Findings Of Fact At some time prior to March 1, 1963, Randall R. Aleno, a former deputy sheriff with the Volusia County, Florida, Sheriff's Department; his brother, Mick Aleno; his father, Charles Aleno; and his wife, Patty Aleno, formed Aleno's Enterprises, Inc., a Florida corporation, with Randall Aleno owning more than 50 percent of the corporate stock. Randall Aleno is the corporate president; Mick Aleno,the vice president; Charles Aleno, the treasurer; and Patty Aleno, the secretary. Having been a long-time resident of Volusia County, Randall Aleno saw a need for and developed a concept for a form of mobile concession stands to operate on the St. Johns River in the general area of Volusia County and the contiguous counties north and south of it. Before taking any definitive steps toward implementing this idea, Randall Aleno, on January 10, 1983, wrote letters both to the Commanding Officer of Port Operations for the U.S. Coast Guard in Jacksonville, Florida, and a representative of the Volusia County Health Department outlining in general terms the nature of his plan and seeking approval of those agencies for the project. Apparently, neither agency interposed any objection. He also contacted the local office of the Petitioner, Division of Alcoholic Beverages and Tobacco, where he spoke with Agents Dunbar, Blanton, and Clark, outlining his proposal. On at least one occasion, Mr. Aleno told Division of Alcoholic Beverages and Tobacco representative Clark, while at the counter in the Division of Alcoholic Beverages and Tobacco Daytona Beach office, that he intended to make bulk sales of beer from boats tied to buoys in the St. Johns River at the time of sales, but which would, when not in operation, be moored at the Tropical Marina in DeLand, Florida. In Dir. Clark's opinion, this type of proposed operation was not covered or provided for in the statutes or in the rules of the Division and he felt the applications for licenses for these operations should he denied. According to Mr. Clark, when he advised Mr. Aleno of this on several occasions, Mr. Aleno still wanted to try and submitted the application. At some time during this period, Mr. Aleno, who had been with the sheriff's office for 14 years, retired from that employment, 1/ purchased three houseboats (one 39-foot boat and two 26-foot boats) which he thoroughly rehabilitated to be capable of storage and the sale of sandwiches and package sales of soft drinks and beer. The sandwiches to be sold were to he pre- wrapped, the beverages in cans, coffee in styrofoam cups with lids, and all condiments would be in sealed packages. No food or drink was to be opened or consumed on board the boats, floating concession stands. When the boats were completed, because he had been told by Division of Alcoholic Beverages and Tobacco agents at the Daytona Beach office that a license would not be issued to a moving establishment, he secured a boat slip for each boat at the Tropical Marina. Mr. Aleno picked up the applications for beverage licenses from the Daytona Beach office. Me also wrote to a beverage supervisor at the Jacksonville office in an effort to prepare the way for his applications. Mr. Aleno was told, at some point in the procedure, that he would need to submit copies of the plans, the boat layouts and details of the operation. All of these, in addition to the letters from the Coast Guard and the county health department, were submitted for consideration with the applications. Mr. Aleno attempted to describe his proposal to each official with whom he came into contact. The local Division of Alcoholic Beverages Supervisor, Lt. Powell, and Mr. Clark admit that Mr. Aleno told them what he planned to do with his operation and how it would work. Lt. Powell reviewed the complete application and discussed it with Mr. Clark. He, Powell, was aware that the sales of unopened packages of beer would be made out on the river and not at the Tropical Marina before the application was forwarded to Tallahassee for action, but there was nothing written in the application to indicate the sales would be made up and down the river. The applications showed the location of the premises as Tropical Marina, Slips 41, 42 and 43. The applications were forwarded to Tallahassee in the normal course of business apparently without recommendation one way or the other by the local office. The licenses were issued on April 1, 1983, showing their location as Tropical Marina, Slips 41, 42 and 43, respectively, Lakeview Road, DeLand, Florida. The 1-APS licenses were issued to Aleno's Enterprises, Inc. trading as Randv's Subs #41, 42 and 43. (License Numbers 74-1565, 74-1566, and 74-1567) Respondent does not operate its boats as a steamship line. It does not carry people, other than employees, on the boats for pay or gratis. None of the boats go more than 100 miles in either direction from the point of mooring. Respondent has not been selling beverages for consumption on the premises, but has been making package sales only of beer off the boats. Barry Schoenfeld, Chief of Licensing Records for Respondent in Tallahassee, reviewed these applications and the license files sometime during the summer of 19-83 after the licenses were issued. His review of the files led him to conclude that the Respondent's operation does not qualify for a 1-APE license because the boats are not permanently moored at their docks. Florida Beverage Laws require, generally, a fixed permanent structure. There are some exceptions for movable vehicles such as steamships, trains, and airplanes and also for pleasure boats which go more than 100 miles per outing. He believes Respondent's boats would qualify for this latter license which, however, is a COP license, not an APS license. He has thoroughly examined the Respondent's applications; and the way the total file reads, it gives him the impression the boats would be moored at the dock in a fixed permanent location. This is why the licenses were issued. Since an obvious mistake was made, and since Mr. Schoenfeld did not know of any provision in the Florida Beverage Law which covers an operation such as that of Respondent, in the summer of 1983, he called Respondent, speaking with Mrs. Patty Aleno, and advised her the operation would have to cease. Upon advice of counsel, Respondent did not stop the operation at that time.
Recommendation That Respondent's licenses be revoked without prejudice so as to permit Respondent or its officers to, in the future, apply for the issuance of a beverage license, if otherwise qualified.
The Issue Each of the Petitioners is an applicant for an alcoholic beverage license. The issue in each case is whether the license application of each Petitioner should be granted or denied.
Findings Of Fact The parties have stipulated to the facts set forth in subparagraphs (a) through (o), below, which facts are taken as established without the need for proof: That the records from City National Bank in Respondent's Exhibit 30 accurately reflect that on November 22, 1996, the Petitioners received a $8,200,000 wire funds transfer from Parex Bank, Riga, Republic of Latvia, which was received through the Bank of New York. That the records from City National Bank in Respondent's Exhibit 30 accurately reflect that on November 22, 1996, the Petitioners transferred $8,000,000 to Rubin, Baum, Levin, et al., trust account. The Petitioners assert that this transfer was made to satisfy the terms of the Agreement entered into by the Petitioners and the MJP Entities. That the records from NationsBank in Respondent's Exhibits 32 and 33 accurately reflect that on November 13, 1996, SS Trans, Inc., transferred by check a sum in the amount of 1.5 million dollars ($1,500,000) to International Value Group's account at NationsBank. That the records from NationsBank in Respondent's Exhibit 33 accurately reflect that on November 21, 1996, SS Trans, Inc., made a funds wire transfer in the amount of $100,000 to Parex Bank, Riga, Republic of Latvia. That the records from NationsBank in Respondent's Exhibit 32 accurately reflect that on November 20, 1996, a company known as Oakdale Trading, Ltd., made a wire fund transfer in the amount of five million dollars ($5,000,000.00) to International Value Group's NationsBank account no. 3660385026. That the records from NationsBank in Respondent's Exhibit 32 accurately reflect that on November 21, 1996, International Value Group, Inc., made a wire funds transfer in the amount of 6.5 million dollars to Parex Bank, Riga, Republic of Latvia. That on January 14, 1997, the MJP Entities filed a Petition under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court in and for the Southern District of Florida, Broward Division, in Case Nos. 97-20219-BKC-PGH through and including 97-20226-BKC-PGH. That the MJP Entities as referenced herein are the Debtors in the bankruptcy petition referenced in Stipulation [g] above, and as referenced in the Exhibits 28 and 29, [mentioned] above. Larry Church, Chief Executive Officer for the Petitioners, was sole corporate officer of the MJP Entities while in bankruptcy until approximately June, 1997. He is no longer serving in such capacity. The Schedule of Assets filed by the Debtor MJP entities in U.S. Bankruptcy Court lists the three alcoholic beverage licenses that the Petitioners are seeking as assets of the Debtors. The Schedule of Assets filed by the Debtor MJP Entities in the U.S. Bankruptcy Court lists the three businesses for which the Petitioners seek licensure as assets of the Debtors. That Skobeltsyn was physically present in the State of Florida, United States of America, on November 19, 20, 21, and 22, 1996. That Skobeltsyn's B-1 Visa has been canceled by the United States' Embassy in Moscow, Russia, under INA 221(g) and INA 214(b). Skobeltsyn is permanently excluded from entry into the United States under INA 212(A)(6)(e). There is no formal appeal process available to Skobeltsyn because he is a foreign national outside the territory of the United States. However, Skobeltsyn may at any time submit a visa petition with the consular section of the United States' Moscow Embassy and attempt to establish that the earlier L-1 petition should not be a basis for denial. The alcoholic beverage license transfer applications by Wilan Corporation d/b/a Pure Platinum Club and Olympic Investments Corporations d/b/a Thee Doll House Club filed in January 1997 in the Division's Orlando District office have not been disapproved by the Division. However, the Division is investigating the qualifications of the applicants. Michael J. Peter also has a term in the sale agreements for these Orlando clubs that permits the clubs to use his trademarks. The United States Attorney's Office has not sought criminal charges against Michael Peter for violation of the terms of his Plea Agreement. Respondent is the State of Florida, Department of Business and Professional Regulation, Division of Alcoholic Beverages and Tobacco (hereinafter "the DABT"). On January 22, 1997, the Petitioners filed three alcoholic beverage transfer applications with the DABT. The Petitioner, Golden Show, Inc., d/b/a Solid Gold, filed an application for license number 23-00030 to sell alcoholic beverages at its premises located in Dade County. The Petitioner, Platinum Show, Inc., d/b/a Pure Platinum, filed an application for license number 16-00010 to sell alcoholic beverages at its premises located in Broward County. The Petitioner, Silver Show, Inc., d/b/a Solid Gold, filed an application for license number 16-00504 to sell alcoholic beverages at its premises located in Broward County. Cinderella Ice, Inc. (hereinafter "Cinderella Ice"), is the sole stockholder of the Petitioner corporations (hereinafter "the clubs"). Sergey V. Skobeltsyn (hereinafter "Skobeltsyn") is the sole corporate officer and sole stockholder of Cinderella Ice. Skobeltsyn is also the sole corporate officer of each of the Petitioner corporations. Following an investigation, by means of a Notice of Disapproval dated May 8, 1997, the DABT advised the Petitioners in writing that each of their alcoholic beverage license applications were disapproved. The Notice of Disapproval stated the following specific reasons for the proposed disapproval of each application: The Applicants have failed to correct errors and/or omissions on their alcoholic beverage license applications and have thus submitted incomplete alcoholic beverage license applications. The Applicants have failed to supply additional information required by the Division in order for it to conduct a full investigation of the qualifications of the applicants as required by Section 561.18, Florida Statutes, and as requested in the Division's letters of January 27, February 