DEPARTMENT OF EXCISE AND LICENSES

DENVER, COLORADO

ORDER TO SHOW CAUSE

IN THE MATTER OF A BUSINESS LICENSE(S) HELD BY BMJ&J LLC, DOING

BUSINESS AS BETA NIGHTCLUB, AT 1909 BLAKE STREET, DENVER, COLORADO

DANCE CABARET LICENSE # 2007-BFN-1030776

TAVERN LIQUOR LICENSE # 2007-BFN-1030776

BMJ&J LLC, doing business as BETA NIGHTCLUB, (the “Respondent”) is hereby ordered to
appear at the Denver Department of Excise and Licenses (the “Department”), located at 201
West Colfax Avenue, Dept. 206, Denver, Colorado, on October 18, 2021 at 1:00 p.m. and
SHOW CAUSE why its Dance Cabaret and Tavern Liquor License(s) at 1909 Blake Street,
Denver, Colorado, should not be suspended or revoked for alleged violations of law or
regulations.

ALLEGED VIOLATIONS

As a result of the investigation conducted by the Denver Fire Department, Denver Police
Department and Department of Excise and Licenses on between June 2021 through August 2021,
and the attached complaint, the Department has sufficient grounds to believe that the
Respondent, through its managers, employees, or agents has violated the following state or local
laws or regulations

1. Colorado Liquor Rule Regulation 47-900(A) - Conduct of

Establishment – Orderliness, loitering, serving of intoxicated persons.
A. Each person licensed under Article 3, Article 4, and Article 5 of Title 44, and any
employee or agent of such licensee shall conduct the licensed premises in a decent,
orderly and respectable manner, and shall not serve a known habitual drunkard or any
person who displays any visible signs of intoxication, nor shall they permit a known
habitual drunkard or any person who displays any visible signs of intoxication to
remain on the licensed premises without an acceptable purpose, nor shall the licensee,
his employee or agent knowingly permit any activity or acts of disorderly conduct as
defined by and provided for in Section 18-9-106, C.R.S., nor shall a licensee permit
rowdiness, undue noise, or other disturbances or activity offensive to the senses of the
average citizen, or to the residents of the neighborhood in which the licensed
establishment is located.

2. C.R.S. § 18-18-405(1)(a)(2)(c)(I) Distribution of Controlled Substances

 Except as authorized by part 1 of article 280 of title 12, part 2 of article 80 of title 27, or
part 2 or 3 of this article 18, it is unlawful for any person knowingly to manufacture,
dispense, sell, or distribute, or to possess with intent to manufacture, dispense, sell, or
distribute, a controlled substance; or induce, attempt to induce, or conspire with one or
more other persons, to manufacture, dispense, sell, distribute, or possess with intent to
manufacture, dispense, sell, or distribute, a controlled substance; or possess one or more
chemicals or supplies or equipment with intent to manufacture a controlled substance . . .
Except as otherwise provided for an offense concerning marijuana and marijuana
concentrate in section 18-18-406 and for special offenders as provided in section 18-18-
407, any person who violates any of the provisions of subsection (1) of this section . . .
Commits a level 3 drug felony if the violation involves any material, compound, mixture,
or preparation that weighs . . . Not more than fourteen grams and contains a schedule I or
schedule II controlled substance . . . .

3. C.R.S. § 18-18-422(1)(a)(b)(I) Imitation Controlled Substances

Except as provided in section 18-18-424, it is unlawful for a person to manufacture,
distribute, or possess with intent to distribute an imitation controlled substance. A person
who violates the provisions of paragraph (a) of this subsection (1) commits a level 4 drug
felony.

4. C.R.S. § 44-3-901(1)(i)(I)(D) Unlawful Acts

It is unlawful for any person: To consume any alcohol beverages in any public room on
the licensed premises during hours during which the sale of the alcohol beverage is
prohibited under this article 3.

5. C.R.S. § 44-3-901(6)(b)(I) Unlawful Acts

It is unlawful for any person licensed to sell at retail pursuant to this article 3 or article 4
of this title 44: To sell, serve, or distribute any malt, vinous, or spirituous liquors at any
time other than the following: For consumption on the premises on any day of the week,
except between the hours of 2 a.m. and 7 a.m..

