Gold Coin 2nd AMENDED

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December 30,2009Gold Garden Restaurant, Inc.Min Hong Chen, PresidentlTreasurer/Director/StockholderJack Ken Lee, Secretary/Director/StockholderChu R & T, Inc.Raymond Chu, PresidentlDirector/StockholderTina Chu, Vice PresidentlSecretary/Treasurer/Director/Stockholderdba GOLD COIN GARDEN RESTAURANT/LOUNGE (F-COM)3016 SE 82nd AvePortland, OR 97266 CERTIFIED MAIL

SECOND AMENDED NOTICE OF PROPOSED LICENSE CANCELLATIONAND PROPOSED REFUSAL TO RENEW LICENSE

This notice amends and supersedes the Amended Notice of Proposed LicenseCancellation dated August 26, 2009. Substantive changes from that letter appearunderlined after the (*).(* )1 . LICENSE CANCELLATIONPursuant to ORS 471.315, the Commission may cancel or suspend your license orassess a civil penalty for any violation. The Public Safety Program proposes that theCommission cancel your license for the following violations:Violation Number OneThere is a history of serious and persistent problems involving disturbances, lewd orunlawful activities or noise either in the premises or involving patrons of theestablishment in the immediate vicinity of the premises, including but not limited toexcessive noise, public drunkenness, fights, altercations, harassment and publicurination. This is a violation of ORS 471.315(1 )(c). The problems include the following:On December 21, 2007 at about 8:50 PM, a Portland Police Bureau (PPB) officerresponded to the premises on the report of a fight. He located an intoxicated patron inthe parking lot who was yelling. The officer transported him to a detoxification facility(detox).On January 1, 2008 at about 11:52 PM, PPB officers responded to a call about arobbery that took place inside the licensed premises. A female bartender was


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GOLD COIN GARDEN RESTAURANT/LOUNGE (F-COM)December 30,2009Page 2approached by a patron who ordered a beer and then gave her a demand note. Thelicensee estimated a loss of $1 ,700.00.On January 6, 2008 at about 10:40 PM, PPB officers responded to a call aboutvandalism in the parking lot. An employee's car tires were slashed. The employeebelieved it was because she was in a verbal argument with two patrons inside thepremises earlier in the evening.On February 15, 2008 at about 1:20 AM, PPB officers responded to a report of a fight atthe licensed premises. Upon arrival, officers learned that a verbal argument broke outbetween two patrons. The altercation became physical when one of the patronspunched the other, causing a large fight to break out involving 15-20 patrons. Threeintoxicated patrons sustained injuries during the fight: one patron sustained a cut besidehis left eye, a second patron had a bump on his forehead, and the third patron had aprofusely bleeding wound on the back of her head that was caused by an unknownobject. Officers noted that because of the patrons' level of intoxication, the patronscould not remember how they sustained the injuries.On March 9, 2008 at about 12:43 AM, a PPB officer conducted a walk-through of thelicensed premises. The PPB officer encountered an intoxicated patron who admitted todrinking and smoking marijuana during the course of the evening. The patron wastaken to detox.On March 23, 2008 at about 9:30 PM, PPB responded to a report of a patron bleedingfrom the head at the licensed premises. When officers arrived, they found the patron,who was intoxicated, had sustained several injuries, including a long laceration on theback of his head, a swollen and bloodshot left eye, a bloody nose, and light verticalmarks on his forehead. The patron told police that after exiting the premises with afemale patron, he was assaulted by an unidentified male immediately outside thepremises, then lost consciousness for several minutes. A police officer told him to gooutside to wait for medical attention. As the patron was leaving, he dropped a paperbag that contained a leather handgun holster and ammunition. The officer searched thepatron and found a loaded semi-automatic handgun in a rear pocket of the patron'spants. The patron told police that after being assaulted, he went to his room at the hotelnext door to the licensed premises, retrieved his gun, and returned to the bar to look forhis attackers. The patron was transported to the hospital and received several staplesto his head to close the wound. He was charged with Unlawful Possession of aFirearm.


