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 of Ontario Registrar
-and-
Dragan Karadzic operating as Red Rocks Bar and Eatery Licensee
DECISION ON FINDINGS
Panel: David C. Gavsie, Chair, AGCO Alex McCauley, Board Member
Decision Date: December 6, 2010
Hearing Location: Niagara Falls, Ontario
Alcohol and Gaming Commission of Ontario 90 Sheppard Avenue East, Suite 300 Toronto, Ontario 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 ) Richard Kulis, Representative Dragan Karadzic, Licensee ) Jeffrey Root, Representative
Allegations
- A hearing into Notice of Proposal (“NOP”) number 17990 dated April 13, 2010 to suspend liquor licence number 803659 (the “licence”) issued to Dragan Karadzic (the “Licensee”), operating as RED ROCKS BAR AND EATERY, 6847 Morrison Street, Niagara Falls, Ontario, L2E 2G5 (the “establishment” or the “premises”), on the basis of an alleged violation of subsection 45(2) of Ontario Regulation 719/90 (the “O.Reg”) made pursuant to the Liquor Licence Act (the “LLA”), was held on October 19, 2010 in the City of Niagara Falls.
Decision
- The Board DISMISSES the allegation of a violation of subsection 45(2) of the O.Reg. Reasons follow.
Preliminary Matters
The Licensee’s Representative requested an adjournment for personal reasons which was denied.
The Board ORDERED the exclusion of witnesses on consent of the parties.
Registrar’s Evidence
Karl Fiddes is a police officer with the Niagara Regional Police. Mr. Fiddes has been a police officer for seven years. He is familiar with the establishment in question and attended there on September 11, 2009 at approximately 12:44 a.m.
Mr. Fiddes was directed to execute a search warrant for narcotics at the licensed premises. His team consisted of himself, Constable (“Cst.”) Balkou and Cst. Letford.
Upon attendance in the bar, there were two patrons. The bartender, Ms Peters, was shown the warrant. The two patrons left as the search began.
In a storage room that was located at the north end of the kitchen, located on a shelf therein above the door, the witness noted a Lays brand chip container and a medium sized jewellery box. Inside the chip container Mr. Fiddes found two small baggies of suspected cocaine. In the jewellery box he located a medallion with the name Dragan Karadzic inscribed on it.
These items were secured and taken to the police office and turned over to Cst. Balkou.
In cross-examination the witness stated that he was not involved in the warrant preparation nor did he have any knowledge of the confidential informants relied upon.
Mr. Fiddes stated he had been advised by Detective Hodges as to where he would find the alleged narcotics.
Mr. Fiddes had no knowledge if the bartender on duty was ever charged, or of any previous infractions at the bar.
The location of the seized items was not readily accessible and the witness had to use a stool to reach the shelf.
Mr. Karadzic was not present at the bar.
Mr. Fiddes had no knowledge of the result of the forensic examination of the seized alleged narcotics.
The bartender on duty was shocked when she learned that narcotics had been located in the bar.
Matthew Hodges is a police officer with the Niagara Regional Police. He has been a police officer for eight years. He is familiar with Dragan Karadzic.
Mr. Hodges was the officer in charge of the investigation into the alleged drug dealing of Mr. Karadzic.
Information had been received by the witness that narcotics were being sold out of the licensed establishment and delivered to persons in Niagara Falls by Mr. Karadzic’s son.
Mr. Hodges secured enough information to secure a search warrant for Mr. Karadzic’s residence and the licensed premises. One search team did the bar and he and his team searched the residence.
His search of the residence revealed no drugs. Located in the master bedroom were American and Canadian bundles of cash. The witness also saw a paper with names on it and a dollar amount adjacent to the name. Located in the garage of the residence was a large digital scale. None of the items located at the residence were seized.
At the police station they sent the package containing the alleged cocaine found at the bar for finger print analysis. The result was negative for fingerprints.
Mr. Hodges became aware on the night of the search that Mr. Dragan Karadzic was out of the country.
Mr. Hodges did not see any certificate of analysis for the alleged cocaine found at the licensed premises.
In cross-examination the witness stated that no charges were ever laid in this matter.
Mr. Hodges stated that he was aware that Dragan Karadzic ran other businesses besides the licensed premises. His son had advised that Mr. Karadzic was a contractor.
Licensee’s Evidence
- The Licensee did not give evidence.
Registrar’s Submissions
- The Registrar’s Representative chose not to make submissions.
Licensee’s Submissions
- The Licensee’s Representative made a motion that the NOP be dismissed for lack of evidence.
Reasons and Analysis
- The Board finds that the Registrar has not proven the allegation in NOP number 17990. The Board is not persuaded that the contents of the two small baggies located in the establishment were cocaine or another type of controlled drug or substance. Although the two bags were seized and a forensic examination done, there is no evidence that these were, in fact, found to be cocaine or another type of controlled drug or substance. The Board notes that the search of the Licensee’s residence did not uncover any narcotics. The money, paper and digital scale in the Licensee’s residence were not seized, and the Board concludes that they do not help to establish the allegation in the NOP. Furthermore, no one has been charged with any offences.
Conclusion
- For the above reasons, the Board DISMISSES the allegation of a violation of subsection 45(2) of the O.Reg issued to Dragan Karadzic, operating as RED ROCKS BAR AND EATERY, 6847 Morrison Street, Niagara Falls, Ontario, L2E 2G5, liquor licence number 803659.
DATED AT TORONTO THIS 6th DAY OF December , 2010
DAVID C. GAVSIE, CHAIR, AGCO ALEX MCCAULEY, BOARD MEMBER