6. C.R.S. § 44-3-414 Tavern License

(4) Each tavern licensee shall manage or have a separate and distinct manager for each
licensed premises and shall register the manager of each licensed premises with both the
state and the local licensing authority. No person shall be a registered manager for more
than one tavern license.
(6) When a person ceases to be a registered manager for a tavern license, for whatever
reason, the tavern licensee shall notify the licensing authorities within five days and shall
designate a new registered manager within thirty days.

7. D.R.M.C. 6-35(a) – Disorderly Behavior

(a) Each licensee shall conduct his establishment in a decent, orderly and respectable
manner. No licensee, manager, agent, or employee of a licensee, nor a member of
any organization licensed herein, shall permit within or upon the licensed premises:
the loitering of intoxicated persons or persons under the influence of alcohol,
narcotic drugs, stimulants or depressants; nor lewd or obscene displays or activities;
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 nor disturbances, disorderly conduct, or undue noise; nor any unlawful act; nor
other activity offensive to the residents of the neighborhood in which the
establishment is located; provided, however, this section shall not apply to the
possession, consumption, display, or use of cannabis or cannabis accessories as may
otherwise be permitted by the Revised Municipal Code or state law.

8. D.R.M.C. 6-73 (4)-Suspension or revocation re: Underage Patron License

(4)The licensee fails to comply with their detailed written operational plans as filed and
approved by the director, including, but not limited to, strict compliance with the
authorized occupancy loads and pre-approved configuration of assembly areas, or pre-
approved alternative configurations, as authorized and approved by the building
inspection division of the Denver community planning and development agency and the
Denver fire department, and/or fails to have the occupancy load capacity conspicuously
posted in each room.
9. D.R.M.C. 10-18 Unlawful to Violate Codes
It shall be unlawful to violate any portion of any of the above codes or any order of any
building or fire official enforcing said codes.
A. 2018 International Fire Code Sec. 1004.9 – Posting of Occupancy Load
Every room or space that is an assembly occupancy shall have the occupant load
of the room or space posted in a conspicuous place, near the main exit or exit
access doorway from the room or space, for the intended configurations. Posted
signs shall be of an approved legible permanent design and shall be maintained
by the owner or the owner’s authorized agent.

10. D.R.M.C. 42-132 (B)(1)(3) – License required

(1) It shall be unlawful for any person to act as a security guard without first obtaining
a license as provided in this article.
(3) It shall be unlawful to operate as a private security employer without first obtaining
a license as provided in this article.

LICENSE VIOLATIONS

Due to the above allegations, the Department is seeking disciplinary action on your license
pursuant to DRMC § 32-22(3)(4)(5), DRMC § 6-73, DRMC § 32-30(a)(b) and CRS § 44-3-
601(1)(a).

CORPORATION MUST APPEAR WITH AN ATTORNEY

Subject to certain exceptions, a corporation or limited liability company must appear before an
administrative agency through an attorney. Proceedings commenced or advocated and pleadings
filed by a corporation or limited liability company without an attorney will be not be accepted,
EXCEPT that a closely held corporate entity (3 or fewer shareholders) may be represented by an

3
officer of such closely held entity if the officer provides a corporate resolution form (attached
hereto) authorizing the officer to appear on behalf of the entity in all matters before the
Department.

DISCOVERY REQUESTS

Copies of the reports regarding this show cause, as well as photos, floorplans, and applications
will be available from the Department by submitting a request via email at
EXLRecordsManagement@denvergov.org.

CONTINUANCES

All requests to continue the hearing must be made in writing and emailed to the Department at
CAOExciseandLicense@denvergov.org, and must copy the Assistant City Attorney below. Any
Order granting or denying a continuance shall be within the sole discretion of the Director.

