1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 08-10-29 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, October 29, 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 10:39 a.m. to 12:34 p.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 2 1 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 WILLIAM T. SOMMELING, VICE CHAIR MICHAEL A. FEDORKO, COMMISSIONER 4 MICHAEL C. EPPS, 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 TERESA M. NAGENGAST, SENIOR COUNSEL 10 TRACY E. RICHARDSON, SENIOR COUNSEL ROBERT A. MONCRIEF, COUNSEL 11 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 12 DIVISION OF GAMING ENFORCEMENT: DEPUTY ATTORNEYS GENERAL 13 JOHN E. ADAMS, DEPUTY ATTORNEY GENERAL 14 BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL 15 JAMES FOGARTY, DEPUTY ATTORNEY GENERAL 16 17 18 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S : 2 ITEM NO. 3 DIANNA W. FAUNTLEROY, GENERAL COUNSEL MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL 3 KAREN M. WOSNACK, ESQ. FOR: HARRAH'S ATLANTIC CITY 4 ITEM NO. 6 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 5 ANTHONY ZARRILLO, ASSISTANT ATTORNEY GENERAL 6 STEVEN KAPLAN, ESQ. FOR: KIEU THANH DUONG 7 ITEM NO. 7 TERESA M. NAGENGAST, SENIOR COUNSEL 8 DEPUTY ATTORNEY GENERAL WOLF BLOCK 9 GILBERT BROOKS, ESQ. FOR: SCIENTIFIC GAMES RACING, LLC 10 ITEM NO. 8 TRACY E. RICHARDSON, SENIOR COUNSEL 11 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL MICHAEL MAGAZZU, ESQ. 12 FOR: HARRAH'S ENTERTAINMENT, ET AL. 13 ITEM NO. 10/11 LEONARD J. DiGIACOMO, ASSISTANT GENERAL 14 COUNSEL MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL 15 JAMES FOGARTY, DEPUTY ATTORNEY GENERAL FOX ROTHSCHILD, LLP 16 NICHOLAS CASIELLO, JR., ESQ. FOR: THE OFFICAL COMMITTEE OF UNSECURED 17 CREDITORS STERNS & WEINROTH, PC 18 PAUL M. O'GARA, ESQ. FOR: TROPICANA ENTERTAINMENT, INC. 19 SILLS CUMMIS & GROSS, PC 20 KENNETH F. OETTLE, ESQ. FOR: HARBINGER CAPITAL PARTNERS 21 SPECIAL SITUATIONS FUND, LP WOLF BLOCK, LLP 22 GILBERT BROOKS, ESQ. FOR: SECURED LENDERS 23 PASHMAN STEIN 24 SEAN MACK, ESQ. FOR: TRUSTEE/CONSERVATOR 25 4 1 AGENDA PUBLIC MEETING NO. 08-10-29 2 October 29, 2008, 10:39 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of the 8 9 October 15, 2008 4 2 Applications for employee and casino service industry licenses: 5 31 applications for initial and/or renewal 9 9 of casino key and casino employees licenses 6 4 applications for initial and/or renewal of casino key and casino employee licenses 7 Application of Robert D. Haines for 9 10 renewal of a casino key employee license 8 and for qualification as Director of Internal Audit for Marina District 9 Development Company, LLC 3 Petition of RIH Acquisitions NJ, LLC, 11 12 10 (d/b/a Atlantic City Hilton) for the issuance of a temporary casino key employee 11 license to James Kinee pursuant to NJSA 5:12-80(e) and to permit him pursuant to 12 NJAC 19:43-2.6 to assume the duties and exercise the powers of Vice President of Operations 13 without first having been found qualified (PRN 2840804) 14 4 Stipulations of settlement and consent agreements: a) Richard P. Coleman (08-0344-ER) 13 14 15 b) Eric G. Johnson (08-0430-ER) 13 14 c) Carlos M. Santiago (08-0268-ER) 13 14 16 d) Charles E. Riddick, Jr. (08-0276-RC) 13 14 e) Joshua Nixon (08-0168-EA) 13 14 17 f) Allen May (08-0807-EA) 13 14 g) Joel Robles-Santiago (a/k/a Joel 13 14 18 Damian Robles (08-0500-EA) h) Eric F. Baardsen (08-0480-ER) 13 14 19 i) Paul F. Parks, Jr. (08-0716-RC) 13 14 5 Petition of Maria D. Brooks for early 15 23 20 registration (08-0798-RA) sworn 15 6 Petition of Kieu Thanh Duong for removal 24 29/46 21 from the exclusion list (08-0798-MI) sworn 37 7 Petition of Scientific Games Racing, LLC, 46 50 22 for a declaratory ruling (PRN 1690801) 8 Petition of Harrah's Entertainment, Inc., 51 53 23 Harrah's Operating Company, Inc., Harrah's Atlantic City Operating Company, LLC, 24 Showboat Atlantic City Operating Company, LLC, Bally's Park Place, Inc., and Boardwalk 25 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 08-10-29 2 October 29, 2008, 10:39 a.m. ITEM PAGE VOTE 3 Regency Corp. to permit Cheryl Kondra to assume the duties and exercise the powers 4 Of Vice President and Chief Audit Executive pending qualification (PRN 2820808) 5 9 Proposed publication and temporary 54 55 adoption of amendments to NJAC 19:45-1.37 6 (slot machine display screen); and NJAC 19:46-1.28A (standards for the approval of 7 a slot machine game) 10 Notices of motion seeking leave to 55 70 8 intervene or participate in PRN 2800802 (See Item No. 11 below): 9 a) Tropicana Entertainment, Inc. b) The Official Committee of Unsecured Creditors 10 c) The steering Committee d) Harbinger Capital Partners Special 11 Situation Fund, LP 11 Petition of the Trustee and Conservator 55 70 12 for the former casino licensee, Adamar of New Jersey, Inc., (d/b/a Tropicana Casino 13 and Resorts) to extend the sale period (PRN 2800802) 14 15 16 17 18 19 20 21 22 23 24 25 6 1 E X H I B I T S : 2 NO. DESCRIPTION EVD 3 ITEM NO. 2 4 P-1 Remand for hearings 31 license X 5 P-2 Grant 4 licenses X 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (Exhibits retained by Commission.) 7 1 (Public Meeting 08-10-29 was commenced 2 at 10:39 a.m.) 3 MR. NANCE: Good morning. I'd like to 4 read an opening 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 June 23, 2008, filed with the 10 Secretary of State at the State House in 11 Trenton, New Jersey, a notice of this hearing. 12 On June 23rd, 2008, copies were mailed to 13 subscribers. 14 Members of the press will be permitted 15 to take photographs, and we ask that this be 16 done in a manner which is not disruptive or 17 distracting to the Commission. 18 The use of cellular telephones in the 19 public meeting room while the Commission is in 20 session is prohibited. 21 Would everyone please stand for the 22 Pledge of Allegiance. 23 (The flag salute was recited.) 24 CHAIR KASSEKERT: Good morning. 25 MR. NANCE: Good morning. 8 ITEM NO. 1 1 The matters discussed in closed session 2 were: Employee and enterprise licensing 3 matters. 4 The Commissioners approved the October 5 15th, 2008, closed session minutes. 6 Litigate update regarding: Warren 7 Lackland and Lewis M. Springer, Jr., versus 8 State of New Jersey and the Casino Control 9 Commission; 10 Petition of Tropicana, et al., for 11 renewal of casino license; 12 Application of Dana White for renewal of 13 a casino employee license; 14 Petition of Highgate Steel for release 15 of monies; 16 And application of Bayshore Rebar, Inc., 17 for a casino service employee license and 18 qualification of Phyllis Merlino and Joseph 19 Merlino. 20 Item No. 1, ratification of the minutes 21 of October 15th, 2008, public meeting. 22 VICE CHAIR SOMMELING: Move to approve. 23 COMMISSIONER FEDORKO: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 9 ITEM NO. 2 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 MR. NANCE: Item No. 2, application for 6 employee and casino service industry licenses. 7 This agenda item will be entered as Exhibit 8 List 1 and 2. 9 Exhibit List 1 consists of 31 10 applications for initial and/or renewal of 11 casino key and casino employee licenses. 12 The Division has objected to licensure. 13 COMMISSIONER FEDORKO: Motion to remand 14 for hearings. 15 VICE CHAIR SOMMELING: Seconded. 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 MR. NANCE: Exhibit List 2 consists of 23 four applications for initial and/or renewal of 24 casino key and casino employee licenses. 25 Staff and the Division have recommended 10 ITEM NO. 2 1 that these licenses be granted. 2 COMMISSIONER FEDORKO: Motion to grant 3 applications. 4 VICE CHAIR SOMMELING: Seconded. 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 MR. NANCE: For consideration is the 12 application of Robert D. Haines for renewal of 13 a casino key employee license and for 14 qualification as Director of Internal Audit for 15 Marina District Development Company, LLC. 16 Staff and the Division have recommended 17 that this application be granted. 18 COMMISSIONER FEDORKO: Motion to grant 19 renewal of key license and for qualification. 20 COMMISSIONER EPPS: Second. 21 CHAIR KASSEKERT: Motion is made and 22 seconded. This is a roll call vote. 23 MR. NANCE: Commissioner Fedorko? 24 COMMISSIONER FEDORKO: Yes. 25 MR. NANCE: Commissioner Epps? 11 ITEM NO. 3 1 COMMISSIONER EPPS: Yes. 2 MR. NANCE: Vice Chair Sommeling? 3 VICE CHAIR SOMMELING: Yes. 4 MR. NANCE: Chair Kassekert? 5 CHAIR KASSEKERT: Yes. 6 MR. NANCE: The record will reflect that 7 the motion is unanimous. 