1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 10-03-17 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, March 17, 2010 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 10:37 a.m. to 11:45 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 2 1 B E F O R E : 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 SHARON ANNE HARRINGTON, VICE CHAIR MICHAEL C. EPPS, COMMISSIONER 4 WILLIAM T. SOMMELING, COMMISSIONER EDWARD J. FANELLE, COMMISSIONER 5 6 PRESENT FOR THE CASINO CONTROL COMMISSION: DARYL W. NANCE, ADMINISTRATIVE ANALYST 7 DANIEL J. HENEGHAN, PUBLIC INFORMATION OFFICER LISA SPENGLER, PUBLICATIONS COORDINATOR 8 OFFICE OF THE GENERAL COUNSEL: 9 DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE SECRETARY 10 LEONARD J. DiGIACOMO, ASSISTANT GENERAL COUNSEL DENIS J. CORBETT, SENIOR COUNSEL 11 TERESA M. NAGENGAST, SENIOR COUNSEL TRACY E. RICHARDSON, COUNSEL 12 CLAIRE FRANK, PROGRAM MANAGER SANDRA DeLIA, LEGAL SUPPORT SPECIALIST 13 DIVISION OF GAMING ENFORCEMENT: 14 DEPUTY ATTORNEYS GENERAL JOHN E. ADAMS, JR., DEPUTY ATTORNEY GENERAL 15 BRIAN C. BISCIEGLIA, DEPUTY ATTORNEY GENERAL TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL 16 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL 17 DOROTHY TURI, DEPUTY ATTORNEY GENERAL R. LANE STEBBINS, DEPUTY ATTORNEY GENERAL 18 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S : 2 ITEM NO. 4 DENIS J. CORBETT, SENIOR COUNSEL R. LANE STEBBINS, DEPUTY ATTORNEY GENERAL 3 STERNS & WEINROTH, PC PAUL M. O'GARA, ESQ. 4 FOR: MARINA DISTRICT DEVELOPMENT, LLC ITEM NO. 5 DENIS J. CORBETT, SENIOR COUNSEL 5 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL BLANK ROME, LLP 6 STEPHEN D. SCHRIER, ESQ. FOR: TRUMP MARINA ASSOCIATES, LP 7 ITEM NO. 7 TERESA M. NAGENGAST, SENIOR COUNSEL LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL 8 GIBBONS, PC SUSANNE PETICOLAS, ESQ. 9 FOR: COCO-COLA COMPANY ITEM NO. 8 CLAIRE FRANK, PROGRAM SUPERVISOR 10 DOROTHY TURI, DEPUTY ATTORNEY GENERAL MICHAEL A. MAGAZZU 11 FOR: HARRAH'S ENTERTAINMENT, INC. AND HARRAH'S OPERATING COMPANY 12 ITEM NO. 9 DIANNA W. FAUNTLEROY, GENERAL COUNSEL MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL 13 PASHMAN STEIN SEAN MACK, ESQ. 14 FOR: CONSERVATOR/TRUSTEE ITEM NO. 10 LEONARD J. DiGIACOMO, ASSISTANT GENERAL 15 COUNSEL GEORGE N. ROVER, ASSISTANT ATTORNEY 16 GENERAL ANTHONY ZARRILLO, JR., ASSISTANT ATTORNEY 17 GENERAL FOX ROTHSCHILD, LLP 18 NICHOLAS CASIELLO, JR., ESQ. PATRICK MADAMBA, ESQ. 19 FOR: MGM MIRAGE STERNS & WEINROTH, PC 20 PAUL M. O'GARA, ESQ. FOR: BORGATA ENTITIES 21 ITEM NO. 11 TRACY E. RICHARDSON, COUNSEL JOHN E. ADAMS, JR., DEPUTY ATTORNEY 22 GENERAL DUANE MORRIS, LLP 23 GILBERT L. BROOKS, ESQ. FOR: TROPICANA ATLANTIC CITY CORP. 24 25 4 1 AGENDA PUBLIC MEETING NO. 10-03-17 2 MARCH 17, 2010, 10:37 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of the 8 8 March 3, 2010, public meeting 4 Attendance Awards 2008/2009 8 2 Applications for employee and casino 5 service industry licenses 2 initial and/or renewal of casino key 13 14 6 and casino employee licenses 17 initial and/or renewal of casino key 14 15 7 and casino employee licenses Casino service industry license 8 application for Skyline Jets, LLC 3 Stipulations of settlement and consent agreements: 9 a) Michael L. Coe (09-0707-EA) 15 17 b) Betsy E. Lieberman (a/k/a/ Betsy E. 17 21 10 Fisher)(09-0627-EA) sworn 18 c) Timothy R. Hunt (09-0476-ER) 15 17 11 d) Maxwell J. Van Ness (a/k/a Maxwell J. 15 17 Vanness) (08-0261-EA) 12 e) Kerry D. Millett (08-983-EA) 15 17 f) Antuliio Roldan, Jr. (09-0620-ER) 15 17 13 4 Stipulation of settlement in State v. 22 23 Marina District Development, LLC (d/b/a 14 Borgata Hotel, Casino & Spa) (09-0643-VC) 5 Stipulation of settlement in State v. 24 26 15 Trump Marina Associates, LP (d/b/a Trump Marina Hotel Casino) (09-0334-VC) 16 6 Consideration of forfeiture orders in: a) state v. Marina District Development, 26 28 17 LLC, et al. (09-0644-VC) b) State v. Harrah's Atlantic City 26 28 18 Operating Company, et al. (09-0645-VC) 7 Petition of Coca-Cola Company for 29 32 19 exemption from casino service industry licensure (PRN 3500901) 20 8 Consideration of the qualification of 32 34 Diane Wilfong to serve as Vice President, 21 Controller, and Chief Accounting Officer for Harrah's Entertainment, Inc., and 22 Harrah's Operating Company, Inc. 9 Consideration of the applications of the 35 40 23 Trustee and Conservator for the former casino licensee, Adamar of New Jersey, Inc., 24 for approval of fees for the Conservator/Trustee 10 Petition of MGM MIRAGE for approval of 45 58 25 a stipulation of settlement and related relief (PRN 0701003) 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 10-03-17 2 MARCH 17, 2010, 10:37 a.m. ITEM PAGE VOTE 3 11 Petition of Tropicana Atlantic City 40 44 Corp., for permission to allow Daniel A. 4 Ninivaggi and Michael Mann to perform the duties and exercise the powers of their 5 holding company officer positions pending qualification (PRN 0701004) 6 7 PUBLIC PARTICIPATION: JOHN DEVENEY 59 8 FRANKLIN OMAR JOHNSON 63 9 10 11 12 13 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 4 P-1 Remand for hearings 2 license X 5 P-2 Grant 17 licenses X 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (Exhibits retained by Commission.) 25 7 1 (Public Meeting 10-03-17 was commenced 2 at 10:37 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 Meeting Act," the New Jersey Casino Control 9 Commission on October 15, 2009, filed with the 10 Secretary of State at the State House in 11 Trenton, an annual meeting schedule. On 12 October 16th, copies were mailed to 13 subscribers. 14 Members of the press will be permitted 15 to take photographs. We ask that this be done 16 in a manner which is not disruptive or 17 distracting to the Commission. 18 The use of cell phones in the public 19 meeting room is prohibited. 20 Any member 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. 8 1 (The flag salute was recited.) 2 CHAIR KASSEKERT: Good morning. 3 MR. NANCE: Good morning. The matters 4 discussed in closed session were: Employee and 5 enterprise license matters. 6 The Commissioners approved the March 3, 7 2010, closed-session minutes. 8 Litigation update regarding Edwards 9 versus Adamar of New Jersey, Inc., et al. 10 Item No. 1, ratification of the minutes 11 of March 3, 2010, public meeting. 12 COMMISSIONER SOMMELING: Move to 13 approve. 14 VICE CHAIR HARRINGTON: 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: The motion carries. 21 MR. NANCE: Miss Spengler? 22 MS. SPENGLER: Good morning, Madame 23 Chair, Commissioners. 24 We have two presentations this morning. 25 So, first, what I'd like you all to do is ask 9 1 you all to step down and to be available to 2 greet our perfect attendance, exemplary 3 attendance award recipients. 4 First, we have a special commendation 5 that we'd like to present to Arlene Cooper from 6 our Inspection Unit. Arlene? 7 Madame Chair will read into the record 8 the certificate presented to Arlene. 9 CHAIR KASSEKERT: Thank you. 10 This certificate of commendation is 11 presented to Arlene Cooper for outstanding 12 performance as an inspector for the Casino 13 Control Commission and for going above and 14 beyond in an emergency situation. 15 Arlene, we appreciate your service here 16 at the Commission. 17 MS. COOPER: Thank you very much. 18 (Applause.) 19 MS. SPENGLER: Thank you, Arlene. 20 MS. COOPER: Thank you. 21 MS. SPENGLER: Before I introduce the 22 2008, 2009 award recipients, I'd like to thank 23 the committee who helped prepare the list of 24 those exemplary individuals and our Human 25 Resource Unit. We will be taking photographs 10 1 of all the recipients after the presentation 2 out in the lobby. 