12, and April 18, 1997. The Applicants' sole corporate officer and sole shareholder of Cinderella Ice, Inc., Sergey V. Skobeltsyn is not qualified to hold an interest in an alcoholic beverage license. He is not legally authorized to manage and control the premises sought to be licensed as required by Rule 61A-3.017, Florida Administrative Code, and Section 561.17, Florida Statutes. Mr. Skobeltsyn is an alien national who has not been authorized by the U.S. Department of State or the U.S. Department of Justice, Immigration and Naturalization Service, to enter the United States as a foreign investor who can manage and control a business in this country. Furthermore, Mr. Skobeltsyn's current B-1 Visa does not permit him to be an employee for hire in the United States. Therefore, Mr. Skobeltsyn cannot legally serve as an employee or corporate officer of the Applicant corporations, by which capacity he could legally exercise management and control of the business sought to be licensed. The Applicants do not exercise ultimate over-all control over the businesses sought to be licensed. The business conducted on the licensed premises is not managed and controlled by the Applicants, or managed by an authorized employee or employees of the applicants, contrary to Rule 61A-3.017, Florida Administrative Code, and Section 561.17, Florida Statutes. A person not qualified to hold an alcoholic beverage license has a direct or indirect financial interest in the businesses sought to be licensed contrary to Section 561.17(1), Florida Statutes, to wit: Michael J. Peter, who is disqualified from holding an alcoholic beverage license pursuant to Section 561.15, Florida Statutes, has a direct or indirect financial interest in the business sought to be licensed. The Applicants have falsely sworn to the alcoholic beverage license applications by not disclosing the direct or indirect financial interest of Michael J. Peter and/or of various business entities owned by Michael J. Peter, contrary to Section 559.791, Florida Statutes. The Applicants have falsely sworn to the alcoholic beverage license applications by not disclosing the direct or indirect financial interest of International Value Group, Inc., and/or Tathimtrans, LLP (a foreign corporation), and/or SS Trans, Inc., and/or Oakdale Trading (a foreign corporation), contrary to Section 559.791, Florida Statutes. The Applicants have falsely sworn to the alcoholic beverage license applications by declaring on the applications that the source of investment funds was an 8.2 million dollar commercial loan from Pareks Banka in Riga, Latvia, contrary to Section 559.791, Florida Statutes. The Notice of Disapproval also notified the Petitioners of their right to request a hearing. The Petitioners timely invoked that right. On November 22, 1996, the Petitioners entered into an agreement with Michael J. Peter, the prior license holder and owner of the three clubs, for purchase of the three clubs. The purchase price for these clubs was eight million dollars ($8,000,000). A key term of the agreement for sale was that the sellers would file a Chapter 11 Bankruptcy under the U.S. Bankruptcy Code. The sellers, who would become the debtors in bankruptcy, would then submit a plan of reorganization to the bankruptcy court by which the clubs and their alcoholic beverage licenses would be transferred to the Petitioners. During the pendency of the bankruptcy, the purchasers would act as the managers of the clubs, and all profits from the clubs would be used to satisfy the debts of the clubs and sellers. In this regard, section 2(e) of the agreement of November 22, 1996, reads as follows: (e) Following the termination of the Receivership and until confirmation of the Plan, all earnings of the Clubs shall be used to pay down the liabilities of the Clubs as quickly as possible; provided, however, that MJP shall permit Purchaser or its designee to manage the Clubs following termination of the Receivership, subject to Purchaser or its designee obtaining the appropriate licenses therefore, and to receive a management fee not to exceed $70,000 per month (which shall accrue from month to month to the extent that the Clubs' revenues after paying all other operating expenses due for the month are insufficient. The sellers filed for bankruptcy on January 15, 1997, and the bankruptcy court issued an order by which the Petitioners were placed in possession of the clubs and were authorized to manage and control the clubs.1 However, as of the date of these proceedings, no plan for reorganization has been approved by the bankruptcy court. It appears that the Petitioners intend to propose a change in the plan, by means of which Skobeltsyn will contribute an additional one million dollars and Cinderella Ice will receive the real estate associated with two additional clubs in Orlando. Although Petitioners have paid eight million dollars for the clubs, the transfer of the clubs from the seller is not final and is still awaiting a confirmation order, or plan approval, by the bankruptcy court. Michael J. Peter is disqualified from holding an interest in an alcoholic beverage license by virtue of a Federal felony conviction, stemming from his criminal failure to disclose the interest of another person in these alcoholic beverage licensed businesses. Michael J. Peter entered into a consent order with the DABT wherein he agreed to divest himself, prior to January 15, 1997, of all ownership interests in any and all alcoholic beverage licenses in which he has an interest. Michael J. Peter also agreed to divest himself of all ownership interests in any entity holding an alcoholic beverage license. The November 22, 1996, sale agreement did not sell to the Petitioners the trademarks used by the businesses. The trademarks "Pure Platinum" and "Solid Gold" remain the personal assets of Michael J. Peter. Michael J. Peter and the Petitioners entered into a License and Support Agreement for the use of these trademarks. According to this agreement, the Petitioners are licensed to use the trademarks with certain specific restrictions, and with the requirement that certain business activities of the clubs be subject to Michael J. Peter's approval. For example, the Petitioners can transfer their rights to use the trademarks only if they sell the clubs, and then only in accordance with the following provision of the amended License and Support Agreement: However, if Licensee desires to effectuate a Transfer in conjunction with the sale of any or all of the Clubs, Licensee shall be permitted to do so, provided that (a) in Licensor's reasonable judgment, the transferee has the knowledge, expertise and financial wherewithal to maintain the standards of quality required by this Agreement, and (b) such transferee expressly assumes this Agreement in a written instrument in form and substance reasonably acceptable to Licensor. If either of the conditions stated in (a) or (b) are not met, Licensor shall be permitted to terminate this Agreement. Under the amended License and Support Agreement, Michael J. Peter is also authorized to exercise control over certain business decisions of the clubs, including the entertainers hired by the clubs to promote the trademarks and the quality of certain merchandise sold by the clubs. Michael J. Peter is also authorized to control, at least indirectly, the quality of the clubs' business activities by virtue of the language in the amended License and Support Agreement which, as a condition of the used of the trademarks, require that the clubs will . . . not apply the Licensed Marks to any Products of less than the highest quality, use the Licensed Marks in connection with any marketing, advertising or promotional materials or productions not of the highest quality, allow any Licensed Business to provide service, food and beverage or entertainment of less than the highest quality, or allow the appearance of any Licensed Business to be anything less than the highest quality. (Emphasis added.) The right to use the trademarks "Pure Platinum" and "Solid Gold" are rights that are very valuable to the Petitioners. These trademarks are a valuable asset in attracting customers to the Petitioners' businesses. It would be difficult to sell the Petitioners' businesses without also being able to transfer the right to continue to use the trademarks. By reason of his ownership of the subject trademarks, and by the rights and authority he has reserved to himself under the amended License and Support Agreement, Michael J. Peter has an interest, direct or indirect, in the Petitioners' businesses by reason of his ability to assert control of how some aspects of those businesses are operated, as well as by reason of a potential financial benefit to himself in the event of a future sale of the clubs, at which time Michael J. Peter would have an opportunity to dictate the terms on which the use of the licensed trademarks would be transferred to the new purchaser of the clubs. The Petitioners assert that they acquired the 8.2 million dollars for purchase of the clubs by a means of a commercial loan from Parex Bank. The purported bank loan was wired to the Petitioners on November 22, 1996, the same day they entered into the sale agreement for purchase of the clubs. Parex Bank is in Riga, Latvia, a country of the former Soviet Union. The Petitioners submitted to the DABT several loan documents. The documents were written in the Russian language, but English translations were also provided by the Petitioners. The loan application, dated November 19, 1996, consisted of a brief one page request. The purported loan agreement, titled "Credit Agreement No. 3102," and dated November 21, 1996, was the principal loan document that was presented by the Petitioners as evidence of a loan. Skobeltsyn was physically present in the State of Florida on the date that he and Cinderella Ice allegedly entered into his agreement with Parex Bank. The provision of law pursuant to which Skobeltsyn has been excluded from entry into the United States, INA 212(A)(6)(e), provides that any person who knowingly aids another alien to enter, or to try to enter, the United States in violation of law is inadmissible. The applications in these cases were accompanied by a copy of an L-1 visa petition which had earlier been filed on behalf of Skobeltsyn. Skobeltsyn does not now have an L-1 visa, or any other type of visa, for entry into the United States. An L-1 visa permits a foreign national to enter the United States to be employed by a subsidiary in the United States of a foreign corporation. The L-1 Visa petition represented that Skobeltsyn was entering the United States to be employed by International Value Group, Inc. (IVG). IVG is a wholly-owned subsidiary of Tathramtrans, a Russian corporation, which is co-owned by Skobeltsyn and Yevgenii Sulyagin. Nothing else is known of Sulyagin. Skobeltsyn is the President of Tathramtrans. The L-1 petition states that the business of IVG is selling household goods, auto parts, and airplane parts to Russia. The DABT's investigation revealed that the business address stated on the L-1 petition for IVG was an empty store front, with no export business activity, or any other activity, occurring at the location. Rodion Sokrovichtchouk (Rodion),2 born on April 24, 1977, has been, according to his petition for an L-1 visa, a vice-president of IVG since 1993, when he was sixteen years old.3 He is also a Russian citizen. He entered the United States under a student visa, but has since obtained an L-1 visa to be employed by IVG in its export of goods to Russia. Rodion is a personal friend of Skobeltsyn. Rodion has been described as the eyes and ears of Skobeltsyn. Skobeltsyn communicates through Rodion with the employees of Cinderella Ice and its affiliates, and with his chief executive officer, Lawrence Church. Rodion is fluent in Russian and English. Rodion is an essential link between Skobeltsyn and the chief executive officer, Lawrence Church, because Mr. Church does not speak Russian and Skobeltsyn does not speak enough English to discuss business in English. Rodion is also a link in the transmission of business documents. For example, business checks and other bank documents of Cinderella Ice that require Skobeltsyn's signature are given to Rodion. Rodion then arranges for the documents to be delivered to Skobeltsyn, and when they are signed, the documents are returned to Rodion, who then distributes them to Lawrence Church or to whichever other employee needs the documents. Although Lawrence Church has a contract to manage the clubs, Rodion is, of necessity, actively involved in the management of the clubs, because he is the only person to whom Skobeltsyn can effectively communicate