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4 BEFORE THE
STATE OF
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Meeting
9 February 20, 2008
10:00 a.m.
10 Central Office
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1 AGENDA
2 PAGE
3 I. Call to Order 5:2
4 III. Minutes
A. November 14, 2007 5:16
5 B. January 16, 2008 6:13
6 IV. Consideration of Hearing Officer
Recommendations
7 C. Omar Sarr 7:17
1. Resolution No. 08-015
8 D. Phyllis Hill 9:11
1. Resolution No. 08-016
9 E. Robert Sheda 13:3
1. Resolution No. 08-017
10 F. Michael J. Morrissey 15:9
1. Resolution No. 08-018
11 G. Desmond L. Carter 22:9
1. Resolution No. 08-019
12 H. Eric F. Thomas 23:25
1. Resolution No. 08-020
13 I. Untrel Smiley 26:18
1. Resolution No. 08-021
14 J. HGI-Mark Twain, Inc. 28:8
1. Resolution No. 08-022
15 K. HGI-St. Jo, Inc. 37:4
1. Resolution No. 08-023
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V. Consideration of Settlement Agreements
17 L. President Riverboat Casino-Mo, Inc. 41:4
1. Resolution No. 08-024
18 M. IOC-Boonville, Inc. 42:18
1. Resolution No. 08-025
19 N.
The
1. Resolution No. 08-026
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VI. Consideration of Placement on Exclusion
21 List
O. Members of
22 1. Resolution No. 08-027
P. Peter Joseph Ribaste 50:8
23 1. Resolution No. 08-028
24 VII. Consideration of Licensure of
Level I/Key Applicants
25 Q. Resolution No. 08-029 52:20
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1 AGENDA (CONT'D)
2 PAGE
3 VIII. Consideration of Proposed Rulemaking
R. Final Orders of Rulemaking
4 1. 11 CSR 45-4.020 -- 54:18
Class A License Defined
5 2. 11 CSR 45-4.050 -- 56:11
Application Period and Fees
6 for Class A License
7 IX. Consideration of Casino Licensing in 57:22
the Sugar Creek Area Pursuant to
8 Resolution No. 08-012
S. Resolution No. 08-030
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XI. Adjournment 91:25
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BEFORE THE
3 STATE OF
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7 Meeting
February 20, 2008
8 10:00 a.m.
Central Office
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COMMISSION MEMBERS PRESENT:
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Noel J. Shull, Chairman
16 Darryl T. Jones
17 Larry W. Plunkett, Sr.
Suzanne Bradley
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Reported by:
22 Patricia A. Stewart, RMR, RPR, CCR 401
24 (573) 636-7551
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1 P R O C E E D I N G S
2 CHAIRMAN SHULL: Okay. We'll proceed with
3 the meeting.
4 The first order, I would call the roll,
5 please.
6 MS. FRANKS: Chairman Shull.
7 CHAIRMAN SHULL: Present.
8 MS. FRANKS: Commissioner Jones.
9 COMMISSIONER JONES: Present.
10 MS. FRANKS: Commissioner Hais.
11 COMMISSIONER HAIS: Present.
12 MS. FRANKS: Commissioner Bradley.
13 COMMISSIONER PLUNKETT: Present.
14 MS. FRANKS: Commissioner Bradley.
15 COMMISSIONER BRADLEY: Present.
16 CHAIRMAN SHULL: We need to approve the
17 minutes of the November 14, 2007 meeting.
18 Is there a motion?
19 COMMISSIONER HAIS: Mr. Chairman, I would
20 move to approve the minutes of the November 14, 2007
21 meeting.
22 COMMISSIONER PLUNKETT: Second.
23 CHAIRMAN SHULL: A motion is made and
24 seconded. Is there any further discussion?
25 Hearing none, call the roll, please.
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1 MS. FRANKS: Chairman Shull.
2 CHAIRMAN SHULL: Approved.
3 MS. FRANKS: Commissioner Jones.
4 COMMISSIONER JONES: Approved.
5 MS. FRANKS: Commissioner Hais.
6 COMMISSIONER HAIS: Approved.
7 MS. FRANKS: Commissioner Plunkett.
8 COMMISSIONER PLUNKETT: Approved.
9 MS. FRANKS: Commissioner Bradley.
10 COMMISSIONER BRADLEY: Approved.
11 MS. FRANKS: By your vote you've adopted the
12 minutes of the November 14, 2007 meeting.
