The owner of Ibiza Restaurant and Lounge in Oakley pleaded guilty Aug. 5, in federal court to running kilogram-level cocaine shipments across the Cincinnati area and possessing seven stolen vehicles with falsified VINs.
Sergio Velasco-Cortes, 42, a Mexican citizen living in West Chester on an expired visa, faces a mandatory minimum of 10 years in federal prison, the U.S. Attorney's Office for the Southern District of Ohio announced.
No sentencing date is set.
$250,000 cash purchase tied to trafficking ring
Federal investigators say Velasco-Cortes was a member of a drug trafficking organization that distributed cocaine shipments throughout the Southern District of Ohio, including the Cincinnati area, WLWT reported.
In fall 2024, Velasco-Cortes purchased Ibiza from another member of the trafficking organization for $250,000 in cash, according to the DOJ. He also owned and operated Bar Bunny in Middletown. Prosecutors say he admitted to conducting drug trafficking activity at both locations.
Drug runs to Indianapolis, cocaine shipped from Puerto Rico
Between December 2024 and January 2025, Velasco-Cortes drove to a mechanic shop in Indianapolis to buy bulk narcotics and bring them back to southern Ohio, prosecutors say. A coconspirator separately obtained cocaine shipments from Puerto Rico and delivered drugs to Velasco-Cortes at Bar Bunny in February 2025.
Stolen vehicles discovered at West Chester home
Search warrants executed in March and April 2025 at Velasco-Cortes's West Chester home turned up seven stolen vehicles. Several had falsified VINs. The DOJ says further investigation revealed that Velasco-Cortes and others discussed buying, "cleaning" and selling stolen cars.
Velasco-Cortes and five co-defendants were federally charged on April 1, 2025. The U.S. Attorney's Office said Velasco-Cortes pleaded guilty to conspiring to distribute drugs from his businesses and to participating in the buying and selling of stolen vehicles.
Velasco-Cortes awaits sentencing in federal court. The mandatory minimum is 10 years, though the judge could impose a longer sentence. The status of the five co-defendants was not addressed in the Aug. 5 announcement.