STIPULATION WITH ASSISTANT CITY ATTORNEY

In order to resolve this matter without a hearing, your attorney or legally authorized corporate
representative may contact Assistant City Attorney Katie Conner at
Katie.Conner@denvergov.org or (720) 913-8061 prior to the hearing to reach a stipulated
agreement. Any stipulation reached with the Assistant City Attorney should be completed at least
twenty-four (24) hours prior to the show cause hearing date. Stipulations may be rejected by the
Department for failure to comply with the procedures above.

VIRTUAL HEARING

In light of the COVID-19 (Coronavirus) pandemic, the continued spread of the virus throughout
communities in Colorado, and public health orders regarding mitigating the spread of the virus,
all in-person hearings are being rescheduled to virtual hearings. Parties are encouraged to pre-
mark and submit exhibits electronically prior to the hearing as provided for in the Department
Policies and Procedures Governing Public Hearings.
This Show Cause hearing shall be scheduled for October 18, 2021 at 1:00 p.m., via virtual
hearing. You can access the virtual hearing via telephone by calling +1 720-388-6219, code: 970
672 293# or via video conference using this link: https://tinyurl.com/x5czux46.
If the Respondent does not have access to a computer or telephone, needs assistance from an
interpreter, or requires closed-captioning assistance, they must notify the Department in writing
at the following address: Department of Excise and Licenses, 201 W. Colfax Avenue, Dept. 206,
Denver, CO, 80202, at least seven (7) days prior to the hearing. If possible, notification may also
be provided verbally by telephone at (720) 913-1311 or by emailing
EXLApplications@denvergov.org.

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 FAILURE TO APPEAR AT HEARING

If you fail to appear for the hearing, the hearing may proceed on the scheduled date. Testimony
and evidence may be taken regarding the allegations, and your license may be suspended, fined,
or revoked without further notice.

LICENSE TRANSFER AND RENEWAL

The Department will not accept any application to transfer the ownership of this license during
the pendency of the show cause. Any licensee attempting to submit any application with the
Department regarding this license shall notify the Department of pending disciplinary action on
this license. Any licensee attempting to transfer ownership shall notify the potential purchaser of
all liabilities associated with this license and shall notify the transferee that she may be
responsible for the actions of the previous owner, and subject to discipline based upon the same.

The Department will accept a complete renewal application along with the requisite fees,
however no license shall issue until this matter is resolved. The Department’s renewal
investigation shall be consolidated with the Show Cause proceeding. The Respondent must
notify the Department that its license is under disciplinary action upon a request for renewal.

Ordered this _30th _ day of ___August_______________________ 2021.

_______________________________
Ashley Kilroy, Executive Director
Department of Excise and Licenses

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 CERTIFICATE OF DELIVERY

The undersigned hereby certifies and states that one true and complete copy of the above Order
was sent via email and certified prepaid mail postage on this _30th __ day of
___August________________ 2021, to the following:

BMJ&J LLC
1909 BLAKE ST
DENVER, CO 80202

HUSSAM KAYALI
2470 S FUNDY CIR
AURORA, CO 80013
VALENTESAUTOLLC@YAHOO.COM

MARTIN D BEIER
S&D LAW
1290 BROADWAY SUITE 1650
DENVER, CO 80203

Det. Paul Streate, Denver Police Department, Paul.Streate@denvergov.org

Det. Tom Sanchez, Denver Police Department, Tom.Sanchez@denvergov.org

__________/s/ Buffy Palmer__________

Dept. of Excise and Licenses

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 City and County of Denver
DEPARTMENT OF EXCISE AND LICENSES
201 W. Colfax Ave. Dept. 206
Denver, CO 80202
P: 720.865.2740
F: 720.865.2881
www.denvergov.org/businesslicensing

RESOLUTION
Recitals:

1. _ is a closely held corporation within the

context of Section 13-1-127, C.R.S., since it is a privately held corporation with no more than
three (3) shareholders.
2. is the duly elected
, (Office) of the corporation.
3. The following signatories to this resolution are shareholders of the corporation holding the
specified percentage of stock ownership:

Stock Ownership Percentage (%)

Shareholder

4. The corporation is a Colorado corporation in good standing which is in compliance with the
requirements imposed on corporations by law.
5. The amount at issue does not exceed ten thousand dollars ($15,000.00), exclusive of costs,
interest or statutory penalties.
6. The corporation holds/has applied for a License.