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GOLD COIN GARDEN RESTAURANT/LOUNGE (F-COM)December 30,2009Page 3On April 7, 2008 at about 2:30 AM, PPB responded to a complaint of the bartenderbeing harassed. The bartender told police that a patron, who is a friend of CorporatePrincipal Chu, rammed his shoulder into her back causing her to lunge forward. Shesaid the patron did this after she asked patrons to leave because it was time to closethe bar. The bartender also told police that she was then fired for being rude to a friendof the Licensees.On April 18, 2008 at about 1:50 PM, a bartender reported to PPB officers that she wasreceiving verbal threats while she was working at the licensed premises. The bartendertold police she had received at least four threats from people inside the premises andbelieved the threats were to discourage her from testifying in a grand jury proceeding.The officer opened an investigation into witness tampering.On April 19 at about 1:38 AM, PPB officers responded to the motel immediatelyadjacent to the licensed premises on a report of an assault. Upon arrival, the officersfound an unconscious patron on the ground, bleeding from the face. Two femalepatrons who had been with the male patron told officers that the altercation began at thelicensed premises after the male patron had consumed five drinks. The patron waslater assaulted outside the motel.On April 30, 2008 at about 7:08 PM, PPB officers responded to a report of a robberyinside the licensed premises. An intoxicated patron was followed into the restroom bytwo other patrons, and he was asked if he wanted to buy marijuana. The patrons thenlocked the bathroom door, placed the victim in a headlock and robbed him of $880.00.The two patrons who robbed the victim fled the premises. An intoxicated patron toldofficers that the victim was "flashing" his money and buying rounds of beer for otherpatrons.On July 23, 2008 at about 11:33 PM, PPB responded to a report of a fight at thelicensed premises. Upon arrival, an officer observed a female punching another femalein the parking lot of the premises. The female patron was using a set of keys as aweapon and caused a puncture wound and swelling to the victim's face. The victim haddifficulty hearing as a result of being punched. A third female, who was a minor andhad been drinking in the premises, attempted to punch the victim in the head. A PPBofficer had to tase one of the females into custody. The female attackers, who wereintoxicated, were cited for Assault III. A bartender was charged with Furnishing Alcoholto a Minor.On August 29, 2008 at about 12:57 AM, PPB officers responded to the premisesregarding a report of a fight. Upon arrival, officers observed an intoxicated male patron


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GOLD COIN GARDEN RESTAURANT/LOUNGE (F-COM)December 30,2009Page 4with a large cut above his left eye staggering in the parking lot of the licensed premises.The patron had caused a disturbance earlier inside the premises. While awaitingmedical assistance, the patron became belligerent and tried to re-enter the licensedpremises. The patron was transported to the hospital, where he received stitches forhis head injury.On October 31, 2008 at about 11 :12 PM, PPB officers responded to a report of anintoxicated patron yelling and hitting a car in the parking lot of the licensed premises.Upon arrival, the officer located an intoxicated patron who admitted he was planning tophysically fight a male that had assaulted his sister the previous evening. The patronwas transported to detox.On December 13, 2008 at about 12:50 AM, PPB officers conducted a "controlled drugbuy" at the licensed premises. A confidential reliable informant (CRI) purchased aplastic bag of methamphetamine inside the premises from another patron. An on-dutybartender initially told the CRI that patrons who sold narcotics were not currently at thepremises, but 45 to 50 minutes later directed the CRI to a patron who was in possessionof drugs for purchase. The CRI told the officer that Corporate Principal Raymond Chuwas present within six feet of the sale and appeared to be observing the activitybetween the seller and the CRI. The patron who sold the methamphetamine wascharged with Unlawful Delivery of Methamphetamine and Unlawful Possession ofMethamphetamine.On December 13, 2008 at about 1:22 AM, a PPB officer who was working aprostitution/narcotics detail at the licensed premises observed a known prostitute whowas in the parking lot of the licensed premises enter a person's car that was parked inthe lot. Both persons were charged with Unlawful Prostitution Procurement Activities.On December 13, 2008 at about 11:04 PM, PPB officers conducted a "controlled drugbuy" that took place inside the licensed premises. At 11 :45 PM, a CRI contacted twofemale patrons inside the licensed premises who agreed to sell the CRI marijuana. Thefemale patrons left the licensed premises and returned approximately ten minutes laterwith a plastic bag of marijuana, which the CRI purchased. The CRI told PPB officersthat Corporate Principal Raymond Chu was present within eight to ten feet of the drugsale and appeared to be observing the transaction. The female patron who negotiatedthe sale was charged with Unlawful Delivery of Marijuana and Unlawful Possession ofMarijuana.On January 10, 2009 at about 12:54 AM, PPB officers were flagged down by a maleand female patron near the premises. The patrons were intoxicated and told the


