December 30, 2009 Gold Garden Restaurant, Inc. Min Hong Chen, President/Treasurer/Director/Stackholder Jack Ken Lee, Secretary/Director/Stockhalder Chu R&T, Inc Raymond Chu, President/Director/Stockholder Tina Chu, Vice President/Secretary/Treasurer/Director/Stockhalder dba GOLD COIN GARDEN RESTAURANTILOUNGE (F-COM) 3016 SE 82 Ave Portland, OR 97266 CERTIFIED MAIL SECOND AMENDED NOTICE OF PROPOSED LICENSE CANCELLATION AND PROPOSED REFUSAL TO RENEW LICENSE This notice amends and supersedes the Amended Notice of Proposed License Cancellation dated August 26, 2009. Substantive changes from that letter appear underlined after the (*) (")L LICENSE CANCELLATION Pursuant to ORS 471.315, the Commission may cancel or suspend your license or assess a civil penalty for any violation. The Public Safety Program proposes that the Commission cancel your license for the following violations: Violation Number One There is a history of serious and persistent problems involving disturbances, lewd or unlawful activities or noise either in the premises or involving patrons of the establishment in the immediate vicinity of the premises, including but not limited to excessive noise, public drunkenness, fights, altercations, harassment and public urination. This is a violation of ORS 471.315(1)(c). The problems include the following: On December 21, 2007 at about 8:50 PM, a Portland Police Bureau (PPB) officer responded to the premises on the report of a fight. He located an intoxicated patron in the parking lot who was yelling. The officer transported him to a detoxification facility (detox) On January 1, 2008 at about 11:52 PM, PPB officers responded to a call about a robbery that took place inside the licensed premises. A female bartender wasGOLD COIN GARDEN RESTAURANTILOUNGE (F-COM) December 30, 2009 Page 2 approached by a patron who ordered a beer and then gave her a demand note. The licensee estimated a loss of $1,700.00 On January 6, 2008 at about 10:40 PM, PPB officers responded to a call about vandalism in the parking lot. An employee's car tires were slashed. The employee believed it was because she was in a verbal argument with two patrons inside the premises earlier in the evening On February 15, 2008 at about 1:20 AM, PPB officers responded to a report of a fight at the licensed premises. Upon arrival, officers learned that a verbal argument broke aut between two patrons. The altercation became physical when one of the patrons punched the other, causing a large fight to break out involving 15-20 patrons. Three intoxicated patrons sustained injuries during the fight one patron sustained a cut beside his left eye, a second patron had a bump an his forehead, and the third patron had a profusely bleeding wound on the back of her head that was caused by an unknown abject. Officers noted that because of the patrons’ level of intoxication, the patrons could not remember how they sustained the injuries. On March 9, 2008 at about 12:43 AM, a PPB officer conducted a walk-through of the licensed premises. The PPB officer encountered an intoxicated patron who admitted to drinking and smoking marijuana during the course of the evening. The patron was taken to detox On March 23, 2008 at about 9:30 PM, PPB responded to a report of a patron bleeding from the head at the licensed premises. When officers arrived, they found the patron, who was intoxicated, had sustained several injuries, including a long laceration on the back of his head, a swollen and bloodshot left eye, a bloody nose, and light vertical marks on his forehead. The patron told police that after exiting the premises with a female patron, he was assaulted by an unidentified male immediately outside the premises, then lost consciousness for several minutes. A police officer told him to go outside to wait for medical attention, As the patron was leaving, he dropped a paper bag that contained a leather handgun holster and ammunition. The officer searched the patron and found a loaded semi-automatic handgun in a rear pocket of the patron's pants. The patron told police that after being assaulted, he went to his room at the hotel next daor to the licensed premises, retrieved his gun, and returned to the bar to look for his attackers. The patron was transported to the hospital and received several staples to his head to close the wound. He was charged with Unlawful Possession of a FirearmGOLD COIN GARDEN RESTAURANTILOUNGE (F-COM) December 30, 2009 Page 3 On April 7, 2008 at about 2:30 AM, PPB responded to a complaint of the bartender being harassed. The bartender told police that a patron, who is a friend of Corporate Principal Chu, rammed his shoulder into her back causing her to lunge forward. She said the patron did this after she asked patrons to leave because it was time to close the bar. The bartender also told police that she was then fired for being rude to a friend of the Licensees On April 18, 2008 at about 1:50 PM, a bartender reported to PPB officers that she was receiving verbal threats while she was working at the licensed premises. The bartender told police she had received at least four threats from people inside the premises and believed the threats were to discourage her from testifying in a grand jury proceeding The officer opened an investigation into witness tampering, On April 19 at about 1:38 AM, PPB officers responded to the motel immediately adjacent to the licensed premises on a report of an assault. Upan arrival, the officers found an unconscious patron on