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-
J & C Retailers Inc. operating as A-1 Discount Registrant
DECISION
Panel: Patricia McQuaid, Vice-Chair, AGCO Decision Date: February 11, 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 J & C Retailer Inc., Registrant ) Michael Caroline, Representative
Allegations
1A teleconference hearing into a Notice of Proposed Order dated July 30, 2009 to refuse the application for renewal of registration made by J & C Retailer Inc. (the “Registrant”), operating as A-1 DISCOUNT, 2412 Lakeshore Boulevard West, Toronto, Ontario, M8V 1C4, as a gaming supplier, in the class of lottery retailer and Break Open Ticket seller, registration numbers 96058, 149056 and 156257, 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 February 9, 2010 in the City of Toronto.
Decision
2Daniel Alakas, Registrar’s Representative, and Mr. Caroline submitted an Agreed Statement of Facts and Joint Submission Regarding Disposition (Exhibit #1) which form part of this decision. It was agreed and admitted that:
J&C Retailers Inc. o/a A-1 Discount has been registered as a gaming supplier, under the Gaming Control Act, in the class of Break Open Ticket Seller since March 5, 2001 and in the class of Lottery Retailer since January 4, 2008.
Chirag Manubhai Patel is the director and owner of this retail location.
J&C Retailers Inc. o/a A-1 Discount applied for a renewal of registration by way of application dated March 3, 2009
An investigation by the Toronto Transit Commission (TTC) revealed that counterfeit TTC fare tokens were being sold at A-1 Discount. Undercover TTC officers made a total of fifteen purchases of counterfeit TTC fare tokens from the store on February 4, 2009, and February 9, 2009. Mr Patel was identified as having sold the counterfeit tokens to the undercover officer on February 4, 2009. Another employee of the store was identified as having sold the counterfeit tokens on February 9, 2009.
On February 10, 2009 a search warrant was executed at the store by TTC investigators. At that time 34 counterfeit TTC fare tokens were located and seized along with the quantity of genuine TTC tokens and approximately $5,980.00 in cash.
On the aforementioned date Mr Patel was arrested and released on an appearance notice. He was ultimately charged with the criminal offences of Fraud under $5000.00. Possession of Property Obtained by Crime (under $5000.00). Possession of slugs or tokens, Sell slugs or tokens and Possession of Proceeds of Crime (over $5000.00).
Mr Patel has stated that he had purchased a quantity of these tokens, for use at several retail locations to which he was associated, from a regular customer of the store named Mark. Mark claimed to Mr Patel that he received the tokens from his employer on a weekly basis but had no use for them. The tokens were offered to Mr Patel at a substantial discount from the tokens he regularly purchased through contact with the TTC.
Mr Patel has stated that he had no knowledge that these tokens were counterfeit.
On June 30, 2009 the criminal charges against Mr Patel were withdrawn in the Ontario Court of Justice and the items seized during the execution of the search warrant that could be reasonably referable to the counterfeit tokens (approximately $7000.00) were forfeited by the Registrant.
Order
3Therefore, having considered the Agreed Statement of Facts and Joint Submission Regarding Disposition (Exhibit #1), the Board confirms its oral ORDER that the registration of J & C Retailer Inc., operating as A-1 DISCOUNT, 2412 Lakeshore Boulevard West, Toronto, Ontario, M8V 1C4, as a gaming supplier, in the class of lottery retailer and Break Open Ticket seller, be SUSPENDED for THIRTY (30) consecutive days commencing at 12:01 a.m. on February 12, 2010 and continue consecutively and inclusively until 11:59 p.m. on March 13, 2010.
4Further, the Board ORDERS the registration, as renewed, shall be subject to the following terms and conditions:
J&C Retailers Inc. operating as A-1 Discount shall ensure that TTC fare media is only sold at A-1 Discount pursuant to a valid agreement with the Toronto Transit Commission.