It is therefore RESOLVED that _ _ _ is authorized

to appear on behalf of the corporation before the Denver Department of Excise & Licenses at the hearing
scheduled on and represents the corporation
at the hearing.
Shareholder Signatures

Subscribed and sworn to before me this day of _ _ 20 .

SEAL
NOTARY PUBLIC

My commission expires __ _
DEPARTMENT OF EXCISE AND LICENSES
DENVER, COLORADO

COMPLAINT

IN THE MATTER OF BUSINESS LICENSES ISSUED TO BMJ&J LLC, DOING

BUSINESS AS BETA NIGHTCLUB, 1909 BLAKE STREET, DENVER, COLORADO

DANCE CABARET LICENSE # 2007-BFN-1030776

TAVERN LIQUOR LICENSE # 2007-BFN-1030776

Katie Conner, Assistant City Attorney, respectfully notifies the Denver Department of Excise
and Licenses (“Department”) of the City’s request to pursue disciplinary action against the
Dance Cabaret and Tavern Liquor Licenses held by BMJ&J LLC, DOING BUSINESS AS
BETA NIGHTCLUB, 1909 BLAKE STREET Denver, Colorado. The City states as follows:

I. Legal Authority to Show Cause

DRMC § 32-22(3) states that the Department may hold a show-cause hearing if: “The licensee,
either knowingly or without the exercise of due care to prevent the same, has violated any of the
conditions required for the license as specified in this Code or rules and regulations adopted
pursuant thereto.”

DRMC § 32-22(4) states that the Department may hold a show-cause hearing if: “The licensee
has failed to maintain the premises in compliance with the requirements of the Denver Building
and Fire Code; the electrical code of the City and County of Denver; the Denver Zoning Code,
former Chapter 59; rules and regulations issued by the department of public health and
environment, or any other state of local law.”

DRMC § 32-22(5) states that the Department may hold a show-cause hearing if: “The licensee,
or any of the agents, servants or employees of the licensee, have violated any ordinance of the
city or any state or federal law on the premises or have permitted such a violation on the
premises by any other person.”

DRMC § 6-73 states that “In addition to any other penalties prescribed by the Revised
Municipal Code, the director may, on his or her own motion or on complaint, and after
investigation and a show-cause hearing at which the licensee shall be afforded an opportunity
to be heard, suspend or revoke any underage patrons license previously issued under this
division.”

DRMC § 32-30(a)(b) states that “for purposes of suspending or revoking any license or permit,
the licensee or permittee shall be deemed to have permitted an act or condition if a reasonable
licensee or permittee would have been aware of the act or condition and taken action to sto p
the act or eliminate the condition. Any act or omission committed by any employee, agent, or
independent contractor that occurs in the course of his or her employment, agency, or contract
with the licensee shall be imputed to the licensee or permittee for purposes of imposing any
suspension, revocation or other sanction on the licensee or permittee.
CRS § 44-3-601(1)(a) grants local licensing authorities the power to show cause alcohol licenses
which it issues: “[T]he state or any local licensing authority has the power, on its own motion or
on complaint, after investigation and public hearing at which the licensee shall be afforded an
opportunity to be heard, to fine a licensee or to suspend or revoke, in whole or in part, any
license or permit issued by such authority for any violation by the licensee or by any of the
agents, servants, or employees of the licensee of this article 3; any rules authorized by this article
3; or any of the terms, conditions, or provisions of the license or permit issued by such
authority….”

II. Factual Background

Reports filed by Denver Police Department (“DPD”) indicate that on July 13, 2021,
Detective Paul Streate from the Denver Police Department was assigned to review several
events and investigations that had occurred at liquor licensed establishment Beta Nightclub
located at 1909 Blake Street, Denver Colorado. This was a result of several complaints and a
recent increase of 911 calls for service to the establishment. Detective Streate noted the
following incidents during his review.

