia James. She asked if he wanted a "date" and he said what is a "date." She then said that she would "fuck him and suck him" for $30. He responded that he would be around for a while and would get back to her. Officer Julious left the lounge at approximately 10:30 p.m. During the evening Officer Julious had overheard other men being solicited and observed at least five men leave with women. On this evening Officer Julious considered the women's dress to be casual, nice dresses. Officer Julious returned to the licensed premises at approximately 9:00 p.m. on September 16, 1983. After entering the lounge he was approached by a white female named Patricia. She asked him if he wanted a "date" and he asked "what is a "date?" She then said she would fuck him for $30. Officer Julious responded that he would be around and would get back to her. Some time later in the evening Gail James, whom he had met the previous night, approached Officer Julious and asked if he was ready for a "date." She said she would go half and half, "suck and fuck" for $30. He told her he would be around for a while. Officer Julious was also approached by a woman named Mindy Jo Gelfin, who asked if he wanted a "date." He asked "What is a date?" and she responded "half and half, fuck and suck" for $40. He also did not accept this offer. Officer Julious left the licensed premises at approximately 10:45 p.m. On Saturday, September 17, 1983, Officer Julious returned to the licensed premises at approximately 9:05 p.m. The Respondent, Eddie Lee Pittman, was in the lounge. Immediately after entering the licensed premises, Officer Julious was approached by Mindy Gelfin, who asked if he was ready for a "date." Officer Julious stated that he would be around all night and Mindy said she would come back. Later, Mindy returned and asked if he was ready and he responded "yes." He asked if they could go to the Holiday Inn and she asked if he was a cop. Officer Julious said "Do I look like a cop?" She then asked if she could pat him down. He said "yes" and she patted him down. She then said that she wanted to go in a friend's car. She borrowed the car and drove to the Holiday Inn where she was arrested. At the time of her arrest Mindy Jo Gelfin was residing with Collins Winston Jones and his girlfriend. At the time of the final hearing, Mindy Gelfin was continuing to live at Mr. Jones' residence. Mr. Jones' girlfriend had allowed her to move in. Mr. Jones is the manager of Eddie's Dive Inn. On September 29, 1983, Detective Hugo Gomez of the Metropolitan Dade County Police Department went to the licensed premises, Eddie's Dive Inn. Detective Gomez was accompanied by Detectives Manny Gonzalez and Ray Gonzalez. Detective Gomez stood at the west end of the bar and his two partners sat at the bar next to him. After they ordered a beer, they were approached by a white female named Catrina Gibides. She sat down between the two officers who were seated. She asked what they were doing and told Detective Gomez he looked like a cop. He then pulled up his pants legs to show he was wearing no socks and she said "you can't be a cop" and grabbed his groin. She then began playing with Manny Gonzalez's leg and asked if they wanted a "date." She was wearing a very loose chiffon type outfit and her breasts were barely covered. The officers who were seated had been pretending not to speak English and Ms. Gibides asked Detective Gomez to ask Manny Gonzales if he wanted to go across the street to a motel with her. She said that she would perform intercourse and fellatio for $25 plus $5. She then called over another white female named Lisa Brown, who also began talking about going across the street to a motel. Lisa Brown said her price was $25 plus $5 for the room. They then discussed going in different cars. During these conversations the bar was crowded and Eddie Pittman was in the lounge approximately 8 to 10 feet from where the officers were located. It was pretty loud in the bar. There were also barmaids working behind the bar. Isaac Dweck is a regular patron of Eddie's Dive Inn. He goes there primarily on Sunday afternoons to watch football and shoot pool. He is almost never in the licensed premises after 9:00 p.m. and averages going to the lounge four or five times a month. He has never been solicited for prostitution in the lounge and has never overheard someone else being solicited. Gary Arthur goes to Eddie's Dive Inn two or three times a week and generally leaves some time between 7:30 and 9:00 p.m. Once or twice he has stayed until 11:00 or 12:00 p.m. He has never been solicited for prostitution and has never overheard anyone else being solicited. He has been going to Eddie's Dive Inn for five or six years. The Respondent has a policy against drugs, fighting, solicitation, and profanity and also has a dress code. He employs 11 full-time employees at the lounge and three or four of these employees are security guards who work at front and back doors. The Respondent has a closed circuit television system with cameras on the cash register and pool room area. The screen is in Respondent's office. Over the past 12 years the manager, Collins Jones, has barred 12 or 13 women from the bar after he heard them soliciting in the bar. In the twenty years he has operated Eddie's Dive Inn, the Respondent has barred approximately 20 women from coming into the licensed premises because of prostitution. Once the women are arrested for prostitution, they are barred from the premises. There are signs posted in the bar prohibiting soliciting. Irene Madden works as a barmaid at Eddie's Dive Inn. She has been instructed to not serve known prostitutes and that if she heard someone soliciting she should diplomatically ask them to not do that and inform Mr. Pittman or the manager. Mary Scott works as a barmaid at Eddie's Dive Inn. She has heard women solicit in the lounge for prostitution. She does not have the authority to ask someone who solicits for prostitution to leave the premises. She does have authority to ask people to leave who are in violation of the dress code. In September, 1972, the Respondent was charged in an administrative proceeding against his license with permitting prostitution on the licensed premises. He was also charged criminally with permitting prostitution. Respondent paid a $350 administrative fine and his license was placed on probation for the remainder of the license year. He pleaded guilty to the criminal charge.
