Alleged Hells Angels affiliation scuttles liquor licence transfer

Tony Raffele, King Yung, Frank Bruno and two numbered companies are suing the British Columbia Liquor Control and Licensing Branch (BCLCLB) for allegedly taking four years to consider transferring a liquor licence and then rejecting the application because one of the trio, Yung, was an alleged member of the Hells Angels biker club.

The trio had bought nightclub assets and a liquor licence in Kelowna in late 2005 and wanted to transfer that licence to the Liquid Zoo in Coquitlam.

In the November 9 notice of civil claim filed in BC Supreme Court, the trio allege that the BCLCLB’s general manager knew in December 2005 that a one-third shareholder of the Liquid Zoo nightclub was an alleged member of the Hells Angels.

The BCLCLB initially allowed the Liquid Zoo to operate with the liquor licence for a six-month term and then for one-year terms that were renewed.

Finally, in July 2009, the BCLCLB rejected the trio’s ability to hold a liquor licence because of suspected ties to the biker group.

Between 2005 and 2009, the trio had renovated the Liquid Zoo’s bar and stage, built washrooms, upgraded its electrical and plumbing facilities and installed a rooftop patio.

The BCLCLB counters that in 2006 its staff recommended that the liquor licence transfer be rejected because Liquid Zoo’s shareholders had ties to the Hells Angels, which is a “criminal organization.”

The BCLCLB contends that staff provided the plaintiffs with a copy of the staff report.

“At all times after August 10, 2006, the plaintiffs knew, or ought to have known, that the licence transfer application was likely to be refused for the reasons set out in the staff report,” reads the BCLCLB’s statement of defence.

The plaintiffs are seeking damages to compensate for the investments in the nightclub, lost goodwill, loss of value in the nightclub’s shares and lost profits from the operation of the Liquid Zoo after November 2009.

The BCLCLB is seeking dismissal of the lawsuit and compensation for costs.

None of the allegations have been proved in court.