On May 23, 2021, Denver Police responded to a reported shooting at Beta Nightclub.
Officers learned the victim was shot in front of the club approximately thirty feet from the
front entrance after leaving the club location. During the investigation, officers contacted an
individual named Christopher Vitale who identified himself as the general manager of the
club. Detectives on scene inquired about security staff that may have been at the location.
Vitale stated the contracted security company was called “Sir Elite” but they had already left
the location. Vitale provided a phone number for the owner of the company and the detective
on scene called the number but did not receive an answer. The detective discovered that the
phone number listed to an individual named Kristen Ramirez. It was later learned by Excise
and Licenses detectives that the owner of Sir Elite is a person named Sirwalter Salonis.
Officers also spoke to an individual inside the club identified as Anthony Wilding 05/06/90.
Wilding stated to officers he was working as security for the club. It is noted here that a
subsequent check of Excise and Licenses records found no security guard license or
application information for Anthony Wilding.

On June 11, 2021, Denver Police Department Vice Detectives conducted an

undercover operation at Beta Nightclub. During this operation, Officers Alexandra Spencer
and Stephanie Barrandey entered the nightclub through an entry facing 19th Street. At the
door, the undercover officers paid a cover charge and provided their Colorado Driver’s
licenses. Both officer’s persons and possessions were subject to a search by nightclub
security. During the search of Officer Spencer, she noted that the female security guard
conducted a pat down search of her person. During this pat down search, the security guard
felt the back waistband of Officer Spencer where the officer’s concealed weapon was located.
It was clear to Officer Spencer that the security guard had touched the officer’s weapon.

2
However, once the pat down was complete, Officer Spencer was declared “good to go” and
allowed into the club with the weapon.
Once the undercover officers entered the club, they were approached by a male patron
and joined him at a private table. At that private table, officers came into contact with a
female who identified herself as being 19 years of age and stated she had gotten into the club
with a false identification. That same female stated a man at the club had offered her cocaine.
Officers then approached the male who had invited them to his table. That male was able to
procure suspected cocaine from another male at the club and give it the undercover officers.
Undercover officers went to the restroom with the suspected cocaine was were able to get
photos and a sample of the suspected cocaine before returning the remainder of the suspected
cocaine to the male patron and eventually exiting the club. A later test of the suspected
cocaine came back positive as cocaine in fact.

On June 18, 2021, Denver Police Vice Officers Spencer and Barrandey returned to
Beta Nightclub to conduct an additional undercover operation. Once again, they entered the
club by paying a fee and were screened by security. This time neither officer carried a
weapon. On this occasion, officers approached a male at the club and asked him if he knew
where they could obtain some cocaine. That male pointed them to a different male at the
table. That male took officers downstairs to the basement of the nightclub near the restrooms.
The parties then entered the women’s restroom where the male provided the officer’s with
suspected cocaine. The officer’s purchased the suspected cocaine from the male and
eventually left the nightclub. At no time in the basement area of the nightclub did officers
observe any Beta security or staff. The suspected cocaine later tested negative for a controlled
substance.

On June 19, 2021, Denver Police Vice Detectives as well as Denver Police Excise and
License Detectives conducted an inspection of the premises at Beta Nightclub. Denver
Detective Daniel O’Bannon contacted an individual working security at the front door of the
club identified as Sydney Tilleli Ammar. Ammar was wearing a black t-shirt with white
lettering on the back stating “SECURITY” with black pants and shoes. Ammar was asked if
she was providing security, to which she responded she was. She was asked for provide her
private security guard license and identity card and in response she provided an expired
Denver Excise and License Identity Card (Expired 11/05/2020) under License No.2019-BFN-
0010414. Ammar was not able to provide a valid security guard license and was issued a
Unified Summons and Complaint for acting as a security guard without a license.
On August 3, 2021, Detective Paul Streate called and spoke with Ms. Ammar. At that
time, she again confirmed she was working security on the night she was issued the citation.
She had begun working at Beta several months before and that the manager named “Chris”
had provided her the word SECURITY to attach to the back of her black shirt. She stated she
had worked at the club approximately 10 times and that the manager “Chris” paid her in cash
as the end of the week.
Based on Denver Excise and License records, the registered manager of Beta is listed
as Michael McCray. However, in several documented reports, a Chris Vitale has represented
himself as the manager of the business. There are no Excise and Licenses records that indicate
McCray was ever removed as manager or that Vitale was registered as the new manager of
the location. Further, on August 6, 2021, Detective Streate spoke to Mr. McCray on the
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telephone and he told him that he is no longer associated with the club and that the current
manager is Chris Vitale.

