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Attachment 16mNK lP, h mangy � 6— M7 jAk • 161111[ N 2513cles 99 -Peon I 2BI3-CI-03999 15gig jUaICIRL DISTRICT COURT Z7 M VS F 0,%rTE F ILEB" X1, 1*120 GABWEL INVESTMER1 'okoupo K. AN TnDIVIUcr COURT MA ,r Ucqum,, LLC, § PLAR-ffIFFS V. �h ICIAL6WR W.04 FiNe Wims & Spims OF NOR,-TH TEXAss LLC d) 1: D/B/A ToTAL WINE Spmns BaR & MORE 5,0� 0 r. - D/B/A TOTAL WINE & MORE' AND • TFxAs AmoHomc BEVEMGE COMMISSION, -'0 J*0 D EFA BEXAR C ,TEXAS N -M PLAIPMFFV ORIG1NALPETMO Fa;l COME Now PWRinfiM Gabr'RPM Investmei Gfoup, Inc. mid Smart Uquom, LLC (coil votively "'G abriel' s Liquor") and files its Original Petition, respectfully shoving unto the Court as follows: 1. DMovgay 1 Pursuant to T'FX,, R. Qv., P. 90. 3, discovery in this case is intended to be conducted under Level 2 of this Rule. 11. PATMES ton Z. Gabriel's Liquor is a Texas corporation with, hs Princ,BPE1 P�Rm of bus'Eness �n B"RT County, Texas. 3. Smart Liquors, LLC is a Texas limited liabllhy company vnhh hs pfincipal p�acz; of business in Bex ar County, Texas. 14114 P9 At FeR FAI I" Pal ZZ Ti.7-1 L"I IZO 4. Defendant Fine Winer, &Spirits of North Texas% LLC drah% 70W Wuav, MOTe V Total Wine SpIrts Beer & More is a Texas limited liability company that can be se"ed with Py by serving its registered went, C T Corpomflon Syslem, at 350 Moil` to Paul StreC4 Suite 29003 Dallas, Texas 75201. 5. Defendwv4 nominal party, Texas Alcoholic Bev e -M)90 Comm` ion, an agency of She � 9 try State of Texas, can be sIn'sftW, Sheer ,served with process by serving ILo AdmCOOk, at 5806 Mesa Drive, Austin, Texas 7873 L ill.jmiso crjoNAYrz- . _M -E 6. This Court has jurisdictionpursuant to TEX.ALM, BEV,, COME 0 109.53 and 22,15 and because Gabriel's Uquor requests damages and remin *n excess of the jurisdictionai Hmiats ofthe Court. In addition, Gabriel's Liquor is not requesting affirmative relief from the Texas McohoHla Bcvemgb Commission. 7. Venue is proper in Boxar County pursuant Io TEX. ALCO,, BEv, Coy §§ 109,53 and 22,15 V because that is the county in which the events, omissions and v'Madons giving rasa 0 the claim occurred. Venue is also proper in Bexar County pursuant to TEX. CIV. PRAC. & REM. CODE § I 5.002(a)(1) because all or a substantial portion of the events and omissions giving n'st to this suit occurred in Berm County. IV. BACKCROUND & FACT GabyipI's Liquor, directly and through its wholly owned subsidiaries, owns and operates a chain ofappvcxh-naely fifty-two (52) retail liquor stores located in Bexar County and Dallas County, Texas' (collectively the "Gabriel Stores"). Gabriel's Liquor is a pack -age store permittee licensed with the Texas Alcoholic Be's-lerage Commission CTABC"). 'Gabriel's Liquer also has stores itt Rzys County, Comal County, Guadalupe County, Atascosa County, and Kendall County, Texas. 2 — n Rea Services & Systems, Inc. �%Ssjll% Pennsfivana n WS, ar that OParatcs out of Potomac' Maryland. n,R�Mflajjy recognized wine, spflts, and beer retailer Und St es 'te RS5 aMSE wd OPEM R nd alcoholcoho, retail Sjores du\oughau� 11d, tes at Ccmecdeu�o NW Itys carol as ton Cal"Itorn"s6 NevEdsD lfaxas, End An-xoua, and the vademarks Georgih' a, Florldep W ME Total Wine & More and TdWA Wnt SP-ro �s BeAr & More' A search of the SecretaPY Of 'Sia'v gr -cords Faq Ish ® these states indicates that RSSI, through its founders David and Robert Torne, has established of - and Op=tiDgt1,Tojaj Wine & More" !reWll numerous shell corporations for the purpost 0 ening Pal package stores across the United States. 10. Aldlough each of the numerous entities appears to be an independent entity owned by two individuals or one or morc tMsts, tbe)v are in fact all controlled, funded, managed and operated by fun RSSL Specifically, all 85.plus stores throughout the United States are required to purohase all of their alcoholic beverages through RSSI at RSSIts corporate headquarter in POtOM30, Maryland. Co l I include, but are not Hmited to all-0 (1) bulk buying of al1101'e These Purchasing activRieS beverages; (2) negotiation and implementation of d� tmohn= efth new brands; and (3) presentations by new distributors and suppliers of new piroducts. 1 RSSI,,s owners1lip structure is further confinned in statemenN made by RSST in a lawsuit A filed for trademark infringement in the United States District Court for the District of Connecticut, F39v Civil Acton No. 3:12-cv-000494LB CRSSI Lawsuilfl). In the RSSI La%suit, RSSI states that's "owns and operales at �east 76 %ane and alcohol retail stores throughout the United States under the FOR !Total Wine & More) marks."' RSST further states that RSSI ",owns and operates the website www.tolalwine. and that RSSI "owns the federally registered trademark for the word niaTk MCI TOTAL w & MORE and the word and design mark TOTAL WINE SPIRITS BEER & MORE." 3 — Wcbe3isaone,-SwP-Shopfor ail 85-Phmugh aw ft United States,, NQS 0* can & cusiGmzr vB& mg the Website purchase � 't an ion, but fty en also apply for a job at any one k caxds to used at aRY T DU'A W" C & More location, Rhf, 85-PIUS S�om TN�, webs"te- currenfly lists postings for *ob opWnas for all the Texas locations. 13. on as about August 4& 2011 an ontity was formed known as Fine, W*Ines & Spirits ofNorth Tex as, LLC' C'MBO Wones `JC0xae)- Tht Certificate of Formation shows David 'Trove and RobarlTrone ovenjMg persons and provides an address 11% Retail Services & Systems, Inc." ffi,potomar,Nairyland. {fin oraboutApril 19,2012, Fine Wines Tex,2S regiSteTed iffie asswn Pd nim F-" "Total Wine & More!" and "Total Wme, Spirts Beer & More' wadi ffie TeINIS SFMM0w. L I z n 0- e 14, Some time 'm' early 2012, Fine Vines Texas applied fog �wo pa&W4 �V'Qrz P U &VP'111 U oh 0 n ic TABC — one for a Dallas, Te xw and one for a Fort Worth, Texas location. I its aPPI' at' Fimp Wines Texas only lists David Tront and Robert Trane as owners. Upon infannation and belief, P" Fine Wine Texas fv0s to Hist RSSI dere on the T application. On April, 5, 2012, and 9 September, 7, 2012, based solely on the infunnation provided by pine Vines Texas, Fine Wines o Texas was issued pack -age store, permits by the TA BC for both ffic aHas and Fort Worth soy s, Pul respectively. 15. On or about June 29129 Fine Wines Texas opened els tarntarn-rcWIN package store in Dallas, Pq Tox& and five months later opened Its second retail package sore in Fort Worth, "Texas (collectively the "Texas Stores"). Although the Texas Stores appear an paper to be owned and Fim Wines & Spirits North Texas, LLC %vas initially incorporated as Total Winp, & More OfTexw, LIC but ww amended on September20® 20111 to the current name. The Dallas Storeislocated at 9350 Nonb Central Expressway, DaHas, Texas 7531 4 The Fort Worth store is located at 5200 South Hulem Strcet, Fort Wonli, Texas 76132, trq on twed by MUlewsnes we a ctuaHy amedv CS ran M Moageld'tl suppfled and slaffed by r(Io Nno ani y do ft, Texas &Ms OPemte, under RESP -S M& nmne and trademak—TOW W Total Wine & More stores,, (2) are promoted and advertised on, ft W�,,bRRf, as Total WMt & MOVE TO D run O their alcoholic beverages through res; (3) bave *ob lisfings on the WOWAV) (3) purchase all of ei sto j RSI- and (5) negotiate, and implement all new deal structures for utw product through RSSL 16. The above infbnmWon con ms that Fine Wines Texas has faileded to My disclose the true ownership, conjjo�, marRgemenz and Odin of N,, TeX aS ftres by RSSL As a result, pane Wines Texas has vto�zi�d m-ujf�pje provisions of the Texas Alcohol'o Beverage Code, including Inc W s Texas's os A Iad *ahe Tex but not 1-imitedioengag'lngiaasubteirfuse ownershipscheme. F' ons have r,uused an ti cun&u5 le use dEamage to the Gal n'ell ROMS, 17. In oraround DwMber OUG12, F'M W*ncs Texas THrd a third applicabon with theTAEC for a new package store permit for a 100adun at 125 N.W. Loop 410, Suite 260, San Anton'an, Texas 78216 (the "'S;in Antonio Application "). Fine Wines Tem provided tho swnotnsufflcleat information on the San Antonio Application regarding RSSL This action by Fine Wino Tleras amounts to the same violations and illegal subterfuge scheme apparent in the Texas Stores. A granting of the San Antonio Application by the TABC would cause significant damage to Gabriel Stores. Mal V. ARGUMENTS &A]UT9.0,RMES, IS. The Texas Alcoholic Beverage Code (the "Code!) sets forth the legal framework under Mtn whichTexas regulates the manufactare, sale, distn'bution, transportation, and possession ofair-oholic beverages in the state of Texas. TL --X. ALCO. BEV. COIDE § 1.06. Included within this legal framework Chapter] I, SubchapterB ofthe Code sets forth statutory provisions generally applicable ZZ 1 to all applicants and to all applications for the original issuance or renewal of an alcoholic beverage Permit in the State of Texas. Further., Chapter 22 of the Code Sets forth statutory provisions l specifically applicable to package store peits.peel Kn Texn,-,,, no son r UT _On �A� a wet area may sell liquor or liquor 016P 0S Of Sal W'aihout flrM oNe'Rng'ng apenmitof the type required. TEX. ALCO. BEV. CODE 1.01(a). 'For this or purpose, 0 permits must 6� applied for with, and obtained from, the TABC and must be applied f an forms promOgated by the TABC. Tex. Alco. BEv. CODE §§ 11.319 11.33. Fine Wines Texas isrequired to hold a "package store ptlbrmilf' for each of its locations. 20. The TABC or its administrator may refuse to issue an original or renewal pemh WINt or without a hearing it it bas reasonable grounds to believe and finds that certain ciTcumstanv�* 5Mst. 4) 0 0 �I TEx. ALco. BFv, Com. § 11.46. justi Circumstancesfying the TABCs Tei �54 to tissue an angina L( or renewal permit include the failure by the applicant to answer a question �n an an's'M6 or a CI TABC permit application or the applicant falsely or'Moorrectly answering a quCstion ORD Rn on or renewal TABC permit application. TEX. ALr-0. BEV. CODE § 11.46(a)(4). Once s permit is issued, the TABC or its administrator also may suspend or cance'8 an ori gineg oy yenawzi pe,='W it is found that certain Circumstances exist. TEX. ALCO. BEV. CODE § 11.61 (b). 21. The TAB C promulgated applications that must be completed by any applicant for a package store permit include the TADC Off -Premise Prequalification Packet ffonn L -Off'), the TABC Business Packet fform L-13"}, the TABC Location Packet for Retailers CForm L -U), and TABC Personal History Sheets for the applicant's owners, managers, and officers, as applicable, al' . of which forms are available at any TABC office location and online at httR:Hww%v.tabo.state.tx.us/foms/lict-,nl:ine-asl2. Fine Wines Texas was required to fill out and submit each of these applications, —6- It o 22, PP Dd pe ft armit, each DEAM VOW= M the- State, ofTevmD 'Molufflng WNhout HM hlt a package store pe fonrns seeks the dt Psciosuire, miler oath, of among other matters, the applicant's ownevsh't'p aand ppi's CaPa 2 hg�, fii'anj and faniLricing sources. An applicant is requi%d W Bnfomdon the AUcan f0d'�se ffiz a pppica nt's d9' Feet and- .H fired ownership interests, parent companies, finane"Ing fly Wa sources, and any" Offier indicia OT OVMf ersh'tp and management cuntrol over the applimnt for � (he puFpasp of dgem'nin& andi confiming ZhajThe, vppijcant is legafly quallified to hold the package ®° Mg ed for or renewed. t siore permit or other license or pe 't b appfl 23. For purposes ofdetermining grounds for the approvaW or Te sal of an applicant's original or re TABC parm't appiica6on, the "appficanV' includes, with respect to a corporation wal l r ppl .t, each Orer of Ihe pDVOrat'on and the over or owners of a majority of the corporate s'SV_ ckG , Tgx. ALco, BEv, Coas I A5,, 2 dL ode takes so soslhjai5d fav zhz., TuR, cong plete, and accurate disclosure to 'IMte- Cn'OulY al TABC opliV can s andloir a permit holder's ownership, rnanagem�;m, financing and other f -an ap relationships creating indicia of ownership or control, that the Texas Legislature, has by statute islature has "plicilly stated that all d-o, A18=5�1 p , -ajipm-anIM. The Texas Ug' prohib-'ate d subieaw provisions of the Code-- he Hberally construed to carry out this purpose, Tex. ALco. BFv. Core FE9 09.53. R. V'ia�zoon(nffLection]09.53.&ubterfugeQwner.qhin 25. Code Section 109.53 seeks to prevent subterfuge ownership schemes (a) by making it the duty of the TABC W prcvWe strict adherence to the policy of preventing subterfuge ownership and relamd practices-, and (b) by providing package, store permit holders with a private cause of action 7 1W Imi I IZZ IQ] 1WR MR W dive re'Ref and treble damages against other package store permh1tee's engaged 'in I for both injun subterfuge ownership schemes. TEX. ALCO. BEV. CODE § 169,53. 26. RSSI is engaged R'n a submz-fuge ownership scheme invotv'fi& & OPeW,, Of Fine wines Texas. permits Wines Texas holds TABC package store peits for the Texas &=S, which are owned, controlled, financed, and managed by RSS1- 27. RSSI forced shell affiliate entities for each of the 85 -plus retail liquor stores ftoughout the United States for thepurpose of holding permits to sell alcohol in the "Individual states, Each of these affiliate entities operates under the "Total Wine & More' trade name and tmdema&l V Moreover, each of the affiliate entities also'. (1) appear on the, Website as TOW Wine &Mag -G sloyes; have (() are promoted and advertised on the Website as Total dine & More stores, (3) job, H'Stinp 0 an (41) purobme all of their alcoholic beverages through RSSI- and (5) negofkate, 8Ad implement afl new deal structures with new suppliers through RSST- 28. In faa,, RSSI admits that it is the owner and operator of the "'Total Winq'-', a -N ze!D T H stores throughout the United States in the RSSI Lawsuit. Specifically, RSSI admits: a. that 'it "owns and operates at least 76 wine and alcohol retail store throughout the United States under the TOTAL WINE Marks." bo that it is "the most swell -known and perhaps the largest wine and alcohol retailer in the United States." o. that it "employs more than 2,000 individuals, all dedicated to providing the best selection of Wine, spirits, beer, and related products at the best prices in asophisticatod. atmosphere with well -brained staff.', d. that "each (sic] of the Total Wine Stores cames a selection of at least 8,000 different wines alone, and the stores that carry beer and spirits each cavy over 2,500 types of beer and over 3,000 types of spirits." c. that it has operated the Total Wine Stores since 1991 Ael 1W Imi I IZZ IQ] 1WR MR W dive re'Ref and treble damages against other package store permh1tee's engaged 'in I for both injun subterfuge ownership schemes. TEX. ALCO. BEV. CODE § 169,53. 