3 The certificates will also accompany a 4 pen this morning for those who have received 5 perfect and exemplary -- perfect attendance for 6 the years 2008 and 2009, which is an incredible 7 feat that needs to be recognized. 8 Congratulations to them. 9 As I call your name, please step 10 forward: Ken Doss for 2008, 2009 perfect 11 attendance. 12 (Applause.) 13 MS. SPENGLER: Daryl Nance, 2008, 2009 14 perfect attendance. 15 MR. NANCE: Thank you. 16 (Applause.) 17 MR. NANCE: Start over here. 18 CHAIR KASSEKERT: Start. Right. 19 MS. SPENGLER: Ed Sysol for 2008, 2009 20 perfect attendance. 21 (Applause.) 22 MS. SPENGLER: Reginald Allen, 2008, 23 2009 perfect attendance. 24 (Applause.) 25 MS. SPENGLER: Glenn MacFadden, 2008, 11 1 2009; McKenna Mahoney, 2008, 2009; Lawrence 2 Reilly, 2008, 2009; and Susan Seager, 2008, 3 2009. 4 They are here. They still have perfect 5 attendance. 6 (Applause.) 7 MS. SPENGLER: But were not able to -- 8 CHAIR KASSEKERT: Right. We wouldn't 9 let them be absent. 10 MS. SPENGLER: 2009 perfect attendance. 11 Certificate to Stephen Sheckelton. Michelle 12 Caplan, 2008 perfect attendance. 13 (Applause.) 14 MS. SPENGLER: Joni Morman, 2008 perfect 15 attendance; Chris Rakoczy, 2008 perfect 16 attendance; Jane Schollenberger, 2008 perfect 17 attendance. 18 (Applause.) 19 MS. SPENGLER: Peggy Suhr, 2008 perfect 20 attendance. 21 (Applause.) 22 MS. SPENGLER: Congratulations to our 23 perfect attendance. 24 Now for exemplary attendance, which is 25 two days of sick time or less: William 12 1 Carlton, 2008, 2009. 2 (Applause.) 3 MS. FRANK: Dianna Fauntleroy, 2008, 4 2009. 5 (Laughter and Applause.) 6 CHAIR KASSEKERT: 2009 perfect 7 attendance. 8 MS. FAUNTLEROY: Thank you. Thank you. 9 Thank you. Thank you. Thank you. 10 MS. SPENGLER: Dan Heneghan, for 2009 11 perfect -- exemplary attendance. 12 (Applause.) 13 MR. HENEGHAN: Thank you. Thank you. 14 Thank you. Thank you. Thank you. 15 MS. SPENGLER: Elaine Campbell, 2009 16 exemplary attendance; Jodi Hume, 2009; Bridget 17 Lombard, 2009; John Best, 2008; Cynthia Davis, 18 2008; Henry Rakowski, 2008; Anthony DiFlorio, 19 2008 exemplary attendance. 20 (Applause.) 21 MR. DiFLORIO: Thank you. 22 MS. SPENGLER: Sigrid Drucks, 2008, 23 exemplary attendance. 24 (Applause.) 25 MS. SPENGLER: And Karen Kindle, 2008 13 ITEM NO. 2 1 exemplary attendance. 2 Thank you all. Thank you for your 3 support of this program. And I'll take 4 pictures out in the lobby. 5 CHAIR KASSEKERT: Great thank you. 6 Let's give a round of applause. 7 (Applause.) 8 MS. SPENGLER: Okay. 9 CHAIR KASSEKERT: On behalf of the 10 Commission, I'd just like to say we appreciate 11 your service. We appreciate you going the 12 extra mile and making it in every day, or 13 making it in every day but two. And we know 14 that this has been tough times for everyone, 15 and we thank you again for your service and 16 your hard work on behalf of the Commission. 17 MR. NANCE: Item No. 2, applications for 18 employee and casino service industry licenses. 19 This agenda item will be entered as Exhibit 20 List 1 and 2. 21 Exhibit List 1 consists of two 22 applications for initial and/or renewal of 23 casino key and casino employee licenses. 24 The Division has objected to licensure. 25 COMMISSIONER EPPS: Move that we remand 14 ITEM NO. 2 1 these items for hearing. 2 COMMISSIONER SOMMELING: 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 MR. NANCE: For consideration is the 10 casino service industry license application 11 pursuant to NJSA 5:12-92(c) for Skyline Jets, 12 LLC. 13 The Division has objected to this 14 application. 15 COMMISSIONER EPPS: Move that we remand 16 this matter for hearing. 17 COMMISSIONER SOMMELING: 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: The motion carries. 24 MR. NANCE: Exhibit List 2 consists of 25 17 applications for initial and/or renewal of 15 ITEM NO. 3 1 casino key and casino employee licenses. 2 Staff and the Division have recommended 3 that these licenses be granted. 4 COMMISSIONER EPPS: Move that we grant 5 the application. 6 COMMISSIONER SOMMELING: 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: The motion carries. 13 MR. NANCE: Item No. 3, stipulation of 14 settlement and consent agreements. When I call 15 your name, please come forward, spreading 16 across the room behind the center table so that 17 you may be seen: Michael Coe, Timothy Hunt, 18 Maxwell Van Ness, Kerry Millett, and Antulio 19 Roldan, Jr. 20 CHAIR KASSEKERT: Has everyone whose 21 name been called come forward? 22 Sir, can you state your name for the 23 record? 24 MR. VAN NESS: Max Van Ness. 25 CHAIR KASSEKERT: Okay. In a moment we 16 ITEM NO. 3 1 are going to vote on the stipulations -- 2 Oh. Sorry. Could I have your name for 3 the record? 4 MR. COE: Yeah. Michael Coe. 5 CHAIR KASSEKERT: Thank you, Mr. Coe. 6 In a moment we are going to vote on the 7 stipulations which you've agreed to with the 8 Division of Gaming Enforcement. I'm going to 9 ask at this point if either of you wish to be 10 heard on your matter. You don't have to say 11 anything if you don't want. 12 Do either of were you wish to be heard? 13 MR. VAN NESS: No. 14 MR. COE: No. 15 CHAIR KASSEKERT: Thank you. 16 Mr. Biscieglia? 17 MR. BISCIEGLIA: Thank you. Good 18 morning, Chair and Commissioners. 19 The Division has nothing further on this 20 matter and ask that the stipulations be 21 approved. 22 Thank you. 23 CHAIR KASSEKERT: Thank you. 24 Any questions from the Commissioners? 25 COMMISSIONER SOMMELING: No questions, 17 ITEM NO. 3 1 Madame Chair. 2 I move to approve the stipulations with 3 the exception of -- 4 CHAIR KASSEKERT: We'll call her 5 separately. 6 COMMISSIONER EPPS: We'll call her 7 separately. 8 COMMISSIONER SOMMELING: All right. 9 Approve the stipulations, Madame Chair. 10 COMMISSIONER EPPS: 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: The motion carries. 17 Thank you for coming. Good luck. 18 MR. COE: Thank you. 19 MR. VAN NESS: Thank you. 20 MR. NANCE: I'd now like to call Betsy 21 Lieberman. 22 CHAIR KASSEKERT: Good morning, Ms. 23 Lieberman. 24 Again, we are going to discuss your 25 stipulation which you've agreed to with the 18 ITEM NO. 3 1 Division of Gaming Enforcement. 2 I'm going to ask if any of the 3 Commissioners have any questions with respect 4 to Miss Lieberman? 5 Okay. 6 VICE CHAIR HARRINGTON: Yes. I was 7 wondering where in the restroom was the bag 8 found? 9 CHAIR KASSEKERT: Let me swear you in 10 first. Yeah. Sure 11 VICE CHAIR HARRINGTON: Okay. I'm 12 sorry. 13 CHAIR KASSEKERT: Commissioner 14 Harrington has a question for you, so we're 15 going to swear you in. And I'll also ask you 16 if you have any questions or anything you'd 17 like to tell us as well. 18 Daryl, would you swear her in? 19 20 BETSY LIEBERMAN was duly sworn to 21 testify in this matter. 22 23 MR. NANCE: Please state your name for 24 the record. 25 MS. LIEBERMAN: Betsy Lieberman. 19 ITEM NO. 3 1 MR. NANCE: Would you spell your name 2 for the record, please? 3 MS. LIEBERMAN: L-i-e-b-e-r-m-a-n. 4 MR. NANCE: Thank you. 5 CHAIR KASSEKERT: Thank you. 6 Miss Harrington -- or Commissioner 7 Harrington? 8 VICE CHAIR HARRINGTON: We have 9 information that says that the bag in question 10 was found in a restroom. Do you know where 11 exactly it was found? 12 MS. LIEBERMAN: Yes. I put it right 13 down on the floor when I went to use the 14 restroom, and I left it there. 15 VICE CHAIR HARRINGTON: So it wasn't 16 hidden or -- 17 MS. LIEBERMAN: No, it was not. 18 VICE CHAIR HARRINGTON: -- set aside? 19 Okay. Thank you. That was my question. 