8 Item No. 3, Petition No. 2840804 of RIH 9 Acquisition New Jersey, LLC, is requesting the 10 issuance of a temporary casino key employee 11 license for James Kinee pursuant to NJSA 12 5:12-89(e) and to permit him pursuant to NJAC 13 19:43-2.6 to assume the duties and exercise the 14 powers of Vice President of Operations without 15 first having been found qualification. 16 MS. WOSNACK: Good morning. 17 CHAIR KASSEKERT: Good morning, Ms 18 Wosnack. 19 MS. WOSNACK: Madame Chair and 20 Commissioners, I have Mr. Kinee with me in the 21 event that you have any questions. Otherwise, 22 I just ask that you grant the relief requested. 23 Thank you. 24 CHAIR KASSEKERT: Thank you. 25 Miss Flaherty? 12 ITEM NO. 3 1 MS. FLAHERTY: Yes. The Division has no 2 objection to the granting of the key 3 qualification temporarily. 4 CHAIR KASSEKERT: Thank you. 5 Any questions? 6 COMMISSIONER SOMMELING: No questions, 7 Madame Chair. 8 COMMISSIONER EPPS: Madame Chair, I move 9 that we grant the temporary key license and 10 qualification. 11 COMMISSIONER FEDORKO: Second. 12 CHAIR KASSEKERT: Motion is made and 13 seconded. This is a roll call vote. 14 MR. NANCE: Commissioner Fedorko? 15 COMMISSIONER FEDORKO: Yes. 16 MR. NANCE: Commissioner Epps? 17 COMMISSIONER EPPS: Yes. 18 MR. NANCE: Vice Chair Sommeling? 19 VICE CHAIR SOMMELING: Yes. 20 MR. NANCE: Chair Kassekert? 21 CHAIR KASSEKERT: Yes. 22 MR. NANCE: The record will reflect that 23 the motion is unanimous. 24 CHAIR KASSEKERT: Thank you. 25 MS. WOSNACK: Thank you very much. 13 ITEM NO. 4 1 MR. NANCE: Item No. 4, stipulation of 2 settlement and consent agreements. 3 When I call your name, please come 4 forward, stand behind this middle table, 5 spreading across the room so that you may be 6 seen: Richard Coleman, Eric Johnson, Carlos 7 Santiago, Charles Riddick, Jr., Joshua Nixon, 8 Allen May, Joel Santiago, Eric Baardsen, and 9 Paul Parks, Jr. 10 CHAIR KASSEKERT: Thank you. 11 Has everyone whose name been called come 12 forward at this time? 13 (No response.) 14 CHAIR KASSEKERT: I'm going to ask that 15 you each state your name for the record, 16 starting with you, sir. 17 MR. ROBLES: Joel Robles. 18 MR. COLEMAN: Richard Coleman. 19 MR. SANTIAGO: Carlos Santiago. 20 MR. JOHNSON: Eric G. Johnson. 21 CHAIR KASSEKERT: Okay. In a moment 22 we're going to vote on the stipulations which 23 you have agreed to with the Division of Gaming 24 Enforcement. I'm going to ask at this point if 25 any of you wish to be heard on your matter. 14 ITEM NO. 4 1 You don't have to say anything if you don't 2 want to. 3 Does anyone wish to be heard? 4 (No response.) 5 CHAIR KASSEKERT: Okay. Thank you. 6 Mr. Biscieglia? 7 MR. BISCIEGLIA: Good morning, Chair, 8 Commissioners. 9 The Division has nothing further and ask 10 that the stipulations be adopted as submitted. 11 Thank you. 12 CHAIR KASSEKERT: Thank you. 13 Any questions? 14 VICE CHAIR SOMMELING: Madame Chair, 15 move to approve the stipulations. 16 COMMISSIONER EPPS: Second. 17 CHAIR KASSEKERT: The motion has been 18 made and seconded. All in favor? 19 (Ayes.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: Motion carries. 23 Thank you for coming. Good luck. 24 FROM THE FLOOR: Thank you. 25 FROM THE FLOOR: Thank you. 15 ITEM NO. 5 1 MR. NANCE: Item No. 5, petition of 2 Maria D. Brooks for early reapplication. 3 Miss Frigen? 4 MS. FRIGEN: Good morning, Madame Chair, 5 Commissioners. 6 Miss Brooks is present and having a seat 7 at the table here. For your consideration is 8 her petition seeking permission to reapply 9 early for a registration and/or a noncredential 10 hotel employment. 11 The Division has interposed an objection 12 to this petition in its entirety. 13 CHAIR KASSEKERT: Thank you. 14 Miss Brooks, is there anything that 15 you'd like to say today? 16 MS. BROOKS: Not at this moment. No. 17 CHAIR KASSEKERT: Okay. This is your 18 moment. 19 THE WITNESS: Oh, well, I -- 20 MR. NANCE: You have to be sworn in. 21 CHAIR KASSEKERT: Please stand to be 22 sworn in. 23 24 MARIA D. BROOKS, was duly sworn to 25 testify in this matter. 16 ITEM NO. 5 1 MR. NANCE: Please state your name for 2 the record. 3 THE WITNESS: Maria D. Brooks. 4 MR. NANCE: Thank you. 5 MS. BROOKS: The only thing that I would 6 like to say, because I did receive a letter in 7 the mail from him of what he would like to -- 8 his defense of going through with the 9 suspension of my license. When there was a 10 point there where he brought up a matter of 11 November in the letter that I received, which I 12 was not aware of that. That's the only thing 13 that I can say that can hinder me from 14 receiving my license back. 15 CHAIR KASSEKERT: Mr. Biscieglia? 16 MR. BISCIEGLIA: I'm not exactly sure -- 17 CHAIR KASSEKERT: Sure. Yeah. 18 MR. BISCIEGLIA: -- what the Petitioner 19 is stating. I believe she's referring to where 20 the Division points out that she was charged on 21 November 20th, 2006, by the Atlantic City 22 Police with simple assault. 23 THE WITNESS: Yeah. 24 MR. BISCIEGLIA: As the Division has set 25 forth in our letter. 17 ITEM NO. 5 1 CHAIR KASSEKERT: Okay. 2 THE WITNESS: Which I was not convicted 3 of. That's the only thing. 4 CHAIR KASSEKERT: But you were charged? 5 THE WITNESS: Not to my -- it was not 6 convicted. 7 CHAIR KASSEKERT: No. I'm not asking if 8 you were convicted. 9 THE WITNESS: Oh. 10 CHAIR KASSEKERT: I'm asking if you were 11 charged. 12 THE WITNESS: Yes. Yes. 13 CHAIR KASSEKERT: Okay. Mr. Biscieglia? 14 Any comments? 15 MR. BISCIEGLIA: Yes. Thank you. 16 The Commission revoked the Respondent's 17 casino service employee registration on July 18 26th, 2006. This followed a -- the 19 Respondent -- or excuse me, the Petitioner's 20 failure to request a hearing following the 21 Division's complaint. The Division's complaint 22 was based on the Petitioner's March 10th, 2006, 23 conviction for aggravated assault, third 24 degree. 25 Following that conviction, the 18 ITEM NO. 5 1 Petitioner was also charged, as I stated 2 previously, on November 20th, 2006, by the 3 Atlantic City Police Department with simple 4 assault. That charge was dismissed on February 5 16, 2007. However, the Petitioner failed to 6 disclose this charge in the current petition 7 and also in the petition where they asked if 8 you have been arrested following the original 9 charges? The Petitioner stated, no, that she 10 had not, when she clearly had been. 11 Based on these facts, the Division feels 12 that this petition must be denied. 13 Thank you. 14 CHAIR KASSEKERT: Thank you. 15 Let me ask if any of the Commissioners 16 have any questions? 17 VICE CHAIR SOMMELING: I don't have any 18 questions, Madame Chair. 19 CHAIR KASSEKERT: Questions? 20 COMMISSIONER EPPS: I have a question. 21 Miss Brooks, what do you have to say about not 22 putting your applications that something 23 happened subsequent to any other incident? 24 You have an obligation to acknowledge 25 that something happened. Whether or not you 19 ITEM NO. 5 1 were convicted, you have to indicate it. Why 2 didn't you indicate it? 3 THE WITNESS: I was under the impression 4 of the application of any convictions. Because 5 I have honestly no problem admitting that it 6 was a charge that was presented against me. I 7 mean, that was an error on my end. I fess up 8 to that. It was an error. I took it as it was 9 conviction. Any convictions that occurred 10 since the original incident. 11 COMMISSIONER EPPS: Okay. Now, what was 12 the outcome of that arrest? 13 THE WITNESS: Of which? 14 COMMISSIONER EPPS: In the November one. 15 The one that happened subsequent. 16 THE WITNESS: It was dismissed. 17 COMMISSIONER EPPS: Okay. Here's the 18 problem. You're coming to the Commission 19 seeking an opportunity for another shot. But 20 you have haven't said anything about why you 21 should get another shot. You just kind of 22 said, I don't have anything to say up other 23 than November, and other than that, I should 24 get my thing back. It doesn't necessarily work 25 like. You need to tell us why we should go 20 ITEM NO. 5 1 against the request of the State, the Division 2 of Gaming Enforcement, and give you another 3 shot at something. 4 THE WITNESS: The reason why I feel I 5 would like to have another shot because my life 6 has changed. That the -- the person that -- I 7 was provoked to be that type of person. I was 8 pushed into a corner. 9 COMMISSIONER EPPS: Let me stop you for 10 a second. 11 THE WITNESS: I'm now -- 12 COMMISSIONER EPPS: I'm going to let you 13 go. But this is what you needed to say the 14 first time you had a chance to speak. That's 15 what you needed to present to you. You almost 16 ruined it by saying I don't have anything to 17 say. 18 THE WITNESS: I'm very nervous. I'm 19 sorry. 