0001 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 08-04-30 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, April 30, 2008 10 Atlantic City Commission Offices 11 Joseph P. Lordi Public Meeting Room - First Floor 12 Tennessee Avenue and Boardwalk 13 Atlantic City, New Jersey 08401 14 10:30 a.m. to 11:28 a.m. 15 16 17 Certified Court Reporter: Darlene Sillitoe 18 - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 20 ATLANTIC CITY COURT REPORTING, LLC 21 CERTIFIED COURT REPORTERS AND VIDEOGRAPHERS 22 1125 ATLANTIC AVENUE, SUITE 416 23 ATLANTIC CITY, NEW JERSEY 08401 24 (609) 345-8448 www.accourtreporting.com 25 0002 1 B E F O R E : 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 MICHAEL A. FEDORKO, COMMISSIONER MICHAEL C. EPPS, COMMISSIONER 4 RALPH G. FRULIO, COMMISSIONER 5 PRESENT FOR THE CASINO CONTROL COMMISSION: 6 DARYL W. NANCE, ADMINISTRATIVE ANALYST DANIEL J. HENEGHAN, PUBLIC INFORMATION OFFICER 7 OFFICE OF THE GENERAL COUNSEL: 8 DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE SECRETARY 9 LEONARD J. DIGIACOMO, ASSISTANT GENERAL COUNSEL MARY WOZNIAK, ASSISTANT GENERAL COUNSEL 10 TERESA M. NAGENGAST, SENIOR COUNSEL E. DENNIS KELL, ASSISTANT GENERAL COUNSEL 11 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR CLAIRE FRANK, PROGRAM SUPERVISOR 12 13 DIVISION OF GAMING ENFORCEMENT: DEPUTY ATTORNEYS GENERAL 14 JACK ADAMS, DEPUTY ATTORNEY GENERAL JAMES ARMSTRONG, DEPUTY ATTORNEY GENERAL 15 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL FREDERICK J. McDONOUGH, DEPUTY ATTORNEY GENERAL 16 BEVERLY TANENHAUS, DEPUTY ATTORNEY GENERAL 17 18 19 20 21 22 23 24 25 0003 1 A P P E A R A N C E S : 2 ITEM NO. 3 LEONARD J. DiGIACOMO, ASSISTANT GENERAL COUNSEL 3 PATRICIA M. WILD, ESQ. FOR: RIH ACQUISITIONS, NJ, LLC 4 ITEM NO. 9 TERESA M. NAGENGAST, SENIOR COUNSEL 5 FREDERICK J. McDONOUGH, DEPUTY ATTORNEY GENERAL 6 FOX ROTHSCHILD PATRICK MADAMBU, ESQ. 7 FOR: ARISTOCRAT TECHNOLOGIES 8 ITEM NO. 10 TERESA M. NAGENGAST, SENIOR COUNSEL BEVERLY TANENHAUS, DEPUTY ATTORNEY GENERAL 9 FOX ROTHSCHILD PATRICK MADAMBU, ESQ. 10 FOR: ELEKTRONCEK d.d. 11 ITEM NO. 11 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL JACK ADAMS, DEPUTY ATTORNEY GENERAL 12 STERNS WEINROTH PAUL M. O'GARA, ESQ. 13 FOR: HARRAH'S ENTERTAINMENT, ET AL. 14 ITEM NO. 12 CLAIRE FRANK, PROGRAM MANAGER MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL 15 TIMOTHY J. LOWRY, JR., ESQ. FOR: HARRAH'S ENTERTAINMENT, ET AL. 16 ITEM NO. 13 CLAIRE FRANK, PROGRAM MANAGER 17 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL TIMOTHY J. LOWRY, JR., ESQ. 18 FOR: HARRAH'S ENTERTAINMENT, ET AL. 19 ITEM NO. 14 LEONARD J. DiGIACOMO, ASSISTANT GENERAL COUNSEL 20 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL JOSEPH CORBO, ESQ. 21 FOR: MARINA DISTRICT DEVELOPMENT COMPANY, INC. 22 ITEM NO. 16 E. DENNIS KELL, ASSISTANT GENERAL COUNSEL 23 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL TIMOTHY J. LOWRY, JR., ESQ. 24 FOR: BALLY'S PARK PLACE, INC. 25 0004 1 A P P E A R A N C E S : CONTINUED: 2 ITEM NO. 17 DIANNA W. FAUNTLEROY, GENERAL COUNSEL 3 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL PASHMAN STEIN 4 SEAN MACK, ESQ. FOR: CONSERVATOR/TRUSTEE JUSTICE STEIN 5 ITEM NO. 18 LEONARD J. DiGIACOMO, ASSISTANT GENERAL 6 COUNSEL MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL 7 PATRICIA M. WILD, ESQ. FOR: RESORTS INTERNATIONAL HOTEL, INC. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 0005 1 AGENDA PUBLIC MEETING NO. 08-04-30 2 APRIL 30, 2008, 10:30 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of 10 11 April 16, 2008, Public Meeting 4 2 Applications for employee and casino service industry licenses: 5 17 applications remanded for hearings 11 11 11 application granted 11 12 6 Applications for initial and renewal of casino key employee licenses and for 7 qualification: James P. Byrnes, Vice President of 12 13 8 Casino Marketing for RIH Acquisitions NJ, LLC Alyce P. Parker, Vice President of 12 13 9 Public Affairs for Bally's Park Place, Inc., Boardwalk Regency Corp., Marina 10 Associates and Atlantic City Showboat, Inc. Linda K. Peddito, Vice President of 12 13 11 Teleservices for Marina Associates Steven L. Whiteside, Vice President of 12 13 12 Hotel Operations for Boardwalk Regency Corporation 13 3 Petition of RIH Acquisitions, NJ, LLC, 13 14 (d/b/a Atlantic City Hilton) for the issuance 14 of a temporary casino key employee license to John Pasqualoni pursuant to NJSA 5:12-89(e) 15 and to permit him pursuant to NJAC 19:43-2.6 to assume the duties and exercise the powers 16 of Senior Vice President of Operations without first having been found qualified 17 (PRN 1050802) 4 Stipulations of settlement and consent 18 agreements: a) Chickeema T. Cannon-Bismiallah 18 20 19 a/k/a Chickeema T. Cannon) (07-0457-EA) b) Jessica A. Clements (a/k/a Jessica 18 20 20 A. Clemens (07-0760-EA) c) Richard E. Palko, Sr. (07-0625-EA) 18 20 21 d) Kevin L. Rider (07-0441-ER) 18 20 e) Sara M. Brown (07-0659-ER) 18 20 22 f) Nadine A. Downing (07-0237-ER) 18 20 g) George H. Wilson (07-0686-ER) 18 20 23 5 Initial decision of State versus Mark 20 23 L. Griffin (07-0506-RC) Sworn 21 24 25 0006 1 CONTINUED AGENDA PUBLIC MEETING NO. 08-04-30 2 APRIL 30, 2008, 10:30 a.m. ITEM PAGE VOTE 3 6 Petitions for early reapplication a) Xia H. Lee (08-0161-RA) 23 24 4 b) Roger A. Prescott (08-0143-RA) 24 25 c) Andrae Walker (08-0144-RA) 26 35 5 Sworn 26 7 Motion to vacate suspension order in 36 38 6 State v. Matthew R. Weyler (07-0713-RC) 8 Applications for suspension: 7 a) Irene J. Marshall (08-0271-RC) 38 41 Sworn 40 8 b) Deborah E. McCoy (08-0312-RC) adj. 9 Petition of Aristocrat Technologists 42 43 9 Australia PTY, LTD, for a declaratory ruling (PRN 3540701) 10 10 Petition of Elektroncek d.d. for a waiver 44 45 of qualification (PRN 2850705) 11 11 Petition of Harrah's Entertainment, Inc., 45 48 Harrah's Operating Company, Inc., and 12 Showboat Atlantic City Operating Company, LLC, for approval to issue securities intra- 13 company and for approval of a corporate restructuring and other relief (PRN 0860801) 14 12 Consideration of the qualification of 49 51 Christopher I. Change to serve as Vice 15 President of Innovation and IT Strategy for Harrah's Entertainment, Inc., and 16 Harrah's Operating Company, Inc. 13 Consideration of the qualification of 51 52 17 John W. Baker to serve as Vice President of Procurement and Enterprise Effectiveness 18 for Harrah's Entertainment, Inc., and Harrah's Operating Company, Inc. 19 14 Amended petition of Marina District 53 55 Development company, LLC, for a waiver of 20 the qualification requirement for Jeffrey Santoro, an officer of Boyd Gaming Corporation; 21 and if such waiver is granted, for permission to withdraw his application for qualification 22 (PRN 0670801) 15 Consideration of the report of the 55 56 23 Division of Gaming Enforcement on the suitability of various financial sources for 24 former casino licensee Adamar of New Jersey, Inc. 25 0007 1 CONTINUED AGENDA PUBLIC MEETING NO. 08-04-30 2 APRIL 30, 2008, 10:30 a.m. ITEM PAGE VOTE 3 16 Petition of Bally's Park Place, Inc., 57 59 (d/b/a Bally's Atlantic City) for an amendment 4 to its operation certificate to reconfigure its casino floor (PRN 1140801) 5 17 Consideration of the third application 59 65 of the Conservator/Trustee for the former 6 casino licensee, Adamar of New Jersey, Inc., for approval of fees for the Conservator/ 7 Trustee, his counsel and law firm consultant 18 Petition of Resorts International Hotel, 15 17 8 Inc., for an extension of time to Reconstitute its Audit Committee (PRN 1150801) 9 19 Petition of Harrah's Entertainment, 65 67 Inc., Harrah's Operating Company, Inc., 10 Harrah's Atlantic City Operating Company, LLC, Showboat Atlantic City Operating 11 Company, LLC, Bally's Park Place, Inc., and Boardwalk Regency Corporation requesting 12 permission for Michael Cohen to perform the duties and exercise the powers of Vice 13 President, Associate General Counsel and Corporate Secretary for Harrah's Entertainment, 14 Inc., and Harrah's operating company, Inc. pending plenary qualification. (PRN 1150808) 15 16 17 18 19 20 21 22 23 24 25 0008 1 E X H I B I T S : 2 ITEM NO. 2 DESCRIPTION EVD 3 4 EL-1 Remand for hearings 17 license X applications 5 EL-2 Grant 11 licenses X 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 The Commission retains exhibits. 