26. RSSI is engaged R'n a submz-fuge ownership scheme invotv'fi& & OPeW,, Of Fine wines Texas. permits Wines Texas holds TABC package store peits for the Texas &=S, which are owned, controlled, financed, and managed by RSS1- 27. RSSI forced shell affiliate entities for each of the 85 -plus retail liquor stores ftoughout the United States for thepurpose of holding permits to sell alcohol in the "Individual states, Each of these affiliate entities operates under the "Total Wine & More' trade name and tmdema&l V Moreover, each of the affiliate entities also'. (1) appear on the, Website as TOW Wine &Mag -G sloyes; have (() are promoted and advertised on the Website as Total dine & More stores, (3) job, H'Stinp 0 an (41) purobme all of their alcoholic beverages through RSSI- and (5) negofkate, 8Ad implement afl new deal structures with new suppliers through RSST- 28. In faa,, RSSI admits that it is the owner and operator of the "'Total Winq'-', a -N ze!D T H stores throughout the United States in the RSSI Lawsuit. Specifically, RSSI admits: a. that 'it "owns and operates at least 76 wine and alcohol retail store throughout the United States under the TOTAL WINE Marks." bo that it is "the most swell -known and perhaps the largest wine and alcohol retailer in the United States." o. that it "employs more than 2,000 individuals, all dedicated to providing the best selection of Wine, spirits, beer, and related products at the best prices in asophisticatod. atmosphere with well -brained staff.', d. that "each (sic] of the Total Wine Stores cames a selection of at least 8,000 different wines alone, and the stores that carry beer and spirits each cavy over 2,500 types of beer and over 3,000 types of spirits." c. that it has operated the Total Wine Stores since 1991 0 L talVine.colwebsteand �d V.tof, {hatit also owns Me � t � for the word mark TOTAL "N o andl the word &nd d � � a�rk TOTAL WINE SA TS BEER & MORE that it has spent millions of dollars over the years building the TOTAL las �• a P and vigilantly enforcing those marks. 29. In direct contradiction to the RSSI Lawsuit, Fine wines Texas failed to disclose or describe on any of 'Its package store pen -nit applicaf.ons the ownership, control,& financing, and management, re admitted to b RSS1 in the RSS� Lawsu'k, The failure `by 'Fine, Wines texas to fat StCuc#il � ly, completely, and accurately disclose its true ownership, financial, and ma emcnt structure to TAB oaup ly, Y constitutes a subterfuge ownership scheme pursuant to Code Section 109.53. Specifically, Code Section 1.53 states, "It is the intent of the legislature to prevent subterfuge ownership of . o a e ft; and ail provisions of this code shall be fibenily construe to carry out this intent ...' Z . ALCOo BF o CODE § R 09-51 MIR ♦9n�y �+p p� s� �y�yy �y (� X51 {� f,��i- ��ya its r� r� r� t�g� not allow 04 in �S�t�+� ��iS�J o� a b15+Lt Ul�a�iy `i�` 4d►��Lw �•�r ��?L► V� lir Pii�i# V� anyone other than t o person io whom the permft was lssued� TM ALco. REV. CODE § 11.05. permit holder is inn n ci Iva accupaac and control o the permitted, or licenced, prem s s ve� e �, In co � is unQ �l o surrender control of the employees, ce ises, or bt»'M ss_ jo a person otheg Iffic putt holder. TEx. At CO, BEV. CODE § 109153, It is clear'fTom the infarc alion set forth above and by RSSI's own admission, that RSSI controls the employees, premises and business of its Total wine &More stores, including those allegedly owned by Five dines Texas. As such, Fine Wines Taxas is engaged in a subterfuge scheme in direct violation of Section 109.53. See TEx. ALCO. BEV. CODE § 109.53. 31. As a result of the above-described acts, omissions, and violations by Fine wines Texas, abriel'sLiquorhas suffereddarnages atits Gabriel Stores, including, butnotlimitedto, lostprofats. Accordingly, pursuant to Code Section 109.53, abriel"s Liquor is entitled to injunctive relief �, 9 — the TABC from approving the San Antonio Appricat'o tnand enJoiningthe operafiansof enjoining the Texas Stores. See TEX. ALCO' BEV. CoDE § 109.53. "in addition, Gabriel's Liquor is entided to treble its actuai, consequentials and incidental darnages, See TFX,, ALM, BEV, CODE § 109.53. .IL%kmte BusiLnessges as a Common � 2. Violatton of Section 2115 14-5 S_eQUeration 32. Code Chapter 22 pr- ovides that no person may hold a dRYcct OF Andzmct Ent rest an more than bemm,n marfled five package store pennits and provides for aggregating PaMORS for NOS Purpose I individuals and among owners, managers, officers, and employees of corporatepemit holders,, TEX. ALCO.BEV. CoDE§22.04(a)and (b). The Code further prohibits package store pe=o fees from conducting business in a manner so as to directly or indirectly coordinate operations with nuothez A* package store as if they sharedcommon ownership unless sueh �11 1 YC Nmlz; perf� samepersons. TEX. ALco. BEY. CODE § 22.15(a). Finally, the Code prohibits s�,Facka&vut st ovm ffld e 9 9,h from being direckly or *Indirectly owned or held by a public corporation or aaxi�v N&I 'L thirty-five, or more ownpus. T M ALCO. BEV, CODE § 22-16 (a) and (b),, ILI, 33. The package A= permits for the, TABC fog, the Texas Stores were. app�lpet -N, � Ea ' 'Ssu-ed 90 ov:VI by the TABC to Fine Wines l�,exas. FlnF, in Texas is the Appil'=t for �-Nm 8Antonio Application. Howevrri, notwithstanding that Finc Wines Trxzs holds znd has appfled for the mlevant Texas package store permits, all of the "Total Wine & More' retail locations in Texas are owned, financed, controlled and managed by RSSI. RSSI currently operates over 85 package stores throughout the United States. fine Wines Texas is not a wholly-owned subsidiary of RSSI. 34. As such, RSSI is undertaking the following operations on behalf of Fine Wines Texas in violation of Code Section 22.15(a): a. Cooperatively setting prices or credit policies; b. Sharing adveni-9sions,0 c. Utilizing the Same trade nares, trademarks� and slogans; d, wring or utilizing the, same, bookkeeping and cumpu �Pr processing serMes',I e. Transferring funds, merchandise, and equipment from RSSI to Texas ToW Wine; f Utilizing the some persons as employees or independent contractors for both RSSI, Fine Mines Texas, and the package store operations of RSSI in other states; and 9. Negotiating quantity discounts for alcoholic beverages of Fine Wines Texas utilizing the sales volume of RSSI and the package store operations of RSSI in other swes to increase the discount. See Tex. ALco. REV. Com § 221 15. 35. The acts of RSSI in engaging in the above listed activities for and on behalf of Fine Wines constitutes RSSI and Fine Wines Texas opereing aflegedly separate businesses as a common enterprise MI violation of Code Section 22.1 5(a). See TEX. ALco. Bev, CODF, § 22-15. As a msul t of the above-described acts, orgliss'Rons, and violations by Fine Wines Texas, Gabriel's Liquor has suffered damages at its G-OrW Stoms, includ'mg, but not Hmiled to, lost profits. Accordingly, pursuant to Code Swion 22.25, Gabr9kPs Liquog, is end'de-d w injunctive relief 10 0 enjoini ng the TAB C from approving the San Antonio AppHcaflon and enj'01WAD& the opeFaflons of the Texas Stores. See TEX. ALCO.BEv,CoD*E§22.15. treble its actual, consequential, and incidental damages. See Tr..X. ALCO. BFV,, Com § 22. 150 f"9 VI, CAUSRS 017 [ON 36. eabriMP's Liquor repeals and incorporates ffie. Oegaflons contained in paragraphs I — 35 herein EbTO purposes. Gabriel's Liquor seeks recowry u-ndr- ani and all causes ofaction supported by these allegations, 60 A. Violation of Section 109.53 — Subterfuge.Qwn 37, Fiene Wines Texas is package store permit holder pursuant to TEx. ALC04'J9UV,2, CODF, 228 Fine Wines Texas has violated TEX, ALCO. BF.V. CODE § 109.53 bye (R) Oowing for ihe use of Rs F -_� permit by a person other than the permit holder; (2) failing to maintaia exclusive QccupanGy and f fhe� bus'=Ssa and enn . or licenced, premises in every phase oV itt control of the p edv P-1 (3) surrendering control of its employees, premises, or business to a person other than the permit 0 holder. As a r of the above-describcd acts, omissions, and violations by Fine, Wjnc:s Texas, . i Gabriel's Liquoir has suffered damagesV gnc�ud�ng, but not limited to, lost prof'ts. Gabriel's Liquor seeks judgment, pursuant to Code Section 109.539 against Fine Wines Texas for injunctive relief " i * I I rManently enjoining the eqjoining the TABC from approving its San Antonio Appl*cat*on and pe operations of the Texas Stores, as well as treble its actual, consequcntiial, and incidental damages. ..,nterRetLe B. Violation as !Qommon..F of Section 22.15 — SMarate Bu.5ingLs 38. Fine Wines Texas is a package, store permit holder pursuant to TIEx, LCO© BEV. CODE § 22. rim Fine Wines of Texas is not a wholly-owned subsidiary of RSSK, but is owned, financed, conlroHed and managed by RS h. As such, RSSI is undertaking the following operations on behalf of Fine Wines Texas in violation of Code Section 22.15(a): (1) cooperatively setting prices or credit policies; (2) sharing advertising; (3) utilizing the same trade names, trademarks, and slopes; (4) sharing or utilizing the some bookkeeping and computer processing services; (5) transferring funds, merchandise, and equipment from RSSI to Fine Wines Texas -2 (6) utilizing the same persons as employees or independent contractors for both RSSI, Fine Wines Texas, and the. MIR package store operations of RSSI in other states; and (7) negotiating quantity dilscounts for alcoholic beverages ofFine NVines Texas utilizing the sales volume of RSSI and the package store operations of RSSI is other states to increase � discount. As a result of the abovc-descriibed acts, omissions, 60 IZJ ["I —13— and violations by Fine Wines Texas, (3abdel's Liquor has vffam)d, dmages, including, but not 2 I 5 limited to., lost profits. Gabriel's Liquor seeks j,�QdgrneK pu�nsuan �a Code Sec 'On 2 �; , against Fine Wines Texas for injunctive relief enjoining 0m TABC firana the San Angonio Application and pennanently enjoining the operations ofthe Texas Stores, as weft Es teble its actual, consequential, mid incidental damages* VU, REQ FOR A-rTORNEY'S F 39, Pursuant to TV, Alco. BEV. CODE § 109.53 and 22.15, Gabriel's Liquor requests cost of suit and attorney's fees. viff, REwr F 40. Pursuant to TEx. R. Qv, P. 216, Gabriel's Liquor demands a Wal by jury as As right under Article 5, Section 10 of the Texas Constitution. XA, TNJUNg[iV6&EU9f 41. Pursuant to TEx. R. Civ. Po 5 , Oabnlel's Liquor adopts by reference as though set fob ftatc3y herein its Application for Temporary Restraining Order and Temporary Injunction, as it may be, wvended OT'supplemented. XI. PRAYER WHERSFORE5 PREMISES CONSIDERED, Gabriel's Liquor prays The Court enter final judgment against Fine Wines Texas awarding Gabriel's Liquor all relief requested herein, including bm no limited to temporary and penrimient injunctive relief, as well as aH such othrw and brtheg- mHeV, both general and special, at law or in equity, to which Gabriel"s Liquor may be entitled® ["I —13— 0 0 Respectfully submitted, PUMAN, CAPPUC00, PULLEN & BENSON, LLP 2161 Nig Military Highway, Sure 40a San Antonio, Texas 78213 � .., nulma lllaw.coom (210) 222-9494 T91hone (210) 892-1614 imile B• Y� ...... AandatiA. Pulman Texas Statc Sar No,,, 16393250 manOnulmaniaw.com Grant M. wines Texas State Bar No. 24074241 gg©ines u ,_ulmanlaw_ m ATTORNEYS FOR PLAINTIFF -14- • . . • sel3cr -►iso • CAUSE INTO. 2.013a G mq Mama INvEsTMENT GRouP, INc. AND § W THE DISTRICT COURT SMART LIQUORS, Lt.C, § PLAINMS § V. JUDICIAL DIsTjuc r full FINE 1WIM & Spmm op NORTH TEXAS, LLC § D/B/A TOTAL '`WINE SPIRITS BEER & MORE § D/B/A TOTAL VINE & MORE; AND § TExma A=OI°Ic uc BEVERAGE CobwssiON, § DEFENDANTS § BExAR COUNTY, TEXAS ORDER GRANTING EX PARTE APPLICAMON FOR TEMPORARY RFSMINING ORDER 9 i. ° CAME ON THIS DAY for consideration the & Parte Application for Temporary Restraining Order P" ■ and Temporary Injunction filed by Gabriel Investment Group, Inc. and Smart Liquors, LLC (collectively "Gabsiel's Liquor�')r After hearing the arguments of counsel and reviewing the owl pleadingstaW affidavit evidence, the Court finds as follows: r • J ° . i . . qabrlel's Liquor is likely to succeed on the merits of their case against Fine wines & Spirits ' of North Texas, LLCI ("Fine wines Tersel and the Tem Alcoholic Beverage Commission CTABC). Fine wines Texas is a Texas company established for the purpose of permitting Retail Services & Systems, Inc. CMR), a nat ionally recognized wine, sprits and beer reWlear, to • operate i -the State ofTexas. Despite pine Wines Texas's appearance that is independently owned, it is in fact off, controlled, funded and managed by RSSI. ., ° . , .. fir' 1 as Total Wine Mom ofTaos, LLC but 'Fiue 1Wmn & Sphits'�" Taxan, LLC was imtW mco wasvnendW on Sap, :'bcr 20, 2011 to the =mnt =no. r 2. It is a violation of %� Tar= Mmhoflc Bav(R cadc,,-i; (ft `CoCs') too. M6 subage scheme that sure pndam caniW of tamp floycE�m, pmMms Abu' m to a penin d%er than the permit holder; (2) aUow a ppwsoun b 42?@06y a?M)'dkacdy 1o` m'ntere i i MO M eve package store'permits; (3) conduct business that directly or indirectly coordinates operations with anAer pack*a& store not wholly owned by the some person; and/or (4) directly or indirectly own a 0ermit by a public corporation or any other legal entity with thirty-five or more. owners. RSSI's ownership, control, funding and management of Fine Wines Texas is a direct violation of the Code. I TEx. ALco, BEv,, CODE §§ 109.53 and 22.15 expressly provide that a pemittee banned by items' prohibited under these provisions 10c�Fjtdt @d lig by Rqjmcdve. po gamdure." As such, Gabriel's Liquor is entitled to, pursuant to TEX. ALCO. Bev. CODE §J 109.53 and 22. 15, tempomy injunctive relief enjoining the TA BC from issuing any new permits to Fine Wines Texas including the new package store permit for a location at 125 N.W. Loop 410, Suite 260, San Antonio, Texas 78216 (the "San Antonio Application"). -.4. Gabriel's Liquor is expressly entitled to injunctive relief for a violation of Mi Tax.-ALCO, BEV. CODE §§ 109#53 and 22.1 S. As such, Gabriel's Liquor is not required to meet the common law elements for injunctive relief. However, this Court has also finds that wit' ant- issuanc@ of the requested temporary restraining order, Gabriel's Liquor will suffer probable Wury in that the 4 t- bam of which Gabriel's Liquor complains is imminent and irreparable, and Gabriel's Liquor will have no remedy as fidl, complete, and final at law. More specifically, without the requested ex pane • temporary e.straining order, Gabriel's Liquor will suffer probable, immediate, and irreparable injury, loss, qr. damage before notice can be served and a hearing hereupon can be hadbecause: (a) the harm of which is complained is imminent in the San Antonio Application can be approved without notice 2— L;;� L�- P" M F" P9 P" F" lft,"I PER Pon PNR or limitation and could wjwtbly have a preclusive effect or be insulated from appellate review shoul4.. , it, l c., issued before Gabriel's Liquor can obtain a temporary injunctions and (b) Gabriel's �igbor has no adequate remedy at law because legal remedies will not offer as complete,,figai� and equal relief as the requested injunctive relief because money cannot compensate Gabriel's Liquor for their respective violations of the TABC 's code and regulations. S. .This Ternpomry ResWuing Order is granted without hearing to Fine Wines Texas and TABC biose the failure to eater temporary emergency relief could result in an inability to provide any relief to Galniel's in the futvne. 'therefore, pursuant to Tmc. R. Civm, P. 680, it is ORDERw that Fine Fines Texas, the TABC, and their respective directors, officers, agents, servants, employees, and attomqs, and all other persons in wive concert or participation with any . . of the foregoing who receives actual notice of the Temporary Restraining Order or the injunction fmm p ming, issuing„ and/or taking any mer action related to the San Antonio Application. It 4. • . RAE t that Fine Mines Texas and its respective directors, officers, agents, servants, employees are hereby required to adequately disclose to Gabriel's Liquor and the TABC its relationship to RS81 related to the ownership, management, control and fi of Fine Wines Trxa...1t-is further ORUFRFO,that Fine wines Texas and the TABC shall appear on March 20 2413, at 4): 00 o'clock fi.m. in the Courtroom of the Judicial District Court for Bexar County, Texas, and .then and there show cause, if any, why the Temporary Injunction should not be extended for an addi0opal 14 days and/or why a injunction should not be entered as requested by Gabriel's Liquor;peAding trial on the merits of Gabriel's Liquor's claims. It is fuatha 1 1, • r . _ 3 ... ORDEUn that the Clerk ofthe Court is hereby domed to issue a Temporary Restrahft Order in cdnformity with the terms of this Order as well as a Show Cause Notice to both Fine mines of Tries and the TABC to appear at the bearing for the extension of the Temporary Tes#rahft Order and/or entry of the Temporary Injunction. It is fiuther OPERED that the Clerk of the Court shat] forthwith on the Ming by Gabriel's Liquor of the bond *wcofter-4-equired in the amount of $ S1747 00and uponTweivmg some according to lawAv Q%Mb issue a.'X'ernpomry Restraining Order in coma'mmity with the law and the terms of this Order. Gabriel's Liquor is hereby permitted to deposit a cash bond in lieu of a surety bond pur.