20 COMMISSIONER EPPS: In order to give you 21 another shot. 22 THE WITNESS: I'm very nervous. I 23 apologize. The life that I lived before 24 compared to what I am now, I turned my life 25 over completely. I'm a new person. I have a 21 ITEM NO. 5 1 new aspect, and I know the priorities in my 2 life. And the only way to live is to do right. 3 And to go out and be a mean person or anything 4 like that, that's not me. I turned myself over 5 to God. I'm now a mentor at my church. I'm 6 active with multiple things with my church and 7 where I live at in my community. I use my 8 mistakes that I made as a positive point for a 9 lot of young ladies now today. And I truly 10 believe that I deserve another chance. 11 I was in a situation where I was abused. 12 And in the State of New Jersey, there's no 13 self-defense law, and I was charged and 14 convicted. Unfortunately, it happened. And 15 I'm very apologetic about it. But now my life 16 doesn't even fall underneath those lines 17 anymore. 18 CHAIR KASSEKERT: Commissioner Fedorko, 19 do you have any questions? 20 COMMISSIONER FEDORKO: You know the 21 difference between being arrested and being 22 convicted? 23 THE WITNESS: Yes, I do. Being 24 convicted is when you're charged, and you have 25 to do a sentence or a term or punishment of 22 ITEM NO. 5 1 some sort. And when you're arrested, it's just 2 a charge that's presented against you. 3 COMMISSIONER FEDORKO: Well, when you 4 read the application, didn't you see that word 5 there? 6 THE WITNESS: I misunderstood it when I 7 read it. And I -- as it stated, I incorrectly 8 did not put that there. And I wish I did. 9 Because now it's hindering. 10 CHAIR KASSEKERT: Remind me again. When 11 were the original charges, Mr. Biscieglia? 12 MR. BISCIEGLIA: The orig -- the 13 disqualifying -- 14 CHAIR KASSEKERT: Disqualification. 15 Yeah. 16 MR. BISCIEGLIA: Was March 10th of 2006. 17 CHAIR KASSEKERT: 2006. 18 MR. BISCIEGLIA: Less than three years 19 ago. This intervening matter was November 20th 20 of 2006. 21 If I can just briefly continue for a 22 second. 23 CHAIR KASSEKERT: Sure. 24 MR. BISCIEGLIA: I'd just like to point 25 out that the petition form clearly asks: Have 23 ITEM NO. 5 1 you been arrested, charged or convicted of any 2 criminal offense? Much like the personal 3 history disclosure will form 4A with the 4 original applications, both of these forms take 5 into effect basically any type of contact you 6 come into with law enforcement. 7 CHAIR KASSEKERT: Thank you. 8 Any other questions? 9 COMMISSIONER SOMMELING: No questions, 10 Madame Chair. 11 COMMISSIONER EPPS: Madame Chair, I 12 would move that we deny Miss Brooks' permission 13 to reapply early for casino service employee 14 registration but grant her permission to work 15 as a noncredential hotel employee. 16 VICE CHAIR SOMMELING: Second. 17 CHAIR KASSEKERT: The motion has been 18 made and seconded. All in favor? 19 (Ayes.) 20 CHAIR KASSEKERT: Opposed? 21 COMMISSIONER FEDORKO: No. 22 CHAIR KASSEKERT: Motion passes three to 23 one. 24 You know, I think there's a feeling 25 among the Commissioners that -- that, you know, 24 ITEM NO. 6 1 this is too early. You've made an application, 2 and, obviously, this was an extremely 3 significant offense. 4 Understanding that you didn't understand 5 what you needed to report on the form, you 6 know, that really doesn't alleviate you with 7 the responsibility in this case. However, I 8 feel that we will give you permission to work 9 as a noncredential hotel employee because my 10 feeling has always been that an individual can 11 work in hotels without being restricted, you 12 know, in any other instance except under the 13 Casino Control Act. So we are going to allow 14 you to do that. 15 And I would encourage you to continue 16 doing the things that you're doing and continue 17 to try to turn your life around. 18 THE WITNESS: Thank you. 19 CHAIR KASSEKERT: Okay? 20 THE WITNESS: Thank you. 21 MR. BISCIEGLIA: Thank you. 22 MR. NANCE: Item No. 6, petition of Kieu 23 Thanh Duong for removal from the exclusion 24 list. 25 Miss Frigen? 25 ITEM NO. 6 1 MS. FRIGEN: Madame Chair, Steven Kaplan 2 is here on behalf of the Petitioner, and Tony 3 Zarrillo is here on behalf of the Division of 4 Gaming Enforcement. 5 As indicated, this is a petition seeking 6 removal from the exclusion list. 7 Before the parties proceed, I would just 8 note that there was one issue that arose during 9 this petition process and that being as when 10 should the five-year date be effective, be it 11 the preliminary order or the final exclusion 12 order? And the reason why that's important is 13 there's different burdens placed on the 14 Petitioner depending upon which date that you 15 choose to decide is the effective date. 16 So before we hear from them, if the 17 Commission could address that, please. 18 CHAIR KASSEKERT: Sure. 19 MS. FRIGEN: Thank you. 20 CHAIR KASSEKERT: Yeah. Okay. I guess 21 the applicable regulation, which is NJAC 22 19:48-1.8 provides that an excluded person may 23 petition the Commission for removal from the 24 list "any time after five years from placement 25 by the Commission of such a person on the 26 ITEM NO. 6 1 list." 2 The standards for determination of a 3 request for removal is different based on 4 whether the request is made prior to the 5 expiration of the five years or after the 6 expiration of the five years, which is 7 extraordinary circumstances being the standard 8 for the first and good cause for the latter. 9 In this case, the full Commission 10 granted the Division's request and declared the 11 Petitioner to be an excluded person on -- 12 effective, I guess, August 13th, 2003. 13 Petitioner filed the current request on 14 September 18th, 2008. Accordingly, I believe 15 the Petitioner's application was filed after 16 the expiration of five years and that good 17 cause for removal should be the prevailing 18 standard. 19 Let me, I guess, hear from the now -- 20 the Petitioner at this point. 21 Mr. Kaplan, you want to proceed? 22 MR. KAPLAN: In terms of the timing, the 23 time is what it is. Frankly, had I known that 24 there might be a question, it probably would 25 have been better that I waited a few months, 27 ITEM NO. 6 1 that the five years elapsed. However, it is 2 pretty clear that she has been barred since 3 August 13th, 2003. So we're certainly not 4 arguing the significance of the crime that she 5 was -- that she should have been excluded. We 6 do understand that. It's simply that five 7 years has gone by. 8 And did you want me to get into other 9 arguments? Or just with regard to the timing? 10 CHAIR KASSEKERT: I think just with 11 regard to the timing. I think the other 12 arguments, you know -- why don't you proceed 13 first on the timing. 14 MS. KAPLAN: Well, that's, frankly, all 15 I have. 16 CHAIR KASSEKERT: Your argument? 17 MS. KAPLAN: It is what it is. I'm 18 sorry. 19 CHAIR KASSEKERT: Okay. Mr. Zarrillo? 20 MR. ZARRILLO: I don't have anything to 21 add to the ruling. 22 CHAIR KASSEKERT: Okay. 23 MS. FAUNTLEROY: Just so for the record, 24 if you want to take a motion with respect to 25 the timing and the applicable standard and then 28 ITEM NO. 6 1 entertain arguments -- 2 CHAIR KASSEKERT: All right. 3 MS. FAUNTLEROY: -- that it has met that 4 standard. 5 CHAIR KASSEKERT: Okay. So having said 6 what I indicated before in terms of the dates, 7 I'm going to find the Petitioner has failed to 8 establish good cause. 9 Let us now -- 10 COMMISSIONER EPPS: No. 11 CHAIR KASSEKERT: I'm sorry. I'm going 12 to find that the timing is -- 13 COMMISSIONER EPPS: The timing standard 14 is good cause. 15 CHAIR KASSEKERT: -- is good cause. I'm 16 sorry. 17 And we'll now hear arguments on the 18 petition. 19 MS. KAPLAN: Thank you, Chair. 20 COMMISSIONER EPPS: Can -- 21 CHAIR KASSEKERT: Sure. 22 COMMISSIONER EPPS: Counsel, do we need 23 to make -- do that in a form of a motion that 24 the standard would be good cause or is that -- 25 MS. FAUNTLEROY: That would be 29 ITEM NO. 6 1 preferable. 2 CHAIR KASSEKERT: Okay. 3 COMMISSIONER EPPS: I move that in this 4 situation the standard with respect to removal 5 from the list would be determined by good 6 cause -- on this matter would be determined 7 under the standard of good cause, having the 8 five years having elapsed and good cause being 9 the standard by recitation of the information 10 as provided by the Chair. 