25 0009 1 (The Public Meeting 08-04-30 was 2 commenced at 10:30 a.m.) 3 MR. NANCE: I'd like to read an opening 4 statement: 5 This is to advise the general public 6 that in compliance with Chapter 231 of the 7 Public Laws of 1975 entitled the "Open Public 8 Meetings Act," the New Jersey Casino Control 9 Commission on October 16th, 2006, filed with 10 the Secretary of State at the State House in 11 Trenton an annual meeting schedule. On October 12 16th, copies were mailed to subscribers. 13 Members of the press will be permitted 14 to take photographs, and we would ask that this 15 be done in a manner which is not disruptive or 16 distracting to the Commission. 17 The use of cellular telephones in the 18 public meeting room while the Commission is in 19 session is prohibited. 20 Any members of the public who wish to 21 address the Commission will be given the 22 opportunity to do so before the Commission 23 adjourns for the day. 24 Please stand for the Pledge of 25 Allegiance. 0010 1 (The flag salute was recited.) 2 CHAIR KASSEKERT: Good morning. 3 MR. NANCE: Good morning. 4 The matters discussed in closed session 5 were: Employee and enterprise license matters. 6 The Commission approved the April 16th, 7 2008, closed session minutes. 8 Litigate update regarding Gloria Ford 9 versus State of New Jersey, the Casino Control 10 Commission, State of New Jersey, et al.; 11 Tyrone J. Floyd versus the Casino 12 Control Commission and theS ands Hotel Casino. 13 And the matter of petition of SD for 14 removal from the voluntary self-exclusion list. 15 Petition of Tropicana, et al., for 16 renewal of Tropicana license. 17 Application of Dana White for renewal of 18 casino employee license. 19 And petition of Highgate Steel for 20 release of monies. 21 Item No. 1, ratification of the minutes 22 of April 16th, 2008, public meeting. 23 COMMISSIONER FEDORKO: Motion to 24 approve. 25 COMMISSIONER FRULIO: Second. 0011 1 CHAIR KASSEKERT: The motion has been 2 made and seconded. All in favor? 3 (Ayes.) 4 CHAIR KASSEKERT: Opposed? 5 (No response.) 6 CHAIR KASSEKERT: Motion carries. 7 MR. NANCE: Item No. 2, application for 8 employee and casino service industry license. 9 This agenda item will be entered as Exhibit 10 List 1 and 2. 11 Exhibit List 1 consists of 17 12 applications for initial and/or renewal of 13 casino key or casino employee licenses. 14 The Division has objected to licensure. 15 COMMISSIONER FRULIO: Motion to remand 16 for hearings. 17 COMMISSIONER FEDORKO: Seconded. 18 CHAIR KASSEKERT: The motion has been 19 made and seconded. All in favor? 20 (Ayes.) 21 CHAIR KASSEKERT: Opposed? 22 (No response.) 23 CHAIR KASSEKERT: Motion carries. 24 MR. NANCE: Exhibit List 2 consists of 25 11 applications for initial and/or renewal of 0012 1 casino key and casino employee licenses. 2 Staff and the Division have recommended 3 that these licenses be granted. 4 COMMISSIONER FRULIO: Motion to grant 5 applications. 6 COMMISSIONER FEDORKO: Second. 7 CHAIR KASSEKERT: The motion has been 8 made and seconded. All in favor? 9 (Ayes.) 10 CHAIR KASSEKERT: Opposed? 11 (No response.) 12 CHAIR KASSEKERT: Motion carries. 13 MR. NANCE: For consideration are the 14 following applications for initial and/or 15 renewal of casino key employee licenses and for 16 qualification for: James D. Byrnes, Vice 17 President of Casino Marketing for RIH 18 Acquisitions, New Jersey, LLC; Alyce P. Parker, 19 Vice President of Public Affairs for Bally's 20 Park Place Inc., Boardwalk Regency Corp., 21 Marina Associates and Atlantic City Showboat, 22 Inc.; Linda K. Peddito, Vice President of 23 Teleservices for Marina Associates; and Steven 24 L. Whiteside, Vice President of Hotel 25 Operations for Boardwalk Regency Corporation. 0013 1 Staff and the Division has recommended 2 that these applications be granted. 3 COMMISSIONER FRULIO: Motion to grant 4 initial and key licenses and for qualification. 5 COMMISSIONER FEDORKO: Second. 6 CHAIR KASSEKERT: Motion has been made 7 and seconded. This is a roll call. 8 MR. NANCE: Commissioner Frulio? 9 COMMISSIONER FRULIO: Yes. 10 MR. NANCE: Commissioner Fedorko? 11 COMMISSIONER FEDORKO: Yes. 12 MR. NANCE: Commissioner Epps? 13 COMMISSIONER EPPS: Yes. 14 MR. NANCE: Chair Kassekert? 15 CHAIR KASSEKERT: Yes. 16 MR. NANCE: The record will reflect that 17 the motion is unanimous. 18 Item No. 3, Petition No. 105082 of RIH 19 Acquisitions, New Jersey, LLC, is requesting an 20 issuance of a temporary casino key employee 21 license for John Pasqualoni pursuant to NJSA 22 5:12-89(e) and to permit him pursuant to NJAC 23 19:43-2.6 to assume the duties and excise the 24 powers of Senior Vice President of Operations 25 without first having been found qualified. 0014 1 CHAIR KASSEKERT: Is there a motion? 2 COMMISSIONER FRULIO: Motion to grant 3 temporary key license and qualification. 4 COMMISSIONER FEDORKO: Second. 5 CHAIR KASSEKERT: Motion is made and 6 seconded. This is a roll call vote. 7 MR. NANCE: Commissioner Frulio? 8 COMMISSIONER FRULIO: Yes. 9 MR. NANCE: Commissioner Fedorko? 10 COMMISSIONER FEDORKO: Yes. 11 MR. NANCE: Commissioner Epps? 12 COMMISSIONER EPPS: Yes. Aye. 13 MR. NANCE: Chair Kassekert? 14 CHAIR KASSEKERT: Yes. 15 MR. NANCE: The record will reflect that 16 the motion is unanimous. 17 MS. WILD: Thank you. I was going to 18 introduce Mr. Pasqualoni. 19 (Laughter.) 20 MS. WILD: But we always like our 21 clients to only answer questions that have been 22 asked so. 23 Thank you very much. John's -- we're 24 very happy to have John coming back to his 25 history in Atlantic City. He's going to serve 0015 1 as Senior Vice President of operations for 2 Atlantic City Hilton. John has been a 3 long-time employee in the casino industry and 4 spent some time here. I worked with John at 5 the beginning of my career at Trump Plaza, and 6 we're very happy to welcome him back. 7 Any questions you may have, we'll be 8 glad to answer. 9 CHAIR KASSEKERT: Thank you. 10 And let me just -- I guess, we do have 11 another agenda item for you or -- 12 MS. WILD: Yes. 13 CHAIR KASSEKERT: All right. Well, I 14 will wish you best wishes after we do that. 15 MS. WILD: I think we're going to do 16 that next. 17 CHAIR KASSEKERT: 18. Yeah. 18 MR. NANCE: For your consideration, Item 19 No. 18, petition of Resorts International 20 Hotel, Inc., for an extension of time to 21 reconstitute its Audit Committee. 22 Mr. DiGiacomo? 23 MR. DiGIACOMO: Chair, Commissioners. 24 Good morning. 25 Miss Patricia Wild for the Petitioner. 0016 1 Miss Mary Jo Flaherty for the Division. 2 I've shared with counsel for the parties 3 a copy of the draft resolution, and I believe 4 they're prepared to consent to its form and 5 entry. 6 CHAIR KASSEKERT: Thank you. 7 Miss Wild? 8 MS. WILD: Yes, we are. We're prepared 9 to consent. We've reviewed it, and we 10 appreciate the additional time to reconstitute 11 our Audit Committee. 12 I just want to make a representation we 13 are pursuing it very aggressively, and we 14 expect to have the resolutions signed within -- 15 within the time period that you're allowing us, 16 the additional time period. 17 So thank you very much for your 18 consideration. 19 CHAIR KASSEKERT: Thank you. 20 Any questions? 21 Miss Flaherty? 22 MS. FLAHERTY: Yes, Chair, 23 Commissioners. 24 We submitted a report dated April the 25 25th, and we reviewed the resolution. We have 0017 1 no problems with the time period set forth in 2 the resolution, and we ask that you approve it 3 and adopt it. 4 Thank you. 5 CHAIR KASSEKERT: Thank you. 6 Any questions from the Commission? 