►v�ant to TEx. R. Civ. P.1 4c. If Gabriel's Liquor chooses to deposit a cash bond, the Clerk of the Court is Hereby directed to deposit the bond funds into an interest bearing account pending fwrther order of this: Court It J; further . ;�RDWD .that the Temporary Restraining Order shall expire by its own t+enns following the 10- day after its execution, unless within this time, for good cause shown„ the Court extends it for a likeperi1.od or unless Fuze wines Texas and/or TABC consent that the Tempo R+es -n Order may. be extended against them for a longer per*od. SwNza, and'EmmRzD this day of March, 2012, at ; S o'clock .m. • D jSMCr JuDDa ' t T � ; e 1 e e i 1 MR F" APPRovED AS TO FORM AND SUBSTANCE AND ENTRY REQUmcm ftLiMAN9 CAPPUCCIO, PULLEN & BENSON, LU 2161 NAV Militaicy Highway, Suite 400. San Antonio, Texas 78213 wvuw. ulmanlaw.c+urn _ (210) 222-949 Telephone (210)%8924 *0 elecopier By: . • kiand&7A *Perlman Texas State Sar No. 16393250 Mu n r @jffll anlaw,-= Grant M. Gaines Texas State Bar No. 24074241 ,��•, u�s+Cr_a��ult�anl �w , AM" M -X'S FOR PLAINTIFF i i • s y� r • l • 1 • • t 7 'i • 1 FOR ,�► 5 r IZZ Cause No. 2013 -CI -03999 GABRIEL nqWSTh9W GROUP; INC, § IN THE ISIS AA4 SMART LIQUORS, LLQ, § • § § 150 JUDICIAL DIS T - ECT § MNE WINES AND SPIRITS OF NORTH TKKAS, LLC DABIA TOTAL WME SPMffg § BEER & MCRIB D/B/A TOTAL VMO & r § MOREI § • Defendants. § BEXAR COUNTY, TMS AREED OW DLSS0L"�Gwrzj[w RES GORDER AND G.- T= MARING 819T ON IM REQUnT FOR INWID.R." RLMCT �ON On this day, P ainfffs- Gabriel Invest3ne3at Group, Inc. and Smart Liquors, LLC C"G briels'� and Defendant Fine Wines and Spirits of North Texas, LLC ffine Win&') appeared and entered an agrement regarding the Defendant's Motion to Dissolve the Tempormy Res fded on August 5, 2013, the respective hearing set on August 12, 2013, and the, Temporary injunction hearing set on August 19, 2013. It is hereby: ORDERED fliat the heming on Defendaues Motion to Dissolve the Temporary Restraining Order set for August 12, 2013, has been passed by agreement and shalt be removed• from the &eket; ORDERED that the Temporary Restraining Order issued is this case will hereby Wire oa August 19, 2013, on its own terms M- accordance with Rule 680 of the Texas Rules of Civil Procedwe; ORDERED that the Clerk of tis Cowl sh&U r the bond posted by Plaiatiffs, in the amount of $6,000 with respect to the Temporary FU:str&Wmg Order, to counsel for Plainfiffs., MR tam W ary Randy Pulman, Pulman, Cappu=o, Pullen & Emson, LLP, 2161 N7 Wit11ighway, Suite 400) San Antom* o,, TX 78213, ORDERED that the heanng on Plaintiffs' ut for 6oq jn, sd for 4 August 19, 2013, has been passed by agreement and sal be removed fyom the dockets and 1 0 lam oRDEmD that Defendant Fine Wines and Spw"48 of North Texas, LLC, M'11 notify Plaftitiffs if it files a package store pmt application with the Texas ARcaholio Beverage Commission for the location at 125 N.W., Loop 410, StAte 260, .in San Antonio, Texas, within tam seven (7) days of such On& SIGNED tWs..AUtqU!5+1- ZOY3, MOE PRAKWW A d-1 RenM -A. P State Bar No. 16393250 2161 NW Military Highway, Suite 400 San Antonio, Texas 78213 Telephone: 210-222-9494 Faesum0e: 210-892-1610 Attorney far Plaintiffs Gabriel Investment Group, Inc. and Smart Liquors, LLC ark A., Mayfield Texas State Bar No. 1328439 0 Kristina W. Silcocks Texas State Bar No. 0079593 0 600 Congress Avenue, Suite 3000 Austin:, TX 78701-2978 Tel J5,5421�71 I OLA.cqphone: 50 1 A2f A %of IF= e., 512-542-73 15 Attorney for defendant Fine Wines and Spirits of North Texas.- LLC a3e Texas Alcoholic Beverage Commission 'w"INOW awram 0"t"US02% Research Report Updated: November 26, 2013 2:42:51 pm File Number: 3063704 License Number: P803062 Original issue Date: April 05, 2012 Status: Current Expiration Date: April 04, 2014 Secondary Status: Active Status Date: April 05, 2012 Trade Name : TOTAL WINE SPIRITS BEER & MORE Seller Training Owner: FINE WINES & SPIRITS OF NORTH Mallina Address Location Ad -dress, N X In City Limits ATTN: DEWEY BRACKIN 9350 CENTRAL EXPRESSWAY 600 CONGRESS AVE STE 3000 % Wine I DALLAS, TX 75231 County:Dallas AUSTIN, TX 78701 Within 1,140 0 ft Location Phone: (512)542-7025, Related To-.BF803063* Management Halt Subordinates: E LP PS Violation Admin - L sta ID Notice # Vlotagon Drs asitioc 620113 309107 Misc, Defects In AppksWn Written Warning 616923 303194 Salim To Respondent On Delinquent LW WdAen Warning 616924 303195 Sale To Respondent On Delinquent List W, Otten Warning 616925 303196 Sale To Respondent On Delinquent List WrKtan Warning 616926 303197 Sale To Respondent On Delinquent List Written Warning 616927 303198 Sale To Respondent On'Delinquent List Written Warning 616928 303199 Sale To Respondent On Delinquent List Wditten Warning Violation Admin - ARTS N LID Not ce Sup- a par-ent-DMe & Q V7o1a!Lqa-DM 1724797 303194 WARNING AUDIT 1708687 06/28/2012 1724800 303195 WARNING AU DDS' 1708687 06/29/2012 1724801 303196 WARNING AUDIT 1708687 06/30/2012 1724803 303197 WARNING AUDIT 1708687 09/20/2012 1724810 303198 WARNING AU1017 1708687 09/22/2012 1724813 303199 WARNING AUDIT 1708687 09/24/2M 1832488 309107 WARNING COMPLAII 1824742 07/31/2W3 Complaints - LE ID No ice g Incident Date 616923 303194 06/28/2012 616924 303195 06/2912012 616925 303196 06130/2012 616926 303197 09/20120'! 2 616927 303198 09/22/2012 616928 303199 09/24/2012 620113 309107 07/3112013 COMRIaints - A ID Received Date Alleaatlon Activity _ Class Control Doc- TABC ResearchReport SUS CP sta Incident Violation Started Paid 03/19/2013 Date 03/19/2013 N Closed 7/31113 7131 i1 N Closed 6/28/12 6/28112 N Closed 6/29/12 6/2911 '12 N Closed 6130/12 6/30/12 N Closed 9/20/12 912011 N Closed 9/22/12 9/22/12 N Closed 9/24/12 9/24/1 z LE Complaint I Dogket# Case Adopted 616923 616924 616925 616926 616927 616928 620113 Issypg d R By y Issue Date Henley, Ellen 03/19/2013 Henley, Ellen 03/19/2013 Henley, Ellen 03/19/2013 Henley, Ellen 03/1912013 Henley, Ellen 03119/2013 Henley, Ellen 03/19/2013 Alexander, Joshua 08/2712013 Source Current Status Page 1 of 2 Inspections - LE No records found Div Reid, Larry inspections -ARTS Shirley, Travis ENF ID Inspection Date 0 Activity Class Acjj:V1tY-rV0e open Compliance Check File Number: 3063704 License Number: P803062 Open Compliance Check 1714171 03/07/20`13 12:30 pm Field Selected Original Issue Date: April 05, 2012 Status. Current Other Investigation Other Investigation Exterior Surveillance 1787125 0512412013 6:00 pm 1796394 06/27/2013 5:00 pm Expiration Date: April 04, 2014 Secondary Status: Adive 1798653 07102/2013 2:00 pm Other Investigation Open Compliance Check Open Compliance Check 1799610 07/0612013 8:30 pm Status Date: April 05, 2012 Violation Criminal - LE Trade Name: TOTAL WINE SPIRITS BEER & MORE Violation Criminal -ARTS a CoLnj2lalnts -A (continued) No records found Source Current SLatus LD Received Date Alte-madot! Acfivlfv Class Other Investigation DeTinne, Aaron Citizen Closed - No Violations 1752725 05/03/2013 LD Incident Twe Situs seller Trade Name Location Address 1588828 Notice of Default (Credit Law) Misc. Violations Possession of Unauthorized AB Other Investigation Alexander, Joshua Other Closed - Violations Found 1824742 08/1512013 Misc. Defects In Application Other Invest* ation er 19 House, Judy Ciften Closed ® No Violations 1854465 09/26/2013 Subterfuge Subterfuge Inspections - LE No records found Div Reid, Larry inspections -ARTS Shirley, Travis ENF ID Inspection Date 0 Activity Class Acjj:V1tY-rV0e open Compliance Check 1542887 05/09/2012 2:05 pm 1546359 05/16/2012 1:55 pm Field Selected UP Requested Open Compliance Check 1714171 03/07/20`13 12:30 pm Field Selected Open Compliance Check Exterior Surveillance 1765153 05110/2013 1:26 pm Other Investigation Other Investigation Exterior Surveillance 1787125 0512412013 6:00 pm 1796394 06/27/2013 5:00 pm Other Investigation Exterior Surveillance 1798653 07102/2013 2:00 pm Other Investigation Open Compliance Check Open Compliance Check 1799610 07/0612013 8:30 pm Other Investigation Violation Criminal - LE No records found Violation Criminal -ARTS No records found Audits -ARTS ID Cate u Lead Adito Request Bate Reguest 1708687 AudiVAnalysis LP Audit Henley, Ellen 0212812013 First Audit Cash Credit Law Incidents (Buyer) - ARTS LD Incident Twe Situs seller Trade Name Location Address 1588828 Notice of Default (Credit Law) Reported in Error Control Doc. TABC RemmichRepod Lead Inspector Div Reid, Larry ENF Shirley, Travis ENF Henley, Ellen COM Sanchez, Paul ENF Sanchez, Paul ENF Sanchez, Paul ENF DeTinne, Aaron ENF DeTinne, Aaron ENF wsit Date Start Data End Date 03/07/2013 0510112012 02t28/2013 Approved RO Defte.a Date Amount Deld Date De/q NU.M. 07/15/2012 08/01/2012 1510 Page 2 of 2 Comial ts - LE ID Notice Incident Date Texas Alcoholic Beverage Commission 614602 306349 •r M" Amp= WwMft "Mm"610% Research Report 620114 309108 Updated- November 19, 2013 10:40:36 am License Number: P818999 Complaints - ARTS ID Received Date — File Number: 3277498 Activity Class Marketing Practices Investigation Feaster, Michael SSe curcurry38agus our Ucensee/Permittee Closed - Violations Found Original Issue Date: September 07, 2012 Status: Current Expiration Date: September 06, 2014 Secondary Status: Active Misc. Marketing Practice Violation Marketing Practices Investigation Turner, Natasha Status Date: September 07, 2012 1667558 12/11/2012 Trade Name: TOTAL WINE SPIRITS BEER & MORE - wwft� owner: FINE WINES SPIRITS OF NORTH Other Investigation Alexander, Joshua Seller Training Location Address I I Mailina Address I X In City Limits 200 S HULEN STREET 5200 4 Misc. Defects In Application ATTN: DEWEY BRACKIN FORT WORTH. TX 76132-1905 600 CONGRESS AVE STE 3000 % Wine County:Tarrant -_AUSTIN TX 78701 Within 1000 ft Inspections LD "s egOon DateTimeA ctivitv Class Acyy& Tvoe Location Phone: (301) 795-1000 1590202 07/30/2012 210 pm Licensing Related New Location Check Marketing Practices Investigation Open Compliance Check Feaster, Michael COM Related To:BF819000 Management Halt New Location Re -Check Subordinates: E LP PS Violation Admin - LE DisaosLtLon-syln Sas p CP Incident ion ID Notice Violation Starfed n Paid Date Date 614602 306349 Misc. Marketing Practice Violation Written Warning N Closed 11/13/12 11/13/1 .4 N Closed 7/31/13 7/31/13 620114 309108 Misc. Defects In Application Written Warning Violation Admin - ARTS pe we y ID Notice # Sub-Tva rent T & ID Violation Date LE Int # Doc Case Adopted Issued Issue Date 1661504 306349 WARNING COMpLA11 1660466 11/13/2012 614602 Feaster® Michael 11113/2012 Alexander, Joshua 08/27/2013 AIAQG AnQ-1nA WARNING COMPLAII -1#I 1824744 07/31/2013 620114 Comial ts - LE ID Notice Incident Date 614602 306349 11/13/2012 620114 309108 07/31/2013 Complaints - ARTS ID Received Date — Allec iatfon Activity Class Marketing Practices Investigation Feaster, Michael SSe curcurry38agus our Ucensee/Permittee Closed - Violations Found 1660466 11 /29/2012 Misc. Marketing Practice Violation Marketing Practices Investigation Turner, Natasha Citizen Closed - Violations Found 1667558 12/11/2012 Misc. Marketing Practice Violation Other Investigation Alexander, Joshua Internal Closed - Violations Found 1824744 08/15/2013 Misc. Defects In Application inspections - LE No records found Inspections LD "s egOon DateTimeA ctivitv Class Acyy& Tvoe Lead 1ns2Lctvr Feaster, Michael COM 1590202 07/30/2012 210 pm Licensing Related New Location Check Marketing Practices Investigation Open Compliance Check Feaster, Michael COM 1662291 11/30/2012 1664351 12/03=12 2:45 prn 1:50 pm Licensing Related New Location Re -Check Feaster, Michae6 COM page I of 2 Control Doc: TABC ResearchReport Control Doa TABC ResearchReport Page 2 of 2 License Number: P818999 File Number: 3277498 Status: Current Original Issue Date: September 07, 2012 Secondary Status: Active Expiration Date: September 06, 2014 Status Date: September 07, 2012 Trade Name .- TOTAL WINE SPIRITS BEER & MORE Inspections - ARTS continued) ti ID Inspection Date Time ActWW_Class Activity, Tyve Load Inspector Divislor 1692399 02/01/2013 12:45 pm Field Selected Open Compliance Check Feaster, Michael COM 1757286 05/08/2013 2:36 prn Other Investigation Open Compliance Check Pounds, Korah ENF 1859266 10/0112013 12:25 pm Field Selected Open Compliance Check Carleton, Denver ENF Violation Criminal - LE No records found Violation Criminal - ARTS No records found Audits - ARTS ID Cato M Lead Auditor ff%Luest Date Request Wsit Date Start Date End Date Status 1790371 Audit/Analysis LP Audit Feaster, Michael 06/24/2013 First Audit 07/1212013 09/07/2012 06/30/2013 Approved RO Cash Credit Law Incidents (Buyer) - ARTS ID Incident status Seller Trade Name Seiler Location Address Delivem Date Amount Dely-Date Debt Num 1682956 Notice of Default (Credit Law) Incident Notice 12/31/2012 01/1612013 1521 Issued Control Doa TABC ResearchReport Page 2 of 2 09/2010 Form C-720 ww 11 41C On ICL Cum= TEXAS ALCOHOLIC BEVERAGE COMMISSION CASE NARRATIVE FPermit Number: Type of Offense Trade Name* Dsllas: P-803062; Regulatory Total Wine Spirit Beer & Fort Worth: P-818999 More Date: July 31, 2013 On January 24,, 2013, a protest was filed against an original application for a San Antonio package store permit. The applicant was Fine Wine & Spirits of North Texas* LLQ The corporate structure of Fine Wine & Spirits of North Texas, LLC shows David and Robert Trone each holding 30%., but controlling 100% of the voting rights, The remaining 40% is comprised of trusts involving the brothers' children. During the investigation of this protest,, it was noted that there were two 's, one in-state and one out-of-state, set up verysimilar and controlled by Robert and David Trone (present applicants), The LLCs are financed via a "financial management company" called RSSI (Retail Service and System Inc.). RSSI uses a master bank account that comingles funds from the in-state and out of state package stores held by both LLCs owned by the Trone brothers. Those funds are deposited into a master bank account controlled by RSSI. rM9 The attomeys for Fine Wine & Spirits of North Texas,, LLC were contacted. After much discussion, the Master fan licensing file to the two issued permits, the subject of this report, (Dallas: P-803062; Fort Worth: P-818999) were updated on June 4,, 2013 to include a financial management agreement and supporting documentation and an affidavit. These documents were filed as supplements to the two above -referenced existing permits. These documents explain that excess funds from the master bank account may be loaned on an individual basis to any participating package store as necessary to cover shortages. Each package store is then charged interest for any withdrawal for thispurpose. Conversely, any excess profit from a package store is deposited into the master bank account and the individual package store depositing the excess is paid interest on that deposit. Any new store, such as theproposed store in San Antonio., has the benefit of utilizing assets of the RSSI for capital investment under a similar financial management agreement and arrangement. Name / ID Date: Signature: Office: 1 09/2010 Form C-720 11ccome wow =am= TEXAS ALCOHOLIC BEVERAGE COMMISSION CASE NARRATIVE fan Permit Number: Type of Offense Trade Name -8 Dallas: P-803062; Regulatory Total Wine Spirit Beer & Fort Worth: P-818999 More Date: July 31, 2013 On July 31, 2013 the original application filed by Fine Wine & Spirits of North Texas LLC on January 22, 2013, for a package store permit to be located in San Antonio, Texas, was withdrawn by Fine Wine & Spirits of North Texas LLC. As a result of the withdrawal,, the protest was dismissed by TABC. Upon filing of the protest against the San Antonio application, the Commission learned of Fine Wine & Spirits of North Texas LLC revolving line of credit and participation in a master operating bank account controlled by RSS1 in which other Total Wine and More stores within and outside the state are participants. Total Wine and More did file the appropriate documents to show there was an arm's-length relationship with each permit and RSSIs financial management arrangements The summary of findings for the,applications filed with the agency regarding the Dallas permit (P- 803062) and the Fort Worth permit (P-818999) are as follows: 1, the original applications for the above -referenced permits were approved Utilizing incomplete information MR and failed to fully disclose their financial management services agreement with RSSL [See LL Form (6-20-12) Location Packet For Retailers, pg. 2 Item 9. " Are you operating under any concession, service or management f (s) that contain for services or management beyond property rental? Yes No agreenren7f**Aem 10 Welhere any agreements, excluding the above, which require payment by the applicant in a r"'a copy of dollar figure or percentage of gross or net Income of the business? Yes No ? if YES, attach agreemento "] Name / ID #: Date: Signature: Office: 2 09/2010 Pw Form C-720 "OFF - eta =6 4=0 TEXAS ALCOHOLIC BEVERAGECOMMISSION CASE NARRA7777 Permit Number-, Type of Offense fmg Dallas: P-803062; Regulatory Total Wine Spirit Beer & Fort Worth: P-818999 muffle f" Date.