instructions. Furthermore, in view of the long personal and business relationships between Rodion and Skobeltsyn, and the relatively brief relationship between Church and Skobeltsyn, it is more likely than not that whatever managerial authority may actually be exercised by Church is subordinate to the authority actually exercised by Rodion in the management of Cinderella Ice and its clubs. The corporate office of IVG is located at the corporate offices of Cinderella Ice. Rodion now uses the business office that was used by Skobeltsyn prior to Skobeltsyn's exclusion from the United States. IVG has not limited its business activities to the export activities described in the L-1 petitions it filed on behalf of Skobeltsyn and Rodion. It has also entered into two contracts with Cinderella Ice and into one contract with Professional Parking Management, Inc. One of the contracts between IVG and Cinderella Ice is one pursuant to which, in the words of Lawrence Church, IVG "supplies hats, T-shirts, novelty items to the three applicant companies."4 The most reasonable inference that can be drawn from the little that appears in the record regarding this agreement, is that IVG has contracted with Cinderella Ice to provide the "Licensed Products" and items bearing the "Licensed Marks" described in the License and Support Agreement between Michael J. Peter and Cinderella Ice.5 That agreement, as amended, includes the following language at section 9.2: Licensor [Michael J. Peter] agrees to provide or to cause one or more of his affiliates to provide to Licensee [Cinderella Ice], but only to the extent requested by Licensee, Licensed Products and other items bearing the Licensed Marks or on or to which the Licensed Marks are to be applied for use at or in connection with the Licensed Businesses. It is clear from the information in the L-1 petitions that IVG does not have any expertise or experience in providing the types of goods described in the preceding paragraph. There does not appear to be any logical business reason for Cinderella Ice to enter into such an agreement with IVG. From the point of view of IVG, it would not make good business sense to enter into such an agreement unless it expected to make a profit by marking up the cost of the goods it sold to Cinderella Ice. From the point of view of Cinderella Ice, it would not make good business sense to buy goods at an inflated price from IVG when it can buy the same goods directly from Michael J. Peter, or his affiliates, without paying a marked-up price to IVG. The other contract between Cinderella Ice and IVG is titled Valet Parking Agreement. Under the terms of this agreement, dated December 23, 1996, IVG agrees to provide valet parking services and parking lot security services at all three of the clubs operated by Cinderella Ice. In exchange for providing such services, IVG ". . . shall be entitled to retain all income derived from the operation of the valet parking service and is obligated to pay all expenses, including security services, associated therewith." The Valet Parking Agreement dated December 23, 1996, includes the following introductory language: WHEREAS: The Concessionaire is in the business inter alia, of operating automobile valet parking services at divers clubs, restaurants, hotel and other public places. The very next day after signing the Valet Parking Agreement with Cinderella Ice, on December 24, 1996, IVG signed a contract with Professional Parking Management, Inc., a Florida corporation. The essence of that agreement is that Professional Parking Management will provide all of the valet parking and security services that IVG agreed to provide in its contract with Cinderella Ice. In exchange for providing those services, Professional Parking Management will receive fifty percent of the net pre-tax profit. The other fifty percent of the profit will be retained by IVG. It is clear from the information in the L-1 petitions that IVG does not have any expertise or experience in providing valet parking services or security services. Professional Parking Management, on the other hand, is operated by people who do have such expertise and experience. From the point of view of Cinderella Ice, it does not make good business sense to use IVG, which has no experience in such matters, as an intermediary to obtain valet parking services and parking lot security services from Professional Parking Management, an experienced provider of such services. Had Cinderella Ice contracted directly with Professional Parking Management, Cinderella Ice would be receiving half of the profits from the operation of the valet parking service. As it is, that share of the profits goes to IVG, in exchange for which IVG performs no service of value to Cinderella Ice. For reasons that are not explained in the record of these cases, the contracts described above between Cinderella Ice and IVG have the effect of diverting revenue from Cinderella Ice to IVG without any useful service or function being performed by IVG. In essence, under these contract, Cinderella Ice is giving money to IVG without receiving anything of value from IVG. There is evidence of additional unexplained entanglements between IVG, Rodion, and S.S. Trans Incorporated and Cinderella Ice and the clubs it operates. On at least one occasion, Cinderella Ice has paid an American Express credit card bill for Rodion. During March and April of 1997, Cinderella Ice made a number of payments to IVG and to S.S. Trans Incorporated. On at least one occasion, Rodion signed a twenty thousand dollar ($20,000) check on Cinderella Ice's account at First Union Bank. During the investigation of these applications, the DABT sought to learn more about the relationships between Rodion and Skobeltsyn, between Rodion and Cinderella Ice, between Rodion and IVG, between IVG and Skobeltsyn, between IVG and Cinderella Ice, and between S.S. Trans Incorporated, Skobeltsyn, and Cinderella Ice. To that end a DABT agent served Rodion with an investigative subpoena. When Rodion appeared in response to the subpoena, he asserted his right to remain silent guaranteed by the Fifth Amendment of the United States Constitution. Rodion did not answer any questions at all. During the entire DABT investigation of these applications, Skobeltsyn was unable to make himself available for interview in the State of Florida. The relationships mentioned immediately above, which the DABT has not been able to fully investigate, are sufficient to warrant an inference that at least Rodion and IVG have undisclosed financial interests in Cinderella Ice and/or the clubs operated by Cinderella Ice. The existence of such an undisclosed financial interest is the most logical explanation for the contracts between IVG and Cinderella Ice, pursuant to which IVG receives financial benefits without providing any useful service for Cinderella Ice. The inference is compelling when the foregoing is considered in light of the fact that, as addressed in further detail below, IVG sent six and a-half million dollars ($6,500,000) to the Parex Bank the day before the Parex Bank sent eight million two hundred thousand dollars ($8,200,000) back to Cinderella Ice. The DABT's licensing processes are conducted primarily through the DABT's local District Offices. The DABT issued to the Petitioners temporary licenses, prior to the issuance of permanent licenses. The DABT must issue a temporary license upon the submission of an application that on its face appears to disclose no grounds for denial. A license investigation is then conducted by the office responsible for the district in which the applicant's business is located. Because of the similarity of the three applications in these cases, the Dade County application of Golden Show, Inc., was processed and investigated through the Broward County office along with those of the other two Petitioners. The DABT assigned Special Agent Philip Krauss to investigate the qualifications of these applicants. Special Agent Krauss has had many years of experience conducting investigations of this type for the DABT. Special Agent Krauss began his investigation in these cases by conducting a thorough review of the applications. This is the first step in a license investigation process, and it includes a review of any supporting documents submitted with the applications, such as the personal questionnaires, and management agreements, leases, and contracts. The next step in a license investigation is to advise the applicant in writing of the need for any additional information to correct any errors, ambiguities, or omissions in the applications. In letters dated January 27, 1997, February 12, 1997, and April 18, 1997, the DABT requested additional information and documents from the Petitioners and advised them of deficiencies in the applications. One of the issues in these cases is whether the Petitioners complied with the DABT's requests. The funds used for the purchase of the clubs came from a bank in Latvia, a republic of the former Soviet Union. Even though the Iron Curtain has fallen, it is difficult to obtain investigative information from Russia, such as date of birth, place of birth, or employment verification. In the investigation of these cases, the DABT has had to rely to a greater degree than usual on the applicants for information. Therefore, it was more important than usual that the information provided by the applicants be complete, consistent, accurate, and timely. In the January 27, 1997, correspondence the DABT asked the Petitioners to provide, among other things, copies of all closing statements between Skobeltsyn and his corporate entities, and Michael J. Peter and his entities. The DABT never received a copy of a closing statement showing that the applicants had ever acquired an ownership interest in the businesses. Such a record could not be provided because the sale agreement does not reflect a final sale and transfer of the business assets. Rather, as mentioned earlier in these findings of fact, transfer of the business assets to Cinderella Ice will not be final until the bankruptcy court issues a confirmation order or plan approval. The DABT does not normally approve an application to transfer an alcoholic beverage license until there has been a final sale of the business to the applicant. Until the sale is final, the DABT views the application as incomplete. The investigation of these applications of necessity focused on Skobeltsyn, because he is the only natural person disclosed as having an ownership interest in any of the applicant businesses. In its January 27, 1997, letter the DABT also asked the Petitioners to provide a "Net Worth Statement for Skobeltsyn which identifies all assets, tangible and intangible, all incomes, royalties, savings, expense allowances and equity in real property." Similar requests were made in the DABT's letters of February 12, 1997, and April 18, 1997. In the April 18, 1997, letter the DABT also made it clear that it sought such information for each of the applicant corporations and for the officers and shareholders of each of the applicant corporations. The Petitioners responded through their attorneys that there was no net worth statement in existence, but provided what they described as "copies of various items that reflect Mr. Skobeltsyn's ownership of real and personal property such as an apartment, a vehicle, etc." In its April 18, 1997, letter, the DABT explained that the previously provided information did not provide sufficient information to conduct a full investigation of Skobeltsyn's financial background. The DABT had good reason to conclude that the previously provided information was not a complete response to the DABT's requests. For example, the information did not disclose all of the personal property and business investments that the DABT's investigation had revealed, such as Skobeltsyn's residence in North Miami Beach and his ownership interests in IVG and S.S. Trans Incorporated. The previously provided information also failed to mention such things as Skobeltsyn's business and personal bank accounts and credit card accounts at the Kazan branch of the Mezhcom Bank. As a result of these shortcomings, in its letter of April 18, 1997, the DABT rephrased its request for information, as follows: The Applicants are hereby requested to provide documents, records and/or information which identifies all assets, tangible and intangible, all income, royalties, savings, expense allowances, and equity in real property, of the Applicant corporations, its officers and shareholders. The Petitioners never fully complied with the above-quoted request. To the contrary, as noted in further detail below, the information provided by the Petitioners was