Registrar, Alcohol and Gaming Commission of Ontario v. Sea, 2008 CanLII 91831

ALCOHOL AND GAMING COMMISSION OF ONTARIO

IN THE MATTER OF The: Gaming Control Act, 1992, as amended

B E T W E E N:

Registrar, Alcohol and Gaming Commission of Ontario Registrar

-and-

Joo-Teng (William) Sea Registrant

DECISION

Panel: Beryl Ford, Board Member Joan Lougheed, Board Member

Decision Date: October 28, 2008 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 ) Sujin Chan, Representative Joo-Teng (William) Sea, Registrant ) Joseph Faust, Representative

Allegations

1A hearing into a Notice of Proposed Order (NOPO) number 37852 dated April 24, 2008 to refuse the registration of JOO-TENG (WILLIAM) SEA, 196 Frank Rivers Drive, Scarborough, Ontario, M1W 3X7 (the "Applicant"), as a gaming assistant registration number 66454 is not entitled to registration under section 11 of the Gaming Control Act (Act) in the City of Toronto.

Decision

2After considering all the evidence and submissions, the Board CONFIRMS the Registrar's NOPO refusing the registration of Mr. Joo-Teng (William) Sea. Reasons follow.

Preliminary Matters

3Two exhibits were tendered by the Registrar's Counsel:

Exhibit #1 Registrar's Book of Documents Exhibit #2 Bankruptcy Related Documents

Registrar's Evidence

4Mr. Dennis Ball has been an investigator for the Alcohol and Gaming Commission of Ontario (AGCO) for 9 years and previously worked as a police officer for 30 years.

5Referring to notes taken from interviews in 1998, 2001, and 2007, Mr. Ball stated that, in 1998 the Applicant applied for a gaming position at Casino Rama in Orillia.

6On April 24, 2007, Mr. Ball interviewed the Applicant and stated that the Applicant was not truthful when questioned, and therefore he ended the interview.

7As explanation, Mr. Ball outlined a brief background and history, stating that Mr. Sea had applied for a position as a Gaming employee at Casino Rama before 1998. When he was asked if there had been an offence in any jurisdiction, Mr. Sea said "no". The investigation revealed numerous Highway Traffic Act (HTA) offenses, all of which are listed on Page 3 and 4 of the NOPO. When Mr. Ball asked why the Applicant said "no", he told Mr. Ball that he did not know traffic charges applied. This response was accepted and the application was granted at that time.

8Further, Mr. Ball stated that on an application for Casino Rama, dated February 7, 2001, Mr. Sea was asked if he had any ownership or interest in any business, corporate or proprietorship and asked if he had been charged or convicted of any offences. The Applicant answered "no". However, the investigator did report traffic violations and a personal debt in excess of $80,000.00, substantially due to gambling. The Registrar, at that time, was prepared to grant a license under certain terms and conditions.

9The Applicant did not sign these conditions and the application was abandoned. Mr. Ball indicated that the Applicant did not want to sign the terms and conditions and subsequently resigned from Casino Rama.

10Another application was made in October, 2001, as shown in Exhibit #2, Tab 7. Mr. Ball stated that on this application there was information that was incorrect.

11On the application form, Mr. Sea stated he did not have any ownership or interest in business but on investigation it was found he did have a 50% ownership in the Liberty Restaurant on Mississauga Street. Also a liquor license was in the Applicant's name.

12On the application form, Mr. Sea stated he did not have any convictions or charges and when asked during the interview if he had any convictions, his reply was "no". When it was pointed out that he did have convictions, the Applicant stated he forgot there were violations.

13Mr. Ball also stated that there were financial concerns relating to a debt load of approximately $140,000 which was 104% of credit utilization. At that time the offer of employment was refused and withdrawn. The processing of the application was abandoned

14Another application was received in April, 2007. Mr. Ball stated that he was the primary reviewer of this application and that he conducted two interviews. Halfway through the first interview, the discussion ceased as Mr. Ball felt that the Applicant was evading questions asked of him and "not telling the truth" about questions on the application or questions being directly asked of him. For example, Mr. Sea replied, "no", when asked if he had ever been charged or convicted of any offense in any jurisdiction. Mr. Ball found numerous convictions had been laid under the HTA. When asked, Mr. Sea stated he did not have a gambling addiction and did not have ownership in a business.