Recommendation Based upon the foregoing findings of fact and conclusions of law, it is RECOMMENDED: That a Final Order be entered finding the Respondent in violation of Section 561.29, Florida Statutes, and imposing a civil penalty of $1,000 and suspending Respondent's beverage license for a period of ninety (90) days. DONE AND ENTERED this 9th day of November, 1983, at 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 9th day of November, 1983. COPIES FURNISHED: William A. Hatch, Esquire Gary R. Rutledge, Secretary Department of Business Department of Business Regulation Regulation 725 South Bronough Street 725 South Bronough Street Tallahassee, Florida 32301 Tallahassee, Florida 32301 Arthur M. Garel, Esquire 40 Southwest 13th Street Miami, Florida 33130 Howard Milan Rasmussen, Director Division of Alcoholic Beverages and Tobacco Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301
The Issue Whether respondent's alcoholic beverage license should be disciplined on grounds that (1) illicit drugs were sold and delivered on its premises by its agents and employees, and (2) its premises was used for the selling and delivery of illicit drugs.
Findings Of Fact Butch Cassidy's Saloon Licensee, 1431 Corporation, owns a business known as Butch Cassidy's Saloon located at 1431 North Federal Highway, Dania, Florida. In connection with its operation of Butch Cassidy's, Licensee holds alcoholic beverage license No. 16-02422 series 2-COP. Under this license, Licensee sells beer and wine for on-premises consumption. Soft drinks and sandwiches are also served. The entertainment consists of female nude dancers who perform to juke box music. Licensee is owned by Don Austin and George Sherman. Austin and Sherman operate and manage Butch Cassidy's Saloon; they alternate work shifts so that, except for short temporary absences, one or the other is always on the premises. The premises contain a bar, a stage and runway for the female dancers, two dressing rooms, a business office, and rest rooms. It is dimly lit, though not completely dark; the lighting is most pronounced above the pool tables and along the length of the dance stage. II. Sale or Delivery of Controlled Substances on Premises On August 10, 1981, at approximately 11:30 p.m., Beverage Officer L. Terminello entered Butch Cassidy's Saloon ("the premises") with a confidential informant. After sitting at the rear of the premises, he asked "Connie," a female dancer employed by Licensee, if she' could sell him some quaalude tablets; she answered affirmatively. Several minutes later, she returned and handed him five tablets; he paid her $15. Subsequent laboratory analysis of the tablets by the Broward County Sheriff's Office revealed the presence of diazepam. (Testimony of Terminello; P-16.) On August 12, 1981, at approximately 9:40 p.m., Officer Terminello again entered the premises and sat at a table at the rear. After some initial conversation, a customer known as "Jerry" asked him if he would buy some ludes"; Terminello agreed. Jerry placed the tablets on Terminello's table. Terminello picked them up and gave him $3 for each tablet. Subsequent laboratory analysis of the tablets revealed the presence of diazepam. (Testimony of Terminello; P- 15.) Later on that evening (August 12, 1981), Connie, in response to Officer Terminello's request, sold him another quaalude tablet for $2. The transaction took place, again, at a table located opposite the stage, at the rear of the premises. Subsequent laboratory analysis of the tablet revealed the presence of diazepam. (Testimony of Terminello; P-17.) On August 15, 1981, at approximately 11:30 p.m., Officer Terminello again entered the premises and sat at a table at the rear. He asked a female dancer known as "Dusty" (who was employed on the premises) whether she had any cocaine or quaaludes. She said she had none but offered, instead, a marijuana cigarette which she took from her pocketbook and handed him. He left her a tip of $1 for the cigarette. This drug transaction occurred in the vicinity of the pool table, an area which is well-lighted in relation to other parts of the premises. Subsequent laboratory analysis of the cigarette confirmed that it contained cannabis. (Testimony of Terminello; p-18.) On August 19, 1981, at approximately 10:40 p.m., Officer Terminello reentered the premises and sat at another table in the vicinity of the pool table. He again asked Dusty, a female dancer, if he could buy some cocaine. She said he might be able to purchase some from "Don," the doorman, but that he sold a lot of cocaine by "stepping on it"--a street term for cutting cocaine. She told him that another dancer, known as "Renee," could provide better