Agenda Index City of Vancouver


CITY OF VANCOUVER

BUSINESS LICENSE HEARING MINUTES

JULY 23 & 31, & AUGUST 1 & 20, 2002

A Business License Hearing of the Council of the City of Vancouver was held on Tuesday, July 23, 2002, in the Council Chamber, Third Floor, City Hall, commencing at 9:30 a.m., to determine whether or not the 2002 City of Vancouver business licenses granted to Eldar Asadullaev, doing business as Jackson's Buy and Sell Pawnbroker, for business premises located at 175 West Hastings Street, Vancouver, British Columbia, should be suspended or revoked. The Hearing was subsequently reconvened on Wednesday, July 31, 2002, at 9:30 a.m., Thursday, August 1, 2002, at 7:30 p.m., and Tuesday, August 20, 2002, at 9:55 a.m. The minutes have been consolidated for ease of reference.

PRESENT:

Councillor Fred Bass, Chair
Councillor Tim Louis
Councillor Sandy McCormick

CITY CLERK'S
OFFICE:

Laura Kazakoff, Meeting Coordinator

1. 175 West Hastings Street (Jacksons Buy & Sell Pawnbroker) File: 2711-49

The Business License Hearing Panel had before it for consideration an Evidence Brief, prepared by the City's Legal Department, which contained the following material (on file in the City Clerk's Office) and the evidence of witnesses:

Tab

1 Licenses and Inspections Department

Business License Pre-application Information Sheet dated December 8, 2000
Application for Business License dated December 8, 2000
Copy of Driver's License of Eldar Asadullaev
Store Inventory
Business License - Business Plan dated December 8, 2000
Secondhand Dealers & Pawnshop Bylaw
2001 Business License dated January 5, 2001 #01-383114
2001 Business License dated January 5, 2001 #01-383115
2001 Business License dated January 5, 2001 #01-383116
2001 Business License dated January 5, 2001 #01-383118
2002 Business License dated January 14, 2002 #02-121562
2002 Business License dated January 14, 2002 #02-121563
2002 Business License dated January 14, 2002 #02-130161
Letter to Eldar Asadullaev from B. Windsor dated May 14, 2002
Handwritten notes dated May 21, 2002

2 Police Department

General Occurrence Report dated October 30, 2001 #01-249889
General Occurrence Report dated November 27, 2001 #01-272703
General Occurrence Report dated January 8, 2002 #02-10873
Memo to Barb Windsor from V. Woollacott and General Occurrence Reports related to #02-85181

The following documents were submitted at the Hearing on July 23, 2002, (on file in the City Clerk's Office):

· Affidavit of Detective Constable 1138 Val Woollacott
· Evidence Flow Chart
· City of Vancouver - Secondhand Dealers and Pawnbrokers By-law No. 2807

The following documents were submitted at the Hearing on July 31, 2002, (on file in the City Clerk's Office):

· Miscellaneous Note from PC 1003 Paul Ellis
· Forensic Firearm and Tool Mark Unit Report

Catherine Kinahan, Corporation Counsel, was present on behalf of the City. Ms. Kinahan introduced licensee Eldar Asadullaev and Joe Doyle, S.R.C. Law Corporation, Counsel for Mr. Asadullaev. Interpretation services for Mr. Asadullaev were provided by Alex Motlyakh (July 23 and August 1, 2002) and Viktor Chuvyakov (July 31, 2002). Interpretation was also provided by Victor Karpov, employee of Jacksons Buy & Sell, for a portion of the Hearing on August 1 and on August 20, 2002.

Ms. Kinahan noted this matter had been referred to City Council by the Chief License Inspector pursuant to Section 278 of the Vancouver Charter, which provides that the Chief License Inspector may, in any case, recommend to Council in writing the suspension or revocation of any license, and Section 275 of the Vancouver Charter, which provides that the issuance of a business license is deemed to be at the discretion of Council, and Section 277.1 of the Vancouver Charter, which confers on Council the power to delegate the holding of business license hearings to one or more Councillors.

