Investigation begins into attack on agents and possible underage
drinking
Gilroy – An investigation is under way after three undercover California Department of Alcoholic Beverage Control agents conducting a sweep of two local bars were beaten by four men at Happy Dog Pizza early Saturday morning. Gilroy police arrested the four on suspicion of assaulting the officers and resisting arrest. ABC agents had issued two citations to patrons at Krazy Koyote for sales to a minor before the attack.

ABC agents visited the two locations upon request from the Gilroy Police Department after receiving complaints that the bars were serving underage individuals, ABC officials said.

“Whether or not there’s going to be any (citations) issued, that’s still in the preliminary stages,” said ABC District Administrator Karyn Nielsen. “With everything that happened we look at the totality and go from there.”

Gilroy residents Joel Gaeta, 24, George Castro, 26, Juan Perez, 21, and Hollister resident Gilbert Garcia, 28, were arrested on suspicion of attacking the three ABC investigators.

According to police, Gaeta announced into the microphone at Happy Dog, “undercover in the house,” when the three undercover agents arrived. Later, when they were talking to two underage females, Gaeta approached. They identified themselves both verbally and with badges, and then Gaeta grabbed one agent and began choking him.

The second agent came to his aid when Gaeta turned and started punching him. A female agent discharged her pepperspray when the three other men got involved in the fracas. She was then pinned to the wall. During the incident agents phoned GPD for back up, 10 squad cars responded and the men were taken to county jail.

The three agents sustained minor cuts and bruises in the attack.

Once ABC officials complete a report of its findings they may issue a citation to Happy Dog owner Steve Gearing and meet with him to discuss any violations found.

No minors were issued citations at Happy Dog, however, Nielsen said two underage females were being detained when the fight broke out.

Only ABC officials have the power to license and regulate the sale of alcoholic beverages in the state, and can deny, suspend or revoke any specific alcoholic beverage license.

“Anytime there is any police activity in and around a liquor licensed establishment we forward it to ABC,” Gilroy Police Sgt. Kurt Svardal said. “A lot of times bars won’t report crimes to us because they know that … The (911) call was from ABC agents, not a bartender or someone inside Happy Dog, and that’s unacceptable. Someone from Happy Dog should have called. When you have something like this getting out of hand and you’re not calling 911, that’s a problem.”

According to Svardal, Happy Dog’s bar permit is being reviewed.

The restaurant and bar recently started a younger than 21 Friday and Saturday event, where underage clientele can listen to live music downstairs and older than 21 individuals can drink at the bar upstairs.

“I think I’m going to end that. I don’t think it’s worth it,” said Gearing. “The bar is an important part of the business to make the business make sense … We couldn’t exist without it … We’re not trying to serve underage people, we’re trying to serve the community.”

The idea of the 18- to-21-plus crowd came after minors complained to Gearing that they had to drive to Santa Cruz and San Jose for dancing.

According to Gearing, he contacted ABC officials and GPD officials before starting the 18-to-21 nights to learn more about how to do it.

Five security guards work checking IDs and keeping underage patrons from going upstairs and clientele are marked with color coded bracelets.

“Obviously, there’s going to be small things that happen in a bar,” Gearing said. “It’s unfortunate for us when (something like) this happens. Obviously we can’t have incidents like this. We’re just working to make sure stuff like this doesn’t happen.”

He is hoping ABC will not revoke his liquor license.

“It’s only our first incident,” he said. “We’re just cooperating with all the agencies involved.”

ABC officials also will investigate two citations issued to patrons at Krazy Koyote earlier in the evening.

A 20-year-old female was cited for consuming alcohol and in possession of alcohol, as well as possession of a fake ID, Nielsen said. A second patron was cited for purchasing alcohol for the minor.

Krazy Koyote has never been cited by ABC officials for sales to a minor before. However, Saturday night a 17-year-old was arrested by GPD officers for underage drinking at the bar. The incident has been forwarded to ABC officials for review.

According to Nielsen, an establishment’s first offense for selling alcohol to a minor results in a 15-day suspension of the liquor license or fine. A second offense carries longer suspension rates and higher financial penalties. ABC officials will recommend revoking an establishment’s liquor license after three convictions within a three-year span.

For other offenses, ABC officials look at each case individually.

According to Nielsen, revoking a liquor license is possible after just one offense.

“It really depends on the severity of the case,” she said. “Each one is case by case.”

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