ORDERS:
CONSENT ORDER
These cases were initiated by violations issued against Respondents, Veterans of Foreign Wars, Anderson
Memorial Post No. 5996 (VFW) and William Busby, Jr. (Busby) by the South Carolina Department of
Revenue (Department). The violations were issued for failing to comply with various provisions of the Bingo
Tax Act, S.C. Code Ann. Sections 12-21-3910 et seq. (Supp. 2000). Specifically, VFW and Busby were
charged with violations of (set forth in Final Department Determinations dated January 17, 2001 and April
18, 2001):
Statute
S.C. Code Ann. § 12-21-2140 (Supp. 2000)
S.C. Code Ann. § 12-21-4270 (Supp. 2000)
S.C. Code Ann. §§ 12-21-3940, 12-21-3950, 12-21-4080
|
Violation
Failing to Meet Minimum Prize Payout (6 counts,
May 13, 2000, June 10, 2000, July 15, 2000, August
12, 2000, October 27, 2000, November 11, 2000)
Failing to pay for bingo cards
Employment of Gus Ashy, failing to supply
information/update bingo application information |
The Department issued its Final Department Determinations sustaining these violations and seeking various
monetary penalties as well as revocation of Promoter Busby's license and the VFW's bingo license. VFW
and Busby appealed the matters and they were transmitted to the Administrative Law Judge Division
(Division).
Prior to a hearing on these cases, the parties entered into an agreement resolving all of the violations at issue.
That agreement is incorporated in this Order.
The agreement between the parties is as follows:
- For the violations set forth in the Final Department Determination dated January 17, 2001, VFW and
Busby agree to pay a fine of $16,500. VFW also agrees to pay the outstanding taxes due of $13, 200.00.
VFW and Busby also agree to the revocation of their bingo licenses.
- VFW and Busby agree to surrender the bingo licenses (promoter and organization licenses) upon the
signing of this agreement by their attorney.
- VFW further agrees to remit $5,000.00 of the tax amount of $13,200.00 to the Department upon the
signing of this agreement by their attorney.
- For the violations as set forth in the Department's Final Determination dated April 18, 2001, VFW and
Busby agree to remit to the Department a fine of $1,500.00.
- The parties agree that payment of all amounts as set forth in this agreement will begin no later that 5:00
p.m. on September 4, 2001. The parties further agree that all payments will be made by certified check
made payable to the South Carolina Department of Revenue. The payments will be made in eighteen
equal installments. Each installment is computed as set forth below.
VFW
Taxes $ 455.56 (1)
Fines (1/17/01 Order) 458.33 (2)
Fines (4/18/01 Order) 41.67 (3)
Total payments due on the
4th day of each month
for eighteen months $955.58 |
Busby
N/A
$378.91
None
$378.91 |
- In consideration of the above, the Department agrees to waive the remaining penalties sought for these
violations.
- The parties agree that this constitutes the full and final settlement of the violations as set forth in the Final
determinations issued to Busby and VFW dated January 17, 2001, and April 18, 2001, including, but not
limited to payment of fines, revocation of licenses and withholding of refunds and garnishment, as they
relate hereto.
- The parties further agree that failure to comply with any provisions herein will result in the reinstatement
of the original penalties as set forth in the Determinations dated January 17, 2001, and April 18, 2001.
The parties agree that these cases are settled with prejudice.
I find this agreement to be fair and equitable, approve such agreement, and hereby Order its adoption. This
court retains jurisdiction to enforce this Order. As Respondents no longer require a hearing on this matter, I
also Order this matter resolved with prejudice.
AND IT IS SO ORDERED.
__________________________________________
Honorable C. Dukes Scott
Administrative Law Judge
September 11, 2001
Columbia, South Carolina
WE SO CONSENT:
By: ___________________________
Carol I. McMahan
Attorney for Petitioner
By: ___________________________
John Stathakis
Attorney for Respondents
1. The payment has been computed by subtracting the initial $5,000.00 payment on the signing of this
agreement from total taxes due of $13,200.00 The balance, $8,200.00 has been spread pro rata over a period
of eighteen months for payment purposes.
2. VFW and Busby have agreed to each pay fifty percent of the fine amount of $16,500.00. Busby's payment
is less because he has paid a portion of the fine by way of garnishment of $679.63 and a refund withheld of
$678.00. All payments are spread over a eighteen month period.
3. VFW and Busby agreed to a fine of $1500.00 for the violations set forth in the Final Determination dated
4/18/01. Busby has paid this fine by way of a withheld refund (total refund $1428.00 (after costs), $750.00
applied to his portion of the $1500.00 fine. The remainder, $678.00 was applied to his portion of the
$16,500.00 penalty, see Fn. 2. |