ALCOHOL AND GAMING COMMISSION OF ONTARIO
IN THE MATTER OF The: Liquor Licence Act, R.S.O. 1990, c. L.19, as amended
B E T W E E N:
Registrar, Alcohol and Gaming Commission Ontario Registrar
-and-
475793 Ontario Limited O/A Pegasus Restaurant Licensee
DECISION
Panel: Bruce Monteith, Board Member Guy Maurice, Board Member
Decision Date: December 18, 2007 Hearing Location: Toronto, Ontario
Alcohol and Gaming Commission of Ontario 90 Sheppard Avenue East, Suite 300 Toronto ON M2N 0A4 Phone: (416) 326-0366 Fax: (416) 326-5566 Toll Free in Ontario: 1-800-522-2876 Website: www.agco.on.ca
Appearances
Registrar, Alcohol and Gaming Commission ) Dan Alakas, Representative 475793 Ontario Limited, Licensee ) Steve Vlahogiannakos, on behalf of the Corporate Licensee
Allegations
- A hearing into a Notice of Proposal ("NOP") number 15407 dated July 5, 2007 to revoke liquor licence number 20115 issued to 475793 Ontario Limited operating as PEGASUS RESTAURANT, 439 University Avenue, Toronto, Ontario, M5G 1Y8 on the basis that the licence holder would be disentitled to a licence under section 6 of the Liquor Licence Act ("LLA") or that the licence holder is in breach of a condition of the existing licence, proposes pursuant to subsection 15(1) of the LLA, was held on November 30, 2007 in the City of Toronto.
Decision
- At the conclusion of the hearing on November 30, 2007, the Board issued an oral order REVOKING the Licence with written reasons to follow. These are the Board's reasons.
Preliminary Matters
- Steve Vlahogiannakos is a shareholder, officer and director of the licensed corporation. He appeared on behalf of the Licensee and waived the right to be represented by a licensed representative.
Registrar's Evidence
Philippe Tasci is a field collection officer with the Ministry of Finance ("MOF"). Pegasus restaurant has been in operation since 1981 and has a lien registered against it (Exhibit 1, Vendor Identification "Schedule A"). Over the past 16 years the Licensee has entered into numerous Memorandums of Understanding ("MOU") with the MOF for remittance of outstanding retail sales taxes. None were honoured. The Licensee breached the most recent, made January 2006, after a month.
After the NOP was issued the Licensee provided the MOF with post dated cheques. Some were honoured and others were returned Not Sufficient Funds ("NSF"). From July 2001 to the present the Licensee has issued 27 NSF cheques to the MOF.
The Licensee advised the MOF that refinancing was in progress and a $100,000.00 inheritance was expected. On November 19, 2007 the MOF was advised a lump sum of $50,000.00 would be provided the following day. No payment was made. The witness estimated outstanding the retail sales tax owed by the Licensee now stands at $100,000.
The MOF takes the position the Licensee has clearly demonstrated that he can no longer be trusted.
Licensee's Evidence
- Steve Vlahogiannakos stated that the MOU was signed under duress during a law suit with a former partner. He alleged his former partner had defrauded the establishment of between $150,000 and $180,000 but he has not been able to prove it. The refinancing did not occur because the lenders did not come through with funds. However, a loan of $40,000 is expected today and another $35,000 will be available in the near future. He is more than willing to work with the MOF. He admitted that, currently, portions of sales tax collected are used in the operation of the business.
Registrar's Submissions
The Registrar asked the Board to find the Licensee in violation of subsections 6(2)(a) and (d) of the LLA. The Licensee allegations about his former are unproven and, in any event, the evidence before the Board confirms that the overwhelming majority of the debt was incurred after the departure of Mr. Vlahogiannakos' former partner. (Exhibit 4, p.4) None of that debt can be attributed to the former partner.
The Licensee has known since the NOP was issued that the licence was on the line. He has no serious plans to pay the debt. The Licensee, therefore, is not financially responsible. The liquor licence should be revoked immediately.
Licensee's Submissions
- Mr. Vlahogiannakos made no submissions.
Reasons & Analysis
The evidence is clear that the Licensee is in substantial arrears of retail sales tax and that the MOF has attempted on several occasions to make arrangements for the Licensee to repay the amounts owed and on each occasion the attempt has failed. The Licensee appears to have no serious plans or means to repay its debt. Rather, Mr. Vlahogiannakos admits using sales tax collected to support the operation of his business. He appears both incorrigible and unwilling to take responsibility for his actions.
The Board is satisfied that the evidence confirms the Licensee is not and cannot reasonably be expected to financially responsible in the conduct of its business and, thus, is in breach of ss.6(2)(a) of the LLA. Further, the Board is satisfied that by conducting his business in this manner and, in particular by failing to remit retail sales taxes and using retail sales tax to support the operation of his restaurant, there are reasonable grounds to believe Mr. Vlahogiannakos will not carry on his business in accordance with the law and with integrity and honesty in breach of subsection 6(2)(d) of the LLA, and, further, is in breach of a condition on the licence.
In the circumstances, the liquor licence must be revoked. The Board confirms its oral order to REVOKE the liquor licence of 475793 Ontario Limited operating as PEGASUS RESTAURANT, 439 University Avenue, Toronto, Ontario, M5G 1Y8, licence number 20115, effective November 30, 2007.
DATED AT TORONTO THIS 18^th^ DAY OF DECEMBER, 2007.
GUY MAURICE, BOARD MEMBER BRUCE MONTEITH, BOARD MEMBER
GM/sm