incomplete, inconsistent, inaccurate, and illogical. And some of it simply appears to have been false. In order to conduct a complete investigation, the DABT must have sufficient information to verify the applicants' financial ability to obtain a commercial bank loan, especially when the loan is as large as the one involved in this case. The goal of the DABT's inquiry into such matters is to confirm that there are no other interested persons involved in the applicants' businesses that need to be disclosed to the DABT. The primary concern of the DABT in this regard is to make certain that all persons that have a direct or indirect interest in the businesses are qualified. The DABT could not conduct a full investigation without verifying the source of the Petitioner's investment funds. The purported loan agreement, Credit Agreement No. 3102, and the Personal Guaranty of Skobeltsyn state that the loan was secured by all of the tangible and intangible assets of the borrower, Cinderella Ice.6 The DABT attempted to verify the existence and extent of these tangible and intangible assets. The DABT apparently never received any information about any assets of Cinderella Ice, other than the $8,200,000 it received from the Parex Bank. If Cinderella Ice had no other assets, then it is most unlikely that a bank would loan an empty corporate shell $8,200,000 with which to start a business in a foreign country. If Cinderella Ice did have other assets, those assets should have been disclosed when requested by the DABT. The DABT's requests for information along these lines was for the purpose of confirming that the investment funds did not originate from persons other than Skobeltsyn or the Petitioners. According to the information submitted with the applications, Skobeltsyn was a bookkeeper for Tattramsgaz, a company in Kazan, Russia, from 1991 through 1992. From 1992 to the present, he asserts that he has been the president of two corporations in Russia, Edson, Inc., and Tachentrans (possibly the same entity as Tathramtrans). If the information submitted with the application is true, in four years, Skobeltsyn progressed from a job as a bookkeeper to become the president of a corporation that can obtain a loan of $8,200,000 from a Latvian bank within two days of submitting a brief one-paragraph loan request, a request which was submitted and approved without Skobeltsyn even having to go to the bank. In response to the DABT's request for a net worth statement, Skobeltsyn's attorneys provided a document titled Personal Financial Statement. It is a rather bare bones summary of what is purported to be Skobeltsyn's assets and liabilities as of April 29, 1997. It does not contain any identifying information regarding any of the assets and liabilities, with the sole exception of Skobeltsyn's ownership of "Thaimtrans Corporation" and Cinderella Ice. Some interesting details reported in the Personal Financial Statement include the following. Skobeltsyn is reported to have total assets of $69,702,000, and total liabilities of $29,062,000, which results in a net worth of $40,640,000. But he is reported to have only $40,000 cash in checking and savings accounts. He is reported to have none of the following: notes owed to him, certificates of deposit, treasury bills, savings certificates, life insurance, money market funds, precious metals, stocks, or bonds. Other than the cash mentioned above, Skobeltsyn's only reported assets consist of: Real estate (market value) 1,530,000 Vehicles (market value) 132,000 Ownership: "Thaimtrans" Corporation 60,000,000 Ownership: Cinderella Ice, Inc. 8,000,000 Notably, the Personal Financial Statement makes no mention of Skobeltsyn's ownership interest in S.S. Trans Incorporated. The Personal Financial Statement reports Skobeltsyn's liabilities as follows: Credit card obligations 15,000 Home mortgage 840,000 Auto loans 7,000 Personal Guarantee-Pareks Bank for Cinderella Ice, Inc. 8,200,000 Business loan obligations- Tathimtrans Corporation 20,000,000 Total Liabilities 29,062,000 44. During the course of the investigation, the DABT agents obtained numerous documents related to Skobeltsyn's purchase of a residence in North Miami Beach, Florida. Those documents include a Uniform Residential Loan Application signed under oath by Skobeltsyn on March 8, 1996. That application included representations as to Skobeltsyn's assets and liabilities. The only assets listed in the loan application of March 8, 1996, were as follows: Cash deposit towards purchase 80,000 Bank account at Nations Bank, Ft. Laud. 419,963 Net worth of businesses owned 2,000,000 1996 720 BMW automobile 90,000 Total Assets 2,589,963 The loan application also reported Skobeltsyn's net worth as $2,589,963, because he reported as his only liability a single credit card account, on which he reportedly owed no balance. The loan application included several other relevant details. Skobeltsyn reported that he was paying rent of $4,500 per month. Skobeltsyn reported that he was receiving a salary of $50,000 per month. Skobeltsyn answered "no" to the following question on the application: "Are you a co-maker or endorser on a note?" Skobeltsyn also answered "no" to the following question: "Have you had an ownership interest in property in the last three years?" Skobeltsyn answered "yes" to the following question: "Are you a permanent resident alien?" The loan application was signed under oath before a Notary Public. At the time of signing the loan application, Skobeltsyn was not a permanent resident alien. In support of the residential loan application discussed above, Skobeltsyn submitted a copy of a bank statement dated January 31, 1996, from NationsBank for an account in the name of S.S. Trans Incorporated. The bank statement showed an account balance as of January 31, 1996, of $419,963. The bank statement also shows a "miscellaneous debit" in the amount of $80,000, which is the exact amount that Skobeltsyn paid as a deposit on the residence he bought in North Miami Beach in March of 1996.7 In support of the residential loan application discussed above, Skobeltsyn submitted a letter dated February 8, 1996, written in Russian, and purportedly signed by the president of the Kazan Branch of the Mezhcom Bank, along with an English translation of the letter. The translation was prepared by Rodion. The text of the translated letter of February 8, 1996, from the Mezhcom Bank is as follows:8 We are acknowledging Mr. Sergey Skobeltsyn as a good customer of the Kazan branch. Mr. Sergey keeps large balances in U.S. currency. As a result we have issued to him a Eurocard, MasterCard and a Mexhchom Bank/Gold bank cards. He has always been successful in timely paying all debts. Indeed, he constantly keeps large balances in his business and personal accounts. We are anxious to assist him in all his business ventures. R. F. Kamaleev President Kazan Branch Mezhcom Bank In support of the same loan application, Skobeltsyn also submitted a letter on the stationery of Tathimtrans, Inc., dated February 8, 1996, and written in Russian, along with an English translation. This translation was also prepared by Rodion. The text of the translated letter of February 8, 1996, on Tathimtrans stationery is as follows: Mr. Sergey Skobeltsyn's annual income as President of "Tathimtrans" for 1995 was: U.S. $600,000.00. Mr. Sergey Skobeltsyn's projected income for 1996 is $650,000.00. N. A. Varfolomeeva Senior Accountant Also submitted in support of the mortgage loan application was a letter dated the eighth day of an untranslated month in 1996, written in Russian on the stationery of Alma, Inc., along with an English translation of the letter. Again, the translation was prepared by Rodion. The text of the translation of the letter on Alma, Inc., stationery is as follows: This letter verifies the sum of U.S. $150,000 on January 22, bank reference number 430016533 and the sum U.S. $350,000 on January 25, bank reference number 430024652, were wired to the account of "SS TRANS" for services rendered as per our agreement. F. R. Shakeirov Director On March 8, 1996, Skobeltsyn closed on the purchase of a residence in North Miami Beach, Florida. The purchase price was $800,000. In conjunction with the purchase, Skobeltsyn signed a mortgage in the amount of $500,000. It is clear from the documents related to Skobeltsyn's real estate transaction in March of 1996 that Skobeltsyn was treating the assets of S.S. Trans Incorporated as his personal assets. However, the Personal Financial Statement submitted in April of 1997 makes no mention of S.S. Trans Incorporated. This is one of a number of unexplained inconsistencies in the documentation surrounding Skobeltsyn's personal and business financial circumstances. It is clear from the documents related to Skobeltsyn's real estate transaction in March of 1996 that he represented his net worth at that time to be $2,589,963. Thirteen months later, in the Personal Financial Statement, he reports a net worth of $40,640,000. While it is within the realm of possibility that a talented and fortunate businessman could increase his net worth that much in a mere thirteen months, it is also highly unlikely that any mere mortal actually did so. Absent some plausible explanation, and there is none in the record of these cases, the most reasonable inference is that Skobeltsyn has from time to time provided false information about his financial circumstances. The Petitioners never provided the DABT with an itemization of Skobeltsyn's sources of income, as requested in the January 27, 1997, letter, and in later letters. In its letter of January 27, 1997, the DABT also required the Petitioners to submit the following information: Regarding Credit Agreement 3102: Provide a copy of the loan application, all schedules and attachments to the credit agreement, copies of all personal loan guaranty agreement(s) and a loan amortization schedule. The Petitioners responded to the DABT's request by asserting in the February 7, 1997, letter, the following: There is no loan application, schedules or attachments to the subject credit agreement, other than what has already been provided to AB&T in the original application package. The loan amortization schedule is included in the body of the subject credit agreement and in order to obtain copies of any personal guaranty documents in existence, if any, an extension of time is needed. Notwithstanding the Petitioners' assertions that there were no additional documents relating to the loan apart from a possible personal guaranty, on May 1, 1997, they subsequently submitted additional documents. The additional documents, which are discussed below, included copies of the original brief request for credit, a purported amendment to the credit agreement (along with a translation and a "correction" of the translation), and a request for an extension of time regarding the interest payments due under the credit agreement. The submission of documents late in an investigation, after representations that there are no additional documents, is the sort of inconsistency that raises the strong possibility of fabrication. Credit Agreement 3102 and the documents related to it raise more questions than they answer. The first problematic document is the loan application document, Respondent's Exhibit 8, which reads in its entirety, as follows: To the President AO "Pareks-Bank" Mr. Karginu V. I am requesting credit, for the sum of 8 200 000 (eight million two hundred thousand) U.S. dollars, for accomplishing a deal to buy three night clubs in South Florida, which are estimated by experts to be one of the best in the U.S. territory. We are ready to submit a business plan from which it would be clearly respectable and profitable for this type of business. Sincerely, Skobeltsyn, S.V. "CINDERELLA ICE, INC" 12000, BISCAYNE BLVD,FL. Signature Dated: 11/19/96 Cinderella Ice, Inc. Corporate Seal 1996 Florida During the course of the application investigation, the Petitioners' attorney explained that the business plan referred to in the brief credit application was not the usual type of business plan. Rather, as explained in the attorney's letter of May 1, 1997: The "business plan" submitted in connection with the subject loan application and referenced in Mr. Skobeltsyn's letter of November 1996 to the Pareks Bank consisted of copies of the voluminous Receiver's Reports and proforma profit and loss statements related to the business. I have enclosed herewith copies of the Receiver's Reports submitted from March through October 1996 which included the subject profit and loss statements. The Receiver's Reports were obviously the most accurate description of the financial state of the businesses that existed at the