15As well, Mr. Ball stated that Mr. Sea was evasive about his financial situation and therefore he did not continue the interview.

16A second interview took place when Mr. Sea indicated a desire to be truthful. Mr. Ball reviewed the questions on the application, but felt that Mr. Sea did not fully respond in his answers.

17During the interview, Mr. Ball asked about a bankruptcy in 2002 of over $400,000.00. The Applicant stated that debt was mostly the result of gambling.

18In 2001 Mr. Sea was a suspect in a fraud investigation in Orillia and Barrie. Mr. Sea initially denied this, then later admitted that he was directly involved, having "kited" money to pay off gambling debts. The investigation in Orillia was for approximately $50,000 and in Barrie for approximately $20,000.

19Mr. Ball asked the Applicant if he was affiliated with anyone who had a criminal background. The answer was "no". Mr. Sea stated that he owed people money and they had advised him how to obtain money to pay the debt. Mr. Sea told Mr. Ball that he was not gambling now, admitted he had a gambling problem, and that it meant a great deal to him.

20When asked about the status of the police investigations, Mr. Ball stated that the Barrie Ontario Provincial Police (OPP) closed their case and the Orillia OPP were still investigating

21On cross-examination, Mr. Ball stated he ended the 2001 interview with Mr. Sea when he stated he was still gambling occasionally and was not responding to questions in a "candid and honest way". The interview ended before dealing with the financial component of the application. Mr. Ball responded to questions stating that the Applicant had admitted to some HTA convictions, but not all. When asked, Mr. Ball stated that there were:

• 16 convictions from 1983 to 1998
• 3 convictions in 2000
• 1 conviction in 2006

22Mr. Ball stated the Applicant told him he refused to sign the 2001 offer with conditions because he was "not about to stop gambling, so he quit."

23William Michael Walker worked 30 years with OPP before becoming an investigator with the AGCO. He is presently retired.

24He had been requested to investigate Jenny Li, a casino employee. Casino Rama is policed by the OPP and there was a report of a large amount of money relating to gambling activities of Ms. Li.

25In 2000 Jenny Li had a "buy in" of $834,000 as reported on her card and was down $122,000. In 2001, Ms. Li had a buy in of $ 413,000 and down $47,000 at year end. On June 19, 2001, Ms. Li reported to the Orillia office with Mr. Sea. Ms. Li identified him as her boyfriend and stated he would assist with translation. Mr. Sea produced his AGCO identification, when requested. At that time he was employed as a VIP host and was living in Orillia.

26Both came in to the office and they were advised as to the purpose of the interview. Ms. Li admitted to borrowing money from friends and indicated Mr. Sea was one of those friends. Mr. Sea confirmed that Ms. Li had borrowed approximately $20,000 from him with no interest charges.

27A background check was done of Mr. Sea relating to his involvement with Ms. Li. The findings indicated:

• No criminal record but did have HTA offenses ;
• Equifax showed 22 creditors with favourable R1- paid on time as required;
• Debt outstanding $72,300.11; and
• This was 65% of his credit limit

28During the meeting, Mr. Walker said he was surprised Ms. Li had admitted to gambling, since the last interview. He told her that the Registrar may want to put a restriction on her employment contract. Mr. Sea said it was unfair and she should be "free to go to the casino with a few friends for enjoyment".

29Mr. Walker reminded them that they work in a regulated industry and that there enforcement was there to help, not cause harm. At that time Mr. Sea said if he was in the same position, he would quit his job since gambling was his life. Mr. Sea did not indicate where he borrowed the money to help Ms. Li.

30Jeff Longhurst stated he is the Manager of Gaming responsible to the Registrar of the AGCO. He stated that he had a number of concerns:

• That there is an ongoing fraud investigation;
• There was a number of disclosure concerns from past and present registrations; and
• The record of HTA offenses. This carries less weight but full disclosure of information is a test of honesty.