On June 29, 2021, Denver Police Department Detective Tom Sanchez met with the
owner of Beta Nightclub Hassam Kayali and his counsel Aaron Acker. During that meeting,
Detective Sanchez inquired about Mr. Kayali’s use of security guards at Beta. Mr. Kayali
stated he had hired a company named Sir Elite Security to provide security to the club. A
search of Denver Excise and License records found no such company was licensed as a
Security Guard Employer. Mr. Kayali was informed of this and advised they could only use a
licensed security employer with licensed guards at their business.

On July 19, 2021, Denver Police Department Lt. Chris Jones responded to Beta
Nightclub at approximately 1:00am to check on the off-duty officers working at the location.
Officers reported the club appeared to be over capacity and they believed the over crowding
was creating a safety risk to the safety of patrons and employees in the club. The officers
further stated that they had expressed their concerns to the management of the club and those
concerns had been ignored. Lt. Jones notified the Denver Fire Department to conduct an
inspection to see if the club was over capacity. Upon arrival, the Denver Fire inspector
requested to see the occupancy permits for the premise. The manager of the business was not
able to find the permits. During this inspection, the owner of the nightclub, Mr. Kayali,
became very aggressive and hostile to Denver Fire and Denver Police on scene. The Denver
Fire inspector told Mr. Kayali that he was presumed to be over capacity due to being unable
to find the appropriate permits. Additionally, Mark Rudolph from the Denver Fire
Department had issued this business an Order to Comply on July 3, 2021 which ordered the
business to post occupant loads.

On July 19, 2021, Denver Detective Paul Streate received an email from Denver
Detective Derrick Keeton, who is one of the officers that works off-duty at Beta Nightclub.
Detective Keeton relayed that on July17 and July18, 2021 there were issues at the club that
included several fights and no crowd management being done by the club. Keeton provided
several video clips, one recorded by him and the others that were posted to social media by
patrons, that showed many people inside the location engaged in a physical fight with patrons
assaulting one another while throwing bottles and or drinks, trash cans and furniture. Keeton
stated it is not uncommon for fights to occur in the location and that security staff has regularly
reported to him fights between rival gang members. Keeton related, from his observations, it
appears the club does not put a priority on patron safety or crowd control efforts. Specifically,
officers have brought to the attention of management that they regularly see persons in the club
that may be affiliated with gang activity and that rival gang members have been present at the
location at the same time. He recalled one night where several males entered the club wearing
jean jackets with the words “Park Hill Blood” on the back of the jackets. Detective Keeton is
knowledgeable about gang culture and is familiar with recent and historical gang activity in the
Denver metro area. According to Detective Keeton, the officer’s warnings and concerns have
been disregarded by the management and they have shown no interest in preventing the
potentially violent individuals from entering the club.

4
 Keeton also recalled a night where the club allowed patrons to stay in the club and
continue drinking after 2:00 a.m. He stated it was during the weekend of the MLB All Star
events, Sunday., July 11, 2021. Keeton told me that at the end of the night (around 2 a.m.)
security staff informed the off-duty officers that they had cleared out the club. At approximately
2:30am, the officers went into the club to be paid for the evening. When they went to the second
floor, Keeton recalls there being approximately two hundred people in the club drinking and
socializing as if the club had never closed. He stated that he informed staff that everyone needed
to leave the location and eventually management cleared out the business.

Furthermore, it should be noted that this is the second licensing violation within one year
for this licensee. The previous violation occurred on September 30, 2020, and an order accepting
settlement was signed by the Director of the Department on March 11, 2021. Pursuant to the
order accepting settlement, the Director ordered that twenty (20) days of closure shall be held in
abeyance upon the condition of having no new violations for a period of one year.