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GOLD COIN GARDEN RESTAURANT/LOUNGE (F-COM)December 30,2009Page 5officers that they were attacked by an unknown male. The officers located anintoxicated male standing outside the licensed premises approximately 20 minutes laterwho was identified as the person who attacked the patrons. This patron told the officersthat while outside one of the two patrons stole $25.00 from him. He went into thelicensed premises to confront the patron and challenged him to a fight in the parking lotof the licensed premises. The on-duty bartender told the officers that the male andfemale patrons frequent the bar on a regular basis and have been known to sell drugsand conduct scams for patrons' money.On February 2, 2009 at about 11:08 PM, a PPB officer was flagged down by a patron ofthe licensed premises. The patron told officers that the male patron she was withbecame intoxicated and argued with her. She left the licensed premises and hefollowed her. She told officers that the male patron tripped her on purpose, causing herto fall onto her knees, causing a cut on her right knee. The male patron was chargedwith Assault IV.Willingness and AbilityThere have been at least 18 documented incidents at the licensed premises in 14months. On ten additional occasions between December 2007 and August 2008, policeresponded to the licensed premises regarding complaints of threats, assaults anddisturbances. Incidents have included physical altercations involving fighting, kicking,punching, slapping, guns, metal objects used as weapons, and verbal assaults.Incidents have also involved unlawful activity such as drug sales inside the premises inplain view of employees and Corporate Principal Raymond Chu. Licensees' employeeshave told police that known drug dealers frequent the bar and that drug deals,prostitution and fights occur on a regular basis.These incidents have occurred inside the licensed premises, in areas that licenseescontrol outside the premises, and in the immediate vicinity of the licensed premises. Inaddition, there have been instances of public drunkenness, prostitution, and drugpossession in the immediate vicinity of the licensed premises. Patrons have sustainedinjuries as a result of these incidents, and some incidents have resulted in damage toproperty, such as incidents of vandalism to vehicles parked in the parking lot of thelicensed premises.The licensees have been warned about disturbances and drug activity on severaloccasions. On February 14, 2006, Commission staff issued verbal instructions to theLicensees regarding disorder and a history of serious and persistent problems. On July28, 2006 and January 18, 2007, Commission staff issued verbal instructions to the