13 CHAIRMAN SHULL: The next issue is the
14 approval of the January 16, 2008 minutes.
15 Is there a motion?
16 COMMISSIONER JONES: I move to approve the
17 minutes of the January 16, 2008 meeting.
18 COMMISSIONER HAIS: Second.
19 CHAIRMAN SHULL: A motion has been made and
20 seconded. Is there any further discussion?
21 Hearing none, call the roll.
22 MS. FRANKS: Chairman Shull.
23 CHAIRMAN SHULL: Approved.
24 MS. FRANKS: Commissioner Jones.
25 COMMISSIONER JONES: Approved.
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1 MS. FRANKS: Commissioner Hais.
2 COMMISSIONER HAIS: Approved.
3 MS. FRANKS: Commissioner Plunkett.
4 COMMISSIONER PLUNKETT: Approved.
5 MS. FRANKS: Commissioner Bradley.
6 COMMISSIONER BRADLEY: Approved.
7 MS. FRANKS: By your voted you've adopted
8 the minutes of the January 16, 2008 meeting.
9 CHAIRMAN SHULL: Next I'll turn the meeting
10 over to Mr. McNary to introduce.
11 MR. MCNARY: Mr. Chairman, Members of the
12 Commission, Item IV on the agenda is Consideration of
13 Hearing Officer Recommendations, and Attorney Stephen
14 Stark will handle the first eight.
15 MR. STARK: Good morning, Commissioners.
16 CHAIRMAN/COMMISSIONERS: Good morning.
17 MR. STARK: The first case I have is Item
18 Letter C, Omar Sarr.
19 This case originally started out as a
20 revocation of a Level II occupational license. However,
21 Mr. Sarr's license expired before the date of the hearing,
22 and I accepted an amendment of the pleading, if you will,
23 to have it to be a denial of a renewal application for
24 license.
25 Mr. Sarr is not a citizen of the United
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1 States. In the application process the Commission
2 investigator asked for proof of a work permit authorizing
3 Mr. Sarr
to work in the
4 a document that had expired, and the Commission's
5 investigator learned that there was an order of
6 deportation being made, but Mr. Sarr had appealed it, so
7 he was allowed to remain in the country.
8 However, because Mr. Sarr could not produce
9 his work permit, the Commission denied to renew his
10 license. And that would be my recommendation as well, is
11 that there is basis in law and fact to deny Mr. Sarr his
12 license -- to renew his license for the Level II
13 occupational license.
14 CHAIRMAN SHULL: Are there any questions for
15 Mr. Stark?
16 Is Mr. Sarr here? Would he care to speak?
17 Is there a motion?
18 COMMISSIONER PLUNKETT: I make a motion we
19 approve Resolution 08-015.
20 COMMISSIONER BRADLEY: Second.
21 CHAIRMAN SHULL: A motion is made and
22 seconded. Is there any further discussion?
23 Hearing none, call the roll, please.
24 MS. FRANKS: Chairman Shull.
25 CHAIRMAN SHULL: Approved.
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1 MS. FRANKS: Commissioner Jones.
2 COMMISSIONER JONES: Approved.
3 MS. FRANKS: Commissioner Hais.
4 COMMISSIONER HAIS: Approved.
5 MS. FRANKS: Commissioner Plunkett.
6 COMMISSIONER PLUNKETT: Approved.
7 MS. FRANKS: Commissioner Bradley.
8 COMMISSIONER BRADLEY: Approved.
9 MS. FRANKS: By your vote you've adopted
10 Resolution No. 08-015.
11 MR. STARK: Commissioners, our next case is
12 your Item Letter D, Phyllis Hill. This case deals with a
13 regulatory requirement for currency transaction reporting
14 requirements. Basically a report is required when a
15 patron may have cash winnings of $10,000 or more.
16 The internal control standard that is
17 involved in this particular case states that employees are
18 responsible for preventing a patron from circumventing the
19 reporting requirements if the employee has knowledge or
20 through reasonable diligence in performing their duties
21 should have knowledge of the patron's attempt to
22 circumvent the reporting requirements.
23 This internal control standard goes on to
24 state that if there is some doubt or suspicion, that there
25 should also be documented a suspicious transaction report
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1 as well.
2 Now, Ms. Hill is a holder of a Level II
3 occupational license granted by the Commission.
4 On April 2nd, 2006 Ms. Hill had employment
5 as a cage shift manager with the President River Casino in
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7 cards at the blackjack table, won a substantial amount of
8 money. It was estimated about $11,000, according to the
9 casino dealer.