- July 31, 2013 2) the master application file of the LLC for these two stores was amended to reflect full disclosure of RSSIfs relationship with the permitted LLC., Fine Wine & Spirits of North Texas LLC Violation Noted: 744 —Miscellaneous Defects in Application, Fine Wine & Spirits of North Texas failed to fully disclose its financial relationship with Retail Service and System Inc. (RSSI) Recommendation: Because the LLC provided full disclosure upon request, and based on a recommendation by legal,, only a warning is being issued. A warning was issued to each package store based on the above violation codes P" I" lm. -o I" P" Name / ID #: Signature MR Date: Office: 3 tre I of 2 -Pr-int-F+iend1y-Page_---- ra, Summary for Audit 1708687 (CLP: P 8030fi2-TOTAL WINE SPIRITS BEER & MORE) This item has no errors. - Status: Approved RO Audit #1708687. Current Audit ! !t Audit Type: LP Audit category: Audit/Analysis Request Date: 02/28/2013 Audit Trade - de Name: TOTAL WINE SPIRITS CLP Number: P License Status: Current 803062 BEER & MORE Halt Modifiers: Comments: No commentsf Related Items: INo related items. Admin Violations: Comments: 11: Notice Number: Notice Type: Administrative Number of [No mn 303194 Warning Issued Offenses: I comments. Comments: 2: Notice Number: Notice Type: Afthstrre atove Number of Offenses: 1 [No 303195 Warning Issued comments. Comments: 3: Notice Number: Notice Type: Administrative Number of No 303196 Warning Issue-jad Offenses: 1 comments. Comments: 4: Notice Number: Notice Type: Administrative Number of No 303197 Warning issued Offenses: 1 comments. tam Comments: 5: Notice Number: Notice Type: Administrative Number .of No 303198 Warning Issued Offenses: 1 comments. Comments: Number of 6: Notice Number: Notice Type: Administrative No i blaming Issued Offenses: I F 30311-99 comments. 16� ajzasp lhtw://kickaDoo/Arts/Content1tPe® x?mode;=print 11/19/2013 Forms/Aud Print Friendlyage r"Im Tracked Changes for this item: Lead User changed from " to 'Ellen Henley' on 2/28/2013 by Ellen Henley Requested Date changed from " to '2/28/2013' on 2/28/2013 by Ellen Hanley CLP changed from " to 'P 803062' on 2/28/2013 by Ellen Henley Item Status #3098084 changed from " to 'Assigned' on 2/28/2013 by Ellen Henley Item Status Date -Time #3098084 changed from " to '2/28/2013 4:05:00 PM' on 2/28/2013 by Ellen Henley Item Status #3098086 changed from " to 'Assigned' on 2/28/2013 by Ellen Henley Item Status Date -Time #3 L1__,qFO86 changed from " to '2/28/2013 4:06:00 PM' on 2/28/2013 by Ellen heniey Item Status #315225il cha_-�,r�ged �,jrlia)rm 11 to V-I�udftx Smarted Date' on 3125/2013 by Ellen Henley Item Status Date -Ti e #3152261 charic�rco)m " to, '3/712013 12:30:00 PM' on 3/25/2013 by Ellen Henley Item Status #3161576 changed from " to 'Auditor Completed Date' on 4/1/2013 by Ellen Henley Item Status Date -Time #3161576 changed from " to '4/1/2013 7:00:00 AM' on 4/1/2013 by Ellen Henley Item Status #3177847 changed from to 'RCS Review' on 4/10/2013 by Yohannes Teffera. Item Status Date -Time #3177847 changed from " to '4/10/2013 4:17:00 PM' on 4/10/2013 by Yohannes Teffera Item Status #3177848 changed from " to 'REQ Submitted to HQ' on 4/10/2013 by Yohannes Teffera Item Status Date -Time #3177848 changed from " to 14/10/2013 4:17:00 PM' on 4/10/2013 by Yohannes Teffera Item Status #3177849 changed from " to 'Approved HQ on 4/10/2013 by Yohannes Teffera Item Status Date -Time #3177849 changed from " to '4/10/2013 4:17:00 PM' on 4/10/2013 by Yohannes Teffera Li�L] 0 0 fv" LmO —Page 2 of http://kickapoo/Arts/ContentForms/AuditPage.aspx?mode=print 11/19/2013 i 30 Form 0-707 (12/2009) for"' TEXAS ALCOHOLIC BEVERAGE COMMISSION mow% COMPUANC5 START TIME, I 9�'t 50 ROUTINE AUDIT - INSPECTION FORM ARTS # LOCAL DISTRIBUTOR'S PERMIT - LP TRADE NAME.* s-0Lr- - I. PRIMARY PERMIT #: .._..PS E_, BF- 90.3-010.3 ,e- OTHER Vs LP ADDRESS: E�Sn CITY. as PERMIT SOLDER.. Stamp Balance: ITEMS OF CONSIDERATIOW MEETS REQUIREMENTS Person gnterviewed: Aar P ~7 YES NO N/A 0 _11(01� I N;zKa� 0 1) Records Available? AuditPena& to e_b' 2) Sales Invoices and 'invoice fles pvapedY Preed & maintained? 3) invoice Period Exarnilned.'MQ AA to 2912 4) Stamp record dishibution properlyLept; i.e. a) quonft received., b) quantity & serial numbers issued, c) be once on hand? ❑ro s) Does balance on hand equal actual physical count of elomps? 0 �4 FN ca) Are liquor sales under credit terms as authorized by code? {Credit Low) ❑ ❑ 7 ) Are procedures In place to avoid sales to accounts on Deflnquent List? 0 Pro cei 5.5 B) Are Notice of Defaults reported to TABC as required by Rule 45.121 ? 0 ❑[a !9 Are (NSF) checks reported to TABC as required by Rule 45-131 ? (Cash Law) D 10 Are malt beveroges sold for cash on or before delivery? (Cash Low) I❑ t...JR P9 I I Are all sales deposils made within 2 business days of receipt? ❑ 12 It pre -pold beer accounts, are balances sufficient to cover sales? d 6, 13 Are alcoholic beverages delivered off site to customers, If so., does the 0 0 accouni moiniain on active Local Cartage Permit M? 0 ❑ 14) Are permit (P/LP/P$/E) L ricense CSF) posted In a conspicuous location? 15) Are the required signs posted: Weapons (Blue) PIS J,/1"21" To Enter zcws is) Package Store Tasting Permit (PS): Tastings handled as per Chapter 52?. ❑ ❑ COMMEWS: 5 03 199 ADMINISTRATIVE NOTICE 1$$UE3*, Yesxv4o( No: z01LqqR7S V10 REASONS/COMMENTS: $' n..A POP Auditor Date I�1 09/2010 Form C-720 OTU= MGM * TEXAS ALCOHOLIC BEVERAGE COMMISSION CASE NARRATIVE Admin Notice # 303194, ARTS## Type of Offense / Incident Trade Name: Total Wine, 3031952 303196,303197s 763 — Sale of A/B to Respondent on Spirits, Beer & More �* 303198, & 303199 Delinquent List CLP No: P803062 Date: 03/19/2013 PERMITILICENSE INFORMATION: Trade name: Total Vicine, Spirits, Beer & More CLP # P803062 Current Ownership: Fine Wines & Spirits of North Texas LLC Original Issue Date: 4/5/2012 Last Renewal Date: 4/5/2012 HISTORY OF PRIOR VIOLATIONS: Violation Admin - LE ID Notice # Violation Disposition Susp Susp CP Status Incident Violation Started Ended Paid Date Date NONE TYPE OF INVESTIGATION: Other Marketing � Cash/Credit Law ComplaintlStatement of Allegations against permitllicense: 522 Credit Law run Cash Credit Law Incidents (Buyer) - ARTS ID Incident Type Status Seller Trade Name Seller Location Address DeliveryDate Amount DelgDate De/q Num NONE F" INVESTIGATIVE INQUIRY/FINDINGS: Conducted LP Audit of Total Wine, Spirits, Beer & More (P803062) on 317/13. While conducting the audit I discovered that Pokes had r� purchased alcoholic beverages on several occasions from Total Wine, Spirits, Beer & More while Pokes was on the Delinquent List. This is a violation of TAC Rule 45.121. (2) A sale or delivery of alcoholic beverages prohibited by this section is a vi V" F" F" FwT V" 0912010 Form C-720 00 AUV= IBM= OMOMM TEXAS ALCOHOLIC BEVERAGE COMMISSION CASE NARRATIVE Admin Notice # 303194, ARTS# Type of Offense / Incident 303195, 303196, 303197, 763 — Sale of A/B to Respondent on 303198, & 303199 Delinquent List Date: 03/19t2013 EXHIBIT 3 — Administrative Notice #303196 EXHIBIT 4 — Administrative Notice #303197 EXHIBIT 5 — Administrative Notice #303198 EXHIBIT 6 — Administrative Notice #303199 EXHIBIT 7 — Invoices from 6/28112, 6/29/12,6/30/12t 9/20/12,9/22/12, and 9/24/12 EXHIBITS - Narrative Field {Auditor! Recommendation: Sale to a permittee who is on the delinquent list Trade Name: Total Wine$ Spirits, Beer & More CLP No: P803062 j 3-5 days 6-10 dcays J $300 per $300 per $300 per dday The Standard Penalty Chart recommendation for the 1st violation is 3-5 days suspension or $900-1500 civil penalty. &'Rbb6M§m n dation: da'sup ensio n;$goocivil, peft?ity. -t Name/ID#-, Ellen Henley Date: 03/19/2013 Signature: Office: Arlington .. -n FomIS-15 (JM 11) �... Texas Alcoholic Beverage Commissio M-COMISSON caaouc� settlement Agreement and Waiver Admin. Notice A Plot�ry CLP At Rela*d CLP: CLP Impel) aft Hoklen 3 03194 P803924 BF8034S3 04/05/2012 FINE WINES & SPIRITS OF NORTH TEXAS LLC Tradesnerne: TOTAL WINE, SPIRITS, BEER, & MORE Ci,tCou: Aticl 9350 N CENTRAL EXPRESSWAY DALLAS/Dallas trio on Code(syt y a� n'Aesonc etrt On Delinquent List r� BY nV signature bdoMr, l underdanti • 1 aclanovuledge thact the Cons visdon WH make a fx nci rig drat the above listed vi dad ate) occtrretL • I am vva-ma ng my dalit to have: an attanneya wdving ny dglyt to a hearutga waiving nay right to a re -head n% and valkiiV nay dg>* to appeal. • Tire above violatlorXs) will becomea past of nylicenselpernit lristoM • 1 nuM comply Wth each require ma t of this agreenwn men an order is signed by TAB a • The signed orderwil be nailed tothe licenftifernit holder. • This agre envnit m yres It In thefodeiaure of any conduct surety board 1 haveon file. * This agreement maybe rejected bytlie Adnriristrator of die Cornnrission. r� • 1 will be given an oppomu* to have an acintri stra d ve hearing T dii s agreennart is refected. • I may rescind this agrexmad Wthin three {3) calendar days from the date d signature by giving actual n l ce to the TAB C represen0dve s Dthis agreement. • The performance bond currently required vdU be forfeited a nd a replacement pelfomiance bond must be provided. For tis, Hrrray, inn std Tstraett Cm ,I. Cancellation fined Asiont� N. rnn 3 Begnd� Dae0512112013 Clvi Pem3lty: �90 Susnesrsion: liumberof Do$ Redac erf rice Bond Remdred — (no Food and Beverage CeM cafe on fie) The i icense or permit vd 1 remain suspended (awl twat/ the required perfcrttunce bond is paid and a replacenw t pcxfomrKrice bond is provided and approved by TABC even if civil penalty Inas been paid. for DRAW, thr*, sed T,errarrt CO M. �rn: The offer to reduce die pem1ty from days of suspsision and/or $ 900.00 civil penalty to susae��si, �d_ ;�...� days of suspension antFor $____civil penalty is onbr available ff all ny erniioyees attend an educational progmm pr Oat bye JAgC by . p 1 do not to have all nvjemplayEe s attend such program, the original lxtn:tlty lDU of �dgvsi$____..is rdhSlatedo SHMEdon Only, Humber of Days 3 Begirriutg Date; 05121/2013 ! vA not be offered the oppaturfly to pay a civil penalty as an altemadve to suspension of niVl icense or perrnrit, Tata) Number d Days Beginning Date; Wth lire p emititicense suspended for �._. days and a civil penalty of $ beim paid in lien of dayssuspensicn, My name is . I hese sufhorky to ad on behalfofUs permitAlcem holder as its . By ray signah r e, I agree tothe condiions listed on this egreen art. D it Li oweee/P erm idee:one e� - T ABC R epreserdative: Padge # D ate: (continued from first page) Violation Code(s) Violation Date Violation Description P" M" fAI Page 2 of 2 17 Page I of 2 low Summary for Admin Violation 1832488 (Notice#: 309107, Issue sm Date: 08/27/2013)9 Complaint 1824742 (Date: 08/15/2013) IThis item has no errors. - mwp---� IlAdmin Violation #1832488,o Current Status: us: Closed —Notice Type: Administrative warnin Issued Notice Number: 309107 Respondent: CLP: P 803062 Trade Name: TOTAL WINE SPIRITS BEER & MORE Offenses: Seizures: • 744 - Misc. Defects In Application Seizures: R Recommendations/Dispositions: ecor • Disposition Written Warning 08/27/2013 • None IlComments: - iCreated Date: 08/27/2013 see attached narrative. On January 24, 2013, a protest was filed against an orieinal application for a San Antonio package store permit The applicant was Fine fto Wine & Spirits of North Texas. LLC. The corporate structure of Fine Wine & Spirits of North Texas. LLC shows David and Robert Trone each holding 30%, but controlling 100% of the voting is comprised of trusts invoiNdng the brothers' children. fights. The reinau'u*ng 40% ' LLC's, one M' -state and one During the investigation of this protest, it was noted that there were two out-of-state,, set up very similar and controlled by Robert and David Trone (present applicants).. The 11 Pon LLCs are financed via a "financial management company called RSSI (Retail Service and System nc'.). RSSI uses a master bank account that comingles funds from the in-state and out of state 11111package stores held by both LLC's owned by the Trone brothers. Those funds are deposited into a master bank account controlled by RSSL attorneys for Fine Wine & Spirits of North Texas, LLC were contacted. After much discussion, PEI I I r this -803062; the Master licensinp, file to the two issued permits, the subject of s report, P Fort Worth: P-818999) were updated on June 4, 2013 to include a financial management agreement and supporting documentation and an affidavit. These documents were filed as supplements to the two above -referenced existing permits. These documents explain that excess funds from the master bank account may be loaned on an individual basis to any participating package store as necessary to cover shortages. Each package store is then charged interest for any withdrawal for this purpose. Conversely, any excess profit from a package store is deposited into the master bank account and the individual package store depositing the excess is paid interest on that deposit. Any new store, 111such as the proposed store in San Antonio, has the benefit of utilizing assets of the RSSI for capital investment under a similar financial management agreement and an-angement. LLC on On July 31, 2013 the original application filed by Fine Wine & Spirits of North Texas January 22, 2013, for a package store permit to be located *in San Antonio, Texas, was withdrawn by Fine Wine & Spirits of North Texas LLC. As a result of the withdrawal, the protest was, dismissed by TABC. lUpon filing of the protest against the San Antonio application, the Commission learned of Fine wine & Spirits of North Texas LLC`s revolving line of credit and participation in a master poperating bank account controlled by RSSI *in which other Total Wine and More stores within and -.