11 So, with that, I move that we determine 12 this matter under the standard of good cause. 13 VICE CHAIR SOMMELING: Second. 14 CHAIR KASSEKERT: The motion has been 15 made and seconded. All in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: Motion carries. 20 Thank you. 21 Now, you may proceed. 22 MS. KAPLAN: Thank you. 23 Back in '90 -- 1999 there was no 24 question that my client was participating in a 25 significant crime, the crime of usury. Her 30 ITEM NO. 6 1 husband was loaning money, as has been referred 2 to as "loan sharking." And she assisted her 3 husband, although we would argue that that 4 assistance was rather minimal. The prosecutor 5 recognized that when she was charged and 6 indicted in 1999. And she was ultimately given 7 a plea bargain wherein she pled guilty to a 8 fourth-degree crime of usury and given a 9 sentence of 18 months probation. 10 Not only did the prosecutor deem that it 11 was -- it was not as significant as her 12 husband's involvement, but the probation 13 officer also deemed it to be not so significant 14 in terms of the fact that he voluntarily agreed 15 with her to terminate her probation after nine 16 months. That was 2001 that she was terminated, 17 her probation, in March of 2001. And, of 18 course, her license wasn't really revoked -- I 19 mean, not her license, excuse me. Her right to 20 be on the casino floor wasn't really revoked 21 for a couple of years later. She had already 22 had her probation terminated, and it was argued 23 by her at that time, although I didn't even 24 know in that existed until I filed this. But 25 it was argued at that time that she had 31 ITEM NO. 6 1 rehabilitated herself. She had gone through 2 probation. She had committed no new crimes. 3 She wasn't involved with organized crimes. She 4 has no particular skills other than being 5 actually a good poker player. That's why she 6 wants to get back into the casino. She is a 7 housewife, and she has four kids ranging in age 8 from four to twelve. But this argument was 9 also made to the Commission before Commissioner 10 Fedorko who made the decision in the case in 11 2004 that she was rehabilitated. 12 Since that time, of course, four more 13 years have elapsed and nine years since the 14 offense. There's been really no change other 15 than the passage of time. The significance 16 being that there isn't much more, even if 20 17 years passed, that she could do other than be 18 law abiding and not be affiliated with any 19 illegal activity, and there really isn't that 20 much more that can be done. 21 I read the brief of the Attorney 22 General, and he is basically arguing that she 23 hasn't really demonstrated, that -- she hadn't 24 really done anything that really has shown that 25 there is a change and that she is just as 32 ITEM NO. 6 1 inimical -- inimical to the -- at this point as 2 she was four years ago, and there really is no 3 change. And I submit to you that she -- that's 4 putting her in an almost impossible position, 5 that there really is nothing she could do to 6 show that she's changed. Because other -- she 7 just is a housewife. Stays at home. Does 8 nothing. I don't know what she could do to 9 show change. 10 I don't know in any fashion why she 11 would be a threat to the casino itself or to 12 the State of New Jersey or what harm there 13 would be in letting her back on the floor to 14 gamble again other than the significance of the 15 initial conviction back in 19 -- or the 16 offense -- back in 1999. We all know that 17 usury does go hand in hand with gambling and 18 that that is always a threat. But all this 19 time has passed. She's shown rehabilitation. 20 And so she's asking you to let her back on. 21 That's all. 22 CHAIR KASSEKERT: Let me ask before we 23 hear from Mr. Zarrillo, does anyone have any 24 questions for Mr. Kaplan at this point? Or 25 hear from -- 33 ITEM NO. 6 1 VICE CHAIR SOMMELING: Not at this 2 point. 3 CHAIR KASSEKERT: Mr. Zarrillo? 4 MR. ZARRILLO: Yes. Good morning, 5 Chair, Commissioners. 6 There are a couple of points that I want 7 to make, and I'll try to be brief. 8 The first point I want to bring to your 9 attention is something that I found out after I 10 filed my response, is that when we did a player 11 search of Miss Duong, there appeared to be some 12 gambling in January of 2005 at the Trop by a 13 person using her player number and player card. 14 We submitted that information because we 15 thought it might be relevant. We don't know -- 16 quite candidly, I don't have an eyewitness to 17 say she was in the building, she was the person 18 playing. But we often -- we always rely on 19 that data that we obtain from the casinos for 20 other things that we do, and this does appear 21 to be gambling by this young lady per that 22 player card. Her ID fits. Her DOB fits, and 23 address fits. So we raise that because that's 24 a concern. Clearly if that, in fact, occurred, 25 then we have someone who has not abided by the 34 ITEM NO. 6 1 ruling of the Commission that she should be 2 excluded and not appear on a gaming floor. And 3 I would just ask that that be addressed after 4 I'm done with my remarks because we think that 5 that is a relevant consideration. 6 The second and more important point I 7 would submit to you is this: With all respect, 8 I think that the standard to be applied here is 9 not just good cause because the reg itself 10 seems to set out several standards. In the 11 first instance, the petitioner must set forth 12 facts before the Commission that established 13 good cause for filing the petition. But I 14 believe that 19:48-1.8 sub B -- C -- says that 15 the Commission shall grant the petition only 16 upon a finding that there is new evidence which 17 is material and necessary or that circumstances 18 have changed since the placement of the 19 excluded person on the list and that there 20 would be a reasonable likelihood that the 21 Commission would alter its previous decision. 22 And I think why that is important is 23 because it goes, again, to the thrust of our 24 position, which is that the mere passage of 25 five years does not open the door for an 35 ITEM NO. 6 1 individual to go back onto a gaming floor if he 2 or she has been previously excluded. 3 And I think Counsel has, candidly, 4 argued that he literally has nothing other than 5 the passage of five years. And as I read the 6 reg, it doesn't say that. It says what I just 7 quoted. And I would argue to you that you 8 have-- that an applicant, to be removed from 9 the list, must demonstrate something more than 10 the mere passage of five years. 11 I think it is pertinent to point out, as 12 I do in my papers, that virtually everything 13 that the Petitioner alleged today was alleged 14 before Commissioner Fedorko -- he assessed that 15 when he made the initial decision, and 16 rejected. And as I said in my papers, again, 17 he don't quarrel that she's a good mother. We 18 don't quarrel with the fact that she's a good 19 poker player. But that doesn't open the door 20 back up. And as I say, I don't believe that 21 the passage of five years opens that door. 22 And so I would submit to you that on the 23 papers submitted and on the arguments here, the 24 standard that circumstances have changed or 25 that there would be a reasonable likelihood 36 ITEM NO. 6 1 that you would alter the previous decision 2 based on what you've heard simply hadn't been 3 met. And because she hadn't met that standard, 4 she should not be removed from the list. 5 Thank you. 6 CHAIR KASSEKERT: Commissioner Fedorko? 7 COMMISSIONER FEDORKO: Mr. Kaplan, I'd 8 like to hear from your client about the card. 9 MS. KAPLAN: All right. 10 MS. FAUNTLEROY: Swear her in. 11 CHAIR KASSEKERT: I think just for the 12 specific purpose of that. Because, obviously, 13 we can't take live testimony. 14 Counsel? 15 MS. FAUNTLEROY: Yeah. The regulation 16 does not speak to a hearing, but certainly if 17 the Commissioner has a question that he wishes 18 to address to the Petitioner for that limited 19 purpose. 20 CHAIR KASSEKERT: All right. For that 21 limited purpose. 22 MS. KAPLAN: Want to put her under oath? 23 MS. FAUNTLEROY: Yes. 24 CHAIR KASSEKERT: Yes. 25 37 ITEM NO. 6 1 KIEU THANH DUONG, was duly sworn to 2 testify in this matter. 3 4 MR. NANCE: Please state your name for 5 the record. 6 MR. KAPLAN: What's your name? 7 THE WITNESS: Kieu Thanh Duong. 8 MR. NANCE: Thank you. 9 MS. KAPLAN: You have to raise your 10 voice, too. 11 CHAIR KASSEKERT: Commissioner Fedorko? 12 COMMISSIONER FEDORKO: I saw you shaking 13 your head when Mr. Zarrillo talked about the 14 card that was used in the casino. 