cocaine; he decided to wait for Renee. While waiting, he asked Dusty if she would sell him some quaalude tablets; she agreed and delivered two tablets to him at his table. He paid her $3 each. Subsequent laboratory analysis of the tablets revealed the presence of diazepam. (Testimony of Terminello; P-19.) Dusty then asked Terminello if he wanted to smoke a "joint," meaning a marijuana cigarette. They then walked outside to the parking lot and smoked the cigarette. Subsequent laboratory analysis indicated that the cigarette contained cannabis. (Testimony of Terminello; P-20.) Later that evening, at about 1:00 a.m., Officer Terminello returned to the premises and contacted Dusty for the cocaine promised earlier. Dusty went over and talked to Renee, then returned to Terminello's table near the pool table. She told him that the cocaine would cost $80. He handed her $80 which she placed in her pocketbook. Shortly thereafter, she returned from a dressing room and handed him a plastic bag containing white powder. This exchange took place in an area where there were 15-20 patrons; several of them were 2-3 feet from Terminello. Subsequent laboratory analysis of the powder revealed the presence of cocaine. (Testimony of Terminello; P-21.) A short time later, Renee asked Officer Terminello if he wanted to purchase more cocaine; he replied that he would buy another one-half gram. After completing her performance on the dance floor, she agreed to sell him one- half gram for $40. At her request, he placed $40 in her garter belt; shortly thereafter, she returned from the dressing room and handed Terminello a white zip-lock bag of white powder. This transaction took place in a relatively well- lighted area, with a clear line-of-sight to the dance stage and bar. Subsequent laboratory analysis of the powder revealed the presence of cocaine. (Testimony of Terminello; P-22.) Officer Mike Berk of the Broward County Sheriff's Office entered the premises (with Terminello) at approximately 12:30 a.m., on August 20, 1981. After sitting at a table near the dance stage, he asked a female dancer (employed by Licensee) known as Robin" if he could buy some quaaludes; she handed him one white tablet. This exchange took place in a relatively well- lighted area of the bar. Subsequent laboratory analysis of the tablet revealed the presence of diazepam. (Testimony of Berk; P-23.) On August 29, 1981, at approximately 11:45 p.m., Beverage Sergeant George Miller entered the premises, sat at a table near the dance stage, and asked a female dancer (employed by Licensee) known as "Jackie" if she could get him some quaaludes. She asked him to wait. Approximately an hour later, she indicated that she could obtain some quaaludes; she approached the bartender (employed by Licensee) known as "Rusty." He removed a tablet from his pocket, laid it on the bar, and cut it in half. He handed one-half of the tablet to Jackie who returned to the table and handed it to Miller. Subsequent laboratory analysis ,of the one-half tablet revealed the presence of diazepam. (Testimony of Miller; P-24.) On September 2, 1981, Sergeant Miller reentered the premises, sat at a table near the dance stage and was joined by a female dancer (employed by Licensee) known as "Candy." From her seat, she shouted to Dusty, the bartender (who was approximately 10 feet away) : "Make some calls for some ludes, I want to get f cked up." (Testimony of Miller.) On September 10, 1981, at approximately 8:15 p.m., Beverage Officer Mike Imperial entered the premises, sat at the bar and asked Connie (a female dancer) if there were any "ludes" around. She replied that she didn't know but she would check. She then asked Jackie who, in turn, said she would check with "Ann," another female dancer employed by Licensee. Jackie then returned and said that no one had any quaaludes. Connie then told Imperial that she would be off-duty the next day but that she would leave six quaaludes for him with Tom, the bartender. She then told the bartender that she would leave something with him to give to Imperial (and his companion) the next day. (Testimony of Imperial.) The next day, September 11, 1981, at approximately 7:20 p.m., Officer Imperial reentered the premises and spoke with Tom, the bartender. Tom told him that Connie had not arrived yet, that he would check around the bar but that he doubted anyone had quaaludes because it was too early. Imperial then departed the premises. (Testimony of Imperial.) The next day, September 12, 1981, at approximately 7:00 p.m., Officer Imperial (accompanied by a confidential informant) returned to the premises. They sat at the bar, where Tom, the bartender, told them that the quaaludes