You are on page 1of 4

STATE OF MICHIGAN

MICHIGAN ADMINISTRATIVE HEARING SYSTEM


MICHIGAN GAMING CONTROL BOARD,
PETITIONER,
ACES GAMING SUPPLY, LLC,
RESPONDENT.
Docket No.: 13-008798-TREAS
Case No.: W29200
Agency: Treasury
Case Type: Treas MGCB
Filing Type: Renewal of
Supplier License/Revocation
Marc Corriveau (P58510)
Kelley Cawthorne
Attorney for Respondent
208 N. Capitol Ave., Floor 3
Lansing, MI 48933
517-371-1400
Thomas Nafso (P73721)
Bethany Scheib (P47672)
Assistant Attorneys General
Attorneys for Petitioner
Alcohol & Gambling Enforcement Div.
PO Box 30736
Lansing, MI 48909
517-241-0210
RELEASE AND SETTLEMENT AGREEMENT
This Release and Settlement Agreement ("Agreement") is entered into by
Aces Gaming Supply, LLC ("Aces"), a Michigan Limited Liability Company, and by
Richard S. Kalm, Executive Director of the Michigan Gaming Control Board
("MGCB"), referred to collectively as the Parties, this day of , 2014.
RECITALS
1. Aces is a licensed supplier under the Bingo Act and rules promulgated thereto.
MCL 432.101 et seq. Aces provides gaming equipment and services to qualified
organizations conducting licensed "millionaire parties" as defined in the Bingo
Act and rules.
2. As a result of an investigation of Aces' application for renewal of its supplier
license, MGCB believed Aces was involved directly or indirectly with the rental
or leasing of a facility used for an event in violation of MCL 432.111b(10).
3. MGCB sent a Notice of Opportunity to Show Compliance to Aces on June 7,
2013. A compliance conference was held on July 30, 2013. The conference
afforded Aces an opportunity to respond to the alleged violations set forth in the
Notice of Opportunity to Show Compliance, and demonstrate compliance with
the Bingo Act and its rules.
4. After not resolving the matter at the compliance conference, and in accordance
with the Bingo Act, its rules, and the Administrative Procedures Act,
MCL 24.201 et seq., the MGCB initiated disciplinary action against Aces by filing
a complaint with the Michigan Administrative Hearing System. In Counts 1, 2,
and 3, it was alleged that Aces acted contrary to MCL 432.111b(10) by paying
Trippers, Northville Downs, and Douglas Management & Investment
Co., part of its proceeds from charitable gaming. Count 4 alleged that by virtue of
Counts 1, 2, and 3 Mich. Admin Code, R 432.21103 and Rule 432.21804(1)(a) were
violated.
5. A two-day hearing was held in November and December 2013. Administrative
Law Judge ("AU") Cohen issued a Proposal for Decision ("PFD") on March 11,
2014. AUJ Cohen determined that the MGCB met its burden of proof as to
Counts 1, 2, and 4 of the complaint.
6. Exceptions were filed by the Parties and the record was transmitted to the
MGCB for a final decision; however, prior to the issuance of a final decision, the
Parties have agreed to resolve the matter in accordance with the following
terms.
RELEASE AND SETTLEMENT
7. Aces acknowledges that it operated contrary to the Bingo Act by being involved
directly or indirectly with the rental or leasing of a facility used for an event in
violation of MCL 432.111b(10).
8. Aces acknowledges that by violating MCL 432.111b(10) it has also violated Rule
432.21103 and Rule 432.21804(1)(a).
9. Aces agrees to a thirty (30) consecutive calendar day suspension of its supplier's
license. The date of suspension will be determined by the MGCB, but will not
commence until at least two weeks' notice is provided to Aces, unless an earlier
date is mutually agreed upon by the Parties. ("Suspension Period"). During the
Suspension Period, Aces, and specifically, any owner, shareholder, partner,
officer, or agent of Aces, shall not provide any goods or services as a supplier to
2
any individuals or entities. Aces shall not receive any compensation during the
Suspension Period for activities related to its business as a supplier; nor shall it
receive any compensation before or after the Suspension Period for activities
related to its business as a supplier that take place during the Suspension
Period.
10. Pursuant to this agreement, the MGCB agrees to grant Aces' renewal of its
supplier's license. This grant is subject to compliance with all provisions of the
Bingo Act and rules and by agreeing to grant the renewal of Aces' supplier
license, the MGCB is not waiving any right to take action against Aces for any
violations of the Bingo Act and its rules that are not subject to this matter.
Aces agrees and understands that the license granted pursuant to this provision
will expire as otherwise provided for by the Bingo Act and rules, unless Aces
seeks to renew its license as provided for in the Bingo Act and rules.
11.During the Suspension Period, MGCB agrees to process applications from
qualified organizations proposing to use Aces as their supplier for events
scheduled after the Suspension Period. Applications will be processed in the
ordinary manner, which includes but is not limited to, qualified organizations
having applications submitted at least six weeks prior to the event date. The
applications will be processed and decided upon in accordance with the Bingo
Act and rules.
12.MGCB reserves the right, within its sole discretion, to grant or deny licenses to
qualified organizations for millionaire parties.
13.In executing this Agreement, Aces agrees to release MGCB, the Executive
Director, and its employees or agents of any liability related to this matter.
Further, Aces voluntarily waives any rights to appeal this agreement to any
court or otherwise in regards to this matter.
14.Aces accepts this Agreement as a complete compromise of all outstanding
litigation and disputed issues of law and fact relating to Michigan
Administrative Hearing System, Docket No. 13-008798-TREAS.
15.This Agreement is subject to full compliance with the Bingo Act, rules and
directives as are currently in effect or that may be amended or changed by
operation of law in the future.
16.The Parties agree that this Agreement is fully integrated, represents the entire
understanding of the Parties, and that there are no other agreements,
representations, promises, or negotiations that have not been expressly
embodied herein.
17.If any provision of this Agreement is prohibited by law or judged by a court to be
unlawful, void or unenforceable, the provision shall, to the extent required, be
3
6 Ri
severed from this Agreement and rendered ineffective as far as possible without
modifying the remaining provisions of this Agreement, and shall not in any way
affect any other circumstances, or the validity or enforcement of this Agreement.
18.Aces assumes the risk that the facts or the law may be otherwise than believed
when they entered into this Agreement.
By signing below the Parties agree that they have reviewed with counsel,
understand, and voluntarily agree to all of the above terms and conditions with full
and competent consent and authority.
on Date
behalf of Aces Gaming Supply, LLC, Respondent
Richard S. Ka1m, Executive Director, Date
Michigan Gaming Control Board,
Petitioner
I have reviewed the above terms and conditions with my client as evidenced by my
signature below.
Marc Corriveau, Attorney for Respondent Date
4

You might also like