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Monday, August 13, 2007

Fayette Fair Trade, Inc. t/a Club 41 v. Governing Body of the City of Perth Amboy

08-08-07 A-2429-06T5

Petitioner Fayette Fair Trade, Inc. appeals from a final
determination of the Director of the Division of Alcoholic
Beverage Control (ABC) suspending its license based on a finding
of an undisclosed business interest in the license, and the
licensee's failing to disclose that interest in the application,
or providing false, misleading or inaccurate information about
it. At issue in this appeal is whether a licensee's employee
who runs the day-to-day operations of the licensed premises with
little or no oversight from the owner of the corporation
licensee and who shares in the licensee's profits, but is not a
shareholder, holds an impermissible undisclosed beneficial
interest in the liquor license in violation of N.J.S.A. 33:1-25.
The ABC Director found unlawful conduct, and we affirm.