Ms. Kinahan referred the Panel to evidence before it as set out in Permits, Inspection reports, Police reports, correspondence from and to the Deputy Chief License Inspector and from the Chief License Inspector, and the evidence of witnesses, which sets out the allegations that
the Licensee has failed to properly manage the Premises by:

(a) failing to maintain a record of all property purchased by the Licensee, in contravention of the provisions of the Secondhand Dealers and Pawnbrokers By-law No. 2807 of the City of Vancouver (the "Secondhand Dealers By-law");

(b) failing to maintain a record of all property taken in pawn by the Licensee, in contravention of the provisions of the Secondhand Dealers By-law; and

(c) failing to control the conduct of employees on the licensed premises,

thereby carrying on business to the detriment of the safety and well being of the public.

Ms. Kinahan also drew the attention of the Panel to additional documents submitted at the Hearing on July 23, 2002. The affidavit of PC Val Woollacott relates to items seized by Police at the licensed premises on April 18, 2002, and indicates that these items had not been reported to the Chief Constable as required by By-law. The Evidence Flowchart is a handwritten recording of the items which were seized on April 18, 2002.

In support of the allegations set out in the above noted reports and evidence, Ms. Kinahan called the following witnesses on July 23, 2002:

· Detective Constable 1138 Val Woollacott
· Detective 1061 Ron Powell
· Detective Constable 1295 Tony Cavezza
· Detective 357 Noreen Waters

Mr. Doyle also directed questions to the witnesses.

The following evidence was submitted by the licensee's counsel on July 23, 2002 (on file in the City Clerk's Office):

· 25 photographs of the interior of Jackson's Buy and Sell Pawnbrokers.

At the commencement of proceedings on July 31, 2002, Mr. Doyle requested that the Hearing be adjourned until such time as it is known whether or not there will be criminal charges laid against Mr. Asadullaev by the Provincial Crown in relation to the seized property which was taken from the licensed premises on April 18, 2002. Mr. Doyle noted that as Mr. Asadullaev is facing possible revocation of his business license by this Panel, rather than a suspension, he would be compelled to testify in order to keep his business and his livelihood, which could then place him in jeopardy with regard to the outstanding criminal proceedings. Mr. Doyle also expressed concern with regard to continuing criminal investigation which is being conducted by Police in regard to this matter.

The following evidence was submitted by the licensee's counsel on July 31, 2002 (on file in the City Clerk's Office):
· photocopies of pages 770-775 of Criminal Code (S. 489-490).
· photocopies of "Appearance Notice Issued by a Peace Officer" issued to Eldar Asadullaev.

Ms. Kinahan noted that the criminal proceedings are allowed to continue, separate and apart from the Business License Hearing proceedings, and that any decision made by the Panel in this regard, can be appealed to a judicial court.

The Panel agreed that the application for adjournment not be granted.

Ms. Kinahan drew the Panel members' attention to documents submitted on July 31, 2002. The Miscellaneous Note prepared by DC 1103 Paul Ellis indicates that certain items of clothing seized at the licensed premises on April 18, 2002, had been offered for sale in Mountain Equipment Co-op and The Gap retail stores, subsequent to Mr. Asadullaev obtaining his business license for Jackson's Buy & Sell Pawnbrokers. The Forensic Firearm and Tool Mark Unit Report indicates that a shotgun and pistol seized at the licensed premises were in functioning condition.

In support of the allegations set out in the reports and evidence listed on pages 1 and 2 of this document, and the two documents submitted on July 31, 2002, Ms. Kinahan called the following witnesses:

· Police Constable 1698 Dale Weidman
· Police Constable 1767 Louise Neil
· Detective Constable 1103 Paul Ellis
· Barbara Windsor, Deputy Chief License Inspector

Mr. Doyle also directed questions to the witnesses.

Mr. Doyle, prior to calling his witness to testify, requested that Mr. Asadullaev be given protection under the Canada Evidence Act, in the event that criminal charges be laid against him at any future point.