15 THE WITNESS: I was never there on that 16 day, and I don't even play that game. My life. 17 And I was never there. My whole life, I never 18 played that game. I was there, something, why 19 don't they come arrest me if I was the one? 20 COMMISSIONER FEDORKO: So who was using 21 your card? 22 THE WITNESS: I don't know. 23 COMMISSIONER FEDORKO: Did you give it 24 to somebody? 25 THE WITNESS: I don't -- I don't. 38 ITEM NO. 6 1 COMMISSIONER FEDORKO: You don't know? 2 THE WITNESS: I don't have the card. I 3 don't -- 4 CHAIR KASSEKERT: Did you ever play at 5 Tropicana? 6 THE WITNESS: Long, long time ago. 7 CHAIR KASSEKERT: Did you have a 8 player's card at Tropicana at that time? 9 THE WITNESS: I might have. I might 10 have. 11 CHAIR KASSEKERT: You might have? 12 THE WITNESS: But I wasn't there that 13 day, and I don't play that game. My life. 14 COMMISSIONER FEDORKO: You're really not 15 convincing me about this at all. 16 MS. KAPLAN: He says he doesn't believe 17 you. You got to tell him. 18 THE WITNESS: Well, it's not me. Not 19 me, Steve. I don't go. That's all I can tell 20 you. 21 I mean, somebody left mistake. The 22 floor might make mistake about it. I don't 23 know. I keep the closer name to other. They 24 put it in. It wasn't me. 25 COMMISSIONER FEDORKO: Mr. Zarrillo, you 39 ITEM NO. 6 1 said that it's her address, and there's no 2 question that it's her; correct? 3 MR. ZARRILLO: Well, there's -- it's no 4 question that -- 5 COMMISSIONER FEDORKO: That it was her 6 card. 7 MR. ZARRILLO: Yeah. That her account 8 was used. 9 COMMISSIONER FEDORKO: Okay. 10 MR. ZARRILLO: As I said, we don't have 11 any eyeball witness that it was she. 12 COMMISSIONER FEDORKO: Okay. Thank you. 13 CHAIR KASSEKERT: Any other questions? 14 COMMISSIONER EPPS: I guess, just for 15 Counsel, you heard what the State said with 16 respect to the standards. And, you know, I'm 17 looking at the reg, and it specifically does 18 say that once you filed your petition, you 19 should have -- we grant your petition -- if you 20 show that there's -- or if we find that there's 21 evidence which is material and necessary under 22 the circumstances has changed since the 23 placement of the excluded person on the list. 24 And I guess I just have you reiterate. What do 25 you suggest for a finding in support of your 40 ITEM NO. 6 1 petition are new -- changed circumstances since 2 the last time that suggests we should remove 3 her from the list? 4 I mean, I know that -- I mean, other -- 5 you could certainly argue that she wasn't doing 6 what she was arrested for. But how has the 7 lifestyle changed that would completely -- I 8 mean, what's the new circumstances that makes 9 this a different scenario? 10 MS. KAPLAN: There can't be any great 11 change of circumstances. She does nothing. 12 She is a stay-at-home mom. She -- all she can 13 do to prove that there's the change is to 14 remain law abiding, as I've already 15 reiterated-- or indicated -- and comply with 16 whatever punishment that was handed to her. 17 Accept responsibility, finish the probation, 18 and the passage of time. But I submit to you 19 that there is -- even 25 years from now, she 20 could show you no more than what she shows you 21 today. She can't get a degree in remorse. 22 She-- unless she got arrested for something, I 23 don't know what else she could do to prove it. 24 But the standard then is changed 25 circumstances, and we say the changed 41 ITEM NO. 6 1 circumstances are her rehabilitation, the 2 passage of time, and all those things that I 3 already indicated. And that the likelihood 4 that the Commission would alter its decision 5 would be based on that. On that argument. 6 That's all. 7 Nothing earth shattering. I knew that 8 you'd ask the question. I don't know what else 9 to tell you. 10 CHAIR KASSEKERT: Commissioner 11 Sommeling? 12 VICE CHAIR SOMMELING: Thank you, Chair. 13 Mr. Zarrillo, with respect to the 14 violation of her going into the casino during 15 this period of time, if there were no 16 violation, would then the State object to her 17 appeal? 18 MR. ZARRILLO: Yes. Because -- 19 VICE CHAIR SOMMELING: Even so? 20 MR. ZARRILLO: Yes. Because my position 21 would be the same; that is that the mere 22 passage of five years, as I read the reg, does 23 not, as I said, open the door to a person 24 coming back in, in effect, the exclusion is 25 placed -- shifts the burden entirely to the 42 ITEM NO. 6 1 Petitioner to say, this is what has changed 2 since the time that you placed me on the 3 exclusion list. And if the Petitioner cannot 4 convince you that something has changed, then 5 she doesn't get back into -- onto the casino 6 floors, the gaming floors. 7 And, respectfully, I would suggest that 8 everything that's been set forth in this was 9 set forth before Commissioner Fedorko. She had 10 completed her period of probation early. And 11 Commissioner Fedorko knew that. That was 12 presented at the hearing. And all the other 13 facts that are alleged today are exactly the 14 same as those that were presented to 15 Commissioner Fedorko. And, therefore, I would 16 submit to you that nothing has changed. The 17 only thing is this passage of time and, 18 therefore, we would contend that irrespective 19 of when she was on the gaming floor or not in 20 '05 doesn't meet the standard. 21 CHAIR KASSEKERT: Commissioner? 22 VICE CHAIR SOMMELING: Thank you. 23 CHAIR KASSEKERT: Commissioner Epps? 24 COMMISSIONER EPPS: I have a question 25 and, Mr. Zarrillo, this is probably an academic 43 ITEM NO. 6 1 question, and you could probably throw it back 2 on me and say I have a duty to recognize it, 3 but what is a changed circumstance in this 4 situation? I mean, if someone is convicted for 5 being a criminal, and all they can say is, I'm 6 not a criminal anymore. I'm a law-abiding 7 citizen. I haven't done the things that you 8 said I was doing before, and I admit that I was 9 doing before, and I admit that that's who I 10 was. But I'm a different person now. Beyond 11 being a different person now, what else does 12 one do? I mean, being a law-abiding citizen, 13 there's no greater power or no higher behavior 14 to exhibit other than -- 15 MR. ZARRILLO: Well, it's a difficult 16 question, obviously. I don't have any guidance 17 in the reg. My thought would be if I were on 18 the other side of this matter, I might argue, 19 let's say that my client worked for Gamblers 20 Anonymous or did some kind of work that would 21 show that he or she was interested in helping 22 people in some capacity related to what we 23 regulate; i.e., compulsive gambling. That 24 might be something that a petitioner could 25 allege. I didn't do this before, but I'm now 44 ITEM NO. 6 1 doing this to show my good faith and my -- and 2 my changed circumstances. 3 COMMISSIONER EPPS: Okay. 4 MR. ZARRILLO: I mean, off the top of my 5 head, that's the best I can do, Commissioner. 6 I'm sorry. 7 CHAIR KASSEKERT: It's difficult, but it 8 shouldn't, you know, it shouldn't be easy to 9 get off the exclusion list given, you know, 10 given that it is -- it's a very high standard 11 when we put somebody on. And, especially, you 12 know, when it usually relates to -- especially 13 when it relates to something that occurred on 14 the casino floor. 15 MR. ZARRILLO: Yeah. That's precisely 16 my thought, Chair. Because, again, it is 17 something that nobody has a right to walk into 18 a casino and gamble. We don't have that right. 19 It is, in effect, in this situation something 20 that you can jeopardize and you can throw away 21 by doing something. And as we've all agreed, 22 again, while the lady was clearly a minor -- or 23 a lesser player in the criminal activity, as 24 Commissioner Fedorko said, this is another word 25 for loan sharking, and this is what was 45 ITEM NO. 6 1 happening in that case. So, yeah. I agree. 2 COMMISSIONER EPPS: Chair, if I could, 3 could I ask for just a short recess? 4 CHAIR KASSEKERT: Sure. 5 COMMISSIONER EPPS: We'll take a short 6 recess. 7 CHAIR KASSEKERT: Short recess. 8 (A recess was taken from 11:13 to 11:21 9 a.m.) 10 CHAIR KASSEKERT: Go back on the record. 11 Let me ask first if there are any other 12 questions, any other issues that Counsel want 13 to bring to our attention at this time? 14 (No response.) 