7 COMMISSIONER FEDORKO: Motion to adopt 8 the draft resolution and grant an extension of 9 time through May 21, 2008. 10 COMMISSIONER FRULIO: Second. 11 CHAIR KASSEKERT: The motion has been 12 made and seconded. All in favor? 13 (Ayes.) 14 CHAIR KASSEKERT: Opposed? 15 (No response.) 16 CHAIR KASSEKERT: Motion carries. 17 MS. WILD: Thank you. 18 CHAIR KASSEKERT: On behalf of the 19 Commission, I think this may be your last 20 meeting with us. 21 MS. WILD: It may be. 22 (Laughter.) 23 CHAIR KASSEKERT: Let me extend our very 24 best wishes for your future successes as you 25 start this new career path in your life. 0018 1 MS. WILD: Thank you. 2 I look forward to being a member of the 3 most distinguished judiciary here in Atlantic 4 County and also to serving the public as all of 5 you have. 6 And I thank for your best wishes. 7 CHAIR KASSEKERT: Best wishes. 8 COMMISSIONER FEDORKO: We hope we never 9 have to appear before you. 10 MS. WILD: I've told I'm being assigned 11 a family division. So I think -- I really 12 don't want to see anybody there. Thank you. 13 (Laughter.) 14 MR. PASQUALONI: Thanks, everyone. 15 Appreciate it. 16 COMMISSIONER FRULIO: Good luck, John. 17 COMMISSIONER FEDORKO: Thank you. 18 CHAIR KASSEKERT: Good luck, John. 19 MR. NANCE: Item No. 4, stipulation of 20 settlement and consent agreements. When I call 21 your name, come forward and stand behind the 22 middle table, spreading across the room so you 23 may be seen: Chickeema Bismiallah, Jessica 24 Clements, Richard Palko, Sr., Kevin L. Rider, 25 Sara M. Brown, Nadine A. Downing, and George H. 0019 1 Wilson. 2 CHAIR KASSEKERT: Has everyone whose 3 name been called come forward at this time? 4 MS. CANNON-BISMIALLAH: Yes. 5 CHAIR KASSEKERT: I'm going to ask that 6 you each state your name for the record, 7 starting with you, ma'am. 8 MS. CANNON-BISMIALLAH: Chickeema 9 Cannon. 10 MS. BROWN: Sara M. Brown. 11 MR. WILSON: George H. Wilson. 12 CHAIR KASSEKERT: Thank you. 13 In a moment we are going to vote on the 14 stipulations which you have agreed to with the 15 Division of Gaming Enforcement. 16 I'm going to ask at this point if any of 17 you wish to be heard on your master. You don't 18 have to say anything if you don't want to. 19 Does anyone wish to be heard? 20 FROM THE FLOOR: No. 21 CHAIR KASSEKERT: Okay. Thank you. 22 Mr. Armstrong? 23 MR. ARMSTRONG: Chair, we just ask that 24 all the stipulations be approved. 25 CHAIR KASSEKERT: Thank you. 0020 1 Any questions? 2 COMMISSIONER FEDORKO: Motion to approve 3 stipulations. 4 COMMISSIONER FRULIO: Second. 5 CHAIR KASSEKERT: The motion has been 6 made and seconded. All in favor? 7 (Ayes.) 8 CHAIR KASSEKERT: Opposed? 9 (No response.) 10 CHAIR KASSEKERT: Motion carries. 11 Thank you for coming. Good luck. 12 MS. BROWN: Thank you. 13 MR. NANCE: Item No. 5, initial decision 14 in State versus Mark L. Griffin. 15 Miss Nagengast? 16 MS. NAGENGAST: Good morning, Chair, 17 Commissioners. 18 Mr. Griffin? 19 For your consideration is the initial 20 decision of Commissioner Sommeling in which he 21 found Respondent, Mr. Griffin, disqualified 22 pursuant to Section 86c(1) and also found that 23 there was no rehabilitation. However, the 24 decision recommends that the Commission grant a 25 waiver of that disqualification pursuant to 0021 1 Section 91e and find good cause pursuant to 2 Section 106c to permit Respondent to retain his 3 casino service employee registration and work 4 in a noncredential position. 5 CHAIR KASSEKERT: Thank you. 6 Mr. Armstrong, I guess this is since -- 7 MR. ARMSTRONG: Chair, we took no 8 exception to the Commissioner Sommeling's 9 initial decision in this matter. 10 It's our opinion the record could 11 support his ultimate finding of a waiver being 12 appropriate in this matter, and it's your 13 discretion as to whether or not to adopt the 14 official decision. 15 CHAIR KASSEKERT: Thank you. 16 Mr. Griffin, is there anything else 17 you'd like to say? 18 MR. GRIFFIN: Good morning. I pretty 19 much -- 20 CHAIR KASSEKERT: Okay. We need to have 21 you sworn if you do. 22 MR. GRIFFIN: Oh, yeah. Okay. 23 24 MARK L. GRIFFIN was duly sworn to 25 testify in this matter. 0022 1 MR. NANCE: State your name for the 2 record. 3 MR. GRIFFIN: Mark L. Griffin. 4 MR. NANCE: Thank you. 5 You may be seated. 6 CHAIR KASSEKERT: Mr. Griffin, what 7 would you like to say this evening? 8 MR. GRIFFIN: The first -- first time I 9 came here, I think I pretty much showed 10 everything I could to show my rehabilitation. 11 I gave it all. I told it all. I tried to give 12 the Board more than what you all saw on paper. 13 I tried to give you all me, not just what you 14 all read about me. 15 CHAIR KASSEKERT: Okay. 16 THE WITNESS: That's it. 17 CHAIR KASSEKERT: Thank you. Thank you. 18 Any questions? 19 (No response.) 20 COMMISSIONER EPPS: Madame Chair, I move 21 that we adopt the initial decision finding Mark 22 L. Griffin disqualified but waive the 23 disqualification pursuant to NJSA 5:12-91(e) 24 and find good cause pursuant to NJSA 25 5:12-106(c) to allow Mr. Griffin to continue to 0023 1 hold a casino service employee registration and 2 work in a position that does not require a 3 license. 4 COMMISSIONER FEDORKO: Second. 5 CHAIR KASSEKERT: The motion has been 6 made and seconded. All in favor? 7 (Ayes.) 8 CHAIR KASSEKERT: Opposed? 9 (No response.) 10 CHAIR KASSEKERT: Motion carries. 11 Thank you for coming. Good luck. 12 MR. GRIFFIN: Thank you. 13 MR. NANCE: Item No. 6, petition for 14 early reapplication for Xia H. Lee, Roger 15 Prescott, and Andrae Walker. 16 Miss Frigen? 17 MS. FRIGEN: Madame Chair, 18 Commissioners, with respect to the first case, 19 Xia Lee, Mr. Mosca spoke with me this morning. 20 He had a medical emergency. And given the 21 terms of the prior settlement and the 22 Division's nonobjection to this petition, I 23 told him that the Commission would probably go 24 forward, and he was comfortable with that. 25 Okay? 0024 1 CHAIR KASSEKERT: Thank you. 2 Mr. Armstrong? 3 MR. ARMSTRONG: Chair, you have our 4 letter of March 7th. We took no objection to 5 this. In fact, this petition is within the 6 terms of the stipulation of settlement and the 7 Commission order. 8 CHAIR KASSEKERT: Thank you. 9 Any questions? 10 COMMISSIONER FEDORKO: Motion to grant 11 Mr. Lee permission to reapply early for a 12 casino service employee registration and/or to 13 work as a noncredential hotel employee. 14 COMMISSIONER FRULIO: Second. 15 CHAIR KASSEKERT: The motion has been 16 made and seconded. All in favor? 17 (Ayes.) 18 CHAIR KASSEKERT: Opposed? 19 (No response.) 20 CHAIR KASSEKERT: Motion carries. 21 MS. FRIGEN: Thank you. 22 Okay. The next case we would have is 23 Roger Prescott. 24 Mr. Prescott? Okay. You can have a 25 seat. 0025 1 MR. PRESCOTT: Seat? 2 MS. FRIGEN: Okay. Mr. Prescott is 3 before you seeking permission to obtain 4 noncredential hotel employment early. Similar 5 to the other case, the Division has not 6 interposed an objection to this petition. 7 CHAIR KASSEKERT: Thank you. 8 Mr. Prescott, is there anything you'd 9 like to say today? 10 MR. PRESCOTT: No, not really. 11 CHAIR KASSEKERT: Okay. Mr. Armstrong? 12 MR. ARMSTRONG: Chair, you have our, 13 again, letter from March 7th in which we took 14 no objection to the petition and, again, it's 15 within the terms of the stipulation of 16 settlement and the Commission order. 17 CHAIR KASSEKERT: Thank you. 18 Any questions? 19 COMMISSIONER FEDORKO: Motion to grant 20 Mr. Prescott permission to obtain employment 21 early as a noncredential hotel employee. 22 MR. FRULIO: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 0026 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: Motion carries. 4 THE WITNESS: Thank you. 5 CHAIR KASSEKERT: Thank you for coming. 6 Good luck. 7 MR. PRESCOTT: Thank you. 8 MS. FRIGEN: And, finally, we have 9 Andrae Walker. 