News Release

August 2, 2007
News Release Contact:
Becky Gettings - (804) 213-4419
E-mail: pubrel@abc.virginia.gov

Possible Criminal Charges Facing Hampton Establishment As a Result of ABC Embezzlement Investigation

Special agents from the Hampton Regional Office of the Virginia Department of Alcoholic Beverage Control's (ABC) Bureau of Law Enforcement, assisted by the City of Hampton Police Department, executed a search warrant on August 1, 2007 at The Royal Suite, located on the 1900 block of Cunningham Drive.

The agents executed the search warrant to obtain and collect evidence in an investigation involving the establishment's alleged embezzlement of Virginia sales tax. Initial investigations conducted by ABC agents indicated that the business had failed to file required sales tax reports with the Virginia Department of Taxation for the months of October 2006 - June 2007.

Based on analysis of business records previously obtained by ABC, the establishment had sales of $246,453.70, on which $12,322.69 in sales tax was collected. The investigation indicated that none of the collected taxes have been remitted to the Virginia Department of Taxation.

An administrative hearing for The Royal Suite was held in Hampton on June 27 for qualifications to retain its temporary mixed beverage license. During that time, the investigation revealed that the food sales were not substantial to meet the requirements to retain its mixed beverage license. The hearing officer's decision for this charge is pending.

The investigation is ongoing, with the possibility of criminal charges against the corporate officers as well as new administrative charges being filed by ABC against the licensed establishment.