15 CHAIR KASSEKERT: No? 16 Commissioner Epps? 17 COMMISSIONER EPPS: Madame Chair, based 18 on the discussion and, quite candid -- and I 19 appreciate Mr. Zarrillo's almost switching hats 20 for a minute -- it's a tough standard in this 21 regard. And based on the fact that in August 22 of '08 was just a point that the five years had 23 elapsed, I'm -- personally, I'm not persuaded 24 that enough time and enough changed 25 circumstance has happened in that short window 46 ITEM NO. 7 1 since the expiration of the five years has 2 passed for us to make a determination that now 3 is the time to bring someone convicted of that 4 type of crime in the casino back onto the 5 casino floor. It's just not enough 6 circumstances and time has passed to do that. 7 And it's tough to tell you when enough time 8 will have passed. But I am not comfortable at 9 this present time. 10 And, for that reason, I'm going to move 11 to deny Ms. Duong's petition for removal from 12 the exclusion list. 13 VICE CHAIR SOMMELING: Second. 14 CHAIR KASSEKERT: The motion has been 15 made and seconded. All in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: Motion carries. 20 MS. KAPLAN: Thank you. 21 CHAIR KASSEKERT: Thank you. 22 MR. ZARRILLO: Thank you. 23 MR. NANCE: Item No. 7, petition of 24 Scientific Games Racing, LLC, for a declaratory 25 ruling. 47 ITEM NO. 7 1 Miss Nagengast? 2 MS. NAGENGAST: Good morning, Chair, 3 Commissioners. 4 For your consideration is a petition for 5 a declaratory ruling from Scientific Games 6 seeking a determination that two of its 7 investors, JP Morgan and Bear Stearns, are 8 either, A, not in a qualifying position or, B, 9 may be waived from qualification. 10 And ask Counsel to enter their 11 appearance, and they can put their arguments on 12 the record. 13 CHAIR KASSEKERT: Mr. Brooks? 14 MR. BROOKS: Good morning, Madame Chair, 15 members of the Commission. Gil Brooks from 16 Wolf Block appearing on behalf of Scientific 17 Games. 18 CHAIR KASSEKERT: Thank you. 19 Mr. Adams? 20 MR. ADAMS: Jack Adams, Division of 21 Gaming Enforcement. 22 CHAIR KASSEKERT: Thank you. 23 Mr. Brooks? 24 MR. BROOKS: Thank you, Madame Chair. 25 I'll be brief. 48 ITEM NO. 7 1 What's occurred here is previously the 2 Commission had granted a waiver -- or the staff 3 had granted a waiver in connection with 4 financing that Scientific Games had entered 5 into that involved JP Morgan and Bear Stearns. 6 And, essentially -- it's a very complicated 7 deal, but the financing involved convertible 8 notes, warrants, and call options. And the 9 combination those three items produced a 10 beneficial ownership interest that required us 11 to seek a waiver per the regs, and we had 12 obtained that waiver. Now, there's been a 13 merger with JP Morgan and Bear Stearns, so 14 arguably that's been a compounding of the 15 beneficial ownership interest and, again, its 16 convertible notes, warrants, and call options. 17 And it's a significant on percentage with 18 respect to the beneficial ownership. 19 However, in terms of actual ownership, 20 there's less than two percent of actual 21 ownership of shares of Scientific Games with 22 the combination of Bear Stearns and JP Morgan. 23 And there's a new financing in place with 24 Scientific Games that requires that the 25 convertible notes be eliminated by March of 49 ITEM NO. 7 1 2010. It's significant because the convertible 2 notes would not go into effect and the ability 3 to use the warrants and call options would not 4 go into effect until June of 2010. So what 5 we're asking for is a continuation of the 6 waivers previously obtained in light of the JP 7 Morgan/Bear Sterns merger given all the facts 8 and circumstances. 9 CHAIR KASSEKERT: Thank you. 10 Mr. Adams? 11 MR. ADAMS: Yeah. Chair and 12 Commissioners. 13 Just following what Mr. Brooks just 14 said, I think that the main key here is that 15 there's this new financing. There's going to 16 be some activity that's going to have to take 17 place in 2010, so I think at this point we can 18 go along and reexamine this in 2010 just to 19 make sure it's okay but that the waivers should 20 be sufficient. 21 You have any questions, I'd be happy to 22 answer any. 23 CHAIR KASSEKERT: Thank you. Let me ask 24 if there any questions? 25 COMMISSIONER SOMMELING: No questions, 50 ITEM NO. 7 1 Madame Chair. 2 COMMISSIONER EPPS: Madame Chair, I 3 moved that we grant the petition of Scientific 4 Games Racing, LLC, for a declaratory ruling 5 pursuant to NJSA 52:14B-8 and NJAC 19:40-3.7, 6 and find that, based on the specific facts in 7 this case, JP Morgan Chase Bank, NA, is 8 currently not in a qualifying position as set 9 forth at NJAC 19:51-1.14(a)(1)(iv) in 10 connection with the current gaming-related CSI 11 license application of Scientific Games Racing, 12 LLC, subject to the conditions that Scientific 13 Games Racing, LLC, comply with the Commission's 14 notice and filing requirements should JP Morgan 15 Chase Bank, NA, ownership interest in 16 Scientific Racing Games, LLC, and/or Sci Games 17 change prior to June 1st, 2010, and subject to 18 the further condition that JP Morgan Chase 19 Bank, NA, submit to qualification or seek 20 waiver of such qualification once it decides to 21 exercise any warrants it holds in Sci Games. 22 VICE CHAIR SOMMELING: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 51 ITEM NO. 8 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: Motion carries. 4 Thank you. 5 MR. BROOKS: Thank you Madame Chair. 6 Thank you, members of the Commission. 7 MR. NANCE: Item No. 8, 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 Corp. to permit 13 Cheryl Kondra to assume the duties and exercise 14 the powers of Vice President and Chief Audit 15 Executive pending qualification. 16 Miss Richardson? 17 MS. RICHARDSON: Good morning, Chair and 18 Commissioners. 19 A draft resolution in this matter was 20 circulated to the parties before today's 21 hearing. 22 I ask that the counsel please enter 23 their appearances for the Commission. 24 CHAIR KASSEKERT: Thank you. 25 MR. MAGAZZU: Thank you, Madame Chair, 52 ITEM NO. 8 1 Commissioners. Mike Magazzu on behalf of the 2 Petitioners. 3 MS. FLAHERTY: Mary Jo Flaherty on 4 behalf of the Division of Gaming Enforcement. 5 CHAIR KASSEKERT: Thank you. 6 You may proceed. 7 MR. MAGAZZU: We've reviewed this 8 matter. We've reviewed materials from the 9 Division as well as the resolution, and we 10 stipulate on the papers. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER SOMMELING: No questions, 14 Madame Chair. 15 CHAIR KASSEKERT: Miss Flaherty? 16 MS. FLAHERTY: Yes. Chair and 17 Commissioner. 18 You have our report dated October the 19 21st of this year regarding this matter. We've 20 also had an opportunity to review the draft 21 stipulation, and we're in agreement with its 22 terms. 23 Thank you. 24 CHAIR KASSEKERT: Thank you. 25 Any questions? 53 ITEM NO. 8 1 VICE CHAIR SOMMELING: Madame Chair, 2 move to adopt the draft resolution and 3 authorize Cheryl Kondra on a temporary basis 4 prior to her plenary qualification to assume 5 the duties and exercise the powers of Vice 6 President of Chief Audit Executive for Harrah's 7 Entertainment, Incorporated, and Harrah's 8 Operating Company, Incorporated, subject to the 9 conditions contained in NJAC 19:43-2.7 which, 10 among other things, require that she file a 11 PHD-MJ and New Jersey supplemental by November 12 the 13th, 2008. 13 CHAIR KASSEKERT: Is there a second? 14 COMMISSIONER FEDORKO: Second. 15 CHAIR KASSEKERT: The motion is made and 16 seconded. This is a roll call vote. 17 MR. NANCE: Commissioner Fedorko? 18 COMMISSIONER FEDORKO: Yes. 19 MR. NANCE: Commissioner Epps? 20 COMMISSIONER EPPS: Yes. 21 MR. NANCE: Vice Chair Sommeling? 22 VICE CHAIR SOMMELING: Yes. 23 MR. NANCE: Chair Kassekert? 24 CHAIR KASSEKERT: Yes. 25 MR. NANCE: The record will reflect that 54 ITEM NO. 9 1 the motion is unanimous. 2 CHAIR KASSEKERT: Thank you. 3 MR. MAGAZZU: Thank you. 4 MR. NANCE: Item No. 9, proposed 5 publication and temporary adoption of 6 amendments concerning slot machine display 7 screen and standards for the approval of the 8 slot machine game. 9 MR. MONCRIEF: Madame Chair, members of 10 the Commission. 11 CHAIR KASSEKERT: Sorry, Mr. Moncreif. 12 MR. MONCREIF: That's okay. 13 Madame Chair, members of the Commission, 14 before you are the proposed publication and 15 temporary adoption of amendments to NJAC 16 19:45-1.37 and 46-1.28A. 17 The changes are mainly semantic in 18 nature, given the fact that the technology with 19 the slot machines have changed since the 20 regulations were originally adopted. 21 CHAIR KASSEKERT: Thank you. 22 Any questions? 23 COMMISSIONER SOMMELING: No questions, 24 Madame Chair. 25 COMMISSIONER FEDORKO: Motion to approve 55 ITEM NO. 10-11 1 for publication and temporary adoption. 2 COMMISSIONER EPPS: Second. 