//kickapoo/Arts/ContentForms/ComplaintPage.aspx?mode=print 11/19/2013 Art MR I" F" I" F" 0 4=4 F" FlIn r" I" P" go Page 2 of 2 outside the state are participants. Total Wine and More did file the appropriate documents to show there was an arm's-length relationship with each permit and RSSI's financial management arrangement. The summary of findings for the applications filed with the agency regarding the Dallas permit (P- 803062) and the Fort Worth permit (P-818999) are as follows: 1. the original applications for the above -referenced permits were approved utilizing 'incomplete information nformation and failed to full y disclose their financial management services agreement with RSSI. [See LL Form (6-20-12) Location Packet For Retailers, pg. 2 Item 9. " Are you operating under any concession, service or management agreement(s) that contain terms for services or management beyond property rental? Yes No - T' Item 10 "Are there any agreements, excluding the above, which require payment by the applicant in a dollar figure or percentage of gross or net income of the business? Yes No ? if "YES," attach a copy of agreement." ] ,2) the master application file of the LLC for these two stores was amended to reflect full disclosure of RSSIs relationship with the permitted LLC, Fine Wine & Spirits of North Texas LLC Violation Noted: 744 —Miscellaneous Defects in Application. Fine Wine & Spirits of North Texas LLC failed to fully disclose its financial relationship with Retail Service and System Inc. {RSSI} Recommendation: Because the LLC provided full disclosure upon request, and based on a recommendation by legal, only a warning is being issued. A warning was issued to each package store based on the above violation code. racked Changes for this item: I otice Tyne changed from " to 'Administrative W, ine Issued' on 8/27/2013 by Joshua Alexander http://kickapoo/Arts/ContentForms/ComplaintPage-aspx?mode=print 11/19/2013 OR Page I of 4 -fiat friendly-Page _ _ __ _ - Summary for Complaint 1824742 (Date. 08/15/2013) This item has no errors* Complaint #1824742m Current Status: Closed Violations Found Complaint - Trade Name: TOTAL WINE SPIRITS BEER & CLP Number: P 803062 MORE License Status: Current Halt Modifiers: Complaint Type: 60- Received Date: Lead: Joshua Alexander (Austin Compliance Day 08/15/2013 Office) ,Allegations: Offense: Admin (Misc. Description: Failed to fully disclose financial relationship with -- Defects In Application) managment company (RSSI) in orginal application tespondent: Business - CLP Number: P 803062 ITrade Name: TOTAL WINE SPIRITS BEER & MORE Person -Name: - Location Address: 9350 N CENTRAL EXPRESSWAY / DALLAS.TX 75231 County: Dallas (057) - `Comments: I Created Date-, 08/27/2013 see attached narrative. Criminal Violations: Admin Violations: Comments: Created Date: 08/27/2013 : see attached narrative. On January 24, 2013, a protest was filed against an original application for a San Antonio package store permit. The applicant was Fine Wine & Spirits of North Texas. LLCc, The corporate structure of Fine Wine & Spirits of North Texas, LLC shows David and Robert Trone each holding 30%, but controlling 100% of the voting rights. The remaining 40% is comprised of trusts 0ef 1-hildren Involviing- the brothers, %. 9 It* During the investigation of this protest,, it was noted that there were two LLC's, one in- state and one out-of-state, set up very aintPage.aspx?mode=pn*nt 11/19/2013 httD,-,//kickapoo/Arts/ContentFoms/CompI INW - MR _ P-rintEdendly-Page.-.- Page 2 of 4 P" PW Notice 10 Number: 3091 107 qotce Type: Ndministrative Naming Issued slumber )f offenses: I similar and controlled by Robert and David Prone (present applicants), The LLCs are financed via a 'financial management company "" called RSSI (Retail Service and System. Inc.). RSSI uses a master bank account that comingles funds from the in- state and out of state package stores held by both LX's owned by the Trone brothers. Those funds are deposited into a master bank account controlled by RSSI. The attorneys for Fine Wine & Spirits of North Texas, LLC were contacted. After much discussion, the Master licensing file to the two issued permits, the subject of this report, (Dallas: P-803062; Fort Worth: P- 818999) were updated on June 4, 2013 to include a financial management agreement and supporting documentation and an affidavit. These documents were filed as supplements to the two above -referenced existing permits, These documents explain that excess funds from the master bank account may be loaned on an individual basis to any participating package store as necessary to cover shortages. Each package store is then charged interest for any withdrawal for this purpose. Conversely, any excess profit from a package store is deposited into the master bank account and the individual package store depositing the i excess is paid interest on that deposit. Any new store, such as the proposed store in San Antonio, has the benefit of utilizing assets of the RSSI for capital investment under a similar financial management agreement and arrangement. On July 31, 2013 the original application filed by Fine Wine & Spirits of North Texas LLC on January 22, 2013, for a package store permit Ito be located in San Antonio, Texas, was withdrawn by Fine Wine & Spirits of North Texas LLC. As a result of the withdrawal, the protest was dismissed by TABC. h4://kickapoo/Arts/ContentFonns/ComplaintPage.aspx?mode=print 11/19/2013 -------P-6nt-Erien&y-P- Page 3 of 4 ag 0 Lh�il IZI 6;0 0 =j L�zz ipon filing of the protest against the San Antonio application, the Commission learned )f Fine Wine & Spirits of North Texas LLCs -evolving line of credit and participation in a -naster operating bank account controlled by ISSI in which other Total Wine and More stores within and outside the state are participants, Total Wine and More did file the appropriate documents to show there was an arm's-length relationship with each permit and RSSI's financial management arrangement. The summary of findings for the applications filed with the agency regarding the Dallas permit (P- 803062) and the Fort Worth permit (P-818999) are as follows: 1, the original applications for the above. referenced permits were approved utilizing incomplete information and failed to fully disclose their financial management services agreement with MI. [See LL Form (6-20- 12) Location Packet For Retailers,, pg. 2 Item 96 "Are you operating under any concession, service or management agreement(s) that contain terms for services or management beyond property rental? Yes No - -?" Item 10 "Are there any agreements, excluding the above, which require payment by the applicant in a dollar figure or percentage of gross or net income of the business? Yes No ? If '"YES/1 attach a copy of agreement." ] 2) the master application file of the LLC for these two stores was amended to reflect full disclosure of RSSIs relationship with the permitted LLC, Fine Wine & Spirits of North Texas LLC Violation Noted: 744 —Miscellaneous Defects in Application, Fine Wine & Spirits of North Texas LLC failed to fully disclose its financial relationship with Retail Service and System Inc. (RSSI) hup://kickapoo/Arts/ContentForms/ComplaintPage.aspx?mode=print 11/19/2013 V% Ptint-Erie idy-Eme page 4 of 4 Recommendation: Because the LLC provided full disclosure upon requestand based on a recommendation by legal, only a warning is being issued. A warning was issued to each P ackaoe store based on the above violation code,. Related Items: No related iternsf Tracked Changes for this !term Lead User changed from " to 'Joshua Mexander' on 0/15/201,7 by Gene Bowman CLP Number changed from " to 'P 803062' oin-i 13 a. Bowmarn Item Status #3395483 changed from to 'C�osed - Vb�annflons Found' on 8/27/2013 by M exa n d e r Item Status Date -Mme #3395483 changed from " to '8/27/2013 4:29:00 PM' on 8/27/201 by Joshua A�exander -i http-.//kickapoo/Arts/ContentFonns/Compla*intPage.aspx?mode=print 11/19/2013 I" I" F" r" r" r7 Print Ed mlly J!age PMe I of 2 Summary for Complaint 1752725 (Date: 05/03/2013) I" (This item has no errors. Complaint #1752725, CurrentStatus: Closed = No Violations CLP Number: P 803062 Trade Name: TOTAL WINE SPIRITS BEER & MORE License Status: Current Halt Modifiers: Complaint Type: 60- Received Date: Lead: Aaron DeTinne (Arlington Enforcement Day 105/03/2013 Office) Allegations: Offense: Admin (Possession of Unauthorized AB) Description: rtes ponuenT.; Business -CLP Number: P 803062 Trade Name: TOTAL WINE, SPIRITS,, BEER, & MORE Person -Name: Location Address: 9350 N CENTRAL EXPRESSWAY / DALLAS,,TX 75231 County.* Dallas (057) rnmmpntqs Created Date: 05/03/2013 complaint Intake Ellen Henley audited location and has been in contact with an employee who provide receipts and states that the location is selling to licensed locations but not affixing local distributors stamps,, Created Date: 05/07/2013: 06MAY13 Received this date, Will initiate investigative activity. Created Date: 06/19/2013: Conducted extended ES on location for selling to permitted locations Without LDS. NVO. Created Date: 07/03/2413: 7/2 conducted occ, no violations observed. Created Date: 07/06/2013: 7/6 Conducted ooc no violations observed Criminal Violations: Admin Violations: Related Items: Related Item: Inspection 1765153 Related Item: Inspection 1787125 Related Item: Inspection 1796394 Related Item: Inspection 1798653 Related Item: Inspection 1799610 hq://kickapoo/Aits/ContentFonns/ComplaintPage.aspx?modt�---- print RR/19/20B M [;a LZ ["I IZZ-1 pg*v -Rrint-Ffienaj Tracked Changes for this item: d Led User change afrom to 'Laramie Mergersont on 5/3/2013 by Laramie Mergerson CLP Rmiiunr� boef Fr (dianged from to 'P 803062' on 5/3/2013 by Laramie Mergerson i Lens, d User chianged from 'Laramie Mergerson' to 'Paul Sanchez! on 5/3/2013 by Laramie I Merq- ersson Lead- User Trom 'Pau�i Sanchez! to 'Aaron DeTinne' on 7/2/2013 by Aaron DeTinne Item Status #3317609 chang No Violations' on 7/7/2013 by Aaron ed from to'Closed DeT*inne -00 AM' on 7/7/2013 by! Item Status Date -Time #3317889 changed from to '7/7/2013 2:51 Aaron DeTinne hftD://kickaDoo/Arts/ContentForms/Compla'lntPage-aspx?mod e=print 11/19/2013 F" To F,llrn Henley, Enclosed arc the reciepts with date & time of each transaction that if you match with on premise camems you can see each he customer vnth U1 face picture and track dowme,,c ls mc cu m purchasing for bars, restaurants and clubs. The aa� wcoers are purchasing from Total Wine every week 2-1z, rams even fA" 'thin a few hauza. They making multiple purchases same day. W1 take carts of Grey Goose, Crown Royal & Jose Cuenre 2 e claim its forpersonal consumption, many occassione we aASI sk them xf its for a bar and they will sav yes but claim they don't have to get stickers from TABC because we can't enforce'It., Our district manager {Bili. Tice) has said many times just keep the customer happy and ," We're making money regardless" . The store allows on average 10 illegal transactions to bars, restaurants or clubs a,%. -eek since the grand opening. It has become an epidernic and more businesses are spreacLu-ig the word of how easy it is to avoid TABC laws by purchasing through Total Wine. I feel Total Wine is alloNving the system to be cheated, indirectly stealing from the state & government but worst of all ... tax evading. I hope these transactions help you find the criminals and stop this for good. They even chuckled at *y the fine ycru gave them for selling to someone on the deliquenL list blas-)hemiagainst TA -BC should end,%i th a $100,000 fine fun then maybe they would take this a little more sedously. iim Pam y- _—.. _ _ a. e 1 f 2 law Summary for Complaint 1854465 ate: 09/26/2013) This item has no errors. Complaint #1854465. Current Stataus: Closed - No Violations CLP Number. Trade Name: License Status: Halt Modifiers: Complakrt Type: WDay Received Dace: 09/2W2013 Dead. Judy Mouse (San Antonio Compliance Office) tions: of%ense: Admin (Subbetfiuse) Description:Sttppletnerhtal Oocunrrentatian provided fa' protest t�k0on � CLP Number. P 803062 T" Name: TOTAL WINE SPIRITS BEER & MORE ame: �; 9350 N CENTRA. EXBREWWAY j DALtAS,TX 75231 allas (057) : ahe: 10/01/2013 proh',st I d�r:ussed prior protest and application with Oyeat m tae Aud Wr. He prepared narrative about applicant records submitted and findings of ownership beim same for ices and Systems Inc. (RSSI). Total investment was not a'lginatiyr disclosed in Audt*r White's �. On .)/27113 I contacted to find out if addendum no exrrrextt package stores and 8847382 (Total wine and More and Total Wine, Spirits, beer &Mone �} were r�etved for investrrr !nt inforrnadon. I researched the Package Store portion of the Code and Subterfuge potion. On 91301131 reviewed sales tax locatlom for Fine WWk*s & Spirits of North Texas, LLC. There are 5 locations, (See exhibit 1). ownership is stili David L Tronhe and Robert L Trove. There is no +kd>& in officers or f" members. On 10/1/13 I reviewed appiiration. The Finance tnformhati n was updated to Show $3,,430,000 as total Investment for IotaW n from prior amount $60,000 on original applicator that was withdrawn. Sublessor shown is Retail Services & Systems Inc., FEIN 2S-1531856, and attached Management and Service Agreement effective date 5/30%13 was provided as well as seaxW addendum to remove first addendum. The second addendum.ganged Paragraph 3 of agreement staflng the pemftee Is or will become 0oahsed by the TABC to sap atcothotiG beverages for off -premises �consut shun and relatedtail items to general public under the provisions of the Texas Alcoholic Beverage Code (the Code*) at the premises. The other change tar second addendum is replacing Exhibit A with new eodtiibti showing S retail locations. These three motions added are: 1. 721 N CenbW E)quessway, Ste 200, Plano,Texas 75075 2. 8700 Preston Road, Ste 113, Piano, Texas 75024 3. 125 NW Loop 410, Stye 2+60, San Ant ordo, Texas rpt 7821610/8/13 Additional records were sent for review from ie9al Divfsion.1019/13 Faked protest was submitted from Pulman, Cappuod% Pullen, Benson & 3ones LLP Created Date: 10%09/2013 : srtpbwat topWest Thank you Mr. Gabriel. I'm forwarding this inforrtration to the assigned auditor. From: Gabriel investment Group, Inc.[mailbo;QbdeI@GabrielSplrits.corm] Sent: Thursday, October 03, 2013 2049 PM To: Judith Kennison Subje d: Total Wline Protest Judith, Please see attadmed. P*rl New evidence showing you that Total Wine is operating out of state in Aftryland and not Texas, If you have any questions, plem call me at 210.6001.2909. Thank You, Johnny Gabriel Created Date: 10/21%x013: Me�etfig josh,, Ph7hV4W 10121/13 Meering held withCohen and CindyVVt�te narrative additional on part items. this protestor they provide inf matton.'ihey form with highlighted areas no. 16 & 17 pertaining to i5rhanxlat �. 