time. It was most logical to submit that data rather than a projected business plan. The Pareks Bank accepted those reports in lieu of the business plan. It is nothing less than incredible that, within 48 hours, the Pareks Bank, solely on the basis of a one-paragraph loan request, a collection of receiver's reports, and Skobeltsyn's personal guarantee, would loan $8,200,000 to a brand-new Florida corporation with no assets, so that it could buy a portion of the business assets of a convicted criminal, all of which assets were in the hands of a receiver, and were involved in complex litigation involving millions of dollars of claims. During the course of its investigation, the DABT requested a copy of the "Schedule One" mentioned in Section 2.5 of Credit Agreement No. 3102. By letter of May 1, 1997, the Petitioners' attorney explained: Schedule One to Credit Agreement No. 3102 is a copy of the November 1996 agreement between MJP and Cinderella Ice, Inc., as confirmed by the December 23, 1996 amendment to Section 2.5 of the subject credit agreement, which is enclosed. Enclosed with the letter of May 1, 1997, were three documents; a document in Russian that purports to be an amendment to Section 2.5 of Credit Agreement No. 3102, an English translation of the purported amendment, and a written statement in English signed by Lawrence Church describing an error in the translation. The English translation reads as follows: 23.12.96 Amendment part of section 2.5 of the Credit Agreement Contract No. 3102, dated November 20, 1996, shall be the contract between Cinderella Ice, Inc. and M. J. Peter, executed on December 21, 1996. V. Kargin President, AO Parex Bank Church's clarification of the above reads as follows: To Whom It May Concern Please be advised that due to a translator's scriviners error, translation document dated 23.12.96 should read: "Amendment part of section 2.5 of the Credit Agreement Contract No. 3102, dated November 21, 1996, shall be the contract between Cinderella Ice, Inc. and M. J. Peter, executed December 20, 1996." Lawrence Church Agent for Cinderella Ice, Inc. (Emphasis in original.) The purported amendment, with or without Church's clarification, is unintelligible and, therefore, of questionable validity. One cannot tell which part of Section 2.5 the amendment purports to amend. The purported amendment could just as logically be interpreted as an amendment to the first sentence of Section 2.5 or as an amendment to the last sentence of Section 2.5. The legitimacy of the purported amendment is also cast into doubt by the fact that it purports to be a unilateral amendment by the bank, without Skobeltsyn's signature agreeing to the amendment. Further, the purported amendment refers to a contract between Cinderella Ice and M. J. Peter executed on December 20 or December 21, 1996. Cinderella Ice and Michael J. Peter did not enter into a contract on either of those dates. Last, but not least, the purported amendment does not answer the underlying question which was posed by the DABT; the still unanswered question being: What comprised the original "Schedule One" referred to in Section 2.5 of Credit Agreement No. 3102 prior to any amendment of the agreement? In the final analysis, the most logical inference to be drawn from the purported amendment to Section 2.5 of the credit agreement is that it is a clumsily executed fabrication designed to conceal an oversight or omission in an illegitimate and false document titled Credit Agreement No. 3102. The credit agreement states that the interest rate on the loan is 9 percent per year to be paid monthly. The monthly interest due on an 8.2 million dollar loan at 9 percent per annum is $61,500 per month. The Petitioners attempted to explain the absence of interest payments by submitting to the DABT a copy of a request to Parex Bank dated December 28, 1996, for a six-month extension of the interest payments, which, curiously, also includes a promise to begin making interest payments by no later than April 30, 1997. The request for a six-month extension appears to be signed by Skobeltsyn, as well as by someone identified in the document as "President, AO Parex Bank." It is not clear whether the second signature constitutes agreement to the request or merely acknowledgment of receipt of the request. In April 1997, the Petitioners made a single interest payment of thirty thousand dollars. This is the only interest payment that the Petitioners have made on the purported loan. The Petitioners presented no persuasive evidence to explain the absence of interest payments.9 The absence of regular interest payments by the Petitioners casts a significant cloud of doubt over the legitimacy of the loan. The most reasonable inference to be drawn from all of the irregularities and inconsistencies surrounding the purported 8.2 million dollar loan, is that the document titled Credit Agreement No. 3102 is some type of sham or subterfuge, and there is no genuine loan agreement from the Parex Bank. During the period from January 22, 1996, through November 21, 1996, S.S. Trans Incorporated received ten transfers of large sums of money from sources unknown to the DABT. Most of the funds originated from Parex Bank in Latvia, but four of the transfers originated from unknown banks and accounts. Four of the wire transfers from the Parex Bank came from account number 0714926. The total amount received by S.S. Trans Incorporated from account number 0714926 was one million five hundred seventy thousand dollars ($1,570,000). The sums transferred ranged in amount from seventy thousand dollars ($70,000) to one million dollars ($1,000,000). The sums transferred into the account comprised a grand total of two million seven hundred seventy thousand dollars ($2,770,000). IVG received money transfers totaling six and a half million dollars ($6,500,000) in November of 1996. On November 13, 1996, S.S. Trans Incorporated transferred one and a half million dollars ($1,500,000) to IVG's account at NationsBank. On November 20, 1996, a company known as Oakdale Trading, Ltd., transferred five million dollars ($5,000,000) to IVG's account at NationsBank. On November 21, 1996, IVG made a wire funds transfer in the amount of six and a half million dollars ($6,500,000) to Parex Bank, Riga, Latvia, into account number 0714926. On the same day, S.S. Trans Incorporated made a wire funds transfer in the amount of one hundred thousand dollars ($100,000) to the same account number at Parex Bank. The very next day, on November 22, 1996, Cinderella Ice received an eight million two hundred thousand dollar ($8,200,000) wire transfer from Parex Bank. On December 12, 1996, Cinderella Ice wrote a check in the amount of one hundred thousand dollars ($100,000) to S.S. Trans Incorporated. The one hundred thousand dollars paid to S.S. Trans Incorporated on December 12, 1996, was part of the proceeds of the 8.2 million dollars that Cinderella Ice had received from Parex Bank. These unexplained transfers of large sums of money, occurring immediately prior to the disbursement of the purported loan funds from the Parex Bank, indicate that there were other undisclosed entities providing investment capital for the purchase of the clubs. The use of numerous corporate entities as part of the ownership structure, and the use of other corporations and business entities to hide ownership or to disguise the source of payments, constitutes a course of conduct indicative of the existence of undisclosed interests. The one hundred thousand dollars paid on December 12, 1996, by Cinderella Ice to S.S. Trans Incorporated is undoubtedly related to the one hundred thousand dollars that S.S. Trans Incorporated transferred to the Parex Bank on November 21, 1996. The evidence of unexplained wire transfers by other interests associated with Skobeltsyn and the Petitioners further justifies the DABT's concern that the Petitioners have not submitted complete applications by virtue of their failure to provide to the DABT the additional information it requested of the Petitioners. Specifically, the DABT requested that the Petitioners provide: "A listing, which contains name and address of all financial institutions, with account numbers, and current balance as of December 31, 1996, for which Skobeltsyn is a sole or joint account holder, in the United States or elsewhere." The DABT repeated its request for this information on at least two additional occasions. The Petitioners did not satisfactorily comply with this request, thus preventing the DABT from conducting a full investigation. The Petitioners responded to these requests for account information by replying that they would not object to any subpoenas issued on the accounts of IVG and S.S. Trans Incorporated that were discovered by the DABT. The Petitioners also noted in their response that they interpreted the request as not referring to corporate accounts, but as limited to Skobeltsyn's personal accounts in which he was a "sole or joint account holder." However, at least by April 18, 1997, the Petitioners knew that the request encompassed corporate accounts to which Skobeltsyn has access, including the accounts for S.S. Trans Incorporated. In their May 1, 1996, letter, the Petitioners noted their narrower interpretation, but nevertheless provided information regarding some of the corporate accounts and expressed their willingness to cooperate with the DABT's efforts to subpoena "any bank anywhere in the world for any records that AB&T seeks." The Petitioners' stated willingness to cooperate with the DABT's subpoenas was worthless, however, without the requested list of bank accounts. Without the requested list, including the names and addresses of the financial institutions, and the account numbers, the DABT could not effectively serve subpoenas. It is clear from the evidence in this case that there are other bank accounts in the control of Skobeltsyn, or to which Skobeltsyn has access, beyond those which the Petitioners have disclosed and which the DABT has been able to examine. The DABT's examination of the bank records from NationsBank revealed references to accounts in foreign banks. These are accounts that were not disclosed to the DABT, despite repeated requests. For example, in the wire transfer of November 21, 1996, for six and a half million dollars ($6,500,000) from IVG to Parex Bank, the transfer was made into Parex Bank account number 0714926. S.S. Trans Incorporated made a wire transfer in the amount of one hundred thousand dollars ($100,000) to the same account. The Petitioners never provided to the DABT a list or other information identifying this account. The wire transfers to S.S. Trans Incorporated of January 22, 1996, through August 22, 1996, of funds ranging in amount from one hundred thousand dollars ($100,000) to one million dollars ($1,000,000) originated from banks and accounts that were never identified or disclosed to the DABT. Among the bank accounts the DABT sought to obtain information about were the bank accounts of IVG, a corporation of which Skobeltsyn was President and in which he has an ownership interest. When the DABT repeated its request for the IVG bank account information, the Petitioners' attorney responded with a letter of May 1, 1997, which included the following: As to the banking records from IVG's Capital Bank account from the time that Mr. Skobeltsyn acquired his interest in IVG, please note that the account is now closed and without Mr. Skobeltsyn['s] presence in the United States, I cannot produce the records sought inasmuch as he was the sole signer on the account. The above-quoted response is indicative of a lack of cooperation on the part of the applicants. Regardless of whether the account was closed or not, and regardless of whether Skobeltsyn could return to the United States or not, with written authorization from Skobeltsyn, the attorneys for the applicants could have obtained the records and could have furnished them to the DABT. The above-quoted response about IVG's bank account is also inconsistent with other information about the activities of International Value Group, Inc. Since December of 1996 and continuing through the date of the final hearing in this case, IVG has been engaged in at least two business activities in Florida, specifically the two business activities described in paragraphs 20 through 28 of these findings of fact. In the normal course of events those two business activities have been regularly generating revenues in the form of cash, checks, and/or credit cards. It is contrary to common sense to believe that IVG is engaged in business without having an open checking account. Yet another example of the Petitioners' inconsistency and inaccuracy is reflected in the