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-
Lily Trade operating as You and Me Smoke and Gift Shop Registrant
DECISION
Panel: Brian J. Ford, Board Member Decision Date: January 27, 2010 Hearing Location: Toronto, 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 ) Daniel Alakas, Representative Lily Trade, Registrant ) Patrice Band, Representative
Allegations
1A hearing into a Notice of Proposed Order dated May 7, 2009 to refuse the application for renewal and to revoke the existing registration of Lily Trade (the "Registrant"), operating as YOU AND ME SMOKE AND GIFT SHOP, 1712 Queen Street East, Toronto, Ontario, M4L 1G7, as a gaming supplier, in the class of lottery retailer and Break Open Ticket seller, registration numbers 130426 and 146690, on the basis that there are reasonable grounds to believe that the Registrant will not act as a gaming supplier in accordance with law, or with integrity, honesty, or in the public interest in contravention of the Gaming Control Act, 1992, was held on date January 25, 2010 in the City of Toronto.
Decision
2Daniel Alakas, Registrar's Representative, and Mr. Band submitted an Agreement (Exhibit #1) and Joint Submission Regarding Disposition (Exhibit #2) which form part of this decision. It was agreed and admitted that:
The Partnership of Aijia Li and Xue Li operating under the legal name of Lily Trade has been registered as a gaming supplier in the class of Break Open Ticket Sellers and Lottery Retailer under the Gaming Control Act since November 7, 2005.
Lily Trade applied for a renewal of registration by way of application dated July 18, 2008.
An Investigation by the Toronto Transit Commission (TTC) revealed that counterfeit TTC fare tickets were being sold at You and Me Smoke and Gift Shop. Undercover TTC officers purchased forged TTC fare tickets from Aijia Lee at the store on January 29 and 30, 2008.
On January 30, 2008 a search warrant was executed at the store by TTC Investigators. At that time 318 counterfeit TTC tickets, located under the counter of the store and in the purse of Aijia Li, who was working at the time were seized. A quantity of genuine TTC fare tickets and $8,701.40 in cash were also located and seized.
On January 30, 2008 Aijia Li and Xue Li were charged by Toronto Police with the criminal offences of Uttering a Forged Document, Possession of Property Obtained by Crime and Fraud Under $5000.
In an interview with an AGCO Investigator, Aijia Li stated that she had purchased 300 of the fraudulent tickets from a man who attended the store and stated that he was from the TTC. The man was wearing clothing bearing the TTC insignia and stated that he has a one time offer to sell the tickets at a discount. In fact the man was not a TTC representative.
Aijia Li and Xue Li failed to disclose the outstanding criminal charges on the renewal application for Lily Trade date July 18, 2008.
On January 14, 2010 the criminal charges against Aijia and Xue Li were withdrawn in the Ontario Court of Justice and the items seized during the execution of the search warrant were forfeited by Lily Trade and Aijia and Xue Li.
Order
3Therefore, having considered the Agreement (Exhibit #1) and Joint Submission Regarding Disposition (Exhibit #2), the Board confirms its oral ORDER that the registration of Lily Trade (the "Registrant"), operating as YOU AND ME SMOKE AND GIFT SHOP, 1712 Queen Street East, Toronto, Ontario, M4L 1G7 be SUSPENDED for 45 days commencing at 12:01 a.m. on February 1, 2010 and continue consecutively until 11:59 p.m. on March 17, 2010.
4Further, the Board ORDERS the registration shall be subject to the following term and condition:
- Lily Trade operating as You and Me Smoke and Gift Shop shall ensure that TTC fare media is only sold at You and Me Smoke and Gift Shop pursuant to a valid agreement with the Toronto Transit Commission.
DATED AT TORONTO THIS 27th DAY OF January , 2010
________________________________
BRIAN J. FORD, BOARD MEMBER
Attached
IN THE MATTER OF THE GAMIING CONTROL ACT, 1992, S.O. 1992, CHAPTER 24 AND REGULATIONS, AS AMENDED
AND IN THE MATTER OF THE NOTICE OF PROPOSED ORDER TO REFUSE TO RENEW AND TO REVOKE THE REGISTRATION AS A GAMING SUPPLIER OF LILY TRADE o/a YOU and ME SMOKE and GIFT SHOP
AGREEMENT
The Registrant acknowledges that legal counsel has been consulted and independent legal advice has been obtained prior to entering into this Agreement
Agreed Statement of Facts
The Registrant and Registrar's Counsel agree to the following facts:
The Partnership of Aijia LI and Xue LI operating under the legal name of Lily Trade has been registered as a gaming supplier in the class of Break Open Ticket Sellers and Lottery Retailer under the Gaming Control Act since November 7, 2005.
Lily Trade applied for a renewal of registration by way of application dated July 18, 2008.
An Investigation by the Toronto Transit Commission (TTC) revealed that counterfeit TTC fare tickets were being sold at You and Me Smoke and Gift Shop. Undercover TTC officers purchased forged TTC fare tickets from Aijia Lee at the store on January 29 and 30, 2008
On January 30, 2008 a search warrant was executed at the store by TTC Investigators. At that time 318 counterfeit TTC tickets, located under the counter of the store and in the purse of Aijia LI, who was working at the time were seized. A quantity of genuine TTC fare tickets and $8,701.40 in cash were also located and seized.
5On January 30, 2008 Aijia LI and Xue LI were charged by Toronto Police with the criminal offences of Uttering a Forged Document, Possession of Property Obtained by Crime and Fraud Under $5000.
6In an interview with an AGCO Investigator, Aijia LI stated that she had purchased 300 of the fraudulent tickets from a man who attended the store and stated that he was from the TTC. The man was wearing clothing bearing the TTC insignia and stated that he has a one time offer to sell the tickets at a discount. In fact the man was not a TTC representative.
7Aijia LI and Xue LI failed to disclose the outstanding criminal charges on the renewal application for Lily Trade date July 18, 2008
8On January 14, 2010 the criminal charges against Aijia and Xue LI were withdrawn in the Ontario Court of Justice and the items seized during the execution of the search warrant were forfeited by Lily Trade and Aijia and Xue LI
Joint Submission Regarding Disposition
Counsel for the Registrar and the Registrant Lily Trade o/a You and Me Smoke and Gift Shop jointly submit that the following disposition is appropriate in the circumstances:
The Registrant herby withdraws the request for a hearing into this matter.
The Registrant agrees that the registration as a lottery retailer and break open ticket seller of Lily Trade o/a You and Me Smoke and Gift Shop shall be subject to the following Term of Registration:
- Lily Trade o/a You and Me Smoke and Gift Shop shall ensure that TTC fare media is only sold at You and Me Smoke and Gift Shop pursuant to a valid agreement with the Toronto Transit Commission.
The Registrant Lily Trade o/a You and Me Smoke and Gift Shop shall serve a forty-five (45) day suspension of their registration as a lottery retailer and break open ticket seller.
The Registrar and the Registrant, Lily Trade o/a You and Me Smoke and Gift Shop, agree that the suspension shall take effect 12:01 am on February 1, 2010 and continue consecutively and inclusively until 11:59 pm on March 17, 2010.
Dated this 21 day of January 2010
____________________________ ________________
Lily Trade o/a You and Me Smoke and Gift Shop Date
"I have authority to bind the Registrant partnership"
__________________________________________ ________________________
Counsel to the Registrant Date
__________________________________________ ________________________
Daniel Alakas Date
Counsel to the Registrar, AGCO