10 Mr. Walker, you can have a seat. 11 With respect to Mr. Walker's petition, 12 he's seeking permission to reapply early for a 13 license, registration or noncredential hotel 14 employment. However, in this case, the 15 Division has objected to the petition. 16 CHAIR KASSEKERT: Thank you. 17 Mr. Walker, is there anything you'd like 18 to say to us today? 19 MR. WAKER: Yes. 20 CHAIR KASSEKERT: Okay. Would you stand 21 and be sworn in? 22 23 ANDRAE WALKER was duly sworn to testify 24 in this matter. 25 0027 1 MR. NANCE: Please state your name for 2 the record. 3 MR. WALKER: Andrae Michael walker. 4 MR. NANCE: Thank you. You may be 5 seated. 6 MR. WALKER: Excuse me. I'm a little 7 bit nervous. 8 CHAIR KASSEKERT: That's okay. 9 MR. WALKER: Basically, from my 10 understanding, I lost my license due to not 11 disclosing information on my application when I 12 worked for Caesar's. 13 Since I have lost my license, there have 14 been a lot of things that I've been doing to -- 15 to up the quality of my life. And the way 16 things were going, you know. I've been married 17 now for almost a year and raising three 18 beautiful children. You know, I have 19 responsibilities that I didn't have at the time 20 that I was working for the casinos. A lot of 21 things have changed in the four years since. 22 At the time I did lose my license, I was 23 going to school for craps. I did pass that 24 with no -- with no problem. But then I got the 25 letter to find out that I was disqualified to 0028 1 work in the casino. 2 I'm just asking for a second chance to 3 working on building up my life, you know, to a 4 point to make sure I have to take care of my 5 family and have a stable future. 6 And I'm an Atlantic City resident. And 7 I'm -- I mean, the casinos are right here. 8 There's news of them building more casinos, and 9 I just want to be part of it. I want to be 10 part of the community. I want to be part of 11 what I see every day. 12 CHAIR KASSEKERT: Are you working now? 13 MR. WALKER: Yeah. Right now I work for 14 UPS. I just went to school got the CDL Class 15 A. Truck driver's license. There's tons of 16 things I've been doing. Things I've done as a 17 teenager and through school. Certified 18 electrician. I mean, there's a lot of good 19 things. Just the small things that seem like 20 they've been focused on, you know, in my life. 21 And some of the small mistakes that I've made. 22 I mean, it's a learning process. I'm only 25 23 years old, and it's a learning process for me. 24 CHAIR KASSEKERT: Let me ask if any of 25 the other Commissioners have any questions 0029 1 before we hear from the Division? 2 Commissioner Fedorko? 3 COMMISSIONER FEDORKO: Yeah. I just 4 want to say something. 5 I don't think a small mistake is fleeing 6 from the police and having a weapon. 7 MR. WALKER: No. Definitely. 8 Definitely -- 9 COMMISSIONER FEDORKO: And hollow point 10 bullets, too. 11 MR. WALKER: Yes. Can I explain that 12 situation? 13 CHAIR KASSEKERT: Yeah. 14 COMMISSIONER FEDORKO: Sure. 15 MR. WALKER: Basically with that 16 situation, what had happened is at the time I 17 stepped into that building where I was at, 18 maybe I was halfway up the flight of steps, and 19 that's when the police, they kicked in the 20 door, and they were doing their raid. And from 21 what I learned, they were doing a raid looking 22 for someone that had warrants that lived in the 23 downstairs apartment. But when they kicked in 24 that front door, it startled me. I mean, I ran 25 like a chicken. I grabbed my younger cousin 0030 1 that was with me in the hallway, and we both -- 2 we ran. So I look at it now, I mean, I 3 shouldn't have done it. I should have stayed 4 put. But I know I didn't do anything wrong. 5 You know, I was innocent. Sitting there, 6 minding my own business, going to see somebody 7 else. But it scared me. I didn't want to get 8 caught. 9 I knew what went on in that building. I 10 knew what other people did. I didn't do it 11 myself, but I was aware of it, and I didn't 12 want to be caught in it. I didn't want to be 13 sitting there, explain what happened, but it 14 happened. I made a wrong decision. I should 15 have never ran. 16 If I could apologize to the officers for 17 making their job tougher by running, I'd do it 18 in a heartbeat. You know, I -- they put me -- 19 They locked me up for three days and 20 stuff. I mean, I've never been in jail. I've 21 never been in any major trouble in my life. 22 Like I said, it seems like I have done a lot of 23 positive things, but some of the negative 24 things that I have done -- that is a major 25 thing. And with the firearm, the man that they 0031 1 were looking for downstairs, he was one of the 2 people -- he's one of the men that did have the 3 firearm. And the officer felt as though since 4 everybody ran, the five guys that they caught 5 because everybody ran, they charge everybody 6 with the gun. And that's what happened in that 7 situation. 8 But, I mean, I don't carry any guns. I 9 don't have any guns or anything like that. I'm 10 not a bad person. I'm not out here -- I'm not 11 hanging out on the streets. I stay home. I go 12 to work. Like I said, I just got my CDL Class 13 A. I go to school to get things done. But I 14 did some college, but like I had a son that was 15 born. I chose to stay home and work full time. 16 He's about to be two -- he's about to be three 17 years old, excuse me. But I go to work. I go 18 to work. I come home. I take care of my 19 family. I make sure that dinner is made for my 20 children. I go to the school. Talk to the 21 teachers, there's a lots of stuff. Lot of 22 information that I can get. I can have the 23 teachers write letters and stuff like that. I 24 even, I'm staying on top of things now. 25 COMMISSIONER FEDORKO: Okay. 0032 1 CHAIR KASSEKERT: Commissioner Epps? 2 Did you have a question? 3 COMMISSIONER EPPS: No. 4 CHAIR KASSEKERT: No? Okay. 5 Mr. Armstrong? 6 MR. ARMSTRONG: Chair, Commissioners, 7 you have our letter of March 7th with what 8 Commissioner Fedorko points out is our primary 9 problem with this petition, that subsequent to 10 his representation -- or denial, rather -- Mr. 11 Walker was arrested again and convicted of 12 resisting arrest. I just want to point out for 13 the record, in a little over a year by law 14 he'll be able to apply for a license. It's our 15 position that you should deny the petition 16 outright. 17 CHAIR KASSEKERT: Thank you. 18 Any questions for Mr. Armstrong? 19 COMMISSIONER FEDORKO: The last arrest 20 was 2004? 21 MR. ARMSTRONG: Yes. 22 CHAIR KASSEKERT: Is there anything 23 you'd like to say about that last arrest? 24 MR. WALKER: Yeah. That was the one I 25 was just explaining. 0033 1 CHAIR KASSEKERT: That was the one. 2 Okay. 3 MR. WALKER: The first one -- my first 4 one was presenting falsified documents to an 5 officer. I didn't have any insurance on my 6 car, on my vehicle at the time. And I gave 7 them a false insurance card. And my second one 8 is the one we were talking about now with the 9 resisting arrest and the gun charge. 10 MS. FRIGEN: And just for clarification, 11 he was ultimately convicted of the resisting 12 arrest. The weapon charges were ultimately 13 dismissed against him. 14 MR. WALKER: May I say one more thing? 15 CHAIR KASSEKERT: Sure. 16 MR. WALKER: Like, when I explained what 17 happened, when I grabbed my little cousin -- I 18 have a younger cousin. He's two years younger 19 than me, and but we grown up since childhood. 20 I grabbed him and, you know. Me being the big 21 cousin, he ran with me, and we both got caught. 22 Now, he's moved on. He's in the Army. 23 You know, he's about to become a second 24 lieutenant. I mean, he's doing great things. 25 He's up in New York guarding something, some 0034 1 money train or something like that. He's doing 2 big things. And he's pushed forward. He 3 doesn't explain to me how with the situation 4 that we were in and how we got caught, he has 5 explained that how he has pushed forward, but I 6 would just like to do the same thing. I would 7 like the same opportunity. 