the ground, bleeding from the face. Two female patrons who had been with the male patron told officers that the altercation began at the licensed premises after the male patron had consumed five drinks. The patron was later assaulted outside the motel On April 30, 2008 at about 7:08 PM, PPB officers responded to a report of a robbery inside the licensed premises. An intoxicated patran was followed into the restroom by two ather patrons, and he was asked if he wanted to buy marijuana. The patrons then lacked the bathroom door, placed the victim in a headlock and robbed him of $880.00. The two patrans who rabbed the victim fled the premises. An intoxicated patron told officers that the victim was “flashing” his money and buying rounds of beer for other patrons. On July 23, 2008 at about 11:33 PM, PPB respanded to a report of a fight at the licensed premises. Upon arrival, an officer observed a female punching anather female in the parking lot of the premises, The female patron was using a set of keys as a weapon and caused a puncture wound and swelling to the victim's face. The victim had difficulty hearing as a result of being punched. A third female, wha was a minor and had been drinking in the premises, attempted to punch the victim in the head. A PPB officer had to tase one of the females into custody. The female attackers, who were intoxicated, were cited for Assault Ill. A bartender was charged with Furnishing Alcohol to a Minor. On August 29, 2008 at about 12:57 AM, PPB officers responded to the premises regarding a report of a fight. Upon arrival, officers observed an intoxicated male patronGOLD COIN GARDEN RESTAURANTILOUNGE (F-COM) December 30, 2009 Page 4 with a large cut above his left eye staggering in the parking lot of the licensed premises. The patron had caused a disturbance earlier inside the premises. While awaiting medical assistance, the patron became belligerent and tried to re-enter the licensed premises. The patron was transported to the hospital, where he received stitches for his head injury On October 31, 2008 at about 11:12 PM, PPB officers responded to a report of an intoxicated patron yelling and hitting a car in the parking lat of the licensed premises Upon arrival, the officer located an intoxicated patron who admitted he was planning to physically fight a male that had assaulted his sister the previous evening. The patron was transported to detox. On December 13, 2008 at about 12:50 AM, PPB officers conducted a “controlled drug buy” at the licensed premises. A confidential reliable informant (CRI) purchased a plastic bag of methamphetamine inside the premises from another patron. An on-duty bartender initially told the CRI that patrons who sold narcotics were not currently at the premises, but 45 to 50 minutes later directed the CRI to a patron who was in passessian of drugs for purchase. The CRI told the afficer that Corporate Principal Raymond Chu was present within six feet of the sale and appeared to be observing the activity between the seller and the CRI. The patron who sold the methamphetamine was charged with Unlawful Delivery of Methamphetamine and Unlawful Possession of Methamphetamine On December 13, 2008 at about 1:22 AM, a PPB officer who was working a prostitution/narcotics detail at the licensed premises observed a known prostitute who was in the parking lot of the licensed premises enter a person’s car that was parked in the lot. Both persons were charged with Unlawful Prostitution Procurement Activities. On December 13, 2008 at about 11:04 PM, PPB officers conducted a “controlled drug buy" that took place inside the licensed premises. At 11:45 PM, a CRI contacted two female patrons inside the licensed premises who agreed to sell the CRI marijuana. The female patrons left the licensed premises and retumed approximately ten minutes later with a plastic bag of marijuana, which the CRI purchased. The CRI told PPB officers that Corporate Principal Raymond Chu was present within eight to ten feet of the drug sale and appeared to be observing the transaction. The female patron who negotiated the sale was charged with Unlawiul Delivery of Marijuana and Unlawful Possession of Marijuana On January 10, 2009 at about 12:54 AM, PPB officers were flagged down by a male and female patron near the premises. The patrons were intoxicated and told theGOLD COIN GARDEN RESTAURANTILOUNGE (F-COM) December 30, 2009 Page officers that they were attacked by an unknown male. The officers located an intoxicated male standing outside the licensed premises approximately 20 minutes later who was identified as the person who attacked the patrons. This patron told the officers that while outside one of the two patrons stole $25.00 fram him. He went into the licensed premises to confront the patron and challenged him to a fight in the parking lot of the licensed premises. The on-duty bartender told the officers that the male and female patrons frequent the bar on a regular basis and have been known to sell drugs and conduct scams for patrons’ maney. On February 2, 2009 at about 11:08 PM, a PPB officer was flagged down by a patron of the licensed premises. The patron told officers that the male patron she was with became intoxicated and argued with her. She left the licensed premises and he followed her. She told officers that the male patron tripped her on purpase, causing her to fall onto her knees, causing a cut on her right knee. The male patron was charged with Assault lV Willingness and Ability There