following statement from their attorney in a letter of May 1, 1997, responding to DABT comments that Skobeltsyn had failed to fully disclose his employment during the past five years: Further, in his personal questionnaire listing his employment for the past five years, Mr. Skobeltsyn did not recite that he had been president of International Value Group and president of SS Transcorp, Inc., because at the time he completed the questionnaire, Mr. Skobeltsyn may not have been president of either company. He was a shareholder in SS Transcorp, Inc., which had no assets in, and was doing no business in, the United States. Further, Mr. Skobeltsyn did not state that he was "president" of International Value Group, as he may have not yet served as president. Notwithstanding the foregoing, Mr. Skobeltsyn received no salary or benefits of any nature whatsoever from either corporation and therefore, correctly did not recite the names of these corporations under a heading which requested employment information. The foregoing assertions become troublesome when considered in light of the following facts. Skobeltsyn signed his personal questionnaire on December 29, 1996. On November 13, 1996, Skobeltsyn signed a check written on the account of S.S. Trans Incorporated at NationsBank in Fort Lauderdale, Florida, in the amount of $1,500,000. The check was payable to International Value Group, Inc. The check was good, and there were funds left in the account after it cleared. When Skobeltsyn opened the S.S. Trans Incorporated account at NationsBank, he identified himself as president of the corporation. On November 13, 1996, Skobeltsyn opened a bank account in the name of International Value Group, Inc., at NationsBank in Fort Lauderdale, Florida, with the $1,500,000 check from S.S. Trans Incorporated. When he opened the account, he identified himself as president of International Value Group, Inc. On or about December 27, 1996, Skobeltsyn and Rodion signed a corporate resolution in conjunction with a bank account at First Union Bank of Florida in the name of International Value Group, Inc., in which Skobeltsyn is described as president of the corporation. All three of the alcoholic beverage applications at issue in these cases were signed on December 29, 1996. On each of the three applications, Skobeltsyn is listed as holding each of the following offices in each of the applicant corporations: President, Vice President, Secretary, and Treasurer. On each of the applications, Cinderella Ice is listed as the owner of 100 percent of the stock of each of the applicant corporations. Each of the three applications contains a statement reading: "Sergey V. Skobeltsyn is the sole director, officer and shareholder of Cinderella Ice, Inc." The records of the Florida Department of State include the following information regarding Golden Show, Inc. The articles of incorporation were filed with the Secretary of State on November 26, 1996. Skobeltsyn was the initial director of the corporation. The articles of incorporation did not identify any initial officers of the corporation. On January 27, 1997, Skobeltsyn, in his capacity as director, signed a document titled Articles of Amendment to Articles of Incorporation of Golden Show, Inc. That document was filed with the Secretary of State on January 31, 1996. The document states that several amendments were adopted on January 27, 1997. One of those amendments reads as follows: SERGEY V. SKOBELTSYN was elected President, Secretary, Vice-President, Treasurer and Director, and his address is 3363-5 N. Federal Highway, Ft. Lauderdale, FL 33306." The records of the Florida Department of State include the following information regarding Silver Show, Inc. The articles of incorporation were filed with the Secretary of State on November 26, 1996. Skobeltsyn was the initial director of the corporation. The articles of incorporation did not identify any initial officers of the corporation. On January 27, 1997, Skobeltsyn, in his capacity as director, signed a document titled Articles of Amendment to Articles of Incorporation of Silver Show, Inc. That document was filed with the Secretary of State on January 31, 1996. The document states that several amendments were adopted on January 27, 1997. One of those amendments reads as follows: SERGEY V. SKOBELTSYN was elected President, Secretary, Vice-President, Treasurer and Director, and his address is 3363-5 N. Federal Highway, Ft. Lauderdale, FL 33306." The records of the Florida Department of State include the following information regarding Platinum Show, Inc. The articles of incorporation were filed with the Secretary of State on November 26, 1996. Skobeltsyn was the initial director of the corporation. The articles of incorporation did not identify any initial officers of the corporation. On January 27, 1997, Skobeltsyn, in his capacity as director, signed a document titled Articles of Amendment to Articles of Incorporation of Platinum Show, Inc. That document was filed with the Secretary of State on January 31, 1996. The document states that several amendments were adopted on January 27, 1997. The amendments concerned such matters as the principal place of business of the corporation, the mail address of the corporation, and the new registered agent for the corporation, but no provision regarding the election or appointment of any officers. The records of the Department of State do not show that anyone has ever been appointed or elected to the offices of President, Vice-President, Secretary, or Treasurer of Platinum Show, Inc. The records of the Florida Department of State include the following information regarding Cinderella Ice, Inc. The articles of incorporation were filed with the Secretary of State on August 22, 1996. A person named Gregory Romenski was the initial director of the corporation. The articles of incorporation did not identify any initial officers of the corporation. On January 27, 1997, Skobeltsyn, in his capacity as director, signed a document titled Articles of Amendment to Articles of Incorporation of Cinderella Ice, Inc. That document was filed with the Secretary of State on January 31, 1997. The document states that several amendments were adopted on January 27, 1997. One of those amendments reads as follows: GREGORY ROMENSKI resigned as Director and SERGEY V. SKOBELTSYN was elected Director in his stead. SERGEY V. SKOBELTSYN was also elected President, Vice-President, Secretary, and Treasurer of the corporation and his address is: 3363-5 N. Federal Highway, Ft. Lauderdale, FL 33306. Skobeltsyn's apparent indifference to accuracy is reflected once again in the fact that at the time he signed his personal questionnaire he had not been elected as an officer of either Cinderella Ice or of any of the applicant corporations. Further, at the time he signed his personal questionnaire, Skobeltsyn was not a director of Cinderella Ice and Cinderella Ice had an undisclosed director who has since resigned. Most of these irregularities have since been cleared up, but the statements were false at the time they were made. The DABT has been unable to interview Skobeltsyn because he is legally excluded from entry into the United States. One of the most important steps in any investigation is to provide the applicant with an opportunity to answer questions. Skobeltsyn is in a position to answer many of the questions that were raised during the investigation. The Petitioners offered the DABT an opportunity to go to Latvia to interview Skobeltsyn and Latvian banking officials. The DABT refused to travel abroad because of safety concerns and because the investigator's law enforcement powers, particularly the power to place a witness under oath, did not extend as far as Latvia. The DABT cannot conduct a full investigation of the applications in these cases without an interview of Skobeltsyn taken under oath.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Division of Alcoholic Beverages and Tobacco issue a Final Order in this case denying all three of the applications for alcoholic beverage licenses at issue in these cases. DONE AND ENTERED this 6th day of March, 1998, in Tallahassee, Leon County, Florida. MICHAEL M. PARRISH 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 Filed with the Clerk of the Division of Administrative Hearings this 6th day of March, 1998.
The Issue The issue presented is whether Respondent violated the Final Order of Petitioner by failing to pay $1,250 to Petitioner on or before the expiration of 30 days after the entry of the Final Order.
Findings Of Fact Petitioner is the state agency responsible for regulating the sale of alcoholic beverages. Respondent is licensed to sell alcoholic beverages pursuant to license number 15-02311, Series 4COP SRX. The licensed premises are located at 680 George J. King Boulevard, Port Canaveral, Florida, 32920. On October 2, 2000, Petitioner entered a Final Order that required Respondent to pay an administrative fine of $1,250 within 30 days of the date of entry of the order. Respondent appealed the Final Order to the First District Court of Appeal. The First District Court of Appeal upheld the Final Order. Respondent failed to pay any portion of the administrative fine.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that Petitioner enter a Final Order finding Respondent guilty of violating Section 561.29; imposing an administrative fine of $2,500, pursuant to Rule 61A-2.022(8); and permanently revoking alcoholic beverage license number 15- 02311, Series 4COP SRX. DONE AND ENTERED this 24th day of May, 2002, in Tallahassee, Leon County, Florida. ___________________________________ DANIEL MANRY 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 24th day of May, 2002. COPIES FURNISHED: Richard Turner, Director Division of Alcoholic Beverages & Tobacco Department of Business and Professional Regulation Northwood Centre 1940 North Monroe Street Tallahassee, Florida 32399-0792 Hardy L. Roberts, III, General Counsel Department of Business and Professional Regulation Northwood Centre 1940 North Monroe Street Tallahassee, Florida 32399-2202 Chad D. Heckman, Esquire Department of Business and Professional Regulation Northwood Centre 1940 North Monroe Street Tallahassee, Florida 32399-2202 Raymond J. Cascella Manos Inc., d/b/a Sea Port Restaurant 680 George J. King Boulevard Port Canaveral, Florida 32920 Capt. German Garzon Department of Business and Professional Regulation 400 West Robinson Street, Room 709 North Tower, Hurston Building Orlando, Florida 32801
The Issue Whether or not on or about the 14th of March, 1976, Pearlie Mae Smith, a licensed vendor, did have in her possession, permit or allow someone else, to wit: Junior Lee Smith, to have in their possession on the licensed premises, alcoholic beverages, to wit: 5 half-pints of Smirnoff Vodka, not authorized by law to be sold under her license, contrary to s. 562.02, F.S.
Findings Of Fact On March 14, 1976, and up to and including the date of the hearing, the Respondent, Pearlie Mae Smith, held license no. 72-65, series 2-COP with the State of Florida, Division of Beverage. The licensed premises is located at 1013 West Malloy Avenue, Perry, Florida. On the morning of March 14, 1976, Officer B.C. Maxwell with the State of Florida, Division of Beverage acting on an informant's information, searched the informant to determine if the informant had monies other than the money that the officer had given him or any alcoholic beverages on his person. Once the informant had been searched and it was determined that the informant was carrying with him only the money that the officer had given him to purchase alcoholic beverages, the informant was sent into the subject licensed premises. The informant returned with a half-pint bottle of alcoholic beverage not permitted to be sold on the licensed premise and indicated that this purchase was made from one Junior Lee Smith. Later in the morning, around 11:30, officers of the State of Florida, Division of Beverage entered the licensed premises and an inspection of those premises revealed a bag containing 5 half-pint bottles of Smirnoff Vodka in the kitchen area of the licensed premises. This bag and contents were admitted as Petitioner's Exhibit #2. The 5 half-pint bottles of Smirnoff Vodka are alcoholic beverages which are not allowed to be sold under the series 2-COP license on the subject premises. When the officers entered, the same Junior Lee Smith was in the licensed premises and indicated that he was in charge of the licensed premises and had been selling alcoholic beverages for "quite some time" together with his wife, Pearlie Mae Smith, the licensee. The bag he indicated, had been whiskey that had been left over from the night before.
