A nightclub owner in the DFW area has been sentenced to 16 years in federal prison for allowing the sale of drugs in his clubs, according to an announcement from U.S. Attorney for the Northern District of Texas Chad E. Meacham.
According to the announcement, U.S. District Judge Sam A. Lindsay sentenced Alfredo Hinojosa, the owner of OK Corral/Far West, on June 3 to 16 years behind bars and ordered him to pay a $120,000 fine.
Hinojosa’s sentencing came after a federal jury found him, general manager Miguel Casas, and promoter Martin Salvador Rodriguez guilty in November 2021 of conspiracy to manage drug premises, managing drug premises, and conspiracy to possess with intent to distribute cocaine.
“These defendants made millions by explicitly allowing cocaine trafficking in nightclubs across DFW. They assumed that permitting bathroom drug deals would be their ‘competitive edge.’ Instead, it was their downfall,” Meacham said following the conviction. “The United States Attorney’s Office and the FBI will not permit nightclub owners — or anyone else — to willfully turn a blind eye to drug trafficking happening on their premises.”
The investigation into Hinojosa’s enterprises was initiated in 2012 and involved the FBI Dallas Field Office and the Dallas Police Department. He was arrested in December 2017.
Hinojosa, Casas, and Rodriguez eventually confessed to their knowledge and enabling of the drug sales, according to the DOJ’s announcement.
Despite providing investigators with a confession and initially pleading guilty to charges, Hinojosa later chose to go to trial, the prosecution said.
During the trials, prosecutors presented evidence showing that Hinojosa, Casas, and Rodriguez operated a conglomeration of businesses that generated more than $107 million in revenue over four years.
Evidence was presented of 17 transactions involving drug sales at OK Corral Fort Worth, OK Corral Dallas, and Far West nightclubs between 2013 and 2016. Some of these transactions were carried out by FBI informants under strict supervision from federal agents.
Prosecutors also argued that the three men allowed the sale of cocaine in their club bathrooms because the sales attracted numerous customers and gave the business a competitive edge over other nightclubs.
Several security guards at Hinojosa’s nightclubs testified during the trial that Hinojosa, Casas, and Rodriguez were aware of the drug sale and ordered guards to allow it after realizing business was tanking.
During their investigation, FBI agents had installed court-ordered microphones and a camera in Hinojosa’s office as well as also sought and obtained over a dozen wiretaps.
Federal agents testified in court that Hinojosa was heard on the wiretaps and recorded conversations saying, “We can’t really clean it because then we lose business,” and “We need cocaine, man.”
Other drug traffickers charged and convicted in the case also testified in court that the three men allowed them to operate freely at the nightclubs. Over 30 defendants have been charged and convicted in connection with the case.
Among them were two former Dallas police officers, Eddie Villarreal and Craig Woods, who admitted to lying to the FBI throughout the investigation. In April, Villarreal, who was in charge of Hinojosa’s security, was given two and a half years in federal prison. In 2018, Woods was sentenced to three years’ probation.
“This conspiracy was designed to elevate the status of the defendants at a very high cost to our society,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “Their extensive plans to conceal nightly high-volume drug sales included the recruitment of law enforcement officers as employees. We will continue to work with our local, state, and federal partners to protect the integrity of the profession, uphold the public’s trust, and prevent access to illicit drugs in our greater Dallas-Fort Worth communities.”
Prosecutors said the drug sales conducted at the nightclub added up to between $9 million and $12 million.
It is not clear if Casas and Rodriguez have been sentenced.