20 CHAIR KASSEKERT: Is there anything 21 you'd like to tell us with respect to your 22 stipulation with the Division of Gaming 23 Enforcement? 24 MS. LIEBERMAN: No, there's not. 25 CHAIR KASSEKERT: Okay. Any -- 20 ITEM NO. 3 1 Mr. Biscieglia? 2 MR. BISCIEGLIA: Just state that in 3 speaking with Mr. Kimmel about this matter and 4 Mr. Mamolen, I believe that the concern of the 5 Commission regarding the stipulation of 6 settlement -- and please correct me if I'm 7 wrong -- 8 CHAIR KASSEKERT: Uh-hum. 9 MR. BISCIEGLIA: -- is in regards to 10 Paragraph 3 and Paragraph C. And the Division 11 would be willing to make an affirmative 12 statement withdrawing the allegation of 13 disqualification on the record if that would 14 assist the Commission in approving the 15 stipulation. I can understand the concerns 16 with the language that was put forth in the 17 stip. 18 It is the Division's position that 19 further investigation was conducted. At the 20 conclusion of that investigation, the evidence 21 did not support a finding that the Respondent 22 had engaged in disqualifying conduct pursuant 23 to 86(c)(2) and (g). If that statement on the 24 record would assist the Commission in approving 25 the stipulation, the Division is willing to 21 ITEM NO. 3 1 make that. 2 CHAIR KASSEKERT: I think that would be 3 very helpful. 4 VICE CHAIR HARRINGTON: That would be 5 very helpful. 6 CHAIR KASSEKERT: Is there -- 7 COMMISSIONER EPPS: With that -- with 8 that explanation placed upon the record -- 9 CHAIR KASSEKERT: Okay. 10 COMMISSIONER EPPS: -- I would move to 11 approve the stipulation. 12 COMMISSIONER SOMMELING: Second. 13 CHAIR KASSEKERT: The motion has been 14 made and seconded. All in favor? 15 (Ayes.) 16 CHAIR KASSEKERT: Opposed? 17 (No response.) 18 CHAIR KASSEKERT: The motion carries. 19 Thank you for coming. Good luck. 20 We will have somebody explain to you 21 what we did, but what we have, in essence, done 22 is we have approved your stipulation of 23 settlement. 24 MS. LIEBERMAN: Thank you. 25 CHAIR KASSEKERT: Okay? Thank you. 22 ITEM NO. 4 1 MR. NANCE: Item No. 4, stipulation of 2 settlement in State versus Marina District 3 Development, LLC. 4 Mr. Corbett? 5 MR. CORBETT: Chair, Commissioners, in 6 the stipulation of settlement in this case the 7 casino licensee admits the regulatory 8 violations regarding underaged gambling and 9 drinking and agrees to a penalty of $40,000. 10 Mr. O'Gara is here for the casino 11 licensee and Mr. Stebbins for the Division. 12 CHAIR KASSEKERT: Good morning, Mr. 13 O'Gara. 14 MR. O'GARA: Good morning. 15 We simply ask that you approve the 16 stipulations that's been arrived at between the 17 Borgata and the Division. 18 CHAIR KASSEKERT: Thank you. 19 Mr. Stebbins? 20 MR. STEBBINS: Madame Chair, members of 21 the Commission, I share Mr. O'Gara's thoughts. 22 I ask you to approve it, noting that the fine 23 is somewhat elevated for an underaged gambling. 24 That reflects the fact that there are multiple 25 counts, multiple individuals, both of whom were 23 ITEM NO. 4 1 at table games. 2 But I would share Mr. O'Gara's thoughts, 3 ask you to approve it. It is fair and fully 4 supported by the record before you. 5 Thank you. 6 CHAIR KASSEKERT: Thank you. 7 Any questions? 8 COMMISSIONER SOMMELING: No questions, 9 Madame Chair. 10 I move to approve the stipulation of 11 settlement and impose a civil penalty of 12 $40,000 against Marina District Development, 13 LLC, for violation of Commission regulations 14 regarding serving alcoholic beverages to 15 underaged persons and underaged gamblers. 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: The motion carries. 23 Thank you. 24 MR. STEBBINS: Thank you. 25 MR. O'GARA: Thank you. 24 ITEM NO. 5 1 MR. NANCE: Item No. 5, stipulation of 2 settlement in State versus Trump Marina 3 Associates, LP. 4 Mr. Corbett? 5 MR. CORBETT: Chair and Commissioners, 6 in the stipulation of settlement in this case, 7 the licensee admits to regulatory violation 8 regarding casino credit applications and agrees 9 to a penalty of $105,000. 10 Mr. Schrier is here for the casino 11 licensee and Mr. Ficchi for the Division. 12 CHAIR KASSEKERT: Mr. Schrier? 13 MR. SCHRIER: Madame Chair, members of 14 the Commission, good morning. Steven D. 15 Schrier from the firm of Blank Rome on behalf 16 of Trump Marina Associates. 17 I believe it was $115,000, wasn't it? 18 MR. CORBETT: Yes. 19 MR. SCHRIER: So that would be one 20 correction I would have to the stipulation. 21 But I would point out only that the 22 Respondent has worked with the Division, 23 corrected the deficiencies that were noted in 24 the stipulation, and I would ask that the 25 Commission respectfully approve the 25 ITEM NO. 5 1 stipulation. 2 CHAIR KASSEKERT: Thank you. 3 Mr. Corbett, I just want to double check 4 the amount. 5 MR. CORBETT: Yes. The correct number 6 is $115,000. 7 CHAIR KASSEKERT: Thousand. Okay. 8 Thank you. 9 Mr. Ficchi? 10 MR. FICCHI: Yes. Good morning, Chair 11 and Commissioners. 12 The Division doesn't -- has anything 13 further. We just respectfully request that the 14 Division adopt the stipulations. 15 Thank you. 16 CHAIR KASSEKERT: Thank you. 17 Any questions? 18 COMMISSIONER SOMMELING: No questions, 19 Madame Chair. 20 COMMISSIONER EPPS: Madame Chair, I move 21 we approve the stipulation of settlement and 22 impose a civil penalty of $115,000 against 23 Trump Marina Associates, LP, for violation of 24 Commission regulations regarding accounting and 25 internal controls. 26 ITEM NO. 6 1 VICE CHAIR HARRINGTON: I'll second 2 that. 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 Thank you. 10 MR. SCHRIER: Thank you. 11 MR. FICCHI: Thank you. 12 MR. NANCE: Item No. 6, consideration of 13 forfeiture orders in State versus Marina 14 District Development, LLC, et al., and State 15 versus Harrah's Atlantic City Operating 16 Company, et al. 17 Miss DeLia? 18 MS. DeLIA: Good morning. 19 For the Commission's consideration are 20 two forfeiture orders seeking money confiscated 21 from underaged gamblers at Harrah's and 22 self-excluded persons at Borgata to be turned 23 over to the Commission for disposition. 24 The respective counsel for the two 25 licensees are not present today but have 27 ITEM NO. 6 1 provided letters advising that they have no 2 objection to the entry of a forfeiture order. 3 Each patron was provided with a notice 4 of the forfeiture action and the opportunity to 5 be heard. They either have not responded or 6 stated that they were not contesting the 7 action. 8 The matter is now being presented to the 9 Commission for final action. 10 Mr. Stebbins is here on behalf of the 11 Division. 12 CHAIR KASSEKERT: Thank you. 13 Good morning, again, Mr. Stebbins. 14 MR. STEBBINS: Good morning again. 15 As to the Borgata matter, that's four 16 self-excluded patrons and totalled over $3,000, 17 about 3700, and at Harrah's, that was 17 18 underaged individuals, and that's about a 19 little over $2,000. That's the typical kind of 20 thing that we see, unfortunately, but, you 21 know, we're getting better at it. 22 I'd ask you to enter the appropriate 23 order. 24 Thank you. 25 CHAIR KASSEKERT: Thank you. 28 ITEM NO. 6 1 Any questions for Mr. Stebbins? 2 COMMISSIONER SOMMELING: No questions, 3 Madame Chair. 4 COMMISSIONER EPPS: Madame Chair, I move 5 that we dismiss without privilege the 6 forfeiture action with respect to patron "MT" 7 in the Harrah's complaint, Agency Docket No. 8 09-0645-VC due to the Commission's inability to 9 effectuate proper notice as required by Section 10 71.3(c) of the Act; but, otherwise, order that 11 the remaining money seized from the other 12 patrons in these two complaints be forfeited 13 due to their having gambled while underage or 14 on the self-exclusion list, and the respective 15 casinos are required to remit the forfeited 16 funds to the Commission for appropriate 17 disposition in accordance with NJSA 18 5:12-71.3(c). 