WISAM 1, Inc. v. IL Liquor Control Comm’n

Sheridan Liquors operated with a City of Peoria liquor license. Adnan owned the store; his brothers, Mike and Jalal managed the business, which included a check-cashing service. Mike and Jalal were indicted under the Money Laundering Control Act, 31 U.S.C. 5324(a)(3). To support the check-cashing operation, they withdrew large amounts of cash from Sheridan Liquors’ bank account and, knowing of federal reporting requirements, structured the withdrawal of more than $4 million to evade the requirements. Mike was convicted. Jalal fled the country. The city charged violation of a code section that prohibits any liquor licensee or its agent from engaging in activity in or about the licensed premises that is prohibited by federal law, claiming that the brothers conspired to unlawfully structure financial transactions. Sheridan Liquors maintained that Mike’s federal conviction should not have preclusive effect against it because Adnan was never permitted to present a defense in the federal proceeding. Sheridan argued that its insurance coverage had limits of $10,000 for cash on the premises and that structuring the transactions below $10,000 was not done to evade reporting requirements. The city presented testimony regarding loitering, litter, and potential drug use around the store. The Illinois Liquor Control Commission and the trial, appellate, and supreme courts affirmed revocation of the license, finding that Adnan’s due process rights were not violated. The court noted the 148-page transcript of the two-and-one-half-hour local hearing and that Sheridan had an opportunity to present evidence and defenses. Procedural due process does not guarantee an outcome, but only a meaningful opportunity to be heard. View "WISAM 1, Inc. v. IL Liquor Control Comm'n" on Justia Law