III. Alleged Violations

Respondent is alleged to have violated the following Colorado Liquor Rules, Colorado Revised
Statutes and Denver Revised Municipal Codes:

1. Colorado Liquor Rule Regulation 47-900(A) - Conduct of

Establishment – Orderliness, loitering, serving of intoxicated persons.
A. Each person licensed under Article 3, Article 4, and Article 5 of Title 44, and any
employee or agent of such licensee shall conduct the licensed premises in a decent,
orderly and respectable manner, and shall not serve a known habitual drunkard or any
person who displays any visible signs of intoxication, nor shall they permit a known
habitual drunkard or any person who displays any visible signs of intoxication to
remain on the licensed premises without an acceptable purpose, nor shall the licensee,
his employee or agent knowingly permit any activity or acts of disorderly conduct as
defined by and provided for in Section 18-9-106, C.R.S., nor shall a licensee permit
rowdiness, undue noise, or other disturbances or activity offensive to the senses of the
average citizen, or to the residents of the neighborhood in which the licensed
establishment is located.

2. C.R.S. § 18-18-405(1)(a)(2)(c)(I) Distribution of Controlled Substances

Except as authorized by part 1 of article 280 of title 12, part 2 of article 80 of title 27, or
part 2 or 3 of this article 18, it is unlawful for any person knowingly to manufacture,
dispense, sell, or distribute, or to possess with intent to manufacture, dispense, sell, or
distribute, a controlled substance; or induce, attempt to induce, or conspire with one or
more other persons, to manufacture, dispense, sell, distribute, or possess with intent to
manufacture, dispense, sell, or distribute, a controlled substance; or possess one or more
chemicals or supplies or equipment with intent to manufacture a controlled substance . . .
Except as otherwise provided for an offense concerning marijuana and marijuana
concentrate in section 18-18-406 and for special offenders as provided in section 18-18-
407, any person who violates any of the provisions of subsection (1) of this section . . .
5
 Commits a level 3 drug felony if the violation involves any material, compound, mixture,
or preparation that weighs . . . Not more than fourteen grams and contains a schedule I or
schedule II controlled substance . . . .

3. C.R.S. § 18-18-422(1)(a)(b)(I) Imitation Controlled Substances

Except as provided in section 18-18-424, it is unlawful for a person to manufacture,
distribute, or possess with intent to distribute an imitation controlled substance. A person
who violates the provisions of paragraph (a) of this subsection (1) commits a level 4 drug
felony.

4. C.R.S. § 44-3-901(1)(i)(I)(D) Unlawful Acts

It is unlawful for any person: To consume any alcohol beverages in any public room on
the licensed premises during hours during which the sale of the alcohol beverage is
prohibited under this article 3.

5. C.R.S. § 44-3-901(6)(b)(I) Unlawful Acts

It is unlawful for any person licensed to sell at retail pursuant to this article 3 or article 4
of this title 44: To sell, serve, or distribute any malt, vinous, or spirituous liquors at any
time other than the following: For consumption on the premises on any day of the week,
except between the hours of 2 a.m. and 7 a.m..

6. C.R.S. § 44-3-414 Tavern License

(4) Each tavern licensee shall manage or have a separate and distinct manager for each
licensed premises and shall register the manager of each licensed premises with both the
state and the local licensing authority. No person shall be a registered manager for more
than one tavern license.
(6) When a person ceases to be a registered manager for a tavern license, for whatever
reason, the tavern licensee shall notify the licensing authorities within five days and shall
designate a new registered manager within thirty days.

7. D.R.M.C. 6-35(a) – Disorderly Behavior

(a) Each licensee shall conduct his establishment in a decent, orderly and respectable
manner. No licensee, manager, agent, or employee of a licensee, nor a member of
any organization licensed herein, shall permit within or upon the licensed premises:
the loitering of intoxicated persons or persons under the influence of alcohol,
narcotic drugs, stimulants or depressants; nor lewd or obscene displays or activities;
nor disturbances, disorderly conduct, or undue noise; nor any unlawful act; nor
other activity offensive to the residents of the neighborhood in which the
establishment is located; provided, however, this section shall not apply to the
possession, consumption, display, or use of cannabis or cannabis accessories as may
otherwise be permitted by the Revised Municipal Code or state law.