19 VICE CHAIR HARRINGTON: Second. 20 CHAIR KASSEKERT: The motion has been 21 made and seconded. All in favor? 22 (Ayes.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: Motion carries. 29 ITEM NO. 7 1 MR. STEBBINS: Thank you. 2 CHAIR KASSEKERT: Thank you. 3 MR. NANCE: Item No. 7, petition of 4 Coca-Cola Company for exemption from casino 5 service industry licensure. 6 MS. NAGENGAST: Good morning, Chair, 7 Commissioners. 8 MR. NANCE: Miss Nagengast? 9 MS. NAGENGAST: For your consideration 10 is the petition of the Coca-Cola Company 11 seeking an exemption from nongaming CSI 12 licensure. 13 I do note that Susanne Peticolas behalf 14 of the Coca-Cola Company has requested certain 15 portions of the petition and an accompanying 16 certification be sealed. 17 Miss Peticolas is here on behalf of the 18 petition and Lou Rogacki on behalf of the 19 Division. 20 CHAIR KASSEKERT: Thank you. 21 Miss Peticolas? 22 MS. PETICOLAS: Good morning, Madame 23 Chair, members of the Commission. Thank you 24 for your attention this morning. I'm Susanne 25 Peticolas from the firm of Gibbons, PC, on 30 ITEM NO. 7 1 behalf of the Coca-Cola Company. 2 We're here this morning on our petition 3 for exemption from nongaming casino service 4 industry licensing requirements pursuant to 5 NJSA 5:12-92(c)(3) Subpart 2. We believe that 6 Coca-Cola meets all three of the criteria for 7 such an exemption. It's publicly traded. 8 It's -- the amount of revenues derived from its 9 casino business is considerably less than 10 one-tenth of one percent of all of its 11 revenues. And we do not believe that licensing 12 is necessary to protect the public interest or 13 the policies that are protected by the statute. 14 Coca-Cola Company had been licensed as a 15 casino service industry in the past and, in 16 fact, its renewal application was pending when 17 this statute was amended. So we respectfully 18 request that our petition for exemption be 19 granted. 20 Thank you. 21 CHAIR KASSEKERT: Thank you. 22 Let me ask if there are any questions 23 for counsel? 24 COMMISSIONER SOMMELING: No questions, 25 Madame Chair. 31 ITEM NO. 7 1 CHAIR KASSEKERT: Let me just ask before 2 we hear from Mr. Rogacki. The conditions, the 3 sealing request, that's all contained in the 4 order? 5 MS. NAGENGAST: That would. Yes. 6 CHAIR KASSEKERT: Right. 7 MS. NAGENGAST: I believe it's 8 Paragraphs 12 and 13 of the petition and 9 Paragraphs 10 and 11 of the certification. 10 CHAIR KASSEKERT: Terrific. Thank you. 11 Mr. Rogacki? 12 MR. ROGACKI: Madame Chair, and 13 Commissioner, the Division filed its letter 14 responding to the petition on January 28th, 15 2010, stating that we had no objection to this 16 petition being granted. 17 I've also reviewed the relevant portions 18 of the petition as well as the certification 19 that Counsel seeks to have sealed. The 20 Division has no objection to those portions 21 being sealed. 22 CHAIR KASSEKERT: Thank you. 23 Any questions? 24 COMMISSIONER SOMMELING: No questions, 25 Madame Chair. 32 ITEM NO. 8 1 VICE CHAIR HARRINGTON: No. 2 COMMISSIONER EPPS: Madame Chair, I move 3 that we grant the petition of Coca-Cola Company 4 for an exemption from nongaming casino service 5 industry licensure pursuant to NJSA 6 5:12-92(c)(2) and subject to the conditions in 7 the order, including a grant of limited sealing 8 request. 9 COMMISSIONER SOMMELING: 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: The motion carries. 16 Thank you. 17 MS. PETICOLAS: Thank you. 18 MR. NANCE: Item No. 8, consideration of 19 the qualifications of Diane Wilfong to serve as 20 Vice President, Controller, and Chief 21 Accounting Officer for Harrah's Entertainment, 22 Inc., and Harrah's Operating Company, Inc. 23 Miss Frank? 24 MS. FRANK: Good morning, Chair and 25 Commissioners. 33 ITEM NO. 8 1 Diane Wilfong received temporary 2 qualification from the Commission on June 17, 3 2009. 4 A draft resolution on the plenary 5 qualification has been circulated to the 6 parties. 7 We have Michael Magazzu here for 8 Harrah's and Miss Turi for the Division of 9 Gaming Enforcement. 10 CHAIR KASSEKERT: Good morning, Mr. 11 Magazzu. 12 MR. MAGAZZU: Good morning, Madame Chair 13 and Commissioners. Mike Magazzu on half of 14 Harrah's Entertainment and Harrah's Operating 15 Company. 16 We have reviewed the draft resolution, 17 and we have nothing to add other than to 18 request that the Commission grant Miss 19 Wilfong's plenary qualification. 20 CHAIR KASSEKERT: Thank you. 21 MR. MAGAZZU: Thank you. 22 CHAIR KASSEKERT: Miss Turi? 23 MS. TURI: Good morning, Madame Chair 24 and Commissioners. Dorothy Turi, Deputy 25 Attorney General on behalf of the Division of 34 ITEM NO. 8 1 Gaming Enforcement. 2 You have the letter that was filed on 3 behalf of the Division dated February 26, 2010, 4 in which the Division recommended that Miss 5 Wilfong be plenary qualified. 6 I've also had the opportunity to review 7 the draft resolution, and I have no objection 8 to its entry. 9 CHAIR KASSEKERT: Thank you. 10 Any questions for the parties? 11 COMMISSIONER SOMMELING: No questions, 12 Madame Chair. 13 Move to adopt the draft resolution and 14 find Diane Wilfong qualified to serve as Vice 15 President, Controller, and Chief Accounting 16 Officer for Harrah's Entertainment, Inc., and 17 Harrah's Operating Company, Inc. 18 VICE CHAIR HARRINGTON: Second. 19 CHAIR KASSEKERT: Motion has been made 20 and seconded. This is a roll call vote. 21 MR. NANCE: Commissioner Sommeling? 22 COMMISSIONER SOMMELING: Yes. 23 MR. NANCE: Commissioner Epps? 24 COMMISSIONER EPPS: Yes. 25 MR. NANCE: Commissioner Fanelle? 35 ITEM NO. 9 1 COMMISSIONER FANELLE: Yes. 2 MR. NANCE: Vice Chair Harrington? 3 VICE CHAIR HARRINGTON: Yes. 4 MR. NANCE: Chair Kassekert? 5 CHAIR KASSEKERT: Yes. 6 MR. NANCE: The record will reflect that 7 the motion is unanimous. 8 MS. TURI: Thank you. 9 MR. MAGAZZU: Thank you. 10 MR. NANCE: Item No. 9, consideration of 11 the applications of the Trustee and Conservator 12 for the former casino licensee, Adamar of New 13 Jersey, Inc., for approval of fees for the 14 Conservator/Trustee. 15 Miss Fauntleroy? 16 MS. FAUNTLEROY: Chair, Commissioners, I 17 believe this is the final invoice submitted by 18 Conservator Stein with respect to his 19 conservatorship of the Adamar of New Jersey, 20 Inc., Tropicana facility. The current invoice 21 covers the period February 1 through March 8, 22 and seeks your approval of $34,060 in 23 invoices -- in billings. 24 I have reviewed the invoices, as has the 25 Division of Gaming Enforcement, through Deputy 36 ITEM NO. 9 1 Attorney General Mary Jo Flaherty. And Sean 2 Mack is here on behalf of the Conservator. 3 CHAIR KASSEKERT: Good morning, Mr. 4 Mack. 5 MR. MACK: Good morning, Chair and 6 Commissioners. 7 You have Justice Stein's invoices 8 through the closing date, of Monday, March 8th. 9 I'd be happy to answer any questions. 10 Before I sit down, I wanted to just 11 express on behalf of Justice Stein his 12 apologies for not being able to be here today. 13 He has an appointment with an orthopedic 14 specialist that he couldn't cancel. 15 He also asked me to read on his behalf a 16 note that he wanted to express to the 17 Commission: 18 I want to express my sincere 19 appreciation to the Chair and to the members of 20 the New Jersey Casino Control Commission and to 21 the staffs of the Commission and the Division 22 of Gaming Enforcement for their confidence in 23 selecting me to serve as Trustee and 24 Conservator and for their guidance and support 25 during the past 27 months. 