8 I have applied for the Atlantic City 9 Fire Department. I finished 100 on the list. 10 I finished 74 out of about 600 people. I'm 11 number 74 on the list. And I'm definitely 12 going to have to explain myself to them when I 13 go in front of their board and let them know 14 the situation, also. 15 But, like I said, I've been doing things 16 to better my life and make things different. 17 Because now it's not just about me anymore. 18 COMMISSIONER FEDORKO: Mr. Armstrong, in 19 our papers it says "automatic weapon." What 20 are we talking about? Do you know? 21 MR. ARMSTRONG: A handgun, I would 22 imagine. You can ask Mr. Walker. If he 23 recalls what the weapon was. 24 MR. WALKER: Yeah. It was a handgun. I 25 didn't even know the people that I got arrested 0035 1 with other than my cousin. 2 COMMISSIONER FEDORKO: Okay. 3 COMMISSIONER EPPS: Madame Chair, I move 4 to grant Mr. Walker permission to reapply early 5 for a casino employee license, a casino service 6 employee registration and/or to obtain 7 employment early as a noncredential hotel 8 employee. 9 COMMISSIONER FRULIO: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Ayes.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: Any abstentions? 16 (No response.) 17 CHAIR KASSEKERT: Motion carries. 18 I think you made a very credible 19 presentation to us today. So I want to wish 20 you every good luck and stay on the good path. 21 MR. WALKER: Thank you. Appreciate it. 22 Thank you. 23 MR. NANCE: Item No. 7, application for 24 suspension for Irene J. Marshall and Deborah E. 25 McCoy. 0036 1 Miss Frigen? 2 MS. FRIGEN: Madame Chair, 3 Commissioners. Mr. Silivanio was not able to 4 be here today due to a conflict with another 5 proceeding. However, again, given the 6 Division's non -- 7 CHAIR KASSEKERT: Are we on seven? 8 COMMISSIONER EPPS: Seven. 9 MS. FRIGEN: Well, this is -- I'm sorry. 10 The attorney. I'm sorry. Michael Silivanio is 11 the attorney for Matthew Weyelr. 12 CHAIR KASSEKERT: Yes. 13 MS. FRIGEN: Okay. I'm sorry. I should 14 have clarified that a little bit better, but 15 the attorney -- 16 MR. NANCE: Let me recall the item. 17 Item No. 7, motion to vacate suspension 18 order in State versus Matthew Weyler. 19 Ms. Firgen? 20 MS. FRIGEN: I thought you called it? 21 I'm sorry. Did I preempt him? 22 MR. NANCE: I called the wrong matter. 23 MS. FRIGEN: Okay. I'm sorry. 24 CHAIR KASSEKERT: Poor Mr. Nance isn't 25 feeling very well here. 0037 1 MS. FRIGEN: I'll just rolling along. 2 CHAIR KASSEKERT: Now we're all -- 3 MS. FRIGEN: We're on track. With 4 respect to Matthew Weyler. 5 CHAIR KASSEKERT: Right. 6 MS. FRIGEN: His attorney, Michael 7 Silivanio, was not able make the proceedings 8 today because he has a conflict with another 9 case, another proceeding. But given the 10 Division's nonobjection to the motion, he was 11 advised we would go forward, and the Division 12 was agreeable to that. 13 CHAIR KASSEKERT: Thank you. 14 Mr. Armstrong? 15 MR. ARMSTRONG: Chair, Commissioner, you 16 have our letter. As a matter of policy, when 17 criminal charge is dismissed, we normally don't 18 object to the vacation of an order of 19 suspension, and we don't in this matter. 20 CHAIR KASSEKERT: Thank you. 21 Any questions? 22 COMMISSIONER FEDORKO: Motion to grant 23 Mr. Weyler's motion to vacate the Commission's 24 suspension order dated November 21st, 2007, 25 thereby reinstating his casino service employee 0038 1 registration, pending any further hearing 2 proceedings. 3 COMMISSIONER FRULIO: Second. 4 CHAIR KASSEKERT: The motion has been 5 made and seconded. All in favor? 6 (Ayes.) 7 CHAIR KASSEKERT: Opposed? 8 (No response.) 9 CHAIR KASSEKERT: Motion carries. 10 MR. NANCE: Item No. 8, application for 11 suspension in Irene J. Marshall and Deborah E. 12 McCoy. 13 Miss Frigen? 14 MS. FRIGEN: Commissioners, with respect 15 to agenda Item 8b, Deborah McCoy, we received 16 communications from her attorney yesterday, 17 Vincent Velamore, advising that he had just 18 learned about today's proceeding. He requested 19 an adjournment until May, 21st and he 20 understands that as a condition to the 21 Division's consent with that adjournment his 22 client would agree not to work in the interim. 23 So for that case the staff would request 24 that the matter be continued to the meeting of 25 May 21st. 0039 1 With respect to Irene Marshall, she is 2 present. Miss Marshall, I'd ask you to come 3 forward, please, and have a seat. Okay. 4 While she's having a seat at the table 5 there -- thank you. 6 The Division -- this is a motion brought 7 by the Division, so I would ask him to go 8 forward first. 9 CHAIR KASSEKERT: Mr. Armstrong? You 10 may proceed. 11 MR. ARMSTRONG: Chair, Commissioners. 12 You have our complaint that was filed on March 13 28th. Miss Marshall was arrested on January 14 25th by the New Jersey State Police Casino 15 Enforcement Bureau. She was charged with theft 16 alleged, and she was filmed while working at 17 Resorts, EVA employee. She removed a wallet 18 that a patron inadvertently left in a slot 19 machine, subsequently returned the wallet 90 20 seconds later. And when the patron returned to 21 retrieve the wallet, he found $800 was missing. 22 This charge is currently pending grand 23 jury action here in Atlantic County. It's a 24 violation of Section 86c(1) and (2) of the 25 Casino Control Act. 0040 1 We ask that you suspend her license -- 2 or I'm sorry, registration while this matter is 3 pending before you. 4 CHAIR KASSEKERT: Thank you. 5 Miss Marshall, is there anything you'd 6 like to say today? You need to stand up and be 7 sworn in. 8 9 IRENE J. MARSHALL, was duly sworn to 10 testify in this matter. 11 12 MR. NANCE: Please state your name for 13 the record, ma'am. 14 CHAIR KASSEKERT: Can you state your 15 name for the record, please? 16 MS. MARSHALL: Okay. My name is Irene 17 Marshall. Irene J. Marshall. 18 CHAIR KASSEKERT: Thank you. You may 19 proceed. 20 MS. MARSHALL: Well, I have to say that 21 I did not take that man's money. They -- first 22 of all, I did see the wallet. I was cleaning 23 the machine. I did pick up the wallet, and I 24 did -- started to go into the Commission -- to 25 take it to the security board. But I decided 0041 1 not to because I do remember a couple of times 2 that some of my coworkers got -- got involved, 3 and they didn't take it. Somebody claimed that 4 they took the money, and they didn't take the 5 money, so I didn't want to get held up. So I 6 just put that money -- the wallet back into the 7 tray. 8 CHAIR KASSEKERT: Okay. Let me ask if 9 there are any questions? 10 Is there a motion? 11 COMMISSIONER FEDORKO: Motion to grant 12 the Division's application for suspension. 13 COMMISSIONER FRULIO: Second. 14 CHAIR KASSEKERT: The motion has been 15 made and seconded. All in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 COMMISSIONER EPPS: No. 19 CHAIR KASSEKERT: Motion passes three to 20 one. 21 Because this is going before a grand 22 jury, and because this happened to the casino 23 floor, I think we're bound to suspend you at 24 this point, and I think we'll see what happens 25 with respect to the grand jury. Okay? 0042 1 MS. MARSHALL: All right. Okay. 2 I just want to say I did not take that. 3 MR. NANCE: Item No. 9, petition of 4 Aristocrat Technologies Australia PTY, Ltd., 5 for declaratory ruling. 6 Miss Nagengast? 7 MS. NAGENGAST: Sorry. Good morning, 8 Chair, Commissioners. 9 This is the petition of Aristocrat 10 Technologies. They are looking for a ruling 11 from the Commission that the insertion of a 12 holding company between the licensee and the 13 parent company will not result in the license 14 of the gaming-related CSI being voided. 15 I note the presence of counsel. Mr. 16 Madambu is here on behalf of the Petitioner. 17 Mr. McDonough on behalf of the Division 18 CHAIR KASSEKERT: I'm sorry. Your name 19 is? 20 MR. MADAMBU: Patrick Madambu from the 21 law offices of Fox Rothschild. Hello, Mr. 22 Epps, Mr. Frulio? Old friends. 