'limy wanted know If Oscar M� = want th discuss with Judith Kennison. �'�"► r created Date: 10/29/2013 : Ne+eft fir Ausffn 10/24/13 A review was with materials submitted W Austin Headquarters.10/25/13 Meering was held with Legal,, lieersing and AtucIt. Additional irtfiomnhation will be requesting band. and ban documentation. Question of Sun erwder of am its Is being reviewed by requesting doarnrherhbtion of bank statements tea substantiate the Permittee has access to moms In Sweep account RSSI (Concentration Account) and also how montes from Moan agreement are being repaid. treated Date: 10/29/2013 : Request lbrrtrrfewn►1 ft7 sant 14/2$/13 from: Judy House Sent: Monday, October 28, 2013 4:41 PM To: V addn .n! Cc: Judith Kennisoh Subject Total Wine and More- Finance Information Per Application 2 questions are re matning in our review: l) On the finance Inliormation for tom! lnveWof $3,430,000, this isa town fran cerin facility agreemenL I have bark stat xlents through January 2013 fur review. Are bank statements from Credit Facility Agrewsert to San Antortio amount in bl { Are there nvat of profits a' and Coo centretc.atio � for receiving monies and paying loan? 2) Can Dallas account show any return of rnhonies from � Tem Alcoholic Beverage Commission San Antonio Compliance 210-731-1720 210-731.1759 (fax) Created Date: 10/29/2013: AcddwW request forks brrrraOn satiLV29/13 Additional request Is beN made for khan documents for each Texas oration for start up aonsbuction. This incudes Dallas, Fort Worth and Plano. Bank amount staterre are being requested dwough September, 2013 to update as yell for Fine Wine & Spb'its of North Tetras LLC. I will tall you Marcus Schwartz as well. Thank t you Judy House Texas Alcoholic Beverage CommMssion San Anbonb Compliance 210-731-1720 210-731.1759 (fax) Created Date: 10/29/2013: %oWbream eal14WI3 amference call held with Elsa Dovaana, myself,, Devk" BraddN and Mamrs Swartz, Documents requested in 10/28/13 email should be available today. There Is no khan doeuu mbWon for $3.4 miilion San Antonio sort up cost. The Interest that Is earned under RSSI Is part of !forth Tom LLC entity and not a specUk location (Fine Wine & Spirits of North Texas I.I.Q. Additional request is being put In writing for bank amounts and loan clarification: OC6ober � the Antorlo kxa0oc>r we teghuesttng theta faf �n9 2013 Dewey Baddn Gardere Attorneys and Counselm 600 Congress A o � Texas 78701-2978 Dear Mr. Brackin, Per our motion enuk Suite 3000 Ataft today via lOVZ9/13 and . • Invoices to support expenses of approxi mately agreement, contract or any document (s) to verify startup costs funding, aPP�1► $3,4 million . iofor San Antonio Fiore Wine &Spirits location x $3.4 rtdtliorh dollars for the startup casts fou tine San Antor>io Fine Wine & Spirits locatton. invoices n>tgorh dollars for the Sant contain Invoice g invoice date mid Antonio Fine Wine & Writs location. • Bank I wines &Spirits of check coplM bank bwW Information and any ffnandai funding showing start up e:xpem payments Waft appr� ► North Texas LLC entities for February 2013 through September 20131 request: for all bank accounts, RSSI Coneentratlon Bank Account and Bank Credit Fadllty, monthly statenuxhts. As we discussed durbhg our phone aor9versation this ming, nee ft this Information by tomorrow, October 30, 2013 end of day. We also deed this morning nee ft the one hibmsoon for all the other Teams Fine Vines & Spirits of Nath Texas LLC statues. We would Me to obtain M tnlS codon by Monday, November 4, 2013. If you harvoe any additional Questions please call me or my Supervisor Elsa Dovallne at the above Udephone r■9 number. Your prompt attention b appreciated. Sincerely Judy House Auditor Created Date: 10/30/2013: Respww fivm Attorney 10/30/13 Dewey Mackin stated he could not pet IrdorMation until end of the week- will be swdm by Monday. Created oate:: 11/06/2013: A�tbn&f1% ar 0#WAr on 51t01J13 Ad nheyt sent v& email for Allegaton 5 for review Taxpayer sent ithformatuon uta UPS fiat Allegation 5 for review. +Created Date: 11/06/2013: Nwft lh Ami 1J/4f13 Meeting in Austin to discuss records sutxmimed. p,t2+eated Oahe: 11j06/2013 Austin 11%3,,113 Meeting held with Leel, Licensing and Audltl�tlons to discuss Allegation S. Created Date: 11/21/2013 S metal daarjye mm&W l�/$/13 Email received from Martis Schwartz of Gar�dere Wynne Sewell LLP with attached supplermenai change incluc� RS51 as 2% owner of Fine Wines & Spiral of hath Texas LLC with some update of trusts but no change to trtusbees or berafkbries. Created Date: 11/2112013: orerWs woff&KiWosbCaww&vgwRcbWinh Added to a xhiblis. Created Date: 11/21/2013: Fi W 11,%2,11.3SO.SCaftftte afAft Ermag received froom Marcus Schwartz for RSS- emote of Filing copy from Secretary of State. Created Date: 11/25/2013: "WKenn&WVbm&m1 ,, live dismissed this in ARTS. III send my kter to the parties via ernaii. Teresa, you may 0#t the halt' The sender of this emmatl would like your atternt3ort on this page: *** TO PREVENT DATA LM, PLEASE CLOSE ANY OPEN ARTS APPLICATIONS) BEFORE CLICK THE LINK WDW. *** hfdp://kidmpoo/Arts,IConWdFomis/ApplkatbnPage.aspoc? sesslonpu==OwntnglteMW$IO 4430:Pmtestid$1848930: ItemStabusW3543564:C t0 ftQl1D$Pr0test0etail:PageStabe$DLU; rrerhtTabDepth;l:tlrrrertCT$bClick+edlD$TabProthstDeta€I:IstfewPa False Complaint dosed as no violations, httn://kickanoo/Arts/ContentFonns/ComplaintPage.aspx?mode=print 11/26/2013 C Print-Riendly-Page — gt 2 -of 2 Related A4#katlon 18"430 Tracked Changes for this Item; Lead User Changed ftom I" to ludy ftse on *WM13 by Judy HOUSe Ron Status #3459947 charQW ftm * to Umoeted/Rea* for Supervisor Revkw m on io/4/2013 by 3udy Ha Ham Status Date,71me #3459947 Changed from " to *10/4/2013 8:38:00 Won 1014/2013 by A* House 13 by 3udy House Item Stan #3459947 chanW ftom 'Completed/Ready for SupeMw ReAeW tD 'Cosed - No Dwestigadm' on 10/4/20 G.p "WNumber ChIMW from " W IP 80306Z on 10/9/2013 by 3udy House Review' an 10/14/2013 by 3udy Hom Ron Status #3476426 dwvW from 11 to rAmpleted/Rea* for SupervisorSupervisorSupervisor[ ated Related Rem status Date -Time #3476426 dgroW from " to '10114/201312:29:00 W an 10/14/2013 by 3udy House Run Status #3476426 changed from'CompietedlReady for Supervisor Review' tD 'Closed -Ino VkJaWrW -on 10/1412013 by 3udy House CLP Number changed from T 80306T to " an 10/22/2013 by 3udy House Item Status #3543634 changed from " tD tkaW - No VWWOM'On 11/2W2013 by Judy House Status Date -Time #3543634 changed from 11W11/25/201310:30:00 AW on 11125/2013 by 3udy House Item EStatus #3543655 changed fnDm,' tD Uosed - No Violations'on 11=2013 by 3udy House Item Status Date -Time #3543655 dw*W from 0 to 111/2S/2013 10:34:00 AN on ll/25/2013 by 3udy House F" f" Pte! f" - P" F" f" P" P" httn-//kickanoo/Arts/ContentForms/ComplaintPage.aspx?mode=print 11/26/2013 of" P 1 of rint. - ndLY Page __--_ . _ _ -- Im I" P" I" f" 0" I" ,N" f" F" no 0" Summary for Complaint 1660466 (Date: 11/29/2012) This item has no errors. Complaint #1660466. Current Status: Closed -Violations Found CLP Number: P 818999 License Status: Current Complaint Type: 60- Received Date: Day 141/29/2012 Allegations: Offense: Admin (Mise. Marketing Practice Violation) Trade Name: TOTAL WINE SPIRITS BEER & MORE Halt Modifiers: Lead: Michael Feaster (Arlington Compliance Office) Description: Advertising wine tasting on 3rd party website t ondent: Business -CLP Number: P 818999 Trade Name: TOTAL WINES SPIRTfS BEER &MORE Person - Name: Location Address: 5200 S HULEN STREET /FORT W4RTH,TX 76132-1905 County: Tarrant (220) Comments: Created Date: 11/29/2012: Complaint Received 11/13/12 - Enforcement received Complaint Form 465 via email alledging Marketing Practice violations associated with advertising an in-house wine tasting on an outside website. 11/28/12 -Complaint referred to Compliance for handling. 11/29J12 -Received complaint assignment. Initiated research including internal reports, code references, and subject website inquiry. The website in question is LocalWineEvents.com which promotes and publishes submitted wine industry events and related interests including Castings, BYOB restaurants, wine schools, related travel &lodging, tours, events, vacation packages, winery shops and vinyards. The site covers the entire 50 states and is not associated with the Total Wines Spirits Beer &More organization.. A personal visit will be made to the Hulen location to issue Written Admin Warning Notice and discuss code restrictions with store management. Created Date: 11/30/2012: InvesGgat/on Visited location and met with Kati Humble, Front End manager. Explained issue and provided copy of Package Store Tasting Permit Guidelines. She stated all advertising is handled by their corporate ad dept. She will fax http://kickapoo/Arts/ContentFornis/ComplaintPage.aspx?mode--print Print.Friendly-Fuge low MR Oft f"I P" 1"R L"z &Z Fh-az Page 2 of ://kickapoo/Arts/ContentForms/ComplaintPage.aspx?mode=print 11/19/2013 Mn (AM P" F" P" F" F" I" f" I" ME am ME Page I of I Summary for Admin Violation 1661504 (Notice#: 306349, Issue Date: 11/13/2012), Complaint 1660466 (Date: 11/29/2012) hap://kickapoo/Arts/ContentForms/Compl6ntPage.aspx?mode=print 11/1.9/2013 Form 4-65 (10108) TEXAS ALCOHOLIC BEVERAGE COMMISSION 90_=i00MM19 o *8M AAG COI�PLAINT FORlitl (please complete a separate form for each location.) ,..Sff Wag &V Smi�r. of ? Cas slay 193S Instructions: Use this form to complain about possible violations of the law on TABC-licensed premises or to report possible alcohol-related violations taking place at any location. • Provide a cOR of this farm to your local TABC Office: or mail it to TA6C Enforcemen DivisionPo Box 131 ?Austin TX 78711 • or flax i# to 512-206-3449: or email to cora 1alnts bc.state.tx. us. • For more information about complaints or to locate the nearest TABC Office visit: h :11Www.t%bc.state.tx.usl Cg Please notify me of the outcome of this complaint if you wish to remain anonymous, we may not be able to notify you of the outcome of the complaint. Email Address: av st astwine u a oo.com lnforma #ion provided below is subject to the Public Information Act and will be disclosed to public upon request as required by laver. Only e-mail addresses are considered +� the P P �n inforrr�ation could be released to the public. confidential under law and any other iden#ffyi g Your Contact Information: Anonymous if you wish to remain anonymous, you must leave this section blank. Your Name: Mailing Address: City: State: Zip Code: - Phone: Day: { } Evening: - Other: t } Where did th2jggssible violations take Rlace? r=4 Name of Location: Total Wine & More Address: 5200 S Hulen Street City Fort County: TARRANT Zip Code: . 76132 Phone: 817 292 -2718 other: .. . +"R Name of Business or Property Owners), if known: Total Wine & More 11 .Dakkl t Tune of Da tan oin Day(s) of the Week: E] Sunday 13 Monday 13 Tuesday 13 Wednesday 13 Thursday [3 Friday D Saturday Details of the Com plaintmat violations were committed and who committed them Business who sells liquor is advertising tastin s an a website other than their own LocalWineEvents.com htto://www.lOC81wineevents.com/events/detaiV4vo839 ri" I. �" Date Received: Dallas -Fort Worth, Tc &s Wine Tasfi-n,(;),r, W . ine Education, Wine Classes mid Wine Dinners: LocalWi'=E... Page I of 8 VAMO *XMD LY I $_ubmit an Bxcodt UP Cvents I Festivals I Resources I The Juice I Ticketing I Vacations I Deals I Adverfte Search... Pow liome > T.Q > Dallas -Fort Worth Food & Wine Events Getnotified of local Want to notify food & wine events ethers of your Food & �1�c Events for FREE! upcoming event? ge-L Biot Submit It for DaUas-Fort Worth, Texas Chanocatio oft, By Date Beaujo I lais Be and Wine Festival 4f From TO mvember 30j 2M (Fri) 7:00 PIVI - 9:30 PM La COIL J6 f I Filter Ot)tions Inas _ShowAdiT#fiq_na Irving I it Convention Center at L FlOter Events Dallias-Fort Worth Resources Ed a9_h0_cL1G_ Restaurants & BY09 Nne Shops Nneftj fi Vin qygAk� smi?fty & ckuwet stem Eyt-1,11 Venues VW D2 ,OSS J&' V a G a 0 LMelgs & L—Ding More Rpsources Texar, Blutbopnet. Wine Traff, Holiday Crystal Wine Trail: Dec. 1-2 and 8-9 DeCeMbef 1, 2012 (Sat) 11. 00 AM _ 6*00 PM MONTGOMERY I Retreat Hill Cellan; along with the 9 other member wineries along the Texas Bluebonnet %Nine Trait Buy Tickets Texas Bluebonnet Wine TrailL HolidaV Cine Trail.: Dec. 1.2and ; t �- �w' December 2. 2012 (sun) 12:00 PM - 5:00 PM Montgomery I Retreat Hill Cellars along with the 9 tither member wineries along the Texas Bluebonnet Wne Trail -ft 7 40 $ $ http://NNS w.l.ocalane events.con-i/events/11'sting/show/25 Buy Tickets 40000L 11/29/2012 f Dallas -Fort Worth, Texas 'amine Tasting, Wine Education, Wine Classes and `amine Dinners: LocalVirieE ... Page of 8 pow Texas Bluebonnet Wine Trail Hofidsy CEystal Wine Trail: Dec. 1-2 and �- December $, 2912 (Sat) 11:00 AICA - 6:00 Pit Montgornery I Retreat Hill Cellars along A*th the g tither member wineries along the Texas Ellu+ebonnei VMne Trail 40 Sys ow E—Volm Buy Tickets. .,. submit an Event Finj an Even Food & Wrne Festivals Eventsb Hate Texas Bluebonnet Wine Trail HolidayC still Wine Trail: Dec.1-2 and 8-3 Si ll Tickets mo►urc+es p Lrl n�; �eurces December 9, 0�#2 (Sun)pro12:00 PIU! - 5:00 PM Nine &. Food A Wine MontgomM I Retreat dill Cellars along with the 9 other member wineries along the Texas Quiz Bluebonnet Wine Trail Vne 8129s am t��rtidq "ow sign U12 Bu Tickets Manage My .Juice Y eji+c� Grand Cru Preview ThC ju* H21ida s in Paris-- Dhoice,of any dates bebiveen :Dec 20 - 30 2o1 nact Us December 20, 2012 (Thu) -to. December 26, 2012 (Wed) About D5. . 8•09 -Pial -12.0 PM Parts Paas r e Labels Privagy s Savor Dallas -A Celebration of Wine food Spirits and the Arts '9 &V ff-!- March *2013 (Fri) -#a- March 16, 2013 (sat) 7:00 PM -10:00 Pill ow Dallas 1 Perot Museum o1 Nature and Science and Irving Convent 4n Center at Las Colinas $$ no Buhr Tickets Ongoing Events rte. Sep .2012 11 - S Tasti!] Mar 2013 Ft. Worth I NneStyles, Montgomery Pian A" � http://www.localwinezvents.com/events/listing/show/25 11/29/2012 Nov 30 Beau gW1 A %=dWna E20MI (Frl) irvino I Irving Convention Center at Lm Colinas 2012 $$ [a] pow -- nts The Lu_TdLm_s_ Nov 30 armBoit ninety Eftrdiscoco (Fri) Frisco I CnmsRoads Vftery 2012 P.. Nov 30 QML &fiday Wne FESMI (Fri) Flovmr Mound I Wne$tyhn Flower Mound hUD-://www.localw'i'neevents.com/evenM*istineJshow/25 11/29/2012 Dallas -Fort Worth, 1"exas Wine Tasting, Wine Education, Wine Classes and Wine Dinners: LoealWineE-... Page 3of8 Oct 2012- ww:l stmday 8 nch at-Eamt!a RSVP Online FEATURED ON Dec 2012 Grapevine Fermll's Itabn Villa - Grapevine 0: 47 Yrfn gyentaLb Z4e,'#X'nvMork rims _y 12 Date �_MMIL W-0-8 j? FOOD.