8. D.R.M.C. 6-73 (4)-Suspension or revocation re: Underage Patron License

(4)The licensee fails to comply with their detailed written operational plans as filed and
approved by the director, including, but not limited to, strict compliance with the
authorized occupancy loads and pre-approved configuration of assembly areas, or pre-
6
 approved alternative configurations, as authorized and approved by the building
inspection division of the Denver community planning and development agency and the
Denver fire department, and/or fails to have the occupancy load capacity conspicuously
posted in each room.
9. D.R.M.C. 10-18 Unlawful to Violate Codes
It shall be unlawful to violate any portion of any of the above codes or any order of any
building or fire official enforcing said codes.
A. 2018 International Fire Code Sec. 1004.9 – Posting of Occupancy Load
Every room or space that is an assembly occupancy shall have the occupant load
of the room or space posted in a conspicuous place, near the main exit or exit
access doorway from the room or space, for the intended configurations. Posted
signs shall be of an approved legible permanent design and shall be maintained
by the owner or the owner’s authorized agent.

10. D.R.M.C. 42-132 (B)(1)(3) – License required

(1) It shall be unlawful for any person to act as a security guard without first obtaining
a license as provided in this article.
(3) It shall be unlawful to operate as a private security employer without first obtaining
a license as provided in this article.

Specifically:
a. Respondent violated Colorado Liquor Rule Regulation 47-900(A) - Conduct of
Establishment by allowing disorderly conduct like physical fights on the
premises.
b. Respondent violated C.R.S. § 18-18-405(1)(a)(2)(c)(I) by permitting the
distribution of controlled substances on the premises.
c. Respondent violated C.R.S. § 18-18-422(1)(a)(b)(I) by permitting the distribution
of imitation controlled substances on the premises.
d. Respondent violated C.R.S. § 44-3-901(1)(i)(I)(D) by allowing the consumption
of alcohol on the licensed premises after 2:00 a.m. on or about July 11, 2021.
e. Respondent violated C.R.S. § 44-3-901(6)(b)(I) by allowing the consumption of
alcohol on the licensed premises after 2:00 a.m. on or about July 11, 2021.
f. Respondent violated C.R.S. § 44-3-414 by failing to report to licensing authorities
a new registered manager.
g. Respondent violated D.R.M.C. 6-35(a) by permitting the sales of narcotics on the
premises, permitting disorderly conduct like physical fights on the premises, and
permitting the consumption of alcohol on the premises after hours.
h. Respondent violated D.R.M.C. 6-73 by failing a Denver Fire Department
inspection by failing to have the occupancy load capacity posted in each room of
the business.
i. Respondent violated D.R.M.C. 10-18 by violating 2018 International Fire Code
Sec. 1004.9 – Posting of Occupancy Load and violating an Order to Comply
issued by Denver Fire Inspector Mark Rudolph on July 3, 2021.

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 j. Respondent violated D.R.M.C. 42-132(B)(1)(3) by having unlicensed security
guards working at the business.

IV. Conclusion
Respondent holds licenses issued by the Department and is alleged to have violated the above
referenced Colorado Revised Statutes, Denver Revised Municipal Codes, and Colorado Liquor
Rules. Therefore, pursuant to DRMC § 32-22(3)(4)(5), DRMC § 6-73, DRMC § 32-30(a)(b) and
CRS § 44-3-601(1)(a) the City requests that the Department issue, and cause to be served upon
Respondent, an Order to Show Cause why the Respondent’s Dance Cabaret and Tavern Liquor
License should not be suspended or revoked.

Respectfully submitted this 26th day of August, 2021.

Respectfully,

_/s/ Katie Conner___________________________

Katie Conner, Reg No. 37830
Assistant City Attorney
201 West Colfax Avenue, Department 1207
Denver, Colorado 80202
Phone: (720) 913-8061
Fax: (720) 913-8010
Email: Katie.Conner@denvergov.org