23 CHAIR KASSEKERT: Old friends. Very 24 good. 25 Anything to say on this matter? 0043 1 MR. MADAMBU: I believe our position is 2 set out in the petition unless the Commission 3 has any questions. 4 CHAIR KASSEKERT: Okay. Let me ask if 5 there are any questions. 6 Mr. McDonough? 7 MR. McDONOUGH: Good morning, Chair, 8 good morning, Commissioners. 9 I filed a report on this petition dated 10 February 19th. We support this petition. We 11 think there is good cause shown for the relief 12 sought here, and I believe my argument is 13 self-explanatory, but if you have any 14 questions, I'll we'll happy to try to respond 15 to them. 16 CHAIR KASSEKERT: Thank you. 17 Any questions? 18 COMMISSIONER FRULIO: Move to grant the 19 petition subject to the conditions in the 20 order. 21 COMMISSIONER FEDORKO: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 0044 1 (No response.) 2 CHAIR KASSEKERT: Motion carries. 3 Thank you. 4 MR. McDONOUGH: Thank you very much. 5 MR. NANCE: Item No. 10, petition of 6 Elektroncek d.d. for a waiver of qualification. 7 Miss Nagengast? 8 MS. NAGENGAST: Chair and Commissioners, 9 this is the petition of Elektroncek seeking a 10 waiver of qualification for one of its 11 directors. Mr. Madambu is here on behalf of 12 the Petitioner and Beverly Tanenhaus on behalf 13 of the Division. 14 CHAIR KASSEKERT: Thank you. 15 Anything to say on this matter? 16 MR. MADAMBU: Nothing, Madame Chair, 17 unless the Commission has any questions. 18 CHAIR KASSEKERT: Any questions? 19 Miss Tanenhaus, good morning. 20 MS. TANENHAUS: Good morning. 21 The Division has filed our letter report 22 November 16th, and we support the petition. 23 And we only feel with the strength and with the 24 additional documents that have been submitted. 25 CHAIR KASSEKERT: Thank you. 0045 1 Any questions? 2 COMMISSIONER FRULIO: Move to grant the 3 petition and waive the qualification 4 requirement of RCS Services as an outside 5 director in connection with Elektroncek d.d.'s 6 current gaming-related CSI license application 7 pursuant to NJAC 19:51-1.14(b)(2) and subject 8 to the conditions in the orders. 9 COMMISSIONER FEDORKO: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Ayes.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: Motion carries. 16 Thank you. 17 MS. MADAMBU: Thank you, Madame Chair. 18 MS. NAGENGAST: Thank you. 19 MR. NANCE: Item No. 11, petition of 20 Harrah's Entertainment, Inc., Harrah's 21 Operating Company, Inc., and Showboat Atlantic 22 City Operating Company, LLC, for approval to 23 issue securities intra-company for approval of 24 a corporate restructuring and other relief. 25 Miss Wozniak? 0046 1 MS. WOZNIAK: Good morning, Chair and 2 Commissioners. 3 Mr. Adams is here for the Division. Mr. 4 O'Gara for the petitioners. 5 And I have distributed a draft 6 resolution revised as of yesterday. 7 CHAIR KASSEKERT: Thank you. 8 Mr. O'Gara? 9 MR. O'GARA: Hopefully, this is the end 10 of this restructuring. We may have actually 11 reached the end. 12 This is the last piece that I think was 13 described when we did the next-to-the-last 14 piece, which is that the Showboat will exit the 15 CMBS facility and become part of the collateral 16 package and return to HOC. 17 The specific approvals we seek are for 18 the issuance of the stock which will be done in 19 the exchange to get the property back and over 20 to HOC. 21 Additionally, for the -- for joining 22 that collateral package for the merger and the 23 new holding company, which will be the new 24 Showboat Company, and it will be merged with 25 and into. 0047 1 And, finally, for approval of an 2 intra-company note, which is, in fact, the same 3 as an intra-company loan which existed prior to 4 the exit from HOC over to the OPCO. 5 CHAIR KASSEKERT: Thank you. 6 Mr. Adams? 7 MR. ADAMS: Madame Chair, Commissioners. 8 You have our letter in response to the 9 petition. We also reviewed the draft 10 resolution. We don't object to the any of the 11 relief sought. 12 CHAIR KASSEKERT: Thank you. 13 Any questions? 14 COMMISSIONER EPPS: Madame Chair, I move 15 that we adopt the draft resolution and grant 16 the requested relief and: A, approve the 17 proposed restructuring as to Showboat Atlantic 18 City Operating Company and a holding 19 intermediary companies; 20 And, B, approve the revisions to the 21 previously approved financing pursuant to NJAC 22 19:43-4.3; 23 C, approve the issuance of common stock 24 by Harrah's Operating Company pursuant to NJAC 25 19:43-2.8; 0048 1 D, approve the issuance of an 2 intra-company note from Showboat OPCO to HOC 3 and assignment of Harrah's Entertainment, Ltd., 4 and -- oh, yeah. 5 And, E, approve the amended operating 6 lease between Showboat PROPCO and Showboat 7 OPCO, all subject to the findings and 8 conditions as stated in the resolution. 9 CHAIR KASSEKERT: Is there a second? 10 COMMISSIONER FEDORKO: Second. 11 CHAIR KASSEKERT: Motion has been made 12 an seconded. All in favor? 13 MR. NANCE: Roll call vote, Chair. 14 CHAIR KASSEKERT: Oh, okay. It's not on 15 here. Roll call vote. 16 MR. NANCE: Commissioner Frulio? 17 COMMISSIONER FRULIO: Yes. 18 MR. NANCE: Commissioner Fedorko? 19 COMMISSIONER FEDORKO: Yes. 20 MR. NANCE: Commissioner Epps? 21 COMMISSIONER EPPS: Yes. 22 MR. NANCE: Chair Kassekert? 23 CHAIR KASSEKERT: Yes. 24 MR. NANCE: The record will reflect that 25 the motion is unanimous. 0049 1 MR. O'GARA: Good. 2 CHAIR KASSEKERT: Double, double 3 blessings. 4 MR. O'GARA: Thank you. 5 MR. NANCE: Item No. 12, consideration 6 of the qualification of Christopher I. Chang to 7 serve as a Vice President of Innovation and IT 8 Strategy for Harrah's Entertainment, Inc., and 9 Harrah's Operating Company, Inc. -- and 10 Harrah's operating company. Excuse me, 11 Harrah's Operating Entertainment, Inc., and 12 Harrah's Operating Company. 13 Miss Frank? 14 MS. FRANK: Good morning, Chair and 15 Commissioners. 16 Christopher Chang received temporary 17 qualification from the Commission in September 18 of last year. A draft resolution on his 19 plenary qualification has been circulated to 20 the parties. 21 Mr. Lowry is here for Harrah's and Miss 22 Flaherty for the Division. 23 CHAIR KASSEKERT: Thank you. 24 Good morning, Mr. Lowry. 25 MR. LOWRY: Good morning, Chair, 0050 1 Commissioners. 2 Nothing further to add. Thank you. 3 Unless, of course -- 4 CHAIR KASSEKERT: Commissioner Fedorko 5 has any questions? 6 (Laughter.) 7 CHAIR KASSEKERT: I don't that think he 8 does. 9 Miss Flaherty? 10 MS. FLAHERTY: Yes. Commissioners, we 11 have reported to you by letter dated April the 12 9th. We have no objection to Mr. Chang's 13 plenary qualification. 14 Thank you. 15 CHAIR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER FRULIO: Move to adopt the 18 draft resolution and find Christopher I. Chang 19 qualified to serve as Vice President of 20 Innovation and IT Strategy for Harrah's 21 Entertainment, Inc., and Harrah's Operating 22 Company, Inc. 23 COMMISSIONER FEDORKO: Second. 24 CHAIR KASSEKERT: Motion has been made 25 and seconded. This is a role call vote. 0051 1 MR. NANCE: Commissioner Frulio? 2 COMMISSIONER FRULIO: Yes. 3 MR. NANCE: Commissioner Fedorko? 4 COMMISSIONER FEDORKO: Yes. 5 MR. NANCE: Commissioner Epps? 6 COMMISSIONER EPPS: Yes. 7 MR. NANCE: Chair Kassekert? 8 CHAIR KASSEKERT: Yes. 9 MR. NANCE: The record will reflect that 10 the motion is unanimous. 11 Item No. 13, consideration of the 12 qualification of John W. Baker to serve as Vice 13 President of Procurement and Enterprise 14 Effectiveness for Harrah's Entertainment, Inc., 15 and Harrah's Operating Company, Inc. 16 Miss Wozniak? 17 Excuse me, Miss Frank? 18 MS. FRANK: John Baker received 19 temporary qualification from the Commission in 20 August of last year. A plenary draft 21 resolution has been circulated to the parties. 22 Again, we have Mr. Lowry and Ms. 23 Flaherty for the Division. 