Judge denies bail for club owner, brother in downtown drug ring

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An Austin nightclub owner and his brother will remain in custody on federal charges of cocaine distribution, money laundering and a federal firearms violation.

Federal Judge Dennis Green denied bail Tuesday to 40-year-old Hussein “Mike" Yassine of Yassine Enterprises, and his brother, 38-year-old Mohammed Ali Yassine, also known as “Steve.”

Yassine Enterprises owns eight Austin bars and nightclubs, all located downtown. Federal agents from the FBI and IRS raided those bars last week and indictments unsealed the same day disclosed a significant money laundering and cocaine ring within the popular nightclubs.

Younger brother Hadi Yassine will be released on a $25,000 cash bond. The Yassines have ties to Lebanon and the Middle East. Upon his release, Hadi will not be allowed to leave the country.

Also in federal court Tuesday was US Attorney Greg Soffer, the prosecutor in the case, along with IRS Agent James Neff and DEA Agent Randall Gillette. The three men testified that video and audio recordings captured large cocaine deals, money transactions and guns sales in bars operated by the Yassine brothers.

DEA Agent Gillette told the court during a drug sale, 42-year-old defendant Alex Melendrez, an associate of the Yassine brothers, put his finger inside a cocaine-filled bag, then stuck his finger inside an informant's mouth, rubbing the cocaine on his tongue and gums, telling him, "If you snitch on me, I will kill you and your family."

In another cocaine deal, agents testified defendants Nizar Hakiki, Steve Yassine and cab driver Karim Faiq made a transaction worth $24,000 in front of Steve Yassine's home.

Faiq’s attorney, Ben Florey, was limited in what he could tell YNN, but did say his client was innocent.

“I can tell you he's pleading not guilty to what the transactions are that he's been accused of,” Florey said.

Gillette also testified that Mike Yassine was involved in a sexual assault case and is under investigation by APD’s homicide unit for a cold case murder. No further details were provided for either of those cases.

Also, there is evidence that $45,000 was wired to Lebanon for relatives with direct ties to the terrorist group, Hezbollah.

Yassine Enterprises owns Roial, Hyde, Malaia, Treasure Island, Kiss n’ Fly, Pure, Spill and Fuel.

Here’s a breakdown of Tuesday’s court proceedings:

• Hussein Ali Yassine, known as “Mike,” 40 - Held without bail

• Alejandro Melendrez , known as “Alex” or “Cueta,” 42 – Held without bail

• Mohammed Ali Yassine, known as “Steve Austin” or “Hammudith,” 38 – Held without bail

• Amar Thabet Araf, 29 – Bail at $20,000

• Sami Derder, 38 – Bail set at $25,000

• Edgar Orsini, 40 – Hearing set for Wednesday at 1:30 p.m.

• Karim Faiq, 29 –Hearing set for Wednesday at 1:30 p.m.

• Nizar “Nino” Hakiki, 32 – Case still pending review from judge

• Marisse Marthe Ruales, known as “Madi,” 33 – Bail set at $10,000