31Mr. Longhurst stated that conditions on the registration for this Applicant would not satisfy the concerns due to the ongoing criminal investigation and the number of issues relating to his conduct since 1998 and his refusal to sign the 2001 agreement with conditions.

32On cross-examination, Mr. Walker stated that fraud and gambling are legitimate concerns when reviewing this application.

Applicant's Evidence

33Daniel Chow lives in Innisfil, Ontario and runs a health food business. He has known Mr. Sea since 1997 and considers him a friend since 2003. Mr. Chow is a Professional Engineer working for Honeywell. In partnership with his brothers, he has restaurants in Barrie, Stroud and Innisfil.

34Mr. Chow stated that he saw Mr. Sea regularly at work, when he went to a health store to buy personal supplements. Mr. Chow stated that although Mr. Sea was "in big trouble gambling" about six or seven years ago, he did not gamble anymore. Mr. Sea had told Mr. Chow that he had a big debt, was addicted to gambling and was bankrupt.

35Since 2007 the Applicant was working for Mr. Chow in the kitchen of his restaurant in Stroud. He takes home $500.00 per week and works 40 hours per week from Monday to Friday.

36Mr. Chow characterized Mr. Sea as hard working and doing as he was instructed. Mr. Sea told Mr. Chow that he was not going to go back to gambling. He believes the Applicant because he has not seen him gamble and he has no transportation to get to the casino. He does not allow his employees to gamble in the apartment that he owns in which Mr. Sea lives.

37On cross-examination, Mr. Chow stated he gambles for entertainment, about once every six months. He did not know that Mr. Sea owed over $300,000 and that he was being investigated for fraud.

38Joo-Teng (William) Sea, the Applicant, provided some personal details in response to questions from his Counsel:

• 45 years old;
• Divorced in May, 2002;
• 3 children – 23, 17 & 15; live with mother;
• Married 1984, and was married 19 years before they separated and divorced.
• Monthly support of $2,000.00. This is an agreed amount and not a court order;
• Had debt before divorce; marital problems since 1999; mutual separation;
• Gambling was the main issue between he and his wife; and
• Occasionally he sees his children.

39Mr. Sea stated that he used to be addicted to gambling, with the heaviest times occurring between 1999 – 2000. His gambling first started in 1998 when he was working at Casino Rama as a VIP host. It was a job he liked. He saw people winning and this was the start to him gambling. With no job at the casino, he had a job with a company doing travel tours and on these trips he was to assist clients and during this time accumulated debt at other casinos.

40Mr. Sea stated that it "was stupid" to refuse to sign the terms and conditions of the 2001 employment contract; but at the time he needed to get money to pay his debts. He declared bankruptcy but could not save any money. After sending money for the children, there was not much left. He was staying with his parents and has not been to a casino since 2001. He does not have any credit cards and does not own a car. His last HTA conviction was in 2006 relating to driving 60 km in a 50 km zone.

41Mr. Sea stated that there is a job opportunity at Casino Rama because he is able to speak several languages. He has been to Casino Rama, but only for dinner with friends. He did not gamble and felt it indicated that he had control over his gambling problem. He has never sought help through a rehabilitation program.

42Mr. Sea stated that his sister and brother told him there was to be "no more gambling or you are out".

43Mr. Sea stated that he has a good job, allowing him to do better for himself and his children.

44On cross-examination, Mr. Sea stated that he works in the restaurant during the week and takes a bus to Toronto to work in his brother's store. He has very little money left over for other expenses. A trip to Hong Kong was paid for by a friend. His children come to him for visits. The last time he gambled was in Niagara in 2001. He has not been in a casino since, except to take friends. He stated that he stayed away for five years to prove himself.

45Mr. Sea admitted that it was wrong to cheat. It was dishonest, but he was "totally crazy" at the time.

46In answer to questions, Mr. Sea stated that he worked for a tour company and the company issued him credits to use if a player needed help. He worked for the company in 2001. This job was not included in his application because he was on probation, was not paid and the company only covered his expenses. This was not disclosed on the application because he did not have proof of employment.