24 CHAIR KASSEKERT: Mr. Lowry? Anything 25 to add to the petition? 0052 1 MR. LOWRY: Nothing further. Thank you. 2 CHAIR KASSEKERT: Thank you. 3 Miss Flaherty? 4 MS. FLAHERTY: By report of April the 5 10th we have no objection to Mr. Baker's 6 plenary qualification. 7 CHAIR KASSEKERT: Thank you. 8 Any questions? 9 COMMISSIONER FEDORKO: Motion to adopt 10 the draft resolution and find John W. Baker 11 qualified to serve as Vice President of 12 Procurement and Enterprise Effectiveness for 13 Harrah's Entertainment, Inc., and Harrah's 14 Operating Company, Inc. 15 COMMISSIONER FRULIO: Second. 16 CHAIR KASSEKERT: Motion is made and 17 seconded. This is a roll call vote. 18 MR. NANCE: Commissioner Frulio? 19 COMMISSIONER FRULIO: Yes. 20 MR. NANCE: Commissioner Fedorko? 21 COMMISSIONER FEDORKO: Yes. 22 MR. NANCE: Commissioner Epps? 23 COMMISSIONER EPPS: Yes. 24 MR. NANCE: Chair Kassekert? 25 CHAIR KASSEKERT: Yes. 0053 1 MR. NANCE: The record will reflect that 2 the motion is unanimous. 3 Item No. 14, amended petition of Marina 4 District Development Company, LLC, for a waiver 5 of the qualification requirement for Jeffrey 6 Santoro, an officer of Boyd Gaming Corporation, 7 and if such a waiver is granted, permission to 8 withdraw his application for qualification. 9 Mr. DiGiacomo? 10 MR. DiGIACOMO: Chair, Commissioners, 11 Mr. Joseph Corbo for the Petitioner and Mary Jo 12 Flaherty for the Division. 13 I've shared with counsel for the parties 14 a copy of the draft resolution. I believe they 15 are each prepared to consent to its form and 16 entry. 17 CHAIR KASSEKERT: Thank you. 18 Mr. Corbo? 19 MR. CORBO: That is accurate. We do 20 consent to that and have nothing further to 21 add. 22 Thank you. 23 CHAIR KASSEKERT: Thank you. 24 Miss Flaherty? 25 MS. FLAHERTY: Yes. Chair, 0054 1 Commissioner. 2 The Director concurs in the waiver of 3 disqualifier and, despite the fact that he no 4 longer holds the position of treasurer but is 5 in some other positions. With regard to the 6 application, we have no objection with regard 7 to the requests in that respect. So long as 8 all the payments are made with regard to any 9 outstanding fees. 10 Thank you. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER FEDORKO: Motion -- 14 COMMISSIONER FRULIO: Go ahead. 15 COMMISSIONER FEDORKO: Motion to adopt 16 the draft resolution and waive the 17 qualification requirement as to Jeffrey Santoro 18 in his capacity as Senior Vice President and 19 Controller for Boyd Gaming Corporation and 20 grant the request to withdraw the application 21 of Mr. Santoro for qualification as Senior Vice 22 President and Treasurer, all subject to the 23 conditions in the resolution. 24 COMMISSIONER FRULIO: Second. 25 CHAIR KASSEKERT: Motion is made and 0055 1 seconded. This is a roll call vote. 2 MR. NANCE: Commissioner Frulio? 3 COMMISSIONER FRULIO: Yes. 4 MR. NANCE: Commissioner Fedorko? 5 COMMISSIONER FEDORKO: Yes. 6 MR. NANCE: Commissioner Epps? 7 COMMISSIONER EPPS: Yes. 8 MR. NANCE: Chair Kassekert? 9 CHAIR KASSEKERT: Yes. 10 MR. NANCE: The record will reflect that 11 the motion is unanimous. 12 MR. CORBO: Thank you. 13 CHAIR KASSEKERT: Thank you. 14 MR. NANCE: Item No. 15, consideration 15 of the report of the Division of Gaming 16 Enforcement on the suitability of various 17 financial sources for former casino licensee, 18 Adamar of New Jersey, Inc. 19 Mr. DiGiacomo? 20 MR. DiGIACOMO: Chair and Commissioners, 21 we have Miss Mary Jo Flaherty for the Division 22 on this item. 23 CHAIR KASSEKERT: Thank you. 24 MS. FLAHERTY: Yes, Chair and 25 Commissioners, we submitted reports prepared by 0056 1 Dot Turi dated February the 7th and April the 2 22nd regarding these financial sources 3 reporting with regard to their qualification to 4 you. And it's our position that they can be 5 found so qualified except for the entities that 6 are banks, which are exempt. 7 Thank you. 8 CHAIR KASSEKERT: Thank you. 9 Mr. O'Gara is not appearing? 10 Mr. Mack? You're not appearing? 11 MR. DiGIACOMO: Apparently not, Chair. 12 CHAIR KASSEKERT: All right. Very good. 13 Any questions for Miss Flaherty? 14 COMMISSIONER EPPS: Chair, I move that 15 we adopt the draft resolution and find suitable 16 as financial sources the lenders in the OpCo 17 term loan identified therein, except those that 18 are exempted and subject to the conditions in 19 the resolution. 20 COMMISSIONER FEDORKO: Second. 21 CHAIR KASSEKERT: Motion is made and 22 seconded. This is a roll call vote. 23 MR. NANCE: Commissioner Frulio? 24 COMMISSIONER FRULIO: Yes. 25 MR. NANCE: Commissioner Fedorko? 0057 1 COMMISSIONER FEDORKO: Yes. 2 MR. NANCE: Commissioner Epps? 3 COMMISSIONER EPPS: Yes. 4 MR. NANCE: Chair Kassekert? 5 CHAIR KASSEKERT: Yes. 6 MR. NANCE: The record will reflect that 7 the motion is unanimous. 8 MR. DiGIACOMO: Thank you, 9 Commissioners. 10 MR. NANCE: Item No. 16, petition of 11 Bally's Park Place, Inc., for an amendment to 12 its operation of certificate to reconfigure its 13 casino floor. 14 Mr. Kell? 15 MR. KELL: Good morning, Madame Chair, 16 Commissioners. 17 Tim Lowry is here representing 18 Petitioner in this matter. Tim Ficchi is 19 representing the Division. Carol Defoor, the 20 principal inspector, is in the room if you have 21 any questions of her. 22 And a draft resolution has been 23 circulated to the parties. 24 CHAIR KASSEKERT: Thank you. 25 Mr. Lowry? 0058 1 MR. LOWRY: And, Chair, we also have 2 with us Dominick Renzi who the manager of slot 3 operations and Danny Wright, who is director of 4 security. And I think with respect to the 5 staffing issue and security concerns, we are 6 pleased to inform the Commission that no 7 staffing reductions will take place with 8 respect to the security officers. They be 9 absorbed into the Bally's proper portion of the 10 casino hotel. 11 So we also intend to file another 12 petition to address any further concerns 13 regarding staffing. 14 CHAIR KASSEKERT: Thank you much. 15 Any questions for Mr. Lowry? 16 Mr. Ficchi? 17 MR. FICCHI: Yes. Good morning, Chair, 18 good morning, Commissioners. 19 The Division has reviewed the petition, 20 and we have reviewed the draft resolution, and 21 we have no objection to the draft resolution by 22 this commission. 23 Thank you. 24 CHAIR KASSEKERT: Thank you. 25 Any questions for Mr. Ficchi? 0059 1 COMMISSIONER FRULIO: Move to adopt the 2 draft resolution and approve the petition of 3 Bally's Park Place, Inc., for an amendment to 4 its certificate of operation to permit the 5 reconfiguration to its gaming floor subject to 6 the conditions the resolution. 7 COMMISSIONER FEDORKO: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: Motion carries. 14 MR. FICCHI: Thank you. 15 MR. NANCE: Item No. 17, consideration 16 of the third application of the Conservator/ 17 Trustee for the former casino licensee, Adamar 18 of New Jersey, Inc., for approval of fees for 19 the Conservator/Trustee, his counsel, and law 20 firm. 21 Miss Fauntleroy? 22 MS. FAUNTLEROY: Good morning. 23 You have the application on the part of 24 the Conservator, Justice Stein, for approval of 25 his fees for the reporting period February 21 0060 1 through March 20 as well as those of his 2 personal counsel for the same period. He has 3 also submitted the bills for consultant Pam 4 Popielarski for the period January through 5 March 2008 and for Micky Brown for the period 6 March 2008. There was also a submission for 7 consideration of the law firm consultant, 8 Debevoise & Plimpton, for the period of 9 February and March. 10 Sean Mack is here on behalf of the 11 Conservator and Mary Jo Flaherty is here for 12 the Division. 13 CHAIR KASSEKERT: Thank you. 14 MR. MACK: Good morning, Chair, 15 Commissioners. I'd just like to clarify. I 16 didn't hear the invoice for Gary Simpson for 17 the same period, for the March period. We also 18 submitted that one. 19 CHAIR KASSEKERT: We don't have it in 20 our -- 21 MS. FAUNTLEROY: Don't have it. 22 CHAIR KASSEKERT: Don't have it in the 23 packet; right? 