Return to Browsing

11 N.J.A.R. 407

Doumani, Edward M.; In the Matter of the Qualification of
Formats: PDF | DjVu— Help viewing DjVu Files
Citation: 11 N.J.A.R. 407
Decision Date: 1984
Synopsis: Edward Doumani, as a stockholder of Golden Nugget, Inc., was identified as an individual required to qualify in connection with the licensure of GNAC Corp., which operated the Golden Nugget Casino Hotel. However, the Commission, with the concurrence of the Director of the Division of Gaming Enforcement, temporarily waived the requirement that Doumani qualify pending a report by the Division on Doumani's qualifications. The temporary waiver was conditioned upon Golden Nugget not having any business contact with Doumani until such time as he was qualified. Upon completion of the Division of Gaming Enforcement's investigation of Doumani, the Casino Control Commission conducted a hearing to determine whether Doumani was qualified and whether he controlled stock owned by other members of his family. Doumani, his brother, their wives and two of their children initially owned more than eight percent of GNI's outstanding common stock. However, the family effectuated a stock disposition agreement which was designed to reduce the family's holdings to under five percent and eliminate any personal holdings by Doumani and his brother. The Commission considered all issues in a consolidated proceeding and determined that Doumani was disqualified and that he had the ability to control all GNI stock held by other members of the family. Because of this control, Doumani remained a person required to qualify, despite the fact that he was no longer the record holder of any GNI stock. Although Doumani did not participate in the Commission hearing, the Division was afforded the opportunity at the hearing to establish a record as to Doumani's suitability pursuant to the Casino Control Act. Based on the entire record of the proceeding, the Commission concluded that Doumani lacked the requisite good character, honesty and integrity, and thus found him disqualified. The Commission also found that Doumani controlled and directed all family investments, including the GNI stock owned by his wife, sister-in-law, son and nephew. In view of this control, Doumani held a beneficial interest in the stock held of record by other family members, and his disqualification tainted that stock. Pursuant to N.J.S.A. 5:12-105, the Commission ordered Doumani and his family to dispose of their GNI stock within 60 days.
Statute(s) Cited: 5:12-82(d)7 5:12-84c 5:12-85c 5:12-85d 5:12-86 5:12-89b(1) 5:12-89b(2) 5:12-105(d)