10 The patron presented himself to the
11 cashier's cage in order to cash out his winnings. The
12 patron asked the cashier if he would only cash out $9,900,
13 would he be able to avoid taxes. The cashier called her
14 manager, who was Ms. Hill, to intervene with the patron.
15 The patron told Ms. Hill that he
16 intentionally stopped playing cards when his winnings
17 approached $9,975, with the purpose to avoid paying taxes.
18 Then the patron asked Ms. Hill, how much can
19 he pay her to not report the winnings, if he took his
20 winnings all in cash. Ms. Hill did reject that patron's
21 offer of payment.
22 The patron also continued the discussion
23 with Ms. Hill saying that another employee of the casino
24 had advised the patron that he would not have to pay any
25 taxes if he had only won the $9,995.
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1 The patron ended up accepting a check for
2 his payout rather than cash.
3 Based on these facts -- well, let me back
4 up. Ms. Hill did not do any documentation of this event
5 other than an e-mail message that she presented to some
6 co-employees with regard to some of the activities of
7 April 2nd, 2006.
8 Interesting enough, in that e-mail, Ms. Hill
9 did state that she intended to complete a suspicious
10 activity report in order to report this occurrence.
11 However, she did not follow through with that suspicious
12 activity report.
13 A day later or so another employee of the
14 casino informed Ms. Hill that since the transaction was
15 less than $10,000, that no reporting was required.
16 My conclusion based on these facts is that
17 the patron was indeed attempting to avoid regulatory
18 mandate for reporting his winnings. He was trying to
19 circumvent the law.
20 He talked about taxes. That's not really
21 the issue. He would be liable for taxes on the first
22 dollar he earned. But, nevertheless, it appeared that he
23 was indeed attempting to avoid the reporting requirement,
24 and the obligation to report that or at least document
25 that existed.
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1 Ms. Hill failed to do that, and the proposed
2 discipline of three-days suspension, as proposed by the
3 Commission, would be my recommendation that that be
4 affirmed.
5 CHAIRMAN SHULL: Are there any questions for
6 Mr. Stark?
7 Is Ms. Hill here and would she care to
8 speak?
9 Is there a motion?
10 COMMISSIONER HAIS: Mr. Chairman, I would
11 move that Resolution No. 08-016 be approved.
12 COMMISSIONER BRADLEY: Second.
13 CHAIRMAN SHULL: A motion is made and
14 seconded. Is there any further discussion?
15 Hearing none, call the roll, please.
16 MS. FRANKS: Chairman Shull.
17 CHAIRMAN SHULL: Approved.
18 MS. FRANKS: Commissioner Jones.
19 COMMISSIONER JONES: Approved.
20 MS. FRANKS: Commissioner Hais.
21 COMMISSIONER HAIS: Approved.
22 MS. FRANKS: Commissioner Plunkett.
23 COMMISSIONER PLUNKETT: Approved.
24 MS. FRANKS: Commissioner Bradley.
25 COMMISSIONER BRADLEY: Approved.
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1 MS. FRANKS: By your vote you've adopted
2 Resolution No. 08-016.
3 MR. STARK: Commissioners, our next case is
4 your letter E, Roberta Sheda. Ms. Sheda is a Level II
5 occupational licensee.
6 On May 5th, 2007 she was employed as a
7 senior poker supervisor
by Harrah's
8 that evening of May 5th there was a patron at a gaming
9 table, in which he lost at the hand of poker and threw his
10 card, his playing card, at the dealer, striking the dealer
11 in the eye. The dealer was in a lot of pain and asked to
12 leave the poker table in order to care for his eye.
13 Ms. Sheda was informed by the card dealer
14 that indeed he had been struck by the card from the
15 patron. And the patron was, in effect, interviewed by
16 Ms. Sheda and admitted that he threw the card, and
17 actually offered some money to take care of medical
18 expenses supposedly, and, in fact, placed money into the
19 dealer's pants pocket. Ms. Sheda requested that the
20 patron remove the money and be dismissed from the casino.
21 The regulatory requirements for a licensee
22 include reporting any unlawful misconduct on the premises.
23 It has also -- each licensee has an obligation to try to
24 prevent any type of violent act committed on the premises.
25 The Commission investigator concluded that a
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1 third-degree assault had occurred with the throwing of the
2 card and the subsequent injury to the dealer.