37 ITEM NO. 9 1 No one could possibly have foreseen the 2 many twists and turns that developed during the 3 course of the sale process. Through it all, 4 the Commission persevered in seeking 5 fulfillment of its long-term goal that the 6 Tropicana Casino be acquired by a responsible 7 and financially stable purchaser. 8 To have served as Conservator of the 9 Tropicana Casino during the past 27 months was 10 an unanticipated and remarkable experience. My 11 supervisory role was made so much easier 12 because of the extraordinary leadership 13 provided by Mark Giannantonio as the casino's 14 Chief Operating Officer, supported by a 15 dedicated and determined executive team. 16 It is significant to me that the same 17 senior executives that led the casino when my 18 conservatorship began were there to celebrate 19 the closing that occurred on March 8th. I am 20 informed that all those executives will be 21 continuing in their positions at the Tropicana. 22 To conclude, I am honored to have been 23 able to serve as a Conservator designated by 24 the New Jersey Casino Control Commission to 25 supervise the Tropicana Casino from December 38 ITEM NO. 9 1 7th, 2007, until March 8th, 2010. I deeply 2 appreciate the opportunity to have been of 3 service to the Commission and to the State of 4 New Jersey. 5 Respectfully, Gary S. Stein. 6 CHAIR KASSEKERT: Thank you. And would 7 you please express to Justice Stein the 8 Commission's thanks for his service and, as he 9 said, during an extraordinary period of time. 10 Thank you. 11 MR. MACK: Thank you. 12 CHAIR KASSEKERT: Miss Flaherty? 13 MS. FLAHERTY: Yes, Chair and 14 Commissioners. 15 At this point by virtue of the 16 Commission's resolution on March 3rd, the 17 conservatorship ended as of the closing of the 18 asset purchase agreement on March 8th. This, 19 therefore, is the last report of the 20 Conservator and the final billings. We've 21 reviewed those. We have no objection to the 22 payment of the billings. 23 As stated, this has been a 27-month 24 process, and we are happy that it is concluded 25 at this point in time, and the Tropicana has a 39 ITEM NO. 9 1 new owner and can proceed. 2 Thank you. 3 CHAIR KASSEKERT: Thank you. 4 Any questions? 5 COMMISSIONER SOMMELING: No questions, 6 Madame Chair. 7 CHAIR KASSEKERT: No? 8 COMMISSIONER EPPS: Madame Chair, may I 9 just say, I also thank Justice Stein for his 10 service. But to Sean. In this whole process, 11 you were here for a lot of the transactions, 12 and there were some tough sledding through 13 there. And you represented yourself well, and 14 you were always respectful and prepared, and 15 you answered to the Commission, and you were 16 there for every call, and you took a lot of 17 shots. But you held yourself well. And you're 18 to be commended for your time serving the 19 Tropicana through your firm for the work that 20 you did. So I want to commend you personally 21 for the work that you did representing Pashman 22 Stein for that time. So thank you for your 23 work, too, because you went through a tough 24 time. But you've come a long way. So I want 25 to thank you for your work. 40 ITEM NO. 11 1 MR. MACK: Thank you, Commissioner. 2 COMMISSIONER EPPS: With that, I move 3 that we approve the invoices for Conservator 4 Stein through the period February 1 through 5 March 8th, 2010, in the amount of $34,060. 6 COMMISSIONER SOMMELING: 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 Thank you. 14 MR. MACK: Thank you. 15 MR. NANCE: For your consideration Item 16 No. 11, petition of Tropicana Atlantic City 17 Corp. for permission to allow Daniel A. 18 Ninivaggi and Michael Mann to perform the 19 duties and exercise the powers of their holding 20 company officer positions pending 21 qualification. 22 Miss Richardson? 23 MS. RICHARDSON: Good morning, Chair and 24 Commissioners. 25 A draft resolution was circulated to the 41 ITEM NO. 11 1 parties on this qualification matter. 2 Here for the Petitioner is Gilbert 3 Brooks and for the Division is DAG Jack Adams. 4 CHAIR KASSEKERT: Thank you. 5 Good morning, Mr. Brooks. 6 MR. BROOKS: Good morning, Madame Chair, 7 members of the Commission. Gilbert Brooks from 8 the firm Duane Morris on behalf of the 9 Applicants. 10 We've had a chance to review -- or I've 11 had a chance to review the draft resolution, 12 and it's acceptable to the Applicants. 13 And unless there's any questions, I have 14 nothing further. 15 CHAIR KASSEKERT: Thank you. 16 Let me ask if there are any questions? 17 COMMISSIONER SOMMELING: I have no 18 questions, Madame Chair. 19 CHAIR KASSEKERT: Mr. Adams? 20 MR. ADAMS: Good morning, Chair and 21 Commissioners. You have our response, letter 22 report in response to the petition. 23 I just wanted to make note, and I think 24 I discussed it with Tracy yesterday, with 25 respect to Mr. Mann, he has complete -- or 42 ITEM NO. 11 1 filed a complete application, a Form 1 with a 2 multi-jurisdictional and New Jersey supplement. 3 We're prepared to consent to the 4 temporary qualification unless you have any 5 questions. 6 CHAIR KASSEKERT: Thank you. 7 Any questions for Mr. Adams? 8 COMMISSIONER SOMMELING: I have no 9 questions, Madame Chair. 10 CHAIR KASSEKERT: We're going to do this 11 as two separate motions? 12 COMMISSIONER EPPS: Madame Chair, I move 13 that we adopt the draft resolution and 14 authorize Daniel A. Ninivaggi on a temporary 15 basis and prior to his plenary qualification to 16 assume the duties and exercise the powers of 17 President of Icahn Enterprises, GP, Icahn 18 Enterprises and Icahn Enterprises Holdings 19 subject to the conditions contained in NJSA 20 19:43-2.7 and -- 21 Does he get the other language or no? 22 MS. FAUNTLEROY: No. 23 COMMISSIONER EPPS: No. 24 COMMISSIONER SOMMELING: Second that and 25 move on to the next. 43 ITEM NO. 11 1 CHAIR KASSEKERT: Thank you. The motion 2 is made and seconded. This is a roll call 3 vote. 4 MR. NANCE: Commissioner Sommeling? 5 COMMISSIONER SOMMELING: Yes. 6 MR. NANCE: Commissioner Epps? 7 COMMISSIONER EPPS: Yes. 8 MR. NANCE: Commissioner Fanelle? 9 COMMISSIONER FANELLE: Yes. 10 MR. NANCE: Vice Chair Harrington? 11 VICE CHAIR HARRINGTON: Yes. 12 MR. NANCE: Chair Kassekert? 13 CHAIR KASSEKERT: Yes. 14 MR. NANCE: The record will reflect that 15 the motion is unanimous. 16 Now we'll do Mr. Mann. 17 COMMISSIONER EPPS: And I will move that 18 we adopt the draft resolution and authorize 19 Michael Mann on a temporary basis and prior to 20 his plenary qualification to assume the duties 21 and exercise the powers of Senior Internal 22 Audit Officer of Tropicana Entertainment, Inc., 23 subject to the conditions contained in NJSA 24 19:43-2.7. 25 VICE CHAIR HARRINGTON: Second. 44 ITEM NO. 11 1 CHAIR KASSEKERT: Motion is made and 2 seconded. This is a roll call vote. 3 MR. NANCE: Commissioner Sommeling? 4 COMMISSIONER SOMMELING: Yes. 5 MR. NANCE: Commissioner Epps? 6 COMMISSIONER EPPS: Yes. 7 MR. NANCE: Commissioner Fanelle? 8 COMMISSIONER FANELLE: Yes. 9 MR. NANCE: Vice Chair Harrington? 10 VICE CHAIR HARRINGTON: Yes. 11 MR. NANCE: Chair Kassekert? 12 CHAIR KASSEKERT: Yes. 13 MR. NANCE: The record will reflect that 14 the motion is unanimous. 15 CHAIR KASSEKERT: Thank you. 16 MR. BROOKS: Thank you. 17 MS. RICHARDSON: Thank you. 18 MS. FAUNTLEROY: If I may, Madame Chair, 19 may the staff request no more than a ten-minute 20 adjournment to allow distribution of materials 21 for the next matter. 22 CHAIR KASSEKERT: Sure. We'll adjourn 23 for ten minutes. Thank you. 24 MS. FAUNTLEROY: Exactly ten. 25 CHAIR KASSEKERT: Exactly ten. 45 ITEM NO. 10 1 (A recess was taken from 11:10 to 11:25 2 a.m.) 3 CHAIR KASSEKERT: Thank you. We'll go 4 back on the record. 