47He has worked at the restaurant since April of 2007, started as a part-time employee and did not consider this job valid for the application form.

48At this time he pays debt on his mother's visa and the bankruptcy was discharged in 2003. He admitted that his gambling was the reason for his debt and need to declare bankruptcy.

49When asked if he thought it would be good for him to work in a casino, given that casinos are the cause of his problems, he stated that he has good language skills. The job would allow him to rebuild. He stated that he knows he can control his gambling even though he did not go to a professional for help. Mr. Sea indicated that he would never make the same mistake again and wants to have a decent job for his future.

50He feels that he has been back to the casino twice and has not been tempted to gamble. He will do anything the Board asks and would like a chance to prove himself.

51Joo Hwee Sea is Mr. Sea's sister. Ms. Sea introduced herself by stating that she was married with two children and owns 2 health food stores. Mr. Sea has worked for her since December, 2001. She was aware of his situation. When he asked for help, she needed someone in the store and she felt it would be best for him to work for her.

52Ms. Sea stated that her brother had a difficult time. Ms. Sea knew Mr. Sea was gambling and although he did a good job at first, he "went off track", losing his job and having a marriage breakdown.

53Mr. Sea left the job at Ms. Sea's store to follow up on an offer at Casino Rama. She supported his decision to move to Stroud and work in the restaurant. She stated that the family knew about the bankruptcy. At that time he stayed with his parents and she drove him to and from work. The family was able to help by keeping track of him. She stated that she sees a change in him and has faith in him.

54Ms. Sea stated that if Mr. Sea has a job, he has ability to do the job and will do his best.

55On cross-examination, Ms. Sea stated that when Mr. Sea was working at the casino, the family did not know what was going on. She did not know that he owed different casinos money and that there was a fraud investigation. The family never asked him to seek professional help. They have a close relationship and with help and prayer, wanted him "to come back to us as a responsible person".

56Mr. Yee Yen Tan worked at the health food store with the Applicant. He sees Mr. Sea as a hard working person, who never had a temper with customers. They met in 2004 and this year he became a financial advisor to Mr. Sea. He stated that Mr. Sea resigned from the store, telling him he had an offer at Casino Rama.

57On cross-examination, Mr. Yee Yen Tan stated that he did a credit check and knew Mr. Sea did not have a lot of money, but was helping him with some retirement planning through a loan program. Mr. Yee Yen Tan stated, "I know him and know he can handle himself".

Registrar's Submissions

58Ms. Sujin Chan asked for refusal due to serious concerns relating to integrity, honesty and a record of criminal activity. A fraud investigation is still ongoing.

59Ms. Chan stated that evidence was received from Mr. Ball, from Mr. Sea's own admission that he had kited NSF cheques at 2 banks, worth over $70,000. He learned to do this from people he associated with at the casino.

60The accumulated debt of Mr. Sea led to his declaration of bankruptcy for over $300,000. As a tour guide, the Applicant had accumulated $50,000 owed to casinos in Canada and the United States.

61The addiction to gambling and accumulation of debt began between 1999 and 2001, while employed at the casino. His personal issues spiralled from there.

62Mr. Sea's financial irresponsibility led to a marriage breakdown. In addition to this, he borrowed $20,000 to loan to his girlfriend, Ms. Li.

63Ms. Chan stated that there is failure to disclose driving convictions at least 3 times. Each time, Mr. Sea stated that he was not aware HTA convictions must be disclosed. This is a factor in considering integrity and also points to his careless regard for the application process.

64Mr. Sea chose to quit his job in 2001 rather than agreeing to conditions that would not allow him to gamble.

65Mr. Sea's sister and friends say he is a changed man. His progress occurred while away from the casino. The Applicant has admitted that seeing the winnings of people led him to gamble and despite seeing losses, he was not deterred from continuing to gamble.

66Although Mr. Chow is certain Mr. Sea does not gamble, he is not with his employees all the time and cannot monitor Mr. Sea continuously.

67Ms. Chan said that although Mr. Sea presents himself as being more financially responsible, stating he has not borrowed or gambled, there is a concern about salary, expenses and the borrowing for investments.

