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Gold Coin 2nd AMENDED

Gold Coin 2nd AMENDED

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02/04/2013

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December 30, 2009

Gold Garden Restaurant, Ìnc.
Min Hong Chen, President/Treasurer/Director/Stockholder
Jack Ken Lee, Secretary/Director/Stockholder
Chu R & T, Ìnc.
Raymond Chu, President/Director/Stockholder
Tina Chu, Vice President/Secretary/Treasurer/Director/Stockholder
dba GOLD COIN GARDEN RESTAURANT/LOUNGE (F-COM)
3016 SE 82
nd
Ave
Portland, OR 97266
CERTÌFÌED MAÌL

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 (*).

(*)I. 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 RESTAURANT/LOUNGE (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 out
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 on his forehead, and the third patron had a
profusely bleeding wound on the back of her head that was caused by an unknown
object. 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 door 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 RESTAURANT/LOUNGE (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. Upon 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 patron was followed into the restroom by
two other patrons, and he was asked if he wanted to buy marijuana. The patrons then
locked the bathroom door, placed the victim in a headlock and robbed him of $880.00.
The two patrons who robbed 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 responded to a report of a fight at the
licensed premises. Upon arrival, an officer observed a female punching another 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, who 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 ÌÌÌ. 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 RESTAURANT/LOUNGE (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 lot 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 (CRÌ) purchased a
plastic bag of methamphetamine inside the premises from another patron. An on-duty
bartender initially told the CRÌ that patrons who sold narcotics were not currently at the
premises, but 45 to 50 minutes later directed the CRÌ to a patron who was in possession
of drugs for purchase. The CRÌ told the officer 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 CRÌ. 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 CRÌ contacted two
female patrons inside the licensed premises who agreed to sell the CRÌ marijuana. The
female patrons left the licensed premises and returned approximately ten minutes later
with a plastic bag of marijuana, which the CRÌ purchased. The CRÌ 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 Unlawful 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 RESTAURANT/LOUNGE (F-COM)
December 30, 2009
Page 5

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 from 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' money.

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 purpose, causing her
to fall onto her knees, causing a cut on her right knee. The male patron was charged
with Assault ÌV.

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. Ìncidents have included physical altercations involving fighting, kicking,
punching, slapping, guns, metal objects used as weapons, and verbal assaults.
Ìncidents 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. Ìn
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, 2006, 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 RESTAURANT/LOUNGE (F-COM)
December 30, 2009
Page 6

Licensees regarding disorder at the premises. Ìn 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. Ìn 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 reasonably
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 Ì 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 ÌÌÌ
violations and recommends a 10-day suspension or $1,650.00 civil penalty for the first
GOLD COIN GARDEN RESTAURANT/LOUNGE (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, (*)and license cancellation for the fourth
violation of this type in two years. These are your second, third (*)and fourth violations.
Your first Category ÌÌÌ violations occurred on July 23, 2008 and were both charged at the
first level of Category ÌÌÌ 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 ÌÌÌ.

Ìf the license is cancelled to pursuant to Violation Number One, no separate penalty will
be imposed for Violation Numbers Two and Three (*)and Four.

(*)Ìf the Commission finds aggravating or mitigating circumstances, it may assess a
greater or lesser sanction than that listed in the administrative guidelines.

Aggravating 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.

Ìf a licensee's interest in the license should expire or be transferred before the
Commission issues a final order, 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.

(*)II. REFUSAL TO RENEW LICENSE

A. Not a Good Record of CompIiance

Pursuant to ORS 471.313(4)(g), 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 RESTAURANT/LOUNGE (F-COM)
December 30, 2009
Page 8

violations which demonstrate that the applicant does not have a good record of
compliance:

Adjudicated VioIations

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-
006-0335(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 VioIations

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 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 RESTAURANT/LOUNGE (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 reasonably
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 ProbIems

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.

RESPONSIBILITY FOR VIOLATIONS

"Licensee¨ is defined as including the principal officers of a corporation and
stockholders who own or 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,
President/Treasurer/Director/Stockholder; and Jack Ken Lee, Secretary/Director/
Stockholder of Gold Garden Restaurant, Ìnc. The licensees also include Raymond Chu,
President/Director/Stockholder and Tina Chu, Vice President/Secretary/Treasurer/
Director/Stockholder of Chu R & T, Ìnc. Additionally, Gold Garden Restaurant, Ìnc. and
Chu R & T, Ìnc. 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 you withdraw from the hearing or this matter is otherwise
resolved. Ìndividuals 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 RESTAURANT/LOUNGE (F-COM)
December 30, 2009
Page 10

Hearings (OAR Chapter 137) and Commission Administrative Rules (OAR Chapter 845
Division 03).

Ìf you withdraw your request for a hearing, a final order by default will be issued by the
Commission Administrator. Ìf 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. Ìn 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 LÌQUOR CONTROL COMMÌSSÌON



Stephen A. Pharo
Executive Director

SAP:KKR

Ìf you have any questions, call 503-872-5128 or 800-452-6522, x5128.

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