5 MR. NANCE: Item No. 10, petition of MGM 6 MIRAGE for approval of a stipulation of 7 settlement and related relief. 8 Mr. DiGiacomo? 9 MR. DiGIACOMO: Chair, Commissioners, 10 good morning. 11 Nicholas Casiello, Jr., for the 12 Petitioners. George Rover for the Division of 13 Gaming Enforcement, and Mr. Paul O'Gara for the 14 Borgata and related entities. 15 I've shared with counsel for each of the 16 parties a version of the draft resolution, and 17 I believe that they are prepared to consent to 18 its form and entry. 19 CHAIR KASSEKERT: Thank you. 20 Mr. Casiello? 21 MR. CASIELLO: Madame Chair, and 22 Commissioners, good morning. Also appearing 23 with me from my firm is Pat Madamba. 24 CHAIR KASSEKERT: Good morning. 25 MR. CASIELLO: We are prepared to 46 ITEM NO. 10 1 consent to the entry and form of that 2 resolution, but before we get too far into 3 that, let me tell you about this matter. Okay? 4 This matter arises out of the May 2009 5 special report of the Division of Gaming 6 Enforcement on the relationship on the 7 relationship of MGM MIRAGE and Pansy Ho on a 8 joint venture in Macau. In its June 2005 9 report on the renewal of the Borgata casino 10 license, the Division advised the Commission of 11 the Macau joint venture, and it would 12 investigate the matter that would result in the 13 issuance of that special report. 14 Before you today are two matters; a 15 stipulation of settlement and a related 16 petition. The petition requests several 17 different approvals necessary to implement this 18 stipulation. It's a lot of paper, but 19 conceptually the stipulation is actually very 20 simple. However, the details are a bit 21 complicated. The stipulation would settle the 22 reopened 2005 Borgata license renewal hearing 23 by MGM divesting itself of its ownership 24 interest in the joint venture that owns Borgata 25 and some related real estate. 47 ITEM NO. 10 1 Pending a sale, those interests will be 2 placed in trust. A trustee will be controlling 3 the assets through the pendency of the trust. 4 Former Chief Justice of the New Jersey Supreme 5 Court and former Attorney General James R. 6 Zazzali has been selected as a trustee, and 7 Chief Justice Zazzali is here today. 8 CHAIR KASSEKERT: Good morning, Chief 9 Justice. 10 MR. CASIELLO: And is available to 11 answer any questions that you may have. 12 MGM MIRAGE has 18 months to effectuate a 13 sale of the assets. If it does not then sell 14 the assets, the trustee would be authorized to 15 sell the property and must do so within 12 16 months. MGM MIRAGE, as the economic 17 beneficiary of the trust, is entitled to the 18 proceeds the sale. 19 During the time the trust is in effect, 20 there are limitations on communications among 21 the MGM MIRAGE, the trustee, and Borgata. MGM 22 MIRAGE will have a duty to continue to 23 cooperate with the Commission and Division on 24 matters related to the settlement. And the 25 stipulation also contains a bar prohibiting MGM 48 ITEM NO. 10 1 MIRAGE from reapplying for licensure during the 2 term of the trust and for 30 months after the 3 trust property is sold. 4 One correction to the stipulation that 5 is before you is that Paragraph X should refer 6 to the Council on Compulsive Gambling of New 7 Jersey, rather than Gamblers Anonymous. The 8 settlement has been approved by the committee 9 of the board of directors of MGM MIRAGE 10 consisting of the independent and disinterested 11 directors. And it is that committee which 12 would make any decisions relating to Paragraph 13 6 of the trust agreement. 14 Just for the record, those disinterested 15 directors are, first of all, Roland Hernandez, 16 who is also Chairman of the company's Audit 17 Committee; Alexis Herman, who is former 18 Secretary of Labor during the Clinton 19 Administration and Chair of the company's 20 Diversity Committee; Kenny Guinn, who is former 21 Governor of the State of Nevada; Rose McKenny- 22 James, who is former Special Agent in Charge of 23 the Las Vegas FBI Office; and Willie D. Davis, 24 former all-pro lineman for the Green Bay 25 Packers and member of the National Football 49 ITEM NO. 10 1 Hall of Fame. Subject to the receipt of 2 regulatory approvals, Bill Bible, former 3 Chairman of the Gaming Commission in Nevada 4 will also become a member of the board of 5 directors and would also be considered 6 disinterested. 7 By entering into the settlement, MGM 8 MIRAGE is not making any admission of 9 wrongdoing. Attached to the stipulation is a 10 slightly redacted version of the Division's 11 special report. And as the members of the 12 Commission know, that is only a report and not 13 evidence of any allegations contained therein. 14 If the stipulation is approved and our 15 redaction request is granted, that version of 16 the special report will be made public today. 17 Approval of the stipulation will 18 conclude the reopened 2005 license renewal 19 hearing of Borgata. 20 As I noted earlier, the petition seeks a 21 number of approvals necessary to implement the 22 stipulation or otherwise are necessary or 23 appropriate. One is approval amendments to the 24 joint venture agreement for Borgata -- for 25 Borgata. Yeah. And several leases in a letter 50 ITEM NO. 10 1 agreement. Another is approval to transfer the 2 joint-venture interests into the trust. 3 Another is approval of the suitability of Chief 4 Justice Zazzali as trustee. And, lastly and 5 most importantly, the petition seeks a waiver 6 of the qualification requirements of MGM MIRAGE 7 as an indirect owner based on its ability to no 8 longer have any ability to control once the 9 interest is placed in trust. 10 With that, I'd be pleased to answer any 11 questions. Otherwise, I simply request that 12 the stipulation of settlement and petition be 13 approved. 14 CHAIR KASSEKERT: Thank you. 15 Let me ask if there are any questions 16 for Mr. Casiello? 17 COMMISSIONER SOMMELING: No questions at 18 this point, Madame Chair. 19 CHAIR KASSEKERT: Okay. Thank you. 20 Mr. O'Gara, do you have anything to put 21 on the record? 22 MR. O'GARA: Yeah. We join in seeking 23 approvals. Specifically Boyd Gaming, MDDC, and 24 the Boyd subsidiaries directly owned consent to 25 the stipulation as to the relevant paragraphs 51 ITEM NO. 10 1 which apply to Boyd, which are Paragraphs Z and 2 Paragraphs CC as noted in the stipulation of 3 settlement. 4 CHAIR KASSEKERT: Thank you. 5 Mr. Rover? 6 MR. ROVER: Madame Chair, Commissioners, 7 good morning. Also representing the Division 8 this morning is Anthony Zarrillo, Assistant 9 Attorney General. 10 We -- the Division does consent to the 11 form of the resolution passed out earlier this 12 morning. The Division has carefully reviewed 13 the petition filed by MGM MIRAGE. And as set 14 forth in our written response, we have no 15 objections to the relief requested therein. 16 We would note for the record that the 17 terms and the substance of the stipulation of 18 settlement and the trust agreement were the 19 product of extensive negotiations, many times 20 very difficult, with MGM MIRAGE's attorneys. 21 And we believe that the final document which we 22 have approved represents a just resolution of 23 the matters raised in the Division's special 24 report, and that that resolution is consistent 25 with the objectives and spirit of the Casino 52 ITEM NO. 10 1 Control Act. 2 I would also note that the Division 3 concurs in any necessary waivers of the 4 qualification requirement and consents to any 5 withdrawals pursuant to NJAC 19:41-8.6. 