3 Ms. Sheda did not report the incident to the
4 Gaming Commission. In fact, she allowed the so-called
5 perpetrator to leave the premises.
6 And the Commission has proposed a discipline
7 of one calendar day for Ms. Sheda's lack of reporting this
8 incident. Based upon what I heard at the hearing and the
9 reading of the regulations, my recommendation would be to
10 affirm that discipline.
11 CHAIRMAN SHULL: Are there any questions for
12 Mr. Stark?
13 Is Ms. Sheda here and would she care to
14 speak on her behalf?
15 Is there a motion?
16 COMMISSIONER JONES: Mr. Chairman, I move
17 for the approval of Resolution No. 08-017.
18 COMMISSIONER BRADLEY: Second.
19 CHAIRMAN SHULL: A motion has been made and
20 seconded. Is there any further discussion?
21 Call the roll, please.
22 MS. FRANKS: Chairman Shull.
23 CHAIRMAN SHULL: Approved.
24 MS. FRANKS: Commissioner Jones.
25 COMMISSIONER JONES: Approved.
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1 MS. FRANKS: Commissioner Hais.
2 COMMISSIONER HAIS: Approved.
3 MS. FRANKS: Commissioner Plunkett.
4 COMMISSIONER PLUNKETT: Approved.
5 MS. FRANKS: Commissioner Bradley.
6 COMMISSIONER BRADLEY: Approved.
7 MS. FRANKS: By your vote you've adopted
8 Resolution No. 08-017.
9 MR. STARK: Our next case, your Item F,
10 Michael Morrissey. Mr. Morrissey is a Level II
11 occupational licensee -- or excuse me. Let me back up.
12 This is actually an application for an
13 occupational license, and the case revolves around that
14 application process, wherein the application asked many
15 detailed questions about the individual's background,
16 including any criminal history.
17 Mr. Morrissey failed to disclose after the
18 Commission's investigator conducted his background check
19 and found that Mr. Morrissey failed to disclose that he
20 was arrested by the
21 for a failure-to-appear citation; also arrested on
22 August 2nd, 2006 by the
23 operating a motor vehicle when the driver's license was
24 revoked; and also that he was arrested in
25 on July 11th, 1994.
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1 These were cases of arrest, not conviction.
2 However, the application does mandate that even an arrest
3 be properly disclosed, and Mr. Morrissey failed to
4 disclose. That would be grounds to deny his application
5 for a license.
6 Mr. Morrissey was credible in his
7 presentation of his testimony, that he just forgot about
8 the
9 me seemed pretty recent to forget about.
10 But, nevertheless, even one arrest not being
11 disclosed would be grounds for denial, and that would be
12 my recommendation as appropriate disposition of this case,
13 that Mr. Morrissey be denied a license to work in the
14 gaming industry.
15 CHAIRMAN SHULL: Are there any questions for
16 Mr. Stark?
17 Is Mr. Morrissey here and would he care to
18 speak on his behalf?
19 MR. MORRISSEY: Yes, sir.
20 Good morning. I appreciate you seeing me.
21 Oh, thank you.
22 I won't take much of your time. I've just
23 got two points, one which Mr. Stark already took care of.
24 He does state that I was clear -- I was
25 credible in my testimony in that I did forget about the
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1 episode in
2 I would just like to state one item that he
3 may have overlooked. He states that I spoke of being
4 taken into custody during my training class. He may have
5 not drawn the connection between the fact that I was
6 employed by Ameristar Casino on August 1st, 2006, which
7 led to the two items that he seems to take issue with.
8 Obviously, if there was something I intended
9 to hide from the Commission, it wouldn't be the day that
10 the Commission had me arrested.
11 COMMISSIONER HAIS: I'm sorry. Could you
12 repeat that?
13 MR. MORRISSEY: If there was something I was
14 trying to keep from the Commission in my application for a
15 Level II license, it would not be an arrest that occurred
16 at the hands of the Gaming Commission itself.
17 I disclosed all other -- I was arrested on
18 August 1st during my training class at Ameristar Casino
19 because of the background check that was done for my
20 Level III license. I was not trying to hide any
21 information from the Commission whatsoever.
22 COMMISSIONER JONES: So the only one that
23 you really forgot was the 1994 --
24 MR. MORRISSEY: Was
25 correct.
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1 COMMISSIONER JONES: Because the application
2 had already been turned in prior to the arrest on
3 August 1st?
4 MR. MORRISSEY: Now, that's not entirely
5 true, because I applied first as a Level III. I was a