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GOLD COIN GARDEN RESTAURANT/LOUNGE (F-COM)December 30,2009Page 6Licensees regarding disorder at the premises. In July 2007, Commission staff notifiedLicensees that drug activity was occurring at the licensed premises. On July 16, 2008,a PPB officer requested mandatory reports of activity at the licensed premises due toalcohol-related chronic nuisance problems.Although Corporate Principal Chu is often present at the licensed premises, assaultscontinue to occur. In addition, Corporate Principal Chu allows drug sales to occur withinplain view. Licensees have made no changes to the operation of the licensed premisesto address these issues. Licensees choose not to employ security staff, in spite ofCommission staff's recommendations to do so, to help control problems.Despite Public Safety Program staff's and local law enforcement's efforts to intervene,problems continue to occur. As a result, Licensees have not demonstrated willingnessor ability to maintain adequate control of the premises.Violation Number TwoOn December 13, 2008 at about 12:50 AM, Licensees permitted unlawful activity whena sale of methamphetamine by a patron occurred inside the licensed premises. This isa violation of OAR 845-006-0347(3)(a).Violation Number ThreeOn December 13, 2008 at about 11:57 PM, Licensees permitted unlawful activity whena sale of marijuana occurred inside the licensed premises. This is a violation of OAR845-006-0347 (3)(a).(*)Violation Number FourOn November 12, 2009, your employee Mei Yi Yu failed to verify Maritza Delgado's agebefore allowing her to buy or be served an alcoholic beverage when she reasonablyappeared to be under 26 years of age. This is a violation of OAR 845-006-0335(1 )(a)(b)(c).DETERMINING THE PENALTYOAR 845-006-0500 defines Violation Number One as a Category I violation andrecommends license cancellation for the first violation of this type within two years. Thisis your first.OAR 845-006-0500 defines Violation Numbers (*)Two, Three and Four as Category IIIviolations and recommends a 10-day suspension or $1,650.00 civil penalty for the first


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GOLD COIN GARDEN RESTAURANT/LOUNGE (F-COM)December 30,2009Page 7violation, a 30-day suspension or a $4,950.00 civil penalty for the second violation, a30-day suspension for the third violation, (*)and license cancellation for the fourthviolation of this type in two years. These are your second, third (*)and fourth violations.Your first Category III violations occurred on July 23,2008 and were both charged at thefirst level of Category III because they were discovered concurrently. Violation NumbersTwo and Three were discovered concurrently and are both charged at the second level.Violation Number Four will be charged at the third level of Category III.If the license is cancelled to pursuant to Violation Number One, no separate penalty willbe imposed for Violation Numbers Two and Three (*)and Four.(*)If the Commission finds aggravating or mitigating circumstances, it may assess agreater or lesser sanction than that listed in the administrative guidelines.Aggravating CircumstancesLicensee has previously been allowed to purchase age verification equipment as anoffset to a penalty for a previous failure to verify the age of a minor. The age verificationequipment was not used to prevent Violation Number Four.PROPOSED PENALTYThe Public Safety Program recommends that the Commission cancel Licensees' FullOn-Premises Sales license for the violations listed above.If a licensee's interest in the license should expire or be transferred before theCommission issues a final order, the Public Safety Program recommends that under theauthority of ORS 471.030, 471.040, 471.313, and 471.730, the Commission issue thelicensee a Letter of Reprimand. This reprimand will become a permanent part of thelicensee's Commission file and would be considered in any future application for a liquorlicense by the licensee.(*)11.REFUSAL TO RENEW LICENSEA. Not a Good Record of CompliancePursuant to ORS 471.313(4 )(g), the Commission may refuse to license any applicant ifthe Commission has reasonable grounds to believe that the applicant did not have agood record of compliance with the alcoholic liquor laws of this state and the rules of theCommission when previously licensed. The Public Safety Program proposes that theCommission refuse to renew your license for the following adjudicated and pending


