ORDERS:
CONSENT ORDER
This matter came before the Court from an appeal of the Respondents of a Final Agency Determination issued by the
Petitioner South Carolina Department of Revenue ("Department"). The Determination arose from a citation issued against
the Respondents by the South Carolina Law Enforcement Division for two violations of S.C. Code Ann. Section 12-21-2804(A) (Supp. 1999) on July 10, 1999. The Final Agency Determination issued by the Department sought the imposition
of fines totaling $20,000.00 against the three named Respondents for these violations as well as the revocation of ten Class
III licenses and a six month moratorium on the operation of Class III machines on the two cited premises.
This matter was transmitted to the Administrative Law Judge Division on December 30, 1999. Prior to a hearing being set
in this matter, the parties reached a settlement of the matter on the following terms and conditions:
1. Respondents admit to a violation of the single place of premise provision contained in Section 12-21-2804(A).
2. The Respondent Tom K. Pate agrees to refrain from the operation of any Class III video game machines at the locations
licensed to do business as Little River Jewelry and Loan B and Little River Jewelry and Loan E and as further identified on
the attached diagram, for a period of six months from the entry of this Order.
3. The Respondents Tom K. Pate and James R. McDonald, Jr. agree to pay a fine in the amount of $1,000, and to make
payment of such fines to the Department of Revenue within thirty (30) days of the date of this Order. Respondents further
acknowledge that they are joint and severally liable for the payment of this fine.
4. The Respondent James R. McDonald, Jr. agrees to the revocation of the following Class III COD licenses: 3009833,
3009834, 3009835, 3010436, 3010437, 3010438, 3010439, 3010440, 3160869, and 3160870. The Respondent James R.
McDonald, Jr. further agrees to remit the above listed ten (10) licenses to the Department by not later than April 15, 2000
or, in the alternative, to pay an additional fine in the amount of $4,482.00 by not later than April 15, 2000; such amount
representing the value of the licenses on that date. Should the Respondent McDonald fail to voluntarily remit the licenses
or pay the alternative fine by April 15, 2000, he hereby agrees to turn over the above listed ten licenses to an officer of the
South Carolina Law Enforcement Division on that date.
5. In consideration for the above stated agreed upon six month prohibition on the operation of Class III machines, payment
of $1,000 fine, and license revocations, the Department agrees to waive the remaining $19,000.00 in monetary fines
previously sought in this action.
6. The parties agree and understand that this constitutes a final settlement of this matter.
Having reviewed this agreement and the terms thereof, I hereby ORDER its adoption and dismiss the Petition in this matter
with prejudice.
_______________________________ _______________________________
Jeffrey M. Nelson, Esq. Robert G. Rikard, Esq.
Counsel for Regulatory Litigation Attorney for Respondents
S.C. Department of Revenue Richard A. Harpootlian, P.A.
P.O. Box 125 P.O. Box 1090
Columbia, SC 29214 Columbia, SC 29202
(803) 898-5172 (803) 252-4848
IT IS SO ORDERED
_______________________
C. Dukes Scott
Administrative Law Judge
April 7, 2000
Columbia, SC |