&sWINE §ite Wne Oct 2012- Free u M 0 f �W' i S�12 D t_y RSVP Onfine i echCrunch " � 4 r`�;; tDec 2012 Piano Matador MW vine OPRAB test moos WneEducation localResourcesFAQS TheJuIC01 191-1 Nov 2012 W AnnuM j k fines of C!jrl§MmsFu[gM1W_LS�ger Hunt a Friend Press Privacy e0_1 wo McKinney I Lone Star ovine Ce0am Lwgk us AOM Ad iaLUd—ex -Sta—rch !QR 8 E M QRs LtUThe j jneptub EvqftLQLg IMAll Events pogth TRY Out jPhgne A T u_r PinJO-Ap-p- ran Nov 26 - Hap= 0OLN-0159 A.Mgffls- lgM% Kg 020121. lEven:a.com. AW rights reserved. Nov 29 Dallas I Komalli 2012 Y '5 Man Nov 29 An III 1•{g1jdMLPha!BpAgrjej!nd SnarldlM 3MODIV09 (Thu) Dallas I Wneta0c 2012 an Nov 29 Crew give_ ftd (Thu) Dallas I South Side on Umar 2012 $ Nov 29 Cheese and -Ane of Llhe No was (Thu) Dallas I Scardelb Aftan Cheese 2012 �' $$ Nov 29 WE&Lassfing b -r dm& (Thu) Piano I Sip & Smr 2012 $ Nov 29 Eight Dollar Flight NightJuscan B10 (Thu) Fort Worth I Grand Cru 2012 on $ Nov 30 Me and I spa (Fri) Garland I DMae Wine at FOewheel 2012 $ Nov 30 Beau gW1 A %=dWna E20MI (Frl) irvino I Irving Convention Center at Lm Colinas 2012 $$ [a] pow -- nts The Lu_TdLm_s_ Nov 30 armBoit ninety Eftrdiscoco (Fri) Frisco I CnmsRoads Vftery 2012 P.. Nov 30 QML &fiday Wne FESMI (Fri) Flovmr Mound I Wne$tyhn Flower Mound hUD-://www.localw'i'neevents.com/evenM*istineJshow/25 11/29/2012 r" Dec 01 IM5 BluMMUrat -W—ne Trail. Holiday D69ni Vftp TMI: Q j& 14 and 8-9 (Sd) MONTGOMERY I Retreat Hill Cellars along with the 9 other member 2012 Buy Tickets IZO Dec 01 Chriom WWI Qh9—C91112 §nd -W-106 lour (Sat) Dallas I Donna's Fie House 2012 n Doc 01 Dallas -Fort Worth, Texas Winc Tasting, Wine Educafion, Wiw,- Classcs andWm'e Dm*ners: LocalWineE... Page 4 of 8 P" (Sat) 2012 2012 $ 30p M&Ceiebritys ON 8vrtender.fflMj Up TITA (8*) (Fri) EftflFz Komafi $ 2012 Sonoma Wne T -at -109 (sat) Nov 3U, S LYine Dinner at the IMMO CM of Qg las T $ (Fri) Addison I Itarmn Club of Dallas Clubhouse 2012 ;Zrz Nov 30 Pre.MjUm Tassn g;RIdhg&rd Cabs (Fri) Fort Worth I Grand Cru 2012 $ Nov 30 - HgWav Boo Jdq Dec 02 Burleson I Way Out Wineries 1111 belween Budeson Texas and t 2012 MIN Dec 01 gpgft Cim With CMI Sott GgMr (sat) Dallas I Bijoux Restaurant 2012 $ foci Dec 01 annual Widw ChamMne and SRadftg Wne JaIM Pam, Dallas I Wrietastic 2012 r" Dec 01 IM5 BluMMUrat -W—ne Trail. Holiday D69ni Vftp TMI: Q j& 14 and 8-9 (Sd) MONTGOMERY I Retreat Hill Cellars along with the 9 other member 2012 Buy Tickets IZO Dec 01 Chriom WWI Qh9—C91112 §nd -W-106 lour (Sat) Dallas I Donna's Fie House 2012 n Doc 01 QmvItmentagry Wine Iglft and _Q=j P" (Sat) Frisco I Wine Cellar at Starwood 2012 $ Doc 01 Emmium Tasting: 0-tift&d W& (8*) Fort Worth I Grand Cru 2012 $ Dec 01 Sonoma Wne T -at -109 (sat) Fort Worth I Grand Cru 2DI2 T $ Dec 02 IMLftsbonnet Me Tran, 11WHay gMMI Vfte Trafl: Qmjj- and A& (Sun) Montgomery I Retreat Hill Cellars along with the 9 other member 2012 ss Buy Tickeft C=2 DOC 02 EMMM IM09: MEMO 002 qSUQ Fort Worth I Grand Cru h -Up -, Hwww. localvi nee'vents, 11/29/2012 http-://www.localw*meevents.com/events/Esting/show/25 11/29/2012 Dallas-Fort Worth, Texas Wine Tasting, Wine Education;Wine Classes and Wine Dinners: LocalWineE... Page 5 of 8 13 The Dallas Cowboys-Joe Nick Paosid book slqnk!g (SeQ, Dallas I Commonwealth Couture 2012 Dec 0% Lux elin RSVP Online (Sun) Dallas I LUXELINER pop-up 2012 aw NVI . " 4v $ Dec 03 - HapM Hour pg & Botanas at Abraham gglunfs 5gof-I Dec 06 Dallas I Konv9i mot 2012 Y $ Dec 03 LangOins Family WgSDi Meet, Greet, Odak (Mon) Colleyville I NeA Wood Fired Bistro & Vino Bar 2012 Dec 04 A!jgj_gj_Fmnch W C44ebmj ijillf price pc C The Seasonne (Tue) Frisco I Bonnie Rutlfs Cafe et Patisserie 2012 .414 $$ Dec 04 ftnd Pond Estate WOC!210rt r (Tue) Dallas I Cru Wne Bar - West Village 2012 oft FUR Dec 05 TheOmMill Water L3eX Dinner 19 ghMgM SIODR-Mud FroO00:1a g"ri (Wed) Dallas I The Gin Mill 2012 :q Dec 06 Cheesemonna Birthday Surprise (Thu) Dallas I Sc, ardello Aften Cheese 2012 ss Dec 06 Dsgng with ftogggs piftmina to Celebrate ljeniMM AnnivwwDLI (Thu) Dallas I MAO 100 2412 0% 7 $$ Dec 06 slid ffit_Waqj_qsftng (Thu) Dallas I Wnetesfic Fmn 2012 Dec WineaEg Jazz 2zz �X (Frit Garland I Vvine V%ne at Firewheel 2012 Dec 07 §Idp the CMkies-Sanin Mrft His Gay02JAI (Fl Flower Mound I WneSlyles Fkwer Mound 2012 0. $ twel Dec 08 n qt Z wB& gaig Id 1999 Elm DamoK, _Clurk E�Mgg (Sat) Dallas 11000 Elm Building 2012 V 00 S$ "lle T HO_Uday cDE01 WrIe IMR-. 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Holiday COEIN Vifine Trail: OW. 1-2 2004-0---9 (sun) Montgomery I Retreat Hill Cellars along With the 9 other member =2V.•10 71V BLry Tickets Dec 89 El Ce= CoUme Brea ton The ELUN RSVP Online (Sun) Dallas I Market At Main - in front of the El Centro College 2012 • $ Dec 10 - tia=Wgur Drinks & BojIM atAbilhaM Saluff—S Kpmall Dec 13 Dallas I Komall 2012 $ Dec 10 IMflinji Wine Dinner at the Slyet Fax Sj%kjq-uAS (Mon) Fort Worth I The Silver Fox Steakhouse 2012 $$$ Dec 11 - HoWn Ida Jamboree len-mute MUIAAMI Dec 12 Dallas I The Blue Room at South Side on Larnar 2012 $ Doc 12 Wr IMIng WnLer V-O-ff ner 1219112 (Wed) Flower Mound I WineSlyles Flower Mound 2012 $ Dec 12Gonism @MftMJ=A MIWW-!AdM At 99IR&O Wine Co (Wed) DaRas I Domaine Ware Company 2012 Dec 13 French CbMq and Wine (Thu) Dallas I Scardello, Ardsan Cheese 2012 7 ss 1409 Dec 13 Gralgo for -GoW- (Thu) McKinney I Landon Winery 2012 Dec 14 IMne IM4 J (Fri) Garland I DVIne Wine a 2012 Dec 14 C h0kma WM IlOng A-EDO DrL"- (Fri) Flower Mound I WneStyles Flower Mound 2012 Y Y Dec 14 HgfidmtWne"n CIS, . late 191fim (FA) Dallas I Winetutle Dec 14 FM Tastier 4f SqV—St EMc81t5 = Wataugg I WneWes Watauga Fondue, bfigh Dallas I Smrdeflo Adisen Cheese 2012 hapm MW [3daks & Botann-at Abraham SaIMM'_9 KMIj http://www.localwineevents.com/events/listWgtshow/25 PER on, Aline Classes and Wine Dinners: LocalWineE... Page 7 of 8 Dallas -Fort Worth,, Texas Wine Twiting, Wine Educati A Dec 17 - Dallas I Koffmfi Dec 20 v 2012 Dec 18 all MAMBO 11 Y—MO 1 OCR (Tue) Dallas I VinO100 2012 $ Em Lagm of g2mgmms Dog V I Fraimmaes (Tues F®r Worth I Wneftles Fort ftr#% 2012 Dec 20 - sicAgms in Faris,- Choice of any opimbtween Pee A2 30, ZgV Dec 26 Paris I Paris 2012 $$i$ Dec 20 fehgM..101-- %Mnner.gLQMgSz1nWS Be-SOLB-19-M (Thu) Dallas I Scardello Artisan Cheese 7% 2012 $$ &Mjpsf!39 0 Fra j!gg ViAng Dec 20 f SMgbo (Thu) Mansfield I WneStyles Mansfield 2012 Dec 21 mg Ong Jm (FrQ Garland I DVine tine at Fmw4ml Van 2012 Dec 21 Eng-, 2f IN MIN Chem rand ne (Fri) Dallas I Scardello Artisan Cheese 2012 $$ Dec 21 ice WRIME pl) Dallm NROM,9ft 2012 T s� HMM,L BoAngs aM_&_1uM'"=PJ1 Deg 24 - Dec 27 06 e Q Koamg 2012 Dec 27 EpjhUrdaf SfAU& (Thu) Dallas I ScaMello AOwn Chftse 2012 $$ Dec 28 wom (Fri) Garland I Wine Wine at Firewheel 2012 !?. $ 01 Dec 2V M&Q Dallas I Scm dello Artisan Cheese 2012 $$ To �s announced In DaIM 2013 Jan 12 9 n gam M Qb USQ�OQO�� (Set) Dallas I B*m Restaurant http-://www.localw*meevents.com/eventsA*isting/show/25 11/29/2012 Dallas -Fort Worth, Texas Wine Tasting, Wine Education, Wine Classes and Wine Dinners: LocalWineE... Page 8 of 8 FMO 2013 Feb 02 Cooking CJJM M Qhqf tt Gaffich Mat) oams i 181joux Restaurant 2013 � ss Mar 16 - Saimr-galkys-A CeLqkMft of VWne. Fwd. SgWtj jind the Arts Buy rickets Mario Dallas I Perot Museum of Nature and Science and Irving Conv 2013 r $$ EZI O ["I Grl 0 0 0 on" http://www.loMw�ineevents-com/events/listingg/show/25 11/29/2012 Grp FMM CHAPTER 52. PACKAGE STORE TASTING PERMIT (1'S) PM Sec. 52.01. AUTHORIZED ACTIVITIES. (a) Except as provided by this subsection, the holder of a package store tasting permit may conduct product tastings of distilled spits, wine, beer, and malt -based or spirit -based coolers on the permitted premises of the holder's package store or wine only package store during am regular business hours as provided by this section. The holder of a wine only package store permit and a package store tasting permit may conduct product tastings only of alcoholic beverages the permit holder is authorized to sell under Section 24.01. (b) Written notification of a product tasting must be posted on the licensed premises of the permit holder's package store not later than 48 hours before the tasting event. The notification slWl clearly state: (1) the type and brand of alcoholic beverage to be tasted; (2) the date and hours the tasting is to take place; and (3) the address of the premises where the tasting is to occur. (c) A copy of the notification shall be kept on file and available for inspection on the premises during all tasting hours. (d) Sample portions at a product tasting shall be limited to no more than: (1) one-half ounce for distilled sports; (2) one ounce for wine- and (3) 'one ounce for beer and coolers. (e) Not more than 20 different products may be made available for tasting at any one time (g) No charge of any sort may be made for a sample serving. (h) A person may be served more than one sample. Samples may not be served to a minor or to an a obviously intoxicated person. No samples may be removed from the licensed premises. (i) During the tasting, not more than two containers of each brand or type of product being tasted may be open on the premises at one time. G) At the conclusion of the tasting, all empty or open containers of alcoholic beverages used in the tasting shall be removed from the premises or stored M* a locked, secure area on the licensed premises. (k) A tasting event authorized by this section may not be advertised except by on-site communications, by direct mail, by electronic mail, or on the permit holder's Internet website. (1) Except as provided by Subsection (m) or elsewhere in this code,, a person other than the 1 10 rye pennittee or the permittee s agent or employee may not dispense or participate in the dispensing of alcohol' beverages under this chapter. (m) The holder of a nonresident seller's or manufacturer's agent's permit or that permit holders agent or MR employee may participate in and conduct product tastings of alcoholic beverages at a retailer's premises and may open, touch, or pour alcoholic beverages, make a presentation, or answer questions at the tasting. Any alcoholic beverage tasted under this subsection must be purchased from the package store permit holder on whosepremises the tasting is held. The permit holder may not require the purchase of more alcoholic beverages than are necessary for the tasting. This section does not authorize the holder of a nonresident seller's or manufacturer's agent's permit to withdraw or purchase an alcoholic beverage from the holder of a wholesaler's •eraae for tasting on a retailer's premises that is not purchased from the Owl permit or provide an alcoholic bev retailer. See.. 52.02. FEE. The annual state fee for a package store tasting permit is $25. The fee is in addition to 10 * and subject to the same conditions as the fee paid for the holder's package store permit. See. 52.03. ELIGIBILITY FOR PERMIT. The commission or the administrator may only issue a ng package store tasting permit to a holder of a package store permit or wine only package store permit. For the purposes of this code and any other law of the state or political subdivision of the state, a package store tasting permit may not be considered a permit authorizing the sale of aicoholic beverages for on -premise consumption. S M*cc no charge may be made for a sample tasted on the premises of a package store, none of a package store's or wine only package store's revenue may be deemed to be revenue from the on-prernise sale of alcoholic beverages. 0 Total Wine & More Fort Worth Grand Operdng Celebration ® Dallas -Fort Worth, Texas.- LocalWiaeEvc-.. Page I of 2 Submit =11=t I La& I Sign UP Events I Festivals I Resources I The Jute I Ti ting I Vacabons I Deals I Advertise Search... H M > J > DafjW�F MM > Event Detail Where? << Back to DaMs-Fort Wonh Total Wine & More To Wine & Mort Foit Worth Gratid Opening Celebrat'o U 5200 South Huten SMFora Worth, Texas 76'^ 3 8. 17-292-2 7 10 fen November 15, 2012 (Thu) from 6.000 PH - 9*.00 P9,9 Fort Worth, Tens Add to Calendar I Tell a Fiend I Share I Tweet Fan h pasts"'d ray MM2 PR Cost: Free MM—ts by 11111-221W. F04 gpotact the poster Event Details wine OR Vfte & Food i$ Tags: EW Wo BW Dallas -Fort Worth Resources Educators & SchMis Total Wine & More Grand Opening Celebration Wne ShgM Public invited to parficipate in cs[jcRbmf*ry events gt Total Wine's now Fort Worth store Wnedgj!& VIMM $RmLaft & G.Ourmst ghQRS Event Venues WHAT: • Wpe QL qMs Total Wine More vdi celebrate the addition of its new store in Fort Worth with an evening of festive fours & Y events, music, food, tatings and prizes. The event will begin with an oftal ribbon aMN ceremony and —40990 the presentation of charitatge donations to the store -Is non-profit partners, the Fort worth opera and A Wish H 9its 8 L =1 VM VVIngs. LIAM sm—Ums The public Is Invited to attend all of the evening's ftw SCRmfies, indudingo Official ribbon cutting ceremony with Sen. Jane Nelson Wine, beer and spirits tastings Food Will be served Giveaways including a tee corkscrew and reusable wine tote to every qct (Whits su rt Eligibility lbr additional prizes and gift cards Events will be hosted by David Troneo Co43wnegand P ffa$gdgfl4 Of Two frog Q llama WHEN: Thurzdsy, WO-0. 515A a — 9 P.M WHERE-,, Total W & Mote 3200 S. Hulen Street Fort Worth, Texas 76132 ://- �(Dca� 'epvents.com/events/deWl/450839/ httnwwwV 11/29/22012 Total Wine & More Fort Worth Grand Opening Celebration - Dal las-Fort Worth, Texas: LocalWineEve... Page 2 of 2 BACKGROUND: few Total Wine & More operates 85 wine superstores in 13 states, with expansion reaching 14 states by year'SEYA= end. The company's vast selection of produds, combined with low everyday prices and expertly tmlrwd Subm-11 an EM wine amciates, brings a unique shopping expertenoe to the consumer. Total Wine & More has the Rng an Event distinction of being Severep DyramWt 2008 Retailer of the Year, Ma*et Watch's 2006 Retailer of the E09 & 1810-q Ft rivals Year, and Mine Enthusiast's 2004 Retailer of the Year. Since opening Its first store In 1991, Total Wine & EV ts by Date More has been comrnided to being the premier wine retailer in every community that it serves. For more • Seri Tickets intimation and store 1=11ons, please visit www.toWw1he.c=. EVENT ticcs INFORMATION: —1 Wne Renu For more information, call Total Wine & More at 817-292-2718 Wag & FbW Ap2j Wne Qyk MEDIA CONTACT: Wne BlM Matthew Young. (214) 379-3702 (office) ne es The -juice §%Elup. minane Myr !9raQW R the content of tKis posfmg is quesboThe JujQ*,nd nable. please DKA. PNXieW The Adge Ev cQfllact LIS fo" 06hp-Rdil Logio ALVrziaz Wine, Lakh rNq QM "all FEATURED ON tNvi ow jj o Otmvq FOOD&WINE TechCninch PR Wne IEv s py DIt ne gink _EmajLQ0.Y2uj_0e_ Wine Aftles Dkft Le-StIVAI wk0b SuML XM Wine Edua On l .oi l g1pyr A The JuLce j Tell a Fd d ftg ftgcy. Eo E_Qs [Lcy &udc§ WrLe L40eta Contact us C64t Upp 1100; Qur Pbkne _Vg" Qjy JR&x gqgLph m E09 Y -01M Dp--ffo 02012 Local WneF_vWt9-=M AU d9his MeNed. Z:z httD-./Iwww.localwineevents.com/events/detail/450839/ t2 9 i2 01 L2 Print Friendly gap___ low Summary for Complaint 1824744 (Date. 08/15/2013) am I This item has no errors. Page I of Complaint #1824744. CurrentStatus: Closed -violations Found CLP Number:' P 818999 Trade Name.: TOTAL WINE SPIRITS BEER & MORE License Status: Current Halt Modifiers: Complaint Type: Received Date: Lead: Joshua Alexander (Austin Compliance 60 -Day 108/15/2013 Office) Allegations: Offense: Admin (Mist. Defects I Description: Failed to fully disclosed financial relationship In Application) with management company (RSSI) spondent: AL WINES SPIRITS BEER & MORE Business - CLP Number: P 818999 Trade Name: TOT Person - Name: f=1 Location Address: 5200 S HULEN STREET / FORT WORTHTX 76132-1905 County: Tarrant (220) r" I" 11,Comments: Created Date: 08/27/2013 See attached narrative Criminal Violations: Admin Violations: Notice Number: Notice Type: Administrative Number of Offenses: I Comments: Created Date: 08/27/2013 309108 Warning Issued see attached narradve. I" IRelated Items: I No related items, so Tracked Changes for this item: Lead User changed from " to 'Joshua Alexander' on 8/15/2013 by Gene Bowman CLP Number changed from 11 to IP 818999' on 8/15/2013 by Gene Bowman Item Status *3395489 changed from " to 'Closed -Violations Found' on 8/27/2013 by Joshua Alexander Item Status Date -Time #3395489 changed from " to '8/27/2013 4:34:00 PK on 8/27/2013 by Joshua Alexander hq://kickapoo/Arts/ContentForms/ComplaintPage.aspx?mode=print 11/19/2013 '� Page 1 of 1 Summary for Admin Violation 1832499 (Notice#*, 309108, Issue Date: 08/27/2013), Com P*la*Int 1824744 (Date: 08/15/2013) "M P" R" I" f" pq MR P" http://kickapoo/Arts/ContentForms/ComplaintPage.aspx?mode--print 11/19/2013 09/2010 Form C-720 oMXU r TEXAS ALCOHOLIC BEVERAGE COMMISSION CASE NARRATIVE Permit Number: Type of Offense Trade Name: Dallas: P-803062; Regulatory Total Wine Spirit Beer & Fort Worth: - P-818999 More Date: July 31, 20X3 On January 24., 2013, a protest was filed against an original application for a San