6 In addition, the Division asserts that 7 good cause exists under NJSA 82(c)(5) to 8 dispense with the requirements that the leases 9 concern one hundred percent of the land 10 underlying Borgata's approved hotel or that the 11 trust or trustee hold a casino license for 12 casino industry service license. 13 We also -- the Division also consents to 14 the amendment of Paragraph X of the stipulation 15 to add Council on Compulsive Gambling. And we 16 also agree with the MGM's interpretation of 17 Paragraph P of the stip regarding early -- 18 regarding reapplication, meaning reapplication 19 cannot occur prior to 30 months after the 20 dissolution -- 30 months after the sale of the 21 trust property. 22 Again, we would urge the Commission to 23 approve the stipulation of settlement and trust 24 agreement. 25 Thank you. 53 ITEM NO. 10 1 CHAIR KASSEKERT: Thank you. 2 Any questions for the Division? 3 COMMISSIONER SOMMELING: I have no 4 questions, Madame Chair. 5 CHAIR KASSEKERT: Okay. Thank you. 6 The Commission is considering today 7 whether to approve a stipulation of settlement 8 between MGM MIRAGE and the Division, that they 9 have proposed to resolve the reopened 2005 10 Borgata casino license renewal hearing. 11 The Division essentially initiated the 12 reopening last May by issuing a special report 13 on MGM's joint venture project to develop and 14 operate the casino in Macau. Although the 15 qualification of Borgata and its Boyd Gaming 16 holding companies are not an issue in that 17 matter, they nevertheless have also signed the 18 stipulation for the limited purpose of closing 19 the 2005 renewal hearing. And undertaking 20 their obligation to abide by the restrictions 21 on communicating with MGM as set forth in a 22 divestiture trust agreement. Since that trust 23 agreement is an essential part of the 24 stipulation, MGM is seeking its approval as 25 well. 54 ITEM NO. 10 1 Our role in this matter is a limited 2 one. Although we have been and remain fully 3 prepared to have the reopened 2005 hearing 4 tried to a conclusion, the parties, for their 5 own reasons, seek to avoid litigating the 6 matter that has the potential to be contentious 7 and protracted. 8 In broad terms, the settlement provides 9 that MGM will irrevocably place its interests 10 in Borgata and trust under the auspices of a 11 trustee who must meet, among other things, the 12 highest standards for qualification as a casino 13 key employee. To fill that critical role, MGM, 14 in consultation with the Division, has selected 15 former State Supreme Court Chief Justice James 16 R. Zazzali, and we are grateful for his 17 willingness to serve. 18 As provided in the trust agreement, 19 MGM's interest must be sold within 30 months of 20 the trust becoming effective. In the first 18 21 months, MGM has the right to market and sell 22 all or any part of its interests as it best -- 23 as it best sees fit. But in the last year of 24 the trust, it loses that right to the trustee 25 who then undertakes to sell the entire interest 55 ITEM NO. 10 1 before the 30 months' end. 2 Other than marketing its interests 3 during those first 18 months, MGM plans to 4 relinquish all rights incident to the property, 5 including any ability to influence or control 6 the affairs of Borgata. After the trust is 7 dissolved and the proceeds distributed to MGM, 8 the company, its affiliate, and their 9 principals will be barred for 30 months from 10 reapplying for licensure or qualification in 11 New Jersey. 12 Upon transferring its interests to the 13 trust and receiving Commission approval of the 14 stipulation of settlement, MGM, its affiliates, 15 and their respective principals will no longer 16 be required to qualify in connection with the 17 Borgata. 18 Although MGM will admit no liability or 19 culpability for the matters raised in the 20 special report or otherwise, the entire special 21 report will become public except to the extent 22 that the Commission grants MGM's redaction 23 request which, to its credit, has been narrowly 24 drawn. 25 Is this a perfect solution? No 56 ITEM NO. 10 1 compromise is. But so long as the Commission 2 is satisfied that the essential purposes and 3 policies of the Act are not offended by the 4 practicalities that this outcome affords, I, as 5 one Commission, believe that we may proceed, 6 secure in the knowledge that the Attorney 7 General's office through the Division favors 8 this result and concurs in the necessary 9 waivers of the qualification requirements that 10 MGM -- MGM is seeking us to grant. 11 Since a draft resolution, which has been 12 shared with the parties, addresses all the 13 relief requested in the petition, repeating 14 those items here is unnecessary. However, it 15 does bear noting that Borgata leases from an 16 MGM affiliate several land parcels necessary 17 for the smooth operation of its casino hotel. 18 That land, plus the related leases, will also 19 be put in the trust and, for the most part, 20 will be sold during the 30-month timetable 21 specified in the trust agreement. 22 Accordingly, based on and consistent 23 with my previous remarks, I move that the 24 Commission adopt the proposed resolution 25 approving the stipulation and trust agreement 57 ITEM NO. 10 1 and granting the other relief specified in the 2 resolution in accordance with the findings and 3 rulings and subject to the conditions of the 4 resolution, and I so move. 5 Is there a second? 6 COMMISSIONER SOMMELING: Second. 7 COMMISSIONER EPPS: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. Is this a roll call vote? 10 MR. NANCE: Yes. 11 Commissioner Sommeling? 12 COMMISSIONER SOMMELING: Yes. 13 MR. NANCE: Commissioner Epps? 14 COMMISSIONER EPPS: Yes. 15 MR. NANCE: Commissioner Fanelle? 16 COMMISSIONER FANELLE: Yes. 17 MR. NANCE: Vice Chair Harrington? 18 VICE CHAIR HARRINGTON: Yes. 19 MR. NANCE: Chair Kassekert? 20 CHAIR KASSEKERT: Yes. 21 MR. NANCE: The record will reflect that 22 the motion is unanimous. 23 CHAIR KASSEKERT: Thank you. 24 MR. DiGIACOMO: Thank you, Madame Chair 25 and Commissioners. 58 ITEM NO. 10 1 MR. CASIELLO: Thank you, Madame Chair 2 and Commissioners. 3 I do want to take one minute to thank 4 your staff, starting with Dianna Fauntleroy, 5 including Tracy Richardson, and that guy in the 6 middle, so to speak, Len DiGiacomo. 7 CHAIR KASSEKERT: Thank you. 8 MR. ROVER: And if I may, I would just 9 like to take a moment to thank the 10 investigators who worked on this case. In 11 particular, Mark Sivetz, Marianne Liwacz, Bud 12 Humphreville, and Joe Kisko. They did a 13 fabulous job, and couldn't have done it without 14 them. 15 CHAIR KASSEKERT: Thank you. 16 MR. ROVER: In your opinion, did you say 17 we qualified the Chief Justice? 18 CHAIR KASSEKERT: Yes. 19 MR. ROVER: Okay. 20 CHAIR KASSEKERT: Yup. Absolutely. 21 MR. ROVER: All right. Thank you. 22 CHAIR KASSEKERT: Thank you. 23 MR. NANCE: In accordance with 24 Resolution No. 09-12-16-20, the next closed 25 session of the Commission shall be held on 59 JOHN DEVENEY 1 Wednesday, April 7th, 2010, at 9:15 a.m. in the 2 Commission offices. 3 It is now time for the public 4 participation portion of the meeting. 5 CHAIR KASSEKERT: Is there anyone from 6 the public that wishes to be heard? Yes, sir? 7 Sir, could you please state your name 8 for the record? 9 MR. DEVENEY: John Deveney, 10 D-e-v-e-n-e-y. 11 CHAIR KASSEKERT: Thank you, Mr. 12 Deveney. What would you like to say to us 13 today? 14 MR. DEVENEY: Yes. Madame Chairman and 15 fellow Commissioners, I'm here also to thank 16 you. 17 And if I may read this? 18 CHAIR KASSEKERT: Surely. 19 MR. DEVENEY: Take only about three and 20 a half minutes. 