Recommendation It is recommended that based upon the violation as established in the hearing that the licensee, Pearlie Mae Smith, have her beverage license suspended for a period of 30 days. DONE and ENTERED this 19th day of December, 1976, in Tallahassee, Florida. CHARLES C. ADAMS, Hearing Officer Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304 (904) 488-9675 COPIES FURNISHED: Larry D. Winson, Esquire Staff Attorney Division of Beverage 725 Bronough Street Tallahassee, Florida 32304 Mrs. Pearlie Mae Smith 1013 West Malloy Avenue Perry, Florida
Findings Of Fact At all times material hereto, the Respondent, Larry Lyles, was the holder of Florida Beverage License No. 26-2105, license series 2ABS. The licensed premises to which this license was issued is Larry and Gail's Pool Hall, 306 West Eighth Street, Jacksonville, Florida. On August 11, 1982, Mr. Keith Bernard Hamilton, a beverage officer for the Division of Alcoholic Beverages and Tobacco, went to the licensed premises pursuant to an assigned drug investigation. Officer Hamilton, after entering the licensed premises, purchased a beer from Gail Thomas a/k/a Patricia Ann Thomas. Gail Thomas was tending bar. After purchasing the beer, Officer Hamilton sat in a chair approximately 20 feet from the bar, and a few minutes later, approached a young man named Larry and asked about buying some smokes". "Smokes" is a term commonly used to refer to marijuana. Larry asked him how much he wanted and whether he had the money with him. Officer Hamilton stated he wanted two (2) bags and that he did have the money. Officer Hamilton then gave Larry $10 and Larry walked over to a young man named Hamp. Larry handed Hamp the $10 in currency and Hamp handed Larry two small manila envelopes. This exchange took place approximately five feet from the bar in the presence of Gail Thomas. Gail Thomas was one of the owners of the bar. The conversation between Officer Hamilton and Larry was in a normal tone of voice and could have been easily overheard by Gail Thomas and others in the bar. After receiving the two () manila envelopes from Hamp, Larry handed them to Officer Hamilton. Later, lab analysis revealed that these two envelopes contained cannabis, a controlled substance under Chapter 893, Florida Statutes. On August 20, 1982, Officer Hamilton returned to the licensed premises. After entering, he purchased a beer from Gail Thomas and began playing pool. When Gail Thomas began cleaning a table near the pool table, he asked her if anyone had "smokes". She said no but that someone next door might. She then indicated she was going next door to get change. She left, and upon returning, she informed Officer Hamilton that a man next door had some "smokes". She then asked if he wanted her to get some for him. He said yes and gave her $20 in currency. She left and came back with two manila envelopes and two $5.00 bills as change. Later, lab analysis revealed that the two manila envelopes contained cannabis, a controlled substance under Chapter 893, Florida Statutes. On August 21, 1982, Officer Hamilton again visited the licensed premises, and upon entering, purchased a grape soda from Gail Thomas. He saw the young man named Hamp shooting pool and walked over to him and asked him about purchasing some smokes. Hamp said he had some real good stuff and that if he didn't like it, he would buy it back. Officer Hamilton then purchased one manila envelope from Hemp. The exchange took place in the presence of Gail Thomas, who was nearby cleaning tables. After the exchange, Hemp suggested to Officer Hamilton that he try some of the material in the envelope there in the bar. Officer Hamilton declined and Hamp told him "It's okay, Gail doesn't care". Later, lab analysis revealed that the envelope purchased from Hemp contained cannabis, a controlled substance under Chapter 893, Florida Statutes. At the time of each of the purchases on August 11, 20, and 21, 1982, Gail Thomas was the only bartender or person actually working in the licensed premises. Officer Hamilton never observed another employee or person supervising or maintaining in any way the licensed premises.
Recommendation Based upon the foregoing findings of fact and conclusions of law, it is RECOMMENDED: That Respondent's alcoholic beverage license be revoked. DONE and ENTERED this 30th day of June, 1983, in Tallahassee, Florida. MARVIN E. CHAVIS, Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 30th day of June, 1983. COPIES FURNISHED: James N. Watson, Jr., Esquire Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301 Mr. Larry Lyles 306 West Eighth Street Jacksonville, Florida R. R. Caplano, Captain Division of Beverage Post Office Box 5787 Jacksonville, Florida 32202 Mr. Gary Rutledge Secretary Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301 Mr. Howard M. Rasmussen Executive Director Division of Alcoholic Beverages and Tobacco 725 South Bronough Street Tallahassee, Florida 32301
The Issue Whether the Respondent committed the violations alleged in the Administrative Action dated August 11, 2000, and, if so, the penalty that should be imposed.
Findings Of Fact Based on the oral and documentary evidence presented at the final hearing and on the entire record of this proceeding, the following findings of fact are made: The Department is the state agency charged with enforcing Florida's Beverage Law, and, specifically, with regulating the sale of alcoholic beverages. Sections 561.02 and 561.11(1), Florida Statutes. At all times material to this proceeding, Coluccis Attic, Inc., held alcoholic beverage license number 60-11724, Series 4 COP SRX, a special restaurant license which authorized the sale of alcoholic beverages on the premises of the restaurant of the same name located at 600 North Congress Avenue, Delray Beach, Florida. On July 18, 2000, an inspector employed by the Department conducted a routine investigation of the restaurant. As part of the investigation, the investigator was provided a copy of the restaurant's sales report for the period from May 17, 2000, through August 6, 2000. The investigator calculated the percentages of gross revenue from the sale of food and of alcohol sales with respect to total gross sales, and the calculations showed that food sales were 31.5 percent of total gross sales.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Department of Business and Professional Regulation, Division of Alcoholic Beverages and Tobacco, enter a final order, Finding that Coluccis Attic, Inc., violated Section 561.20(2)(a)4., Florida Statutes (2000); Imposing an administrative fine in the amount of $1,000.00 against Coluccis Attic, Inc.; and Revoking the special restaurant license of Coluccis Attic, Inc., without prejudice to apply for any other type of alcoholic beverage license but with prejudice to apply for a special restaurant license for a period of five years. DONE AND ENTERED this 21st day of August, 2001, in Tallahassee, Leon County, Florida. PATRICIA HART MALONO 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 21st day of August, 2001.
The Issue This case concerns the application of William E. Morey, who does business as Morey's Restaurant, to acquire a new series 2-COP beverage license from the Respondent, State of Florida, Department of Business Regulation, Division of Alcoholic Beverages and Tobacco, in which the Respondent has denied the license application on the grounds that the granting of such a license would be contrary to provisions of Section 561.42, Florida Statutes, and Rule 7A-4.18, Florida Administrative Code. These provisions of the Florida Statutes and Florida Administrative Code deal with the prohibition of a financial interest directly or indirectly between distributors of alcoholic beverages and vendors of alcoholic beverages.
Findings Of Fact The Petitioner, Willian E. Morey, applied to the State of Florida, Departent of Business Regulation, Division of Alcoholic Beverages and Tobacco, for the issuance of series 2-COP alcoholic beverage license. By letter dated, January 23, 1979, the Director of the Division of Alcoholic Beverages and Tobacco denied the application based upon the belief that such issuance wood violate the provisions of Section 561.42, Florida Statutes, and Rule 7A-4.18, Florida Administrative Code. The pertinent provision of Section 561.42, Florida Statutes, states: 561.42 Tied house evil; financial aid and assistance to vendor by manufacturer or distributor prohibited; procedure for en- forcement; exception.-- (1) No licensed manufacturer or distributor of any of the beverages herein referred to shall have any financial interest, directly or indirectly, in the establishment or business of any vendor licensed under the Beverage Law, nor shall such licensed manu- facturer or distributor assist any vendor by any gifts or loans of money or property of any description or by the giving of rebates of any kind whatsoever. * * * In keeping with the general principle announced in Section 561.42, Florida Statutes, the Respondent has enacted Rule 7A-4.18, Florida Administrative Code, which states: 7A-4.18 Rental between vendor and distri- butor prohibited. It shall be considered a violation of Section 561.42, Florida Sta- tutes, for any distributor to rent any property to a licensed vendor or from a licensed vendor if said property is used, in whole or part as part of the licensed premises of said vendor or if said property is used in any manner in connection with said vendor's place of business. The facts in this case reveal that William E. Morey leases the premises, for which he has applied for a license, from Anthony Distributors, Inc., of 1710 West Kennedy Boulevard, Tampa, Florida. Anthony Distributors, Inc., is the holder of a J-DBW license to distribute alcoholic beverages in the State of Florida. This license is held with the permission of the State of Florida, Division of Alcoholic Beverages and Tobacco. Consequently, the issuance of a series 2-COP license to William E. Morey at a time when he is leasing the licensed premises from a distributor of alcoholic beverages, namely, Anthony Distributors, Inc., would be in violation of Section 561.42, Florida Statutes, and Role 7A-4.18, Florida Administrative Code.
Recommendation It is recommended that the Petitioner, William E. Morey's application for a series 2-COP beverage license be DENIED. DONE AND ENTERED this 10th day of August, 1979, in Tallahassee, Florida. CHARLES C. ADAMS Hearing Officer Division of Administrative Hearings Room 101, Collins Building Tallahassee, Florida 32301 (904) 488-9675 COPIES FURNISHED: Willian E. Morey d/b/a Morey's Restaurant 4101 North 66th Street St. Petersburg, Florida 33709 Mary Jo M. Gallay, Esquire Staff Attorney Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301
The Issue The issue for determination in this proceeding is whether Respondent committed the acts alleged in the Notice To Show Cause and, if so, what penalty, if any, should be imposed.