24 MS. FAUNTLEROY: Do you have it, Mary 25 Jo? 0061 1 MS. FLAHERTY: One second. 2 (Conferring.) 3 MS. FLAHERTY: I don't know if you want 4 to -- 5 MR. MACK: Have a recess. 6 CHAIR KASSEKERT: Yeah. Why don't we 7 recess if we have it, and that way we can -- 8 MR. MACK: I appreciate that. Thank 9 you. 10 CHAIR KASSEKERT: Okay. We'll take a 11 short recess here. 12 (A recess was taken from 11:14 to 11:23 13 a.m.) 14 MS. FAUNTLEROY: Okay. Thank you, Mary 15 Jo. 16 For your consideration -- 17 CHAIR KASSEKERT: We'll go back on the 18 record. 19 MS. FAUNTLEROY: For your consideration 20 is the request for the approval of the fees of 21 Justice Stein as Conservator, his personal 22 counsel, Pashman Stein, consultants Micky 23 Brown, Pam Popielarski, and Gary Simpson. The 24 bill -- the invoice of Mr. Simpson was 25 circulated during the recess, and each 0062 1 Commissioner reviewed it independently. 2 In case there are any questions, Sean 3 Mack is here on behalf of the Conservator as 4 well as Pashman Stein. And Mary Jo is here on 5 behalf of the Division. 6 CHAIR KASSEKERT: Thank you. 7 Mr. Mack? 8 MR. MACK: Chair, Commissioners. If 9 there are any questions or concerns, I'd be 10 happy to address them. Otherwise, you have our 11 monthly report and the invoices. 12 CHAIR KASSEKERT: Thank you. 13 Any questions? 14 COMMISSIONER FRULIO: One question of 15 Mr. Mack. Quick review of Mr. Simpson's bill. 16 Is he going to be viewed as an everyday 17 employee? 18 MR. MACK: Mr. Simpson has been 19 instrumental to us in terms of helping with the 20 financials and wrapping up the year-end 21 financials, which are as of today all but done. 22 My expectation is going forward, I'm not sure 23 that after today even Mr. Simpson will perform 24 any more services unless something 25 extraordinary came up. 0063 1 COMMISSIONER FRULIO: Okay. Thank you. 2 CHAIR KASSEKERT: Any other questions? 3 Ms. Flaherty? 4 MS. FLAHERTY: Yes, Chair, 5 Commissioners. We've had an opportunity to 6 look at the billings, and if I could just take 7 these, maybe, in groups. 8 With regard to Mr. Simpson, Miss 9 Popielarski, and Mr. Brown, we reviewed the 10 billings and computed the numbers. They appear 11 to be accurate. We have no questions, and we 12 have no question or problem with regard to 13 those. 14 We've also looked at the billings with 15 regard to the Stein firm and the Trustee. And, 16 again, with regard to the hours billed and the 17 rates, they look accurate. And we would just 18 note that a number of the hours related to the 19 reconveyance petition that had to be filed with 20 the Commission and, apparently, a large amount 21 of time had been spent on those matters. 22 Lastly, with regard to the Debevoise & 23 Plimpton bills, we're still in the process of 24 reviewing those. They are substantial, and 25 we're looking at that, and we're looking at 0064 1 that with regard to the finances of the casino 2 licensee. And so I would request that that 3 matter be put off until May 21st. 4 CHAIR KASSEKERT: Okay. 5 MS. FLAHERTY: For further 6 consideration. 7 Thank you. 8 CHAIR KASSEKERT: Thank you. 9 Any questions for Miss Flaherty? 10 COMMISSIONER FEDORKO: Madame Chair, 11 make a motion to approve the fees for 12 Conservator and his personal counsel, Pashman 13 Stein, for the period of February through March 14 20th, 2008, and for consultants Pam 15 Popielarski, Michael Brown, and Gary Simpson, 16 subject to the condition as to Mr. Simpson and 17 Miss Popielarski and Mr. Brown, that said bills 18 are not paid until the sale of the Tropicana; 19 Second, consideration of the bill of 20 Debevoise & Plimpton will be adjourned until 21 the next Commission meeting of May of 21st, 22 2008. 23 COMMISSIONER FRULIO: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 0065 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 MS. FLAHERTY: Thank you. 6 MR. MACK: Thank you. 7 MR. NANCE: Item No. 19, petition of 8 Harrah's Entertainment, Inc., Harrah's 9 Operating Company, Inc., Harrah's Atlantic City 10 Operating Company, LLC, Showboat Atlantic City 11 Operating Company, LLC, Bally's Park Place, 12 Inc., and Boardwalk Regency Corporation, 13 requesting permission of Michael Cohen to 14 perform the duties and exercise the powers of 15 Vice President, Associate General Counsel, and 16 Corporate Secretary for Harrah's Entertainment, 17 Inc., and Harrah's Operating Company, Inc., 18 pending plenary qualification. 19 Miss Frank? 20 MS. FRANK: A draft resolution on Mr. 21 Cohen's temporary qualification has been 22 circulated to the parties. 23 Mr. Lowry is here for Harrah's and Miss 24 Flaherty the Division. 25 CHAIR KASSEKERT: Mr. Lowry? 0066 1 MR. LOWRY: Chair, Commissioners, we 2 reviewed the draft, and we are, of course, 3 okay. 4 We just want to take the time on behalf 5 of Harrah's and on behalf of Michael Cohen to 6 really thank the Commission, the Commission 7 staff, and the Division for their extra efforts 8 here. They really went the extra mile, and we 9 do appreciate it. 10 CHAIR KASSEKERT: Okay. Thank you. 11 Ms. Flaherty? 12 MS. FLAHERTY: Mr. Cohen's 13 responsibilities have increased over time. He 14 was previously waived, but it was determined to 15 be appropriate to now have him qualify, and 16 that resulted in the petition. 17 We responded by letter dated April 28th, 18 and we have no objection to his temporary 19 qualification. 20 Thank you. 21 CHAIR KASSEKERT: Thank you. 22 Any questions? 23 COMMISSIONER FRULIO: Move to adopt the 24 draft resolution and authorize Michael Cohen on 25 a temporary basis prior to his plenary 0067 1 qualification to assume the duties and exercise 2 the powers of Vice President, Associate General 3 Counsel, and Corporate Secretary for Harrah's 4 Entertainment, Inc., and Harrah's Operating 5 Company, Inc., subject to the conditions 6 contained in NJAC 19:43-2.7 of which, among 7 other things, require that he file a PHD-MJ and 8 New Jersey supplemental by May 15, 2008. 9 COMMISSIONER FEDORKO: Second. 10 CHAIR KASSEKERT: Motion is made and 11 seconded. This is a roll call vote. 12 MR. NANCE: Commissioner Frulio? 13 COMMISSIONER FRULIO: Yes. 14 MR. NANCE: Commissioner Fedorko? 15 COMMISSIONER FEDORKO: Yes. 16 MR. NANCE: Commissioner Epps? 17 COMMISSIONER EPPS: Yes. 18 MR. NANCE: Chair Kassekert? 19 CHAIR KASSEKERT: Yes. 20 MR. NANCE: The record will reflect that 21 the motion is unanimous. 22 In accordance with Resolution No. 23 07-12-12-26, the -- 24 MR. MACK: Thank you. 25 MR. LOWRY: Thank you. 0068 1 MR. NANCE: -- the next closed session 2 of Commission shall be held on Wednesday, May 3 21st, 2008, at 9:15 p.m. -- I'm sorry, 9:15 4 a.m. in the Commission offices. 5 It is now time for the public 6 participation portion of the meeting. 7 CHAIR KASSEKERT: Is there anyone from 8 the public who wishes to be heard? 9 (No response.) 10 CHAIR KASSEKERT: Seeing no one, I'll 11 declare this portion of the meeting closed and 12 entertain a motion to adjourn. 13 COMMISSIONER FEDORKO: Motion to 14 adjourn. 15 COMMISSIONER FRULIO: Second. 16 CHAIR KASSEKERT: The motion has been 17 made and seconded. All in favor? 18 (Ayes.) 19 CHAIR KASSEKERT: Opposed? 20 (No response.) 21 CHAIR KASSEKERT: Motion carries. 22 Thank you. 23 (Public Meeting 08-04-01 was adjourned 24 at 11:28 a.m.) 25 0069 1 2 C E R T I F I C A T E 3 4 5 I, DARLENE SILLITOE, a Certified Court 6 Reporter and Notary Public of the State of New 7 Jersey, certify that the foregoing is a true 8 and accurate transcript of the proceedings. 9 10 11 I further certify that I am neither 12 attorney, of counsel for, nor related to or 13 employed by any of the parties to the action; 14 further that I am not a relative or employee of 15 any attorney or counsel employed in this case; 16 nor am I financially interested in the action. 17 18 19 DARLENE SILLITOE CCR 20 License No XI01023 21 22 Dated: May 4, 2008 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25