have been at least 18 documented incidents at the licensed premises in 14 months. On ten additional occasions between December 2007 and August 2008, police responded to the licensed premises regarding complaints of threats, assaults and disturbances. Incidents have included physical altercations involving fighting, kicking, punching, slapping, guns, metal objects used as weapons, and verbal assaults Incidents have also involved unlawful activity such as drug sales inside the premises in plain view of employees and Corporate Principal Raymond Chu. Licensees’ employees have told police that known drug dealers frequent the bar and that drug deals, prostitution and fights occur on a regular basis. These incidents have occurred inside the licensed premises, in areas that licensees control outside the premises, and in the immediate vicinity of the licensed premises. In addition, there have been instances of public drunkenness, prostitution, and drug possession in the immediate vicinity of the licensed premises, Patrons have sustained injuries as a result of these incidents, and some incidents have resulted in damage to property, such as incidents of vandalism to vehicles parked in the parking lot of the licensed premises. The licensees have been warned about disturbances and drug activity on several occasions. On February 14, 2008, Commission staff issued verbal instructions to the Licensees regarding disorder and a history of serious and persistent problems. On July 28, 2006 and January 18, 2007, Commission staff issued verbal instructions to theGOLD COIN GARDEN RESTAURANTILOUNGE (F-COM) December 30, 2009 Page 6 Licensees regarding disorder at the premises. In July 2007, Commission staff notified Licensees that drug activity was occurring at the licensed premises. On July 16, 2008 a PPB officer requested mandatory reports of activity at the licensed premises due to alcohol-related chronic nuisance problems. Although Corporate Principal Chu is often present at the licensed premises, assaults continue to occur. In addition, Corporate Principal Chu allows drug sales to occur within plain view. Licensees have made no changes to the operation of the licensed premises to address these issues. Licensees choose not to employ security staff, in spite of Commission staff's recommendations to do so, to help control problems Despite Public Safety Program staff's and local law enforcement's efforts to intervene, problems continue to occur. As a result, Licensees have not demonstrated willingness or ability to maintain adequate control of the premises. Violation Number Two On December 13, 2008 at about 12:50 AM, Licensees permitted unlawful activity when a sale of methamphetamine by a patron occurred inside the licensed premises. This is a violation of OAR 845-006-0347(3)(a) Violation Number Three On December 13, 2008 at about 11:57 PM, Licensees permitted unlawful activity when a sale of marijuana occurred inside the licensed premises. This is a violation of OAR 845-006-0347(3)(a) (*)Violation Number Four On November 12, 2009, your employee Mei Yi Yu failed to verify Maritza Delgado's age before allowing her to buy or be served an alcoholic beverage when she reasonabl appeared to be under 26 years of age. This is a violation of OAR 845-006- 0335(1)(a)(b\(c) DETERMINING THE PENALTY OAR 845-006-0500 defines Violation Number One as a Category | violation and recommends license cancellation for the first violation of this type within two years, This is your first. OAR 845-006-0500 defines Violation Numbers (*)Two, Three and Four as Category Ill violations and recommends a 10-day suspension or $1,650.00 civil penalty far the firstGOLD COIN GARDEN RESTAURANTILOUNGE (F-COM) December 30, 2009 Page 7 Violation, a 30-day suspension or a $4,950.00 civil penalty for the second violation, a 30-day suspension for the third violation, (*Jand license cancellation for the fourth violation of this type in two years. These are your second, third (*)and fourth violations. Your first Category Ill violations occurred on July 23, 2008 and were both charged at the first level of Category Ill because they were discovered concurrently. Violation Numbers ‘Two and Three were discovered concurrently and are both charged at the second level Violation Number Four will be charged at the third level of Category Ill If the license is cancelled to pursuant to Violation Number One, no separate penalty will be imposed for Violation Numbers Two and Three (*)and Four (if the Commission finds agaravating or mitigating circumstances, it may assess a eater or lesser sanction than that listed in the administrative quidelines. Agaravating Circumstances Licensee _has previously been allowed to purchase age verification equipment as_an offset to_a penalty for a previous failure to verify the age of a minor. The age verification equipment was not used to prevent Violation Number Four. PROPOSED PENALTY The Public Safety Program recommends that the Commission cancel Licensees’ Full On-Premises Sales license for the violations listed above If a licensee's interest in the license should expire or be transferred befare the Commission issues a final arder, the Public Safety Program recommends that under the authority of ORS 471.030, 471.040, 471.313, and 471.730, the Commission issue the licensee a Letter of Reprimand. This reprimand will become a permanent part of the licensee's Commission file and would be considered in any future application for a liquor license by the licensee ()IL_REFUSAL TO RENEW LICENSE A. Not a Good Record of Compliance Pursuant to ORS 471.313(4)(q), the Commission may refuse to license any applicant if the Commission has reasonable grounds to believe that the applicant did not have a good record of compliance with the alcoholic liquor laws of this state and the rules of the Commission when previously licensed, The Public Safety Program proposes that the Commission refuse to renew your license for the following adjudicated and pendingGOLD COIN GARDEN RESTAURANTILOUNGE (F-COM) December 30, 2009 Page 8 violations which demonstrate that the applicant does not have a good record of compliance: Adjudicated Violations Violation Number One On July 23, 2008, your employee Jessica Robinson aka Jessica Dery failed to verify the age of Sarah Mazzi before allowing her to buy or be served an alcoholic beverage when she reasonable appeared to be under 26 years of age. This is a violation of OAR 845- 006-03365(1)(a)(b)(c). (Age verification equipment purchased _in lieu of penalty on October 20. 2008) Violation Number Two On July 23, 2008, your employee Jessica Robinson aka Jessica Dery permitted a minor to buy, be served, or drink alcoholic beverages on the licensed premises. This is a violation of OAR 845-006-0335(3)(a). (Fine paid October 29, 2008 Pending Violations Violation Number One There is a history of serious and persistent problems involving disturbances, lewd or unlawful activities or noise either _in the premises or involving patrons _of_the establishment in the immediate vicinity of the premises, including but not limited to excessive noise, public _drunkenness, fights, altercations, harassment_and_public urination. This is a violation of ORS 471.315({)(c). The prablems listed on pages 1-5 are incorporated into this section by reference Violation Number Two On December 13, 2008 at about 12:50 AM, Licensees permitted unlawful activity when a sale of methamphetamine by a patron occurred inside the licensed premises. This is a violation of OAR 845-006-0347(3)(a Violation Number Three On December 13, 2008 at about 11:57 PM, Licensees permitted unlawful activity when a sale of marijuana occurred inside the licensed premises. This is a violation of OAR 845-006-0347(3)(a'GOLD COIN GARDEN RESTAURANTILOUNGE (F-COM) December 30, 2009 Page 9 Violation Number Four On November 12, 2009, your employee Mei Yi Yu failed to verify Maritza Delgado’s age before allowing her to buy or be served an alcoholic beverage when she reasonabi appeared to be under 26 years of age. This is a violation of OAR 845-006- 0335(1)(a)(b\(c} B. History of Serious and Persistent Problems Pursuant to ORS 471.313(5), the Commission may refuse to license any applicant if it has reason to believe that there is a history of serious and persistent problems involving disturbances, lewd or unlawful activities or noise either in the premises or involving patrons of the establishment in the immediate vicinity of the premises, The Public Safety Program proposes that the Commission refuse to renew your license for the problems described in Violation Number One of this Notice, which constitute a history of serious and persistent problems. The problems listed on pages 1-5 are incorporated into this section by reference RESPON: TY FOR VIOLATIONS Licensee” is defined as including the principal officers of a corporation and stockholders who own ar control 10% or more of any class of stock (OAR 845-006-0301 and OAR 845-006-0475(1)(d)). Therefore, the licensees include Min Hong Chen, PresidentTreasurer/Director/Stockholder, and Jack Ken Lee, Secretary/Director/ Stockholder of Gold Garden Restaurant, Inc. The licensees also include Raymond Chu, PresidentiDirector/Stockhalder and Tina Chu, Vice President/Secretary/Treasurer/ Director/Stockholder of Chu R & T, Inc. Additionally, Gold Garden Restaurant, Inc. and Chu R & T, Inc. are responsible for the acts and omissions of its employees and rep- resentatives in violation of any law affecting license privileges (OAR 845-006-0362) HEARINGS RIGHTS You have already requested a hearing on the violations as previously charged. We will consider your earlier request for a hearing on these violations as valid and continue the hearings process unless yau withdraw from the hearing or this matter is otherwise resolved. Individuals have a right to be represented by an attorney. Per OAR 137-003- 0550, corporations must be represented by an attorney. Hearings are conducted by the Office of Administrative Hearings under the jurisdiction of the Oregon Liquor Control Commission, according to the Administrative Procedures Act (ORS Chapter 183), Attorney General's Rules for the Office of AdministrativeGOLD COIN GARDEN RESTAURANTILOUNGE (F-COM) December 30, 2009 Page 10 Hearings (OAR Chapter 137) and Commission Administrative Rules (OAR Chapter 845 Division 03) If you withdraw your request for a hearing, a final order by default will be issued by the Commission Administrator. If you fail to appear at a scheduled hearing, a final order by default will be issued by either the Administrative Law Judge or the Commission Administrator, as authorized by OAR 845-003-0670. In each of these instances, the Commission designates its file or files in this matter, including all materials you have submitted, as part or all of the record supporting its final order by default. OREGON LIQUOR CONTROL COMMISSION Stephen A. Pharo Executive Director SAP:KKR Ifyou have any questions, call §03-872-5128 or 800-452-6522, x6128.