(NOTE FROM CLERK: Mr. Asadullaev's testimony began on July 31 and continued on August 1, 2002.)

Mr. Doyle called Eldar Asadullaev as a witness. Mr. Asadullaev, with the aid of the interpreter, advised he has never been involved in criminal activities. He noted that for his protection and the protection of others he always takes guns and weapons which are brought into the store and then calls the Police. He further noted that he had personally purchased all of the seized laptop computers from the fleamarket. His intention for the computers was not to sell them but to set up an area in the shop for students and tourists to access the internet. He did not record the laptops into the reporting system, because they were not to be offered for sale. Mr. Asadullaev admitted that he may have made some mistakes in the reporting system, and missed recording some items taken in for sale. Mr. Asadullaev noted that he often returned stolen property to their rightful owners. He related an incident where a person who he believed to be an undercover police officer came in several times and tried selling him a computer. With regard to clothing that was found in the store, Mr. Asadullaev acknowledged that some of it had come into the store after he took over. He had not reported it because he was not aware, at the time, that he had to report items without serial numbers. He further noted that he does not sell clothing at the store, but will sometimes purchase clothing, when people bring them in along with electronics items. Some of the clothing he has given away.

During Panel members' questioning of the witness on August 1, 2002, concern was expressed by counsel for the licensee in regard to the interpretation service being provided. Following a short recess it was agreed that Victor Karpov, employee of Jackson's Buy & Sell, would take over the interpreting role at this point. It was also agreed that counsel for the licensee would be given the opportunity, at an appropriate time and if so required, to redirect questions to the witness in order to clarify any questions which may have been asked by Panel members.

Ms. Kinahan also directed questions to the witness.

The following evidence was submitted by the licensee's counsel on August 1, 2002 (on file in the City Clerk's Office):

· photocopy of Vancouver Police Department pawnbroker's reporting form with handwritten entries recorded on June 21, 2001, for Jackson's Place P.B., 175 West Hastings Street. An entry on this form matches an entry on the Vancouver PoliceDepartment's Evidence Flowchart listing of items which did not turn up in the search of the Police database system.

Prior to recessing on August 1, 2002, the Panel requested that a search be done of the Police database system to ascertain if this item had ever been electronically reported to the Chief Constable by Jackson's Buy & Sell Pawnbrokers and that this information be brought back to the Panel when it reconvenes on August 20, 2002. It was also agreed that counsel for the licensee would determine, through discussions with his client, if there were other specific items and dates which should be searched for in the Police database system.

At the commencement of proceedings on August 20, 2002, the Panel granted a request by counsel for the City for a short recess in order to confer with counsel for the licensee. The Hearing recessed at 9:56 a.m. and reconvened at 10:35 a.m.

Ms. Kinahan submitted that evidence presented at this Hearing accords with allegations as set out in the evidence briefs, and sets out the legal test for the Panel to apply to determine whether or not the 2002 City of Vancouver business licenses granted to Eldar Asadullaev, doing business as Jackson's Buy and Sell Pawnbroker, for business premises located at 175 West Hastings Street, Vancouver, British Columbia, should be suspended or revoked.

Ms. Kinahan further submitted that the item referred to previously in the evidence submitted by Mr. Doyle on August 1, 2002, had in fact been electronically reported by the licensee to the Vancouver Police Department, and this has been confirmed by an additional search of the database system. Other items listed in the evidence briefs, however, had not been electronically reported by the licensee, in breach of by-law legislation. Ms. Kinahan advised that in consultation with counsel for the licensee and the Deputy Chief License Inspector, an appropriate penalty was worked out and would be agreeable to all parties, and is therefore put forward for the Panel's consideration. Ms. Kinahan reviewed the proposed penalty, which included a revocation of the Second Hand Dealers License issued to Mr. Asadullaev, a suspension of the other two Business Licenses held by him, and a number of conditions to be adhered to following the completion of the suspension. Ms. Kinahan also took note that the Second Hand Dealers and Pawnbrokers By-law does not adequately address concerns regarding personal property kept at these types of businesses, as has been discussed during this Hearing, and suggested the Panel may wish to request an amendment to the By-law to clarify this matter.