3 CHAIR KASSEKERT: The motion has been 4 made and seconded. All in favor? 5 (Ayes.) 6 CHAIR KASSEKERT: Opposed? 7 (No response.) 8 CHAIR KASSEKERT: Motion carries. 9 We will now recess before we consider 10 Items 10 and 11. Thank you. 11 (A recess was taken from 11:30 a.m. to 12 12:24 p.m.) 13 CHAIR KASSEKERT: Thank you. We'll go 14 back on the record. 15 MR. NANCE: For your consideration, 16 Items No. 10 and 11. Notice of motion to 17 seeking leave to intervene or participate, 18 Petition 2800802, Tropicana Entertainment, 19 Inc., with the Official Committee of Unsecured 20 Creditors, the Steering Committee, Harbinger 21 Capital Partners Special Situations Fund, 22 Limited Partners; and Item No. 10, the Petition 23 of the Trustee and Conservator for the former 24 casino licensee Adamar of New Jersey, Inc., to 25 extend the sale period. 56 ITEM NO. 10-11 1 Mr. DiGiacomo? 2 MR. DiGIACOMO: Chair, Commissioners, if 3 counsel could enter their appearance for the 4 record, please. 5 MR. CASIELLO: Nick Casiello, Fox 6 Rothschild, appearing on behalf on the 7 statutorily appointed Official Committee of 8 Unsecured Creditors in the bankruptcy 9 proceedings of Tropicana Entertainment, LLC. 10 MR. O'GARA: Paul O'Gara for Tropicana 11 Entertainment, LLC. 12 MR. BROOKS: Gil Brooks appearing on 13 behalf of the Secured Lenders. 14 MR. OETTLE: Ken Oettle from Sills 15 Cummis appearing on behalf of the Harbinger 16 entities. 17 MR. MACK: No. 11, Sean Mack from 18 Pashman Stein, on behalf of the 19 Trustee/Conservator. 20 CHAIR KASSEKERT: Division? 21 MS. FLAHERTY: Yes. Mary Jo Flaherty, 22 Division of Gaming Enforcement. 23 MR. FOGARTY: James Fogarty, Division of 24 Gaming Enforcement. 25 CHAIR KASSEKERT: Thank you. 57 ITEM NO. 10-11 1 Good morning, everyone. Or good 2 afternoon, now. 3 We will first consider the several 4 motions to intervene or participate in Justice 5 Stein's petition seeking further extension 6 under Section 95.14E. Each Movant should 7 proceed in the order listed in the agenda, and 8 after all the Movants have been heard, the 9 Division and then Justice Stein's 10 representative, Mr. Mack, will have an 11 opportunity to respond. 12 And I trust that I need not remind 13 counsel to confine their remarks to the 14 standards for intervention or participation and 15 avoid straying into areas that would be 16 presented if that relief were granted. 17 With that, Mr. O'Gara? 18 MR. O'GARA: Yes, ma'am. 19 CHAIR KASSEKERT: Are you ready to 20 proceed? 21 MR. O'GARA: Yes, ma'am. Chair, 22 Commissioners. 23 We are not and did not file a motion to 24 intervene. We appear today believing we are 25 statutory party to these proceedings. We are 58 ITEM NO. 10-11 1 the former licensee, as that term is defined in 2 the statute, and believe that that entitles us 3 to the rights that we would gain through 4 intervention. I would note that -- I believe 5 our petition is implicitly supported in the 6 papers filed by the Division in discussing the 7 various rights the parties have and the 8 statutory rights, and that's the basis for our 9 being here today. 10 CHAIR KASSEKERT: And although we have 11 not ruled formally on that matter, I think that 12 is consistent with how we have treated you 13 informally up to this point. 14 MR. O'GARA: I believe it is, Chair. 15 CHAIR KASSEKERT: All right. Very good. 16 Mr. Casiello? 17 MR. CASIELLO: Since you have our moving 18 papers, I will be brief. And I'll also note 19 that the Division of Gaming Enforcement does 20 not object to our being permitted to 21 participate, and that is sufficient for our 22 purposes for today's hearing. 23 The OAL regulations provide that any 24 party with a significant interest in the 25 outcome of the matter has the right to or may 59 ITEM NO. 10-11 1 be permitted to participate. We submit that we 2 have an interest in this matter. Primarily we 3 represent the -- all the creditors of Tropicana 4 except the Secured Creditors. That would 5 include the bondholders and the vendors. 6 Essentially, they are owed money, and the money 7 has to be paid by Tropicana Entertainment from 8 its assets. One of its assets is its interest 9 in the sale or disposition of the former casino 10 licensee. 11 I'll also note that under the term of 12 the conservatorship provisions of the Act, we 13 are a party that is required to be provided 14 notice as a creditor, and I think that also 15 indicates that we have a significant interest 16 in this matter. 17 CHAIR KASSEKERT: Thank you. 18 Let me ask if any of the Commissioners 19 have any questions? 20 COMMISSIONER SOMMELING: No questions, 21 Madame Chair. 22 CHAIR KASSEKERT: As we move along? 23 No. Okay. Thank you. 24 Mr. Brooks? 25 MR. BROOKS: Thank you. Madame Chair, 60 ITEM NO. 10-11 1 members of the Commission. 2 We filed a brief in connection with this 3 along with our motion, and we set forth our 4 position in connection with the brief regarding 5 the comments made by Mr. Casiello. So unless 6 there's any questions, I'll rely on the brief 7 that was submitted to the Commission. 8 CHAIR KASSEKERT: Thank you. 9 Any questions? 10 COMMISSIONER SOMMELING: No questions, 11 Madame Chair. 12 MR. BROOKS: Thank you, Madame Chair. 13 CHAIR KASSEKERT: Thank you. 14 Mr. Oettle? 15 MR. OETTLE: Thank you, Chair. Good 16 morning, Chair, Commissioners. 17 This would seem to be a perfect instance 18 where the Commission would want the 19 participation of everyone here. I'm not 20 embarrassed to speak for them, as I am for the 21 Harbinger interests. The standard is 22 participation may be open to persons with a 23 significant interest upon the demonstration 24 that the participant's interest is likely to 25 add constructively to the case without causing 61 ITEM NO. 10-11 1 undue delay or confusion. It's a balancing 2 test. You have a lot to gain by taking the 3 input from the participant here. This is a 4 crossroads moment. The stakes are huge. The 5 issues are novel. And if -- short of those who 6 are participating, you have the views of the 7 Division and the Trustee/Conservator, which are 8 certainly worthy. But there are only two 9 views. And with all the variables at play 10 here, there are many views, as you know from 11 the papers that have already been submitted on 12 the three questions that were proposed at the 13 last hearing. 14 There are different -- many different 15 ways to view this, and there are arguments to 16 be made across the board. You will benefit 17 immensely by taking all these arguments. It's 18 your decision, after all. It's not ours; it's 19 yours. But we make the arguments, and you 20 choose from among them. Take all the 21 arguments, choose from among them, and then 22 make your decision. That's all the 23 participation amounts to here. No one is 24 really seriously asking to intervene and bring 25 witnesses. We just want to put our views on 62 ITEM NO. 10-11 1 paper and then stand up and make some points. 2 It won't take much time, and the potential 3 gained is tremendous. So under the standard 4 for participants, it seems to fit perfectly. 5 Thank you. 6 CHAIR KASSEKERT: Thank you. 7 Mr. Fogarty? 8 MR. FOGARTY: Yes. We responded to the 9 three petitions that we received for 10 intervention or participation by a letter 11 authored by me dated October 21, 2008. And as 12 we state in there, we do not oppose a ruling 13 granting participation status to the Official 14 Committee of Unsecured Creditors, the Steering 15 Committee of Secured Lenders, and the Harbinger 16 entities. 17 If you have any are questions, I'll be 18 happy to answer them. 19 CHAIR KASSEKERT: Thank you. 20 Any questions? 21 COMMISSIONER SOMMELING: No questions, 22 Madame Chair. 23 CHAIR KASSEKERT: Mr. Mack? 24 MR. MACK: Good afternoon, Chair, 25 Commissioner. 63 ITEM NO. 10-11 1 The Trustee/Conservator has not 2 interposed any objections to any of the 3 petitions, and we leave it to your discretion 4 as to the appropriate resolution. 5 Answer any questions if you have them. 6 CHAIR KASSEKERT: Thank you. 7 Any questions for Mr. Mack. 8 COMMISSIONER SOMMELING: No questions, 9 Madame Chair. 10 CHAIR KASSEKERT: Okay. Very good. All 11 right. 12 We will take that under advisement, and 13 we will now deal with the petition to extend 14 the sale deadline. 15 Mr. DiGiacomo? 16 MR. DiGIACOMO: Yes, Madame Chair. 17 CHAIR KASSEKERT: Okay. At the last 18 Commission meeting, we extended until today the 19 expiration date for purposes of Section 95.14E 20 of the Act and deferred consideration of 21 Justice Stein's petition seeking a longer 22 extension of the sale period. As noted at the 23 last meeting, the New Jersey Supreme Court 24 granted the petition for certification that 25 Adamar and its former holding companies had 64 ITEM NO. 10-11 1 filed. 