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GOLD COIN GARDEN RESTAURANT/LOUNGE (F-COM)December 30,2009Page 8violations which demonstrate that the applicant does not have a good record ofcompliance:Adjudicated ViolationsViolation Number OneOn July 23, 2008, your employee Jessica Robinson aka Jessica Dery failed to verify theage of Sarah Mazzi before allowing her to buy or be served an alcoholic beverage whenshe reasonable appeared to be under 26 years of age. This is a violation of OAR 845-006-0335(1 )(a)(b)(c). (Age verification equipment purchased in lieu of penalty onOctober 20, 2008)Violation Number TwoOn July 23,2008, your employee Jessica Robinson aka Jessica Dery permitted a minorto buy, be served, or drink alcoholic beverages on the licensed premises. This is aviolation of OAR 845-006-0335(3)(a). (Fine paid October 29,2008)Pending ViolationsViolation Number OneThere is a history of serious and persistent problems involving disturbances, lewd orunlawful activities or noise either in the premises or involving patrons of theestablishment in the immediate vicinity of the premises, including but not limited toexcessive noise, public drunkenness, fights, altercations, harassment and publicurination. This is a violation of ORS 471.315(1 )(c). The problems listed on pages 1-5are incorporated into this section by reference.Violation Number TwoOn December 13, 2008 at about 12:50 AM, Licensees permitted unlawful activity whena sale of methamphetamine by a patron occurred inside the licensed premises. This isa violation of OAR 845-006-0347(3)(a).Violation Number ThreeOn December 13, 2008 at about 11:57 PM, Licensees permitted unlawful activity whena sale of marijuana occurred inside the licensed premises. This is a violation of OAR845-006-0347(3)(a).


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Violation Number FourOn November 12, 2009, your employee Mei Yi Yu failed to verify Maritza Delgado's agebefore allowing her to buy or be served an alcoholic beverage when she reasonablyappeared to be under 26 years of age. This is a violation of OAR 845-006-0335(1 )(a)(b)(c).B. History of Serious and Persistent ProblemsPursuant to ORS 471.313(5), the Commission may refuse to license any applicant if ithas reason to believe that there is a history of serious and persistent problems involvingdisturbances, lewd or unlawful activities or noise either in the premises or involvingpatrons of the establishment in the immediate vicinity of the premises. The PublicSafety Program proposes that the Commission refuse to renew your license for theproblems described in Violation Number One of this Notice, which constitute a history ofserious and persistent problems. The problems listed on pages 1-5 are incorporatedinto this section by reference.RESPONSIBILITY FOR VIOLATIONS"Licensee" is defined as including the principal officers of a corporation andstockholders who own or control 10% or more of any class of stock (OAR 845-006-0301and OAR 845-006-0475(1 )(d)). Therefore, the licensees include Min Hong Chen,PresidentITreasurer/Director/Stockholder; and Jack Ken Lee, Secretary/Director/Stockholder of Gold Garden Restaurant, Inc. The licensees also include Raymond Chu,President/Director/Stockholder and Tina Chu, Vice President/Secretary/Treasurer/Director/Stockholder of Chu R & T, Inc. Additionally, Gold Garden Restaurant, Inc. andChu R & T, Inc. are responsible for the acts and omissions of its employees and rep-resentatives in violation of any law affecting license privileges (OAR 845-006-0362).HEARINGS RIGHTSYou have already requested a hearing on the violations as previously charged. We willconsider your earlier request for a hearing on these violations as valid and continue thehearings process unless you withdraw from the hearing or this matter is otherwiseresolved. Individuals have a right to be represented by an attorney. Per OAR 137-003-0550, corporations must be represented by an attorney.Hearings are conducted by the Office of Administrative Hearings under the jurisdictionof the Oregon Liquor Control Commission, according to the Administrative ProceduresAct (ORS Chapter 183), Attorney General's Rules for the Office of Administrative


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GOLD COIN GARDEN RESTAURANT/LOUNGE (F-COM)December 30,2009Page 10Hearings (OAR Chapter 137) and Commission Administrative Rules (OAR Chapter 845Division 03).If you withdraw your request for a hearing, a final order by default will be issued by theCommission Administrator. If you fail to appear at a scheduled hearing, a final order bydefault will be issued by either the Administrative Law Judge or the CommissionAdministrator, as authorized by OAR 845-003-0670. In each of these instances, theCommission designates its file or files in this matter, including all materials you havesubmitted, as part or all of the record supporting its final order by default.OREGON LIQUOR CONTROL COMMISSION

Stephen A. PharoExecutive DirectorSAP:KKRIf you have any questions, call 503-872-5128 or 800-452-6522, x5128.

Gold Coin 2nd AMENDED

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