Findings Of Fact Respondent, Jose B. Medina ("Medina"), holds alcoholic beverage license number 16-07324, series 2-COP. The licensed premises are known as C.J.'s Pizza and Subs C.J.'s is located at 5150 Coconut Creek Parkway, Margate, Broward County, Florida. In June of 1990, Detective Bukata of the Broward County Sheriffs Office (BSO) conducted an undercover narcotics investigation involving Medina and C.J.'s Pizza and Subs. Detective Bukata negotiated with Medina several times at C.J.'s for the purchase of several kilograms of cocaine. However, a transaction was never consummated due to Medina's requirement that approximately $46,000.00 in cash be paid in advance. After several unsuccessful attempts at negotiations, Detective Bukata referred the open investigation to his partner, Detective Barnhouse, sometime in the spring of 1991. This was due in part to new information being obtained from confidential informants as well as Medina's reputation in the community for dealing in stolen property. On or about May 28, 1991, two "Uzi" semi-automatic pistols were stolen in a residential burglary in Coral Springs, Florida. Subsequently, Detective Barnhouse was notified by a confidential informant that Medina offered to sell these weapons for $250.00 each. On May 30, 1992, Detective Barnhouse purchased the two semi-automatic pistols from Medina at the licensed premises. The serial numbers on the weapons were identical to those which were stolen in the burglary. The weapons were still in their original packaging and had a price tag of $875.00 each. Medina offered to sell Detective Barnhouse more stolen weapons and was instructed not to deface the serial numbers. Medina either knew or should have known that the weapons were stolen. In June of 1991, Detective Barnhouse began conducting negotiations with Medina regarding the purchase of several kilograms of cocaine. Detective Barnhouse met several times with Medina at C.J.'s, had several telephone conversations, and openly displayed several thousands of dollars in an attempt to purchase cocaine. However, as in Detective Bukata's prior dealings with Medina, the negotiations were stalled due to Medina's cash advance requirement. On August 23, 1991, Detective Barnhouse offered to purchase a smaller quantity of cocaine from Medina. Subsequently, Detective Barnhouse met with Medina at the licensed premises and was shown two plastic bags containing approximately sixty grams of cocaine. After the display, Medina returned the cocaine to a storage area in the kitchen. Subsequently, he was arrested by Detectives Bukata and Barnhouse. The substance displayed by and subsequently seized from Medina tested positively as cocaine during field testing. Laboratory tests confirmed that contents of the packages was cocaine.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the alcoholic beverage license held by Respondent, Jose B. Medina, d/b/a C.J.'s Pizza and Subs, license number 16-07324, series 2-COP, be revoked. DONE AND ORDERED in Tallahassee, Leon County, Florida, this 24th day of February, 1992. DANIEL MANRY 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 25th day of February, 1992.
Findings Of Fact Based on the exhibits introduced into evidence and the testimony of the witnesses at the hearing, I make the following findings of fact: On January 3, 1984, an application for transfer of alcoholic beverage license number 16-262, in the name of I. T. Chips, Inc., to JNJ, Inc., d/b/a Apples, was delivered to the Lauderhill District Office of the Division of Alcoholic Beverages and Tobacco by Michael Rapp. The application and personal questionnaire of Michael Rapp, Vice President of JNJ, Inc., revealed that he had been convicted of a felony within the last 15 years. Upon being informed by Sgt. Pat Roberts that the application for transfer would be denied because Rapp's conviction was disqualifying, Rapp withdrew the application. On January 6, 1984, Michael Rapp submitted an amended application for transfer of this same alcoholic beverage license to JNJ, Inc., d/b/a Apples. The amended application listed Janet Swift, a/k/a Janet Swift Rapp, as sole corporate officer and shareholder. An agreement for purchase and sale submitted with the application revealed that JNJ, Inc., was purchasing from MAM Restaurant Corporation all assets located at 1201 East Hallandale Beach Boulevard, Hallandale, Florida, the address of the licensee, I. T. Chips, Inc., for a total price of $418,600.00. The purchase and sale agreement acknowledged that a down payment in the amount of $18,600.00 had been made by JNJ, Inc., and provided for the remaining debt of $400,000.00 to be paid in monthly installments of $4,800.00 and be secured by a mortgage. The application stated that Frederick Cusolito and Janet Swift would be the sole financial investors in the business and that the corporation's banking business would be conducted at the Bank of Hallandale & Trust Company. Janet Swift swore that the information provided on the application was true. Whatever, Inc., is a corporation with the same business address as JNJ, Inc. Michael Rapp is the President and Secretary of Whatever, Inc. Whatever, Inc., had a bank account at the Bank of Hallandale & Trust Company and Michael Rapp was an authorized signer on the account. During January of 1984, Whatever, Inc., was writing checks to pay some of the operating expenses of the business located at 1201 East Hallandale Beach Boulevard. JNJ, Inc., with an address of 1201 East Hallandale Beach Boulevard, Hallandale, Florida, had a bank account at Flagship Bank of Miami. The bank records show Janet Swift as president of the corporation and Michael Rapp as Vice President. During December of 1983, the following deposits were made to the JNJ, Inc., account at the Flagship Bank of Miami: $92,500.00 from Martin I. Roth at L & M Consultants, $27,000.00 from David J. S. Gottfried, $39,000.00 from the Hanseatic Development Corporation (described as a "loan"), and $87,000.00 from an unidentified account at the Bank of Ireland in New York. None of the people or entities from whom these deposits were received were listed as financial investors of JNJ, Inc., on the sworn application filed by Janet Swift for the transfer to JNJ, Inc. None of them were listed as financial investors of I. T. Chips, Inc., on the sworn application filed by Janet Swift for change of business name and change of officers of I. T. Chips, Inc. Martin I. Roth, the authorized signer on the bank account of L & M Consultants who actually signed the L & M Consultants checks which were deposited in the JNJ, Inc., account, was convicted of a felony in 1981. On January 19, 1984, JNJ, Inc., borrowed $75,000.00 from Schmidt Industries, Inc., a Missouri corporation. To secure that loan, JNJ, Inc., entered into a Security Agreement (chattel mortgage) pursuant to which JNJ, Inc., pledged liquor license series number 4 COP, permit number 16-262, as security for the repayment of the $75,000.00 loan. Liquor license series number 4 COP, permit number 16-262 is the liquor license issued to I. T. Chips, Inc. 1/ The facts described in paragraphs 3, 4, 5, and 6, above, came to the attention of DABT Investigator Michael D'Ambrosia during the course of his investigation of the January 6, 1984, application to transfer the I. T. Chips, Inc., license to JNJ, Inc. D'Ambrosia met with representatives of JNJ, Inc., discussed with them the information he had acquired during the course of his investigations, and requested that he be provided with certain additional information. Thereafter, District Supervisor Richard Boyd recommended disapproval of the January 6, 1984, application on April 3, 1984. On April 4, 1984, before any final agency action was taken on the application, JNJ, Inc., withdrew the application to transfer the I. T. Chips, Inc., license to JNJ, Inc. On April 4, 1984, Janet Swift signed an application for a change of business name and a change of corporate officers of the licensee corporation, I. Chips, Inc. 2/ This application was filed on April 11, 1984, with the Division of Alcoholic Beverages and Tobacco. Janet Swift was again listed as sole corporate officer and shareholder. The sworn application filed in April of 1984 contained the following financial information: JNJ, Inc., which held a temporary license, which has since been withdrawn, executed an Agreement for Purchase and Sale with MAM Restaurant Corporation on 12/8/83. JNJ, Inc., the stock of which is owned exclusively by Janet Swift, has abandoned the premises, since Janet Swift has purchased all of the stock in I. T. Chips, Inc., for which she paid no consideration other than assuming the existing debts. I. T. Chips, Inc. has agreed to assume the mortgage referred to in the Agreement for Purchase and Sale; to wit, the initial principal sum of $400,000.00, payable at the rate of $4,800.00 per month, which will be paid from the proceeds of the operation of the business herein. Janet Swift is the sole and exclusive owner of T. Chips, Inc., and no other person, firm or entity has any interest, direct or indirect, in the said business. The application which was signed on April 4, 1984, and filed on April 11, 1984, did not contain any information about the financing of the business other than what is quoted immediately above, and did not list any person as having an interest in the business other than Janet Swift. On April 4, 1984, Janet Swift swore to the truth of the following statement which is printed on the application form: I swear or affirm under penalty of perjury as provided for in Florida Statutes 837.06 and 559.791, that the foregoing information is true to the best of my knowledge, and that no other person, persons, firm or corporation, except as herein indicated, has an interest in the alcoholic beverage license or cigarette permit for which these statements are made. On April 4, 1984, Schmidt Industries, Inc., had an interest in the alcoholic beverage license which was the subject of the application signed by Janet Swift, because that same license was pledged as collateral for a $75,000.00 loan, and pursuant to a chattel mortgage, Schmidt Industries, Inc., had a security interest in that license to guarantee the payment of the loan. 3/ On April 4, 1984, JNJ, Inc., was a financial investor in the I. T. Chips, Inc., license or business because I. T. Chips, Inc., received the benefit of the $18,500.00 down payment that JNJ, Inc., made to MAM Restaurant Corporation and I. T. Chips, Inc., received the benefit of the $75,000.00 that JNJ, Inc., borrowed from Schmidt Industries, Inc. On April 4, 1984, the persons and entities described in paragraph 4, above, who wrote checks deposited in the JNJ, Inc., bank account were indirect financial investors in the I. T. Chips, Inc., license or business because I. T. Chips, Inc., was either the successor to or the alter ego of JNJ, Inc. On April 4, 1984, Frederick Consolito was an indirect financial investor in the I. T. Chips, Inc., license or business because I. T. Chips, Inc., was either the successor to or the alter ego of JNJ, Inc. 4/ The foregoing findings of fact incorporate the substance of the vast majority of the findings of fact proposed by the parties. In those few instances where I have made findings contrary to the proposed findings, it is because the persuasive competent substantial evidence was to use contrary of the proposed findings. In those few instances where I have omitted the substance of findings proposed by a party, it is because the proposed finding was irrelevant, immaterial, cumulative, or not supported by persuasive competent substantial evidence.
Recommendation Based upon all of the foregoing it is recommended that the Division of Alcoholic Beverages and Tobacco enter a final order denying the application for change of business name and change of corporate officers of I. T. Chips, Inc. DONE AND ORDERED this 1st day of April, 1985, in Tallahassee, Florida. MICHAEL M. PARRISH 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 1st day of March, 1985.
Findings Of Fact On April 26, 1982, the Petitioner Dania Bank, filed a request with the Respondent Department of Business Regulation, Division of Alcoholic Beverages and Tobacco to record a lien holder's interest against alcoholic beverage license 16-15 issued to the Respondent Chula, Inc., doing business as Chalet Ole and Chula Liquors. The lien was created on July 3, 1981, and filed with the Secretary of State on August 10, 1981.
Recommendation Based on the foregoing findings of fact and conclusions of law, it is RECOMMENDED: That a Final Order be entered by the Division of Alcoholic Beverages and Tobacco denying the Petitioner Dania Bank's request to record a lien against alcoholic beverage license number 16-15. DONE and ENTERED this 31st day of October, 1983, in Tallahassee, Florida. SHARYN L. SMITH, 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 31st day of October, 1983. COPIES FURNISHED: Richard E. Whitney, Vice President The Dania Bank 255 East Dania Beach Boulevard Dania, Florida 33004 James N. Watson, Jr., Esquire Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301 Howard Milan Rasmussen, Director Division of Alcoholic Beverages and Tobacco Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301 Harold F. X. Purnell, Esquire General Counsel Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301
