Downtown Bar Owners Face Federal Drug Charges

Clubs, drugs, and guns are a mainstay of crime fiction, but the FBI says it has exposed the real deal in Downtown Austin after agents busted what they say is a money-laundering operation run out of several Downtown bars.

On March 22, federal agents raided several businesses run by Yassine Enterprises and arrested 10 people, including owner Hussein "Mike" Ali Yassine and his brothers Hadi and Moham­med. The agents seized more than 400 boxes of documents and $200,000 in cash. The raids came three days after a federal grand jury handed down five indictments – the result of a joint investigation between the FBI, the Austin Police Department, and the IRS. However, the Drug Enforce­ment Agency, the state comptroller, and the Texas Alcoholic Beverage Commission have also taken an interest in what the FBI portrays as an organized crime operation.

During a detention hearing before the Texas Western Dis­trict Court March 27, government attorneys argued that, from 2007-2009, the Yassines facilitated the purchase of cocaine by an FBI informant and then laundered the money through their bars. If found guilty, the defendants could face maximum sentences of 20 years to life. Judge Dennis Green granted bonds for most of the defendants, but ordered Hussein and Mohammed – aka Steve Austin – to be detained. The hearing was continued on March 28 as the Chronicle went to press.

Yassine Enterprises is one of the largest entertainment firms in Downtown Austin. In addition to Treasure Island, it also runs Pure Ultra Lounge, Spill on Sixth, Malaia World Lounge, Fuel, Roial, Kiss & Fly, and Hyde. Of all their businesses, only Stack Burger Bar was still open over the weekend. The rest remain closed, as the state comptroller has frozen the company's assets and TABC has suspended their liquor licenses.