were not then available but would be there soon. Shortly thereafter, Tom went to the rest room, then returned to the bar and handed Imperial ten white tablets wrapped in a bar napkin. Tom then handed the informant (who accompanied Imperial) a loose tablet and openly stated, "Here's one for the road." Subsequent laboratory analysis of the tablets revealed the presence of methaqualone. (Testimony of Imperial; P-25.) On September 23, 1981, at approximately 8:30 p.m., Beverage Officer Imperial (with his confidential informant) reentered the premises, sat at the bar, and asked a female dancer (employed by Licensee) known as "Gail" if there was any "pot" around. She replied that she would see if she could find him some; later, she returned and handed the confidential informant two cigarettes. Subsequent laboratory analysis of the cigarettes revealed the presence of cannabis. (Testimony of Imperial; P-26.) On September 28, 1981, at approximately 4:10 p.m., Officer Imperial reentered the premises and sat at the bar. He observed an unidentified female dancer (employed by Licensee) approach Tom, the bartender, and ask if he had a "joint." Tom replied that he had one, then removed a partially smoked cigarette from his wallet and handed it to the dancer. She placed it in her mouth and asked him for a light; he replied, "Don't do that here, I'm already on probation." The dancer then departed, saying that she would smoke it in the dressing room. Several patrons were nearby when this exchange took place. (Testimony of Imperial.) III. Open, Persistent, and Recurring Nature of Illicit Drug Activity on the Premises The illicit drug transactions described were open, persistent, and recurring; they took place in fairly well-lighted areas of the premises. The actions of Licensee's employees who engaged in such activities can fairly be described as practiced and routine. When undercover law enforcement officers asked for illicit drugs, the employees actively cooperated in an effort to accommodate them. The drug activity on the premises was not isolated or limited to one or two employees; it was pervasive during the evening hours, involving at least six different employees or agents. Drugs were either available on the premises or readily obtainable. During the course of the two-month investigation, at least ten illicit drug transactions took place on the premises. (Testimony of Terminello, Imperial, Berk, Miller.) However, no evidence was presented which established that, during the time in question, illicit drugs were actually used on the premises. Several customers testified that they had never seen anyone selling, buying, or using drugs on the premises, that no one had ever approached them attempting to buy or sell drugs. 2/ (Testimony of Leighton, Redgate, Johns, Smith, Bushmann.) George Sherman and Don Austin, owners and operators of the bar, testified that they had a policy against the use or sale of drugs on the premises; that they advised new employees of this policy, posted a sign in the dressing room restating the policy, 3/ and fired employees who violated it. However, the practiced and recurring nature of the drug transactions demonstrates that their anti-drug policy was not diligently and aggressively implemented. The drug transactions took place in a relaxed atmosphere of permissiveness. The employees made little effort to conceal the transactions; drug use was openly discussed and joked about. Neither George Sherman nor Don Austin were personally involved in any of the drug transactions in question. However, they failed to aggressively monitor and supervise their employees; they failed to effectively emphasize that drug activity on the premises would not be tolerated. Their lack of diligence in this regard allowed their employees to develop an attitude which fostered illicit drug activity on the premises. (Testimony of Sherman, Austin, Terminello, Berk, Miller, Imperial.) The open, persistent, and practiced nature of the drug transactions on the premises supports an inference that, if Austin and Sherman did not know that they were occurring, they should have known with the exercise of reasonable diligence. (Testimony of Terminello, Berk, Miller, Imperial.) During the 4 1/2 years it has operated the premises, the Licensee has not been found guilty of violating the beverage law or any other law of this State. (Testimony of Sherman, Austin.)
Recommendation Based on the foregoing, it is RECOMMENDED: That the Division of Alcoholic Beverages and Tobacco suspend respondent's beverage license for 120 days. DONE AND RECOMMENDED this 23rd day of December, 1981, 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 23rd day of December, 1981.