68Mr. Sea did not disclose 2 employment positions: as a tour guide which led to additional gambling debt; and his current employment at the restaurant. People helping him did not know the extent of his debt or fraud.

69Ms. Chan stated that although Mr. Sea feels he has rehabilitated, he did not seek professional help.

70Casinos are environments that can pose problem for those with severe gambling addiction. Past conduct is a good indicator for future behaviour. Public confidence in the gaming industry and must be maintained.

71Should Mr. Sea be allowed, it is likely that this public confidence will be jeopardized. The Board should deny this application.

Applicant's Submissions

72Mr. Faust, Licensee's Counsel, stated that there was little doubt that Mr. Sea had an unenviable record from 1999 to 2002. He accumulated debt and was seriously addicted to gambling. He stated that this is an illness, not a sign of evil behaviour.

73Mr Faust indicated that prior to this gambling addiction, Mr. Sea had a good work history at the casino. He has a job waiting if he gets his licence. He should not bear the burden for the rest of his life, if he has taken positive steps to change.

74Mr. Faust submitted that although public perception must be looked at, and the industry must be regulated, when one makes a mistake, it should not stand that he/she cannot ever again be considered as an employee.

75Mr. Sea is a person who could do a good job if given the opportunity. Evidence of the witnesses all show that he is a rehabilitated man. There should be no concerns about rehiring him.

76Mr. Faust said that Mr. Sea showed honesty in not making excuses for his actions. He was candid about his lifestyle changes and the work he has been doing for a new life, utilizing the support of family, following a modest lifestyle, and following advice to declare bankruptcy. He has an investment plan in place, sends support payments for his children, and his sister is here today supporting him.

77The traffic charges should not be considered a major consideration. He is worthy of assistance.

Decision and Reasons

78The Board has carefully reviewed the evidence and submissions. It is evident that in the past five years the Applicant has been able to work at two jobs, and with the support of family and friends to meet his obligations and responsibilities. With financial counselling, he declared bankruptcy. It is clear from the detailed evidence that he lives a modest life and that he realizes that due to gambling, he had lost a good career position as a Gaming Employee in a casino and experienced numerous other personal losses.

79His self-directed efforts to deal with his gambling addiction are to be commended. It is apparent that he has been fortunate to have his family and friends to assist with housing, employment and personal support.

80However, there remain a number of concerns for the Board:

1. There are fraud charges outstanding and which are still under investigation;
2. The Applicant arbitrarily decided that it was not necessary to report unpaid and part-time employment on the application form;
3. He did not report the debt incurred at casinos in the United States;
4. Despite repeated explanations on past and present applications about full disclosure, he has continued to misrepresent information; and
5. Family and friends indicate that they were not aware of his entire financial and personal history of difficulties until this Hearing, although they had been providing support to the Applicant.

81Mr. Sea gave evidence that he started gambling when he saw people winning. He was not deterred by witnessing their losses or experiencing his own personal losses. The Applicant has been forthright in expressing his remorse and regret for the past. However, although he has been in a casino recently and did not gamble, the Board does not find this to be a true evaluation of his ability to manage his addiction, if employed full time in a casino.

82Without an objective assessment or a record of professional guidance and support, the Board is unable to make a determination of his ability to manage his employment in a casino setting.

83In evaluating the Applicant's job readiness, the Board must ensure all employees meet a standard of honesty and integrity to meet regulations and uphold the public trust. Given the failure of full disclosure on the application, the ongoing police investigations and the inability to assess his recovery from his gambling addiction, the Board is unable at this time to support his application for registration.

84The Board agrees with the Registrar that there are reasonable grounds to believe that the Applicant will not act as a gaming assistant in accordance with the law, or with integrity, honesty, or in the public interest, having regard to the past conduct of the Applicant.

85Therefore, after considering all the evidence and submissions, the Board CONFIRMS the Registrar's NOPO refusing the registration of Mr. Joo-Teng (William) Sea.

DATED AT TORONTO THIS 28th DAY OF OCTOBER, 2008