Chirag Manubhai Patel shall advise the Deputy Registrar in writing, within ten days of any and all charges (including any issuances of summons and/or appearance notice) convictions and findings of guilt, including where an absolute or conditional discharge is granted or other disposition is made, of any charge under any legislation and in any jurisdiction (including but not limited to the Criminal Code of Canada and the Ontario Highway Traffic Act)
DATED AT TORONTO THIS 11^th^ DAY OF February , 2010
PATRICIA MCQUAID, VICE-CHAIR
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 THE REGISTRATION AS A GAMING SUPPLIER OF J&C RETAILERS INC o/a A-1 DISCOUNT
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:
J&C Retailers Inc. o/a A-1 Discount has been registered as a gaming supplier, under the Gaming Control Act, in the class of Break Open Ticket Seller since March 5, 2001 and in the class of Lottery Retailer since January 4, 2008.
Chirag Manubhai Patel is the director and owner of this retail location.
J&C Retailers Inc. o/a A-1 Discount applied for a renewal of registration by way of application dated March 3, 2009
An investigation by the Toronto Transit Commission (TTC) revealed that counterfeit TTC fare tokens were being sold at A-1 Discount. Undercover TTC officers made a total of fifteen purchases of counterfeit TTC fare tokens from the store on February 4, 2009, and February 9, 2009. Mr Patel was identified as having sold the counterfeit tokens to the undercover officer on February 4, 2009. Another employee of the store was identified as having sold the counterfeit tokens on February 9, 2009.
On February 10, 2009 a search warrant was executed at the store by TTC investigators. At that time 34 counterfeit TTC fare tokens were located and seized along with the quantity of genuine TTC tokens and approximately $5,980.00 in cash.
On the aforementioned date Mr Patel was arrested and released on an appearance notice. He was ultimately charged with the criminal offences of Fraud under $5000.00. Possession of Property Obtained by Crime (under $5000.00). Possession of slugs or tokens, Sell slugs or tokens and Possession of Proceeds of Crime (over $5000.00).
Mr Patel has stated that he had purchased a quantity of these tokens, for use at several retail locations to which he was associated, from a regular customer of the store named Mark. Mark claimed to Mr Patel that he received the tokens from his employer on a weekly basis but had no use for them. The tokens were offered to Mr Patel at a substantial discount from the tokens he regularly purchased through contact with the TTC.
Mr Patel has stated that he had no knowledge that these tokens were counterfeit.
On June 30, 2009 the criminal charges against Mr Patel were withdrawn in the Ontario Court of Justice and the items seized during the execution of the search warrant that could be reasonably referable to the counterfeit tokens (approximately $7000.00) were forfeited by the Registrant.
Joint Submission Regarding Disposition
Counsel for the Registrar and the Registrant J&C Retailers Inc. o/a A-1 Discount jointly submit that the following disposition is appropriate in the circumstances:
The Registrant hereby 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 J&C Retailers Inc. o/a A-1 Discount shall be subject to the following Terms of Registration:
J&C Retailers Inc. operating as A-1 Discount shall ensure that TTC fare media is only sold at A-1 Discount pursuant to a valid agreement with the Toronto Transit Commission.
Chirag Manubhai Patel shall advise the Deputy Registrar in writing, within ten days of any and all charges (including any issuances of summons and/or appearance notice) convictions and findings of guilt, including where an absolute or conditional discharge is granted or other disposition is made, of any charge under any legislation and in any jurisdiction (including but not limited to the Criminal Code of Canada and the Ontario Highway Traffic Act)
The Registrant J&C Retailers Inc. o/a A-1 Discount shall serve a thirty (30) day suspension of their registration as a lottery retailer and break-open ticket seller.
The Registrar and the Registrant J&C Retailers Inc. o/a A-1 Discount, agree that the suspension shall take effect 12:01 a.m. on February 12, 2010 and continue consecutively and inclusively until 11:59 p.m. on March 13, 2010
Dated this 8 day of February 2010
____________________________ ________________
J&C Retailers Inc. o/a A-1 Discount Date
“I have authority to bind the Registrant Corporation”
Counsel to the Registrant M.W. Caroline Date
Daniel Alakas Date
Counsel to the Registrar, AGCO