Mr. Doyle submitted that his client, Mr. Asadullaev, has been candid throughout these proceedings, and his responses and explanations have been consistent. His client acknowledges that mistakes have been made in the running of his business, and he is now prepared to pay a price for those mistakes. What has been agreed to, through intensive discussions, is a proposal by which he will lose his Second Hand Dealers license. This license was grandfathered into the ownership of these premises, and its loss represents a significant reduction in the value of the business premises. Mr. Asadullaev's assets in thestore will be significantly diminished by the loss of that license and the business will therefore fetch a much lower price should he wish to sell it. Mr. Asadullaev will also incur the complete loss of revenue for the duration of the proposed suspension of the other two business licenses. Mr. Doyle urged the Panel to consider the submissions they have heard, and the diligence which has gone into them, in order to achieve a balanced penalty for his client. Mr. Doyle further submitted that his client understands the proposed conditions to his business licenses, and the loss of assets he will realize with the revocation of the Second Hand Dealers license. His client has requested that, while the revocation and proposed conditions would be in effect immediately, the proposed suspension not take effect until September 15 of this year, in order to provide the opportunity for customers to retrieve pawned items from the store.

PANEL MEMBERS' DISCUSSION

Prior to a decision on this matter, Panel members noted their concerns with regard to certain explanations provided by the licensee in response to allegations made during this Hearing. Concern was also expressed with regard to the nature of the violations which have resulted in this Hearing and the gravity of evidence heard. One Panel member felt that a longer suspension than what is proposed would be more appropriate. Another noted that the proposed penalty represents a compromise; however, if the proposed conditions are well detailed, it should help to minimize the risk of future problems.

MOVED by Councillor Louis

A. THAT the 2002 Second Hand Dealers License issued to Eldar Asadullaev ("the Licensee"), doing business as Jackson's Buy & Sell Pawnbroker, for business premises located at 175 West Hastings Street, Vancouver, British Columbia ("the Premises"), be permanently revoked; and

FURTHER THAT the 2002 Pawn Brokers License and the 2002 Retailers (Electronics) License issued to the Licensee, doing business as Jackson's Buy & Sell Pawnbroker, for the Premises, be suspended for a period of one month commencing on September 15, 2002;

(i) failing to maintain a record of all property purchased by the Licensee, in contravention of the provisions of the Secondhand Dealers and Pawnbrokers By-law No. 2807 of the City of Vancouver (the "Secondhand Dealers By-law").

B. THAT the Licensee not take in any items in pawn prior to the closure of the Premises on September 15, 2002.

C. THAT on reopening of the Premises on October 15, 2002, the following conditions be attached to the business licenses:

D. THAT in the event of any future breaches of the Second Hand Dealers and Pawn Brokers By-law by the Licensee in relation to the Premises, the Deputy Chief License Inspector is directed to suspend the business licenses held by the Licensee forthwith and the Premises are to remain closed pending the scheduling and completion of a Business License Hearing held before members of Vancouver City Council.

E. THAT staff be directed to bring forward an amendment to the Second Hand Dealers and Pawn Brokers By-law No. 2807 to address the issue of personal items being stored in a second hand dealers or pawn brokers business premises.

carried

AMENDMENT MOVED by Councillor McCormick

THAT A above be amended to delete the words "for a period of one month" in the second paragraph, and inserting in their place the words "for a period of six weeks".

LOST
(Councillors Bass and Louis opposed)

The amendment to A having lost, the motion was put and CARRIED with Councillor McCormick opposed.

The Panel RECESSED at 12:30 p.m. on July 23, 2002,
2:00 p.m. on July 31, 2002,
10:05 p.m. on August 1, 2002, and
ADJOURNED at 11:45 a.m. on August 20, 2002.
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