Two strip clubs lose liquor licenses

BUFFALO, N.Y. (WIVB) - The State Liquor Authority has stripped two local strip clubs of their liquor licenses following federal raids targeting drug trafficking and prostitution.

As of Thursday, Rick's Tally-Ho in Cheektowaga and 24-Karat Gold in Blasdell can no longer serve alcohol to its customers. The State Liquor Authority has taken away their liquor licenses.

Dennis Rosen, Chairman of the State Liquor Authority, said, "Our investigators did interviews with some of the participants and some people who frequent these establishments and we were presented with evidence that there was prostitution and drug activity."

Three weeks ago, federal agents raided the two strip clubs. It's under investigation for alleged heroin and cocaine trafficking.

FBI Special Agent in Charge James Robertson said, " I can tell you the narcotics and heroin in this case was being sold out of both establishments."

27 people were arrested in the raid, including nearly a dozen dancers who allegedly traded "sexual acts for a bundle" at times. You can view the full list of those arrested here . Rick Snowden, the owner of Rick's Tally Ho, tells News 4 he was unaware of any illegal activity. He also says he will fight vigorously to overturn the decision by the State Liquor Authority.

Tadora Dobreva owns the bar and restaurant across the street from 24-Karat Gold. She also knows the owners, who she says are upstanding business people.

Dobreva said, "I think that the accusations are false and of course it's a disgruntled employee and you know what happens with that. They try to do whatever they can to hurt their boss because they don't have their job anymore."

Dobreva says she has had that happen to her.

Rosen said, "If the allegations continue to appear to be true and substantial that this kind of activity has been going on, they will not be getting their licenses back."

As a business woman herself, Dobreva thinks that could be a devastating blow.

"It's everything you have. The alcohol helps cover your operating costs when you sell it, and without the alcohol, it makes things very difficult," said Dobreva.