2 The recent action by the State Supreme 3 Court leaves no doubt that an appeal is pending 4 for the purposes of Section 130.2C of the 5 Casino Control Act. Under that section, only 6 in the absence of an appeal may a Conservator 7 "endeavor to be and be authorized to sell" the 8 property entrusted to him. 9 Shortly before our last meeting, we had 10 received a flurry of material relating to 11 Justice Stein's petition. For instance, the 12 former casino licensee's counsel, who is 13 pursuing the Supreme Court appeal on its 14 behalf, wrote the Commission that the pending 15 extension request should be denied. We also 16 received several motions to intervene from 17 various creditor interests that are involved in 18 the pending Delaware bankruptcy court matter. 19 Rather than attempt at the last meeting 20 to rush consideration of that material, which 21 bears upon what effect the high court's action 22 has on the sale process, we deferred 23 consideration of Justice Stein's petition, 24 fully intending to resume the matter today. In 25 the interim we received, at our request, 65 ITEM NO. 10-11 1 additional materials from the parties and 2 others expressing an interest in the matter. 3 We have also recently received a 4 petition from Tropicana Entertainment, the 5 entity which we found unqualified last 6 December, for statements of compliance and 7 other rulings. If granted, those rulings 8 essentially would allow Tropicana Entertainment 9 to operate the property that is under 10 conservatorship. 11 Although the Supreme Court had granted 12 certification before our last meeting, at that 13 time the Commission had no basis on which to 14 reasonably estimate how long it might take 15 before the Court concludes the appeal. Given 16 the impact on the sale process, the Division 17 asked the Court to accelerate the schedule on 18 appeal, which the Court did on October 16th, 19 2008, the day after our last meeting. 20 In its order, the Court has set oral 21 argument for November 17th, 2008. And although 22 it is impossible to predict when a decision 23 thereafter will follow, the Court has certainly 24 given the impression that it appreciates the 25 urgency. 66 ITEM NO. 10-11 1 Undoubtedly, we could examine the 2 meeting of "endeavor to and be authorized to 3 sell" from Section 130.2C and decide what 4 relevance, if any, that section has to Section 5 95.14E. However, the better course, in my 6 view, is to rely on the reasonable expectation 7 that the high court will act expeditiously in 8 deciding the appeal. 9 In the hopefully brief interim, Justice 10 Stein should then maintain the status quo 11 regarding his efforts to perfect a purchase 12 agreement for the property. While the risk 13 inherent in any delay is that the potential 14 buyer will lose interest, precipitating that 15 result certainly is not our intent, assuming my 16 colleagues agree with this course of action. 17 And subject to those parameters, I see 18 granting the request to extend the sale period 19 is essentially a ministerial one and further 20 interim action that preserves the opportunity 21 for a sale to proceed expeditiously under 22 Section 95.14E in the event that the Supreme 23 Court affirms or otherwise issues an outcome 24 favorable to the Commission. 25 Thus, although we have heard argument on 67 ITEM NO. 10-11 1 the various motions to intervene or 2 participate, I would recommend that we do not 3 rule on them today. Nor do I see the need to 4 rely on the supplemental or other materials in 5 proceeding with a further extension which, as I 6 mentioned, is predicated upon the reasonable 7 expectation of prompt action by the Supreme 8 Court. Nevertheless, for those -- for these 9 limited purposes, I'm assuming without deciding 10 that Section 130.2C pertains. Moreover, the 11 Supreme Court's grant of certification surely 12 satisfies the "good cause" requirement in 13 Section 95.14E. 14 As for the length of the extension, I 15 would grant until January 21st, 2009, which 16 tentatively is scheduled as a public meeting 17 day. Further, I would continue all the interim 18 conditions in our ruling from the last meeting 19 to this latest extension, except those 20 pertaining to the procedural matters dealt with 21 in conditions No. 3 and 4. 22 If there is an outcome favorable to the 23 Commission on the appeal, the authority for 24 Justice Stein to resume the sale process 25 immediately would be self-executing. 68 ITEM NO. 10-11 1 Conversely, if the appeal remains undecided for 2 any appreciable length of time, and Justice 3 Stein perceives that obtaining further 4 Commission instructions regarding the sale 5 process would be beneficial, every effort will 6 be made to hear such an application on an 7 expedited basis. If such an application is 8 received, all counsel should be prepared to 9 proceed accordingly. At that time, then, we 10 will decide the motions for intervention or 11 participation which will be more narrowly 12 focused on the request for the specific 13 instructions then before us. 14 As for the relief sought in the 15 Tropicana Entertainment petition, seemingly, 16 it's at odds with the sale by the Justice. 17 Thus, quite apart from whether the Justice has 18 the ability to sell during the pendency of an 19 appeal, there's a question of whether the 20 Commission should exercise its discretion and 21 withhold the authority to sell while that other 22 petition is pending. 23 I do note that in seeking statements of 24 compliance, apparently Tropicana Entertainment 25 has not filed any of the relevant personal 69 ITEM NO. 10-11 1 history and business entity disclosure forms as 2 required by the Act. I would encourage them to 3 do so immediately so that the Division will be 4 able to report as soon as possible. Of course, 5 there may be certain issues, such as the 6 requested waiver under Section 85D(1) for 7 William J. Yung, III, on which the entire 8 petition may turn. A sooner resolution of that 9 and any other similar issue is encouraged. 10 Nevertheless, I reiterate that I do not 11 view the Tropicana Entertainment petition in 12 its present posture as an impediment to Justice 13 Stein immediately resuming the sale process 14 upon the affirmance or other disposition of the 15 appeal favorable to the Commission. Certainly, 16 if at that time Tropicana Entertainment's 17 petition remains unresolved, it would be free 18 to request from us whatever relief it may deem 19 appropriate regarding the Justice continuing to 20 pursue the sale process, and certainly relevant 21 to such an application is the posture of the 22 petition at that time. 23 Subject to my earlier comments and the 24 conditions therein recommended, I move to 25 sale-- I move to extend the sale period, again 70 ITEM NO. 10-11 1 on an interim basis, through January 1st, 2009, 2 and to instruct Justice Stein to maintain the 3 status quo in the sale process consistent with 4 these remarks. 5 And I so move. 6 VICE CHAIR SOMMELING: Second. 7 COMMISSIONER EPPS: January 21st. 8 CHAIR KASSEKERT: Did I say January 1st? 9 January 21st. Thank you. 10 And I so move. Is there a second? 11 VICE CHAIR SOMMELING: Second. 12 CHAIR KASSEKERT: This is a roll call 13 vote? 14 MR. DiGIACOMO: Yes, Chair. 15 CHAIR KASSEKERT: Roll call. 16 MR. NANCE: Commissioner Fedorko? 17 COMMISSIONER FEDORKO: Yes. 18 MR. NANCE: Commissioner Epps? 19 COMMISSIONER EPPS: Yes. 20 MR. NANCE: Vice Chair Sommeling? 21 VICE CHAIR SOMMELING: Yes. 22 MR. NANCE: Chair Kassekert? 23 CHAIR KASSEKERT: Yes. 24 MR. NANCE: The record will reflect that 25 the motion is unanimous. 71 1 In accordance with Resolution No. 2 07-12-12-26, the next closed session of the 3 Commission shall be held on Wednesday, November 4 12th, 2008, at 9:15 a.m. in the Commission 5 offices. 6 It is now time for the public 7 participation portion of the meeting. 8 CHAIR KASSEKERT: Is there anyone from 9 the public that wishes to be heard? 10 (No response.) 11 CHAIR KASSEKERT: Seeing no one, I'll 12 declare this portion of the meeting closed and 13 entertain a motion to adjourn. 14 VICE CHAIR SOMMELING: Motion to 15 adjourn. 16 COMMISSIONER EPPS: Second. 17 COMMISSIONER FEDORKO: Second. 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 (Public Meeting 08-10-29 was adjourned 25 at 12:34 p.m.) 72 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: November 2, 2008 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25