Antonio package store permit. The applicant was Fine Wine & Spirits of North Texas. LLC. The corporate structure of Fine Wine & Spirits of North Texas, LLC shows David and Robert Trone each holding 30%, but controlling 100% of the voting rights. The remaining 40% is comprised of trusts involving the brothers' children. f" During the invesdgaion of this protest., it was noted that there were two LLC's, one in-state and one out-of-state, set up very similar and controlled by Robert and David Trone (present applicants). The LLCs are financed via a "financial management company" called RSSI (Retail Service and System Inc.). RSSI uses a master bank account that comingles funds from the in-state and out of state package stores held by both LLCs owned by the Trone brothers. Those funds are deposited into a master bank account controlled by RSSI. The attorneys for Fine Wine & Spirits of North Texas, LLC were contacted. After much discussion, the Master licensing file to the two issued permits, the subject of this report,, (Dallas: P-803062; Fort Worth: P-818999) were updated on June 4,, 2013 to include a financial management agreement and supporting documentation and an affidavit. These documents were filed as supplements to the two above -referenced existing permits. These documents explain that excess funds from the master bank account may be loaned on an individual basis to any participating package store as necessary to cover shortages. Each package store is then charged 'Interest for any withdrawal for this purpose. Conversely, any excess profit from a package store is deposited into the master bank - account and the individual package store depositing the excess is paid interest on that deposit. Any new stare, such as the proposed store in San Antonio,, has the benefit of utilizing assets of the RSSI for capital investment under a similar financial management agreement and arrangement. Name / ID #: Date: Signature: Office: 09/2010 Form C-720 mu Rut& COMM 7 TEXAS ALCOHOLIC BEVERAGE COMMISSION CASE NARRATIVE Type of Offense Trade Name'. Permit Number. Dallas: P-803062; Regulatory Total Wine Spirit Beer & Fort Worth: P-818999 More Date: July 31, 2013 On July 31, 2013 the original apa T, 2013, for a package store permit to be located in San Antonio, Texas, was withdrawn by Fine Wne, & Sp'ff'�'Lrss eb North Texas LLC, As a result of the withdrawai, the protest was dW�ssed by TABC, Upon filing of the protest against the San Antonio appy'tcadon, the Comm'ss'bn learned of Fine Wine & Spirits of North Texas LLCs revolving line of credit and pardcipatkun in a master op rain bank account controlled by RSSI in which other Total Wine and More stores within and outside the state are participants® Total Wine and More did file the appropriate documents to show there was an arm's-length rdationship with each permit and RSS1`s financial management arrangement. The summary of findings for the applications filed with the agency regarding the Dallas permit (P- 803062) and the Fort Worth permit (P-818999) are as follows: 11 the original applications for the above -referenced permits were approved utilizing incomplete information and failed to fully disclose their financial management services agreement with RSSI. [.See LL Form (6-20-12) Location Packet For Retailers a ice or management ,e pg, 2 Item A " Are you operating under any concession, sery agneemenf (s) that coof ain terms for seivices or management beyond prvpetty rental? Yes No ?,f*oltem 10 'Are there any agreements., excluding the above, which require payment by the applicant in a dollar figure or percentage of gross or net income of the business? Yes No 07 If "YES, ff attach a copy of agreement. "] Name / ID #: Date: Signature: Office: FJ 09/2010 Form C-720 TEXAS ALCOHOLIC BEVERAGE COMMISSION CASE NARRATIVE Permit Number: Type OT Gff(�Mgs Ha Dallas: P-803062; Total Wine Sr 0 fl� Beer & Fort Worth: P-818999 �� Datc, July 31, 2013 2) the master application file of the LLC for these two stores was amended to reflect full disclosure of RSSIs relationship with the permitted LLC, Fine Wine & Spirits of North Texas LLC Violation Noted: 744 —Miscellaneous Defects in Application. Fine Wine & Spi of North Texas LLC failed to fully disclose its financial relationship With Retail Service and System Inc. (RSSI) Recommendation: Because the LLC provided full disclosure upon request, and based on a recommendation by legal, only a warning is being issued. A warning was issued to each package rAn store based on the above violation code. f" Name / ID Signature: Date: Office: 3 Print Friendly Page Summary for Complaint 1667558 (Date: 12/11/2012) WR This item has no errors. Page 1 of 1 Complaint #1667558. Current Status: Closed -Violations Found Trade Name: TOTAL WINE SPIRITS BEER & CLP Number: P 81$999 MORE License Status: Current Halt Modifiers: Complaint Type: Received Date: Lead: Natasha Turner (Arlington Compliance 60 -Day 112/11/2012 Office) Allegations: Offense: Admin (Mist. Description: Sec. 102.07 Prhibited Dealings With Retailer Marketing Practice Violation) or consumer;Retail Sale Of Liquor Co -Packs Res ondent: �-+ Business -CLP Number: P 818999 Trade Name: TOTAL WINES SPIRITS BEER &MORE Person -Name: Location Address: 5200 S HULEN STREET /FORT WORTH,TX 76132-1905 County: Tarrant (220) Comments: Fo comments. Criminal Violations: Admin Violations: Related Items: No related items, Tracked Changes for this item: Lead User changed from " to 'Natasha Turner' on 12/11/2012 by Natasha Turner CLP Number changed from " to 'P 818999' on 12/11/2012 by Natasha Turner Item Status ##2994402 changed from " to 'Closed - Violations Found' on 12/11/2012 by Natasha Turner Item Status Date -Time #2994402 changed from " to 112/11/2012 4:05:00 PM'on 12/11/2012 by Natasha Turner http://kickapoo/ArtslContentForms/ComplaintPage.aspxhnode--print 11/19!2013 j Texas Alcoholic Beverage Commission MAS A=XW WPM%a W=== Research Report updated: November 19, 2013 10:391 9 arra License Number: BF803063 File Number: 3063705 Status: Current Original issue Date: April 05, 2012 Secondary Status: Active Expiration Date: April 04, 2014 Status Date: April 05, 2012 : TOTAL WINE SPIRITS BEER & MORE FINE WINES &SPIRITS OF NORTH Location Add ss Mailing Address Seller Training 9350 N CENTRAL EXPRESSWAY ATTN: DEWEY BRACKIN X In City Limits DALLAS TX 75231 600 CONGRESS AVE STE 3000 Wine County:Dallas AUSTIN TX 78701 Location Phone: (572)542-7025 Within 1000 ft Related To:P 803062 Subordinates.-, M anagement Hast Violation Admin ---LE No r000rds found Violation Admin - ARTS No records found Complaints - LE No records found Complaints - ART$ No records found Inspections - LE No records found Inspections - ARTS No records found Violation Criminal - LE No records found Violation Criminal - ARTS No records found Audits - ARTS No records found Control floc: TABC ResearchRepost Page 'I of 2 1 License Number: BF803083 File Number: 3063705 Status: Current Original Issue Date: Apdl 06, 2012 Secondary Status: Active Expiration t)ate-.,- April 04, 2014 Status Date: April 05. 2012 -, TOTAL NNE SPIRITS BEER & MORE Cash CreditLawIncidentsABuyer) - ARTS InIc Setter Trade Name Seller Locaft A Date Amo t Dela Bate Num LD Wad TM2 WiLeiz 1588828 Notice of Default (Credit Law) Reported in Error 07/15/2012 08/01/2012 1,510 * Related CLP Location ContW Doc: TABC ResearchReport Page 2 of 2 236 Texas Alcoholic Beverage Commission low ^on*= IDW= manomw Research Report Updated: November 19, 2013 10.,41:55 am License Number: P847378 File Number: 3620790 Status: Current Original Issue Date: August 01, 2013 Secondary Status: Active Expiration Date: July 31, 2015 Status Date: August 01, 2013 Trade Name: TOTAL WINE SPIRITS BEER & MORE dxmm� Owner: FINE WINES & SPIRITS OF NORTH 11 Mallina Address Seller Training FLocation Address X In City Limits 8700 PRESTON ROAD SUITE 113 ATTN: DEWEY BRACKIN PLANO. TX 75024 600 CONGRESS AVE STE 3000 % Wine County:Collln AUSTIN, TX 78701 Within 1000 ft Location Phone: (301)795-1000 Related To:BF847379 Management Halt Subordinates: E LP PS Violation -Admin - LE No records found Violation Admin - A No records found Complaints - LE No records found Complaints- ARTs No records found Inspections - LE No records found Inspections - ARTS LD Inspectf on Date Time 1817335 08/02/2013 8:45 pm 1793134 06/27/2013 1:00 pm 1876062 10/2312013 2:10 pm Violation Criminal - LE No records found Violation Criminal - ARTS No records found I Control D= TASC RewarchReport ActtvW- Q01.8 Activity Tune Lead Vnso--e&.r 2h4stor Field Selected Open Compliance Check Browning, Tony ENF Licensing Related New Location Check Zhao, Michael COM Field Selected Open Compliance Check Browning, Tony ENF Page I of 2 L I W, F rs,,l u r -a b a t r.- 3620790 License Number 1,P1,77,9UMP Status.4, Curr sn�VIU-IQ&2� Qo--,em Daftz Augus4 Di, 2013 Secondary Status: Ac We taq pt M- � @ cr-J, 0 -,,n ft -, J U �y 31, 201 Status Date: August 01, 2013 Trade Name: TOTAL WINE SPIRITS BEER & MORE Audits -ARTS No records found Cash Credit Law Incidents LILuved- -ARTS e Dela Num ID Incident Tne status Seller Trade Name Seller Location, A belly m Date Amount Dela Date - Page 2 of 2 Control Doe: TABC Rew=hReport 9 Texas Alcoholic Beverage Commission' Research Report Updated: November 19, 2013 70:43:52 am License Number: BF847379 File Number: 3620791 Status: Current Original Issue Date: August 01, 2013 Secondary Status: Active Expiration Date: July 31, 2015 Status Date: August 01, 2013 • TOTAL WINE SPIRITS BEER & MORE FINE WINES & SPIRITS OF NORTH _ Location Address Mailing Address Seller Training 8700 PRESTON ROAD SUITE 113 ATTN: DEWEY BRACKIN X �In City Limits PLANO TX 75024 +600 CONGRESS AVE STE 3000 /� a Wine Coun :Collin AUSTIN TX 78701 Location Phone: (301)795-1000 Within 1000 ft Related To: P 847378 Subordinates: Management Halt Violation Admin - LE No records found Violation Admin - ARTS No records found Com pia i nts - LE No records found Complaints - ARTS No records found inspections - LE No records found Inspections - ARTS No records found Violation Criminal - LE No records found Violation Criminal - ARTS No mords found Audits - ARTS No records found Control Dom TMC R"earchReport Page 1 of 2 Pi I I I I I I I I BF847379 License Number - . Status: Current Secondary Status: Active Status Date: August 01, 2013 : TOTAL NNE SPIRITS BEER & MORE Cash Credit Law Incidents (Buyer) - ARTS M InsLOnd Bme status Seller Trade Name File Number. 3620791 Original Issue Date: August 01, 2013 Expiration Date: July 31, 2015 Seiler Location Address DeWery Date Amount Dela Mate Dela Mum Contra! Eft: TABC RewarchReport Page 2 of 2 1 1 Violation Admin No records found Violation Admin - ARTS Texas Alcoholic Beverage Commission No records ,found 1=0 W=X= mum kvmma Research Report Complaints - LE. Updated., November 19, 201310:45:55 am License Number: P847382 No records found File Number: 3620866 Status: Current Original Issue Date: August 01 2013 Secondary Status: Active Expiration Date.- July 31, 2015 Stowe Date: August 01 2013 Trade Name: TOTAL WINE SPIRITS BEER & MORE Inspections - LE mmwmmm� Owner: FINE WINES & SPIRITS OF NORTH Seller Training LocAd dnes Mailing Address ------ 721 N CENTRAL EXPRESSWAY SUITE 200 LD Inspection Date Time AM & Class ATTN: DEWEY BRACKIN - Lead Inspector X In City Limits PLANO. TX 75075 Open Compliance Check 600 CONGRESS AVE STE 3000 1793335 0612712013 4:00 pm % Wine County:Collin Zhao,, Michael com AUSTIN. TX 78701 Licensing Related New Location Re -Check Location Phone: (301)795-1000 Violation Criminal - LE Within 1000 ft Related To:BF847383 Management Halt Subordinates: E PS Violation Admin No records found Violation Admin - ARTS No records ,found Complaints - LE. No records found Complaints - ARTS No records found Inspections - LE No records found Inspections - ARTS LD Inspection Date Time AM & Class Actkftv Type Lead Inspector 1822761 08/10/2013 9:00 prn Field Selected Open Compliance Check Browning, Tony E N F 1793335 0612712013 4:00 pm Licensing Related New Location Check Zhao,, Michael com 1886312 1110612013 3:00 pm Licensing Related New Location Re -Check Zhao, Michael COM Violation Criminal - LE No records found Violation Criminal - ARTS No rewrds found Control Doe: TABC RoseerchRapail Page I of 2 W11 License Number: P847382 Status: Current Secondary Statue: Active Status Data: August 01, 2013 Trade Name .- TOTAL VVINE SPIRITS BEER & MORE Audits - ARTS No rewrcls found Cash Credit Law Incidents (Buyer) - ARTS LO laddhent Time 5. Seller Trade Name Seller Location Address U File Numben, 36-P-0356 OrIgInM Is MUM. August 01, 1013 Exp1ration Mift -, Juiy 31, 2015 Del Wow Date Amount Do Delay Nunn Control Dom. TABC ResearchReport Pags 2 of 2 Texas Alcoholic Beverage Commission Research Report Updated.- November 19, 2093 10.-47.*04 am License Number.- BF847383 File Number: 3620857 Status: Current Original Issue Date: August 01, 2013 Secondary Status: Active Expiration Date: July 31, 2015 Status Date: August 01 2013 TOTAL WINE, SPIRITS, BEER & MORE FINE WINES & SPIRITS OF NORTH Seller Training Location Address Mallin Address 721 N CENTRAL EXPRESSWAY SUITE �" 200 ATTN: DEWEY BRACKIN X In City Limits PLANO. TX 75075 600 CONGRESS AVE STE 3000% Wine County:Colfin AUSTIN, TX 78701--- Within 1000 ft Location Phone: (301)795-1000 Related To:P 847382 Management Halt Subordinates: Violation Admin - LE No records found Violation Admin - ARTS No records found Complaints - LE No records found Complaints - ARTS No records found Inspections, - LE No records found Inspections - ARTS No records found Violation Criminal - LE No records found Violation Criminal - ARTS No records found Audits - A.RIS. No records found C*nW Doc: TABC ResewchReport Page 1 of 2 I l I I ] I I I License Number: SF847383 Status: Current Secondary Status: Active Status Date: August 09, 2093 : TOTAL WINE, SPIRITS, BEER & MORE Cash Credit Law incidents �Buver) - ARTS ! �rlcld At Time S Seller Trade Name File Number: 3620857 Original Issue Date: August 01, 2013 Expiration Date: July 31, 2015 Seller Location Address Delhrety Bate AMount Dela Date Dela Nur» a Conal Dom TABC RwwwchReport Page 2 of 2 I I I I I I I I I I I I I I I I I I Texas Alcoholic Beverage Commission M" ADJUMC walz= ("301saw Research Report Updated.* November 19, 201310:,47:36 am License Number BF819000 File Number: 3277499 Status,-, Current Original Issue Date-, September 07, 2012 Secondary Status: Active Expiration Date: September 06, 2014 Status Date: September 07, 2012 -0 TOTAL WINES SPIRITS BEER & MORE FINE WINES & SPIRITS OF NORTH Seller Training Location Address Mallina Address 5200 S HULEN STREET ATTN: DEWEY BRACKIN X In City Limits FORT WORTH, TX 76132-1905 600 CONGRESS AVE STE 3000 County -.Tarrant ATTN DEWEY BRACKJN Location Phone: (301)795-1000 AUSTIN. TX 78701 Related To -.P 818999 Subordinates: Violation Admin - LE No records found Violation Admin - ARTS No records found Complaints - LE No records found Com Dlaints - ARTS Norecords found Inspections - LE No records 1bund inspections - ARTS No recads found Violation Criminal - LE No records found Violation Criminal - ARTS No records found Audits - ARTS No records found Control Doc: TABC RewarchReport Riga 1 of 2 License Number: BF819000 Status: Current Secondary Status: Active Status Date: September 07, 2012 TV IFIL VVIRMO o -IFNI V ws-r•. •-- -- Cash Credit L.. W incidents(.Suver) - ARTS ncident ame Se er i.acatlon dd ss Q TWO S� Se! er Tracts * 1682956 Notice of Default (Credit Law) incident Notice Issued * Related CLP Location Contra! Doc: TASc ResearchReport fl File Number: 3277499 original Issue Date: September 07, 2012 Expiration Date: September 06, 2014 ellverrDate Amount Dela Date. Deld Mum 12131/2012 01/16/2013 11,621 "i �i rt