FOUNTAIN VALLEY : Bingo Operator Agrees to Pull Out of City

An organization that has been accused by the state attorney general’s office of illegal handling of bingo proceeds has agreed to stop conducting bingo games in the city after July.

The City Council this week approved the agreement with Amateur Sports Training Facilities, which raises money for athletes and athletic groups.

The state attorney general’s office, which investigated the group last year, alleges in a lawsuit that it commingled bingo proceeds and paid salaries with them, a violation of state and city law, City Atty. Alan R. Burns said. It also alleges that excessive salaries may have been paid, he said.

Meanwhile, a preliminary injunction was issued, ordering the organization to segregate its bingo money and not pay salaries with it, Burns said.

Last year, Fountain Valley refused to renew the group’s permit because of the state probe.

The organization appealed, and the city hired a hearing officer, who determined that although bingo laws had been violated, the city had not carried its burden of proof in showing that the public welfare would be impacted, Burns said.

As a result, the hearing officer recommended issuing the organization a bingo permit.

But last December, the council passed an urgency ordinance that allows the city to deny a bingo permit if an organization violates bingo laws--regardless of whether it could be proven that the public welfare had been affected, Burns said.

Because of this new city law, the organization agreed to stop its games after July 28.