21 CHAIR KASSEKERT: Okay. 22 MR. DEVENEY: I'm here today to show my 23 appreciation for the efforts and skills of 24 professionalism shown by the Commission and the 25 New Jersey gaming agency enforcement concerning 60 JOHN DEVENEY 1 the application of Pansy Ho to be part of the 2 Borgata Casino in Atlantic City. I'd like to 3 point out that there maybe unforeseen benefits 4 to this town and the State of New Jersey by 5 turning this application down. 6 A little historical note is about the 7 Korean War Monument to those veterans that have 8 served and died in Korea at the Boardwalk at 9 Brighton Park by Park Place. The 10 groundbreaking for this memorial took place on 11 March 14th, the year 2000. This is a place of 12 honor and remembrance which is dedicated by the 13 joint efforts of the Veterans groups, civic 14 organizations, local government officials, 15 corporations, Casino Investment Development 16 Authority, and townpeople of Atlantic City. 17 I also speak about those that were not 18 mentioned in this application, those men left 19 behind in Korea and China from the Korean War 20 of 1950 to 1953, unaccounted but forgotten. 21 Eight-one-hundred, approximately, from the 22 nation, 794 from New Jersey. This includes 172 23 MIAs and POWs, as of today's counts from the 24 State of New Jersey and including about 40 men 25 from this southern part of the state. 61 JOHN DEVENEY 1 In stating any future facts, I do not 2 intend with a broad stroke to demean all of the 3 North Korean people who have suffered enough. 4 But when you see an application to purchase a 5 company in the USA, and the main financial 6 backer of the funds to do this comes under 7 scrutiny, about this wealth, how his wealth was 8 attained, and it raises some red flags. And 9 more so when the reports question that the 10 person or persons involved in this application 11 might be supporting nuclear facilities that 12 could very well be used to build military 13 rockets that its North Korean leader states 14 could reach Hawaii, it's time to call a halt. 15 And, thank God, the State of New Jersey came 16 through. What is most noteworthy of the 17 Commission's actions and its decision was that 18 besides what I just stated was that, with a 19 poor economic climate we all face, and a carrot 20 to accept these individuals because of another 21 new building may rise in Atlantic City, did not 22 sway the correct decision that was made. 23 Nevada, Illinois, Michigan and 24 Mississippi gave in, I'm sorry to say. New 25 Jersey has suffered many a black eye by certain 62 JOHN DEVENEY 1 individuals who put greed on top of their list. 2 By your efforts and that of the New Jersey 3 Division of Gaming Enforcement, I hope, will 4 inspire others in the government positions 5 representing the State of New Jersey to 6 remember integrity still exists in New Jersey. 7 I'd like to note that at the time Miss 8 Ho's original application, New Jersey Division 9 of Gaming Enforcement was under the authority 10 of the State Attorney General who is now our 11 Governor, Chris Christie. 12 In closing, the benefits of having this 13 Commission, I hope, are appreciated by all in 14 the State of New Jersey. 15 Thank you for allowing me to appear 16 before the Commission. 17 CHAIR KASSEKERT: Thank you for your 18 comments. 19 Which war did you serve in, sir? 20 MR. DEVENEY: Well, I come under -- 21 believe it or not, I look older, Vietnam. 22 CHAIR KASSEKERT: Vietnam. Okay. 23 MR. DEVENEY: Because of the way they 24 calculate when you were in the service. 25 CHAIR KASSEKERT: Service. Well, we 63 FRANKLIN OMAR JOHNSON 1 thank you for your service as well. 2 MR. DEVENEY: Okay. Thank you very 3 much. 4 CHAIR KASSEKERT: Thank you. Thank you 5 for coming. 6 MR. DEVENEY: My pleasure. 7 CHAIR KASSEKERT: Is there anyone else? 8 Yes. Mr. Johnson. 9 Mr. Johnson, would you just state for 10 the record your name. 11 MR. JOHNSON: Franklin Omar Johnson. 12 CHAIR KASSEKERT: Would you just state 13 your name for the record. 14 MR. JOHNSON: And anything else? 15 CHAIR KASSEKERT: No. 16 MR. JOHNSON: Okay. I bring an issue in 17 front of you, before this Commission sometime 18 back, I think in -- last year concerning the 19 issue of organized corruption and whether or 20 not the Constitution should be upheld even 21 though that's a private industrial? I'm still 22 on that particular issue in regards to whether 23 or not certain state and federal authorities 24 have the right to grant permission to be on 25 private property even though security has an 64 FRANKLIN OMAR JOHNSON 1 objection to that. 2 I'd like to have the records from that 3 prior statement that I made to that because I 4 have litigations in court on the Constitution 5 issues of due process and the rights of 6 privacy. 7 CHAIR KASSEKERT: Okay. I see our 8 General -- I'm assuming you're making this as 9 an OPRA request? 10 MS. FAUNTLEROY: Yes. We will treat it 11 accordingly. 12 CHAIR KASSEKERT: Accordingly. And our 13 General Counsel will handle that for you. 14 MR. JOHNSON: And, also, I have one more 15 question. 16 You inform me that you took those 17 particular issues very seriously. If I can get 18 some type of report from you concerning that so 19 that I can turn it over to the Federal Bureau 20 of Investigation on that issue because we are 21 still trying to keep track and prove that 22 particular issue in regards to the security 23 departments of these casinos. 24 CHAIR KASSEKERT: Well, I don't know 25 what you mean by "report." I'm assuming that 65 FRANKLIN OMAR JOHNSON 1 if we commented that we took those matters 2 seriously that that would be part of the 3 record. 4 MR. JOHNSON: Did you find anything upon 5 your investigation to that? Because I'm under 6 the -- they're giving me the impression that 7 the Commission has limitations in regards to 8 the regulations of the casino. 9 CHAIR KASSEKERT: Well, we have certain 10 statutory -- we have certain requirements under 11 the Act that are statutory requirements. Per 12 se, I don't know if your issue falls under that 13 or not. But we can certainly look at that. 14 MS. FAUNTLEROY: I believe, if I may, 15 Madame Chair, Commissioners -- 16 CHAIR KASSEKERT: Sure. 17 MS. FAUNTLEROY: I believe that Mr. 18 Johnson has been in contact on several 19 different occasions with our legal analyst, Ken 20 Doss. I know recently, as late as yesterday, 21 Mr. Johnson asked to speak with staff attorney 22 Seth Briliant. I don't know that he's had that 23 opportunity yet. 24 MR. JOHNSON: Yes, I did. 25 MS. FAUNTLEROY: Okay. Certainly, Seth 66 1 will be in a position to update me as well as 2 the Commissioners with regard to what Mr. 3 Johnson's specific concerns are. I would ask 4 that we be give -- be given that opportunity. 5 CHAIR KASSEKERT: Sure. 6 MS. FAUNTLEROY: And we'll be better 7 able to advise you what the course of action 8 will be. 9 CHAIR KASSEKERT: Thank you. Okay. 10 Thank you. 11 MR. JOHNSON: Thank you. 12 CHAIR KASSEKERT: Is there anyone else 13 from the public that wishes to be heard? 14 (No response.) 15 CHAIR KASSEKERT: Seeing no one, I'll 16 declare this portion of the meeting closed and 17 entertain a motion to adjourn. 18 COMMISSIONER SOMMELING: Motion to 19 adjourn. 20 CHAIR KASSEKERT: Second? 21 COMMISSIONER EPPS: Second. 22 VICE CHAIR HARRINGTON: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 67 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: Motion carries. 4 (Public Meeting 10-03-17 was adjourned 5 at 11:45 a.m.) 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 68 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: March 20, 2010 23 My Notary Commission Expires July 22, 2014 24 ID No 2062871 25