FIRED DEPUTY TIED TO COUNTERFEITING

DURHAM -- A Durham sheriff's deputy fired after being charged with
selling cocaine at his bar was involved in a counterfeit money
scheme, according to legal documents that allege hit men,
prostitutes, drug dealers and people involved in human trafficking
frequented the now-closed establishment. A search warrant issued Oct.
13 by a Durham Superior Court judge gave permission to the Sheriff's
Office to search Michael Owens, the owner of La Zona nightclub at
2825 North Roxboro Road, and six Hispanic males who were targets of
an undercover operation.

Seven vehicles, including Ford Mustangs, Expeditions and Cadillac
Escalades, also were targets of the search warrant. In the search
warrant narrative spelling out the reason the document was sought, a
confidential source informed the Durham County Sheriff's Office that
Owens and another man identified only as Miguel made a deal to
purchase $40,000 in counterfeit $100 bills in exchange for $10,000 in
real currency. The May 2006 deal, in Atlanta, Ga., presumably was
made to help Owens put up his $50,000 share to purchase the bar.

The warrant goes on to list tawdry details of sex for hire, open-air
drug transactions near off-duty sheriff's deputies working as
security, a system of manufacturing, dividing and selling cocaine
inside of the bar and connections to a multi-state counterfeiting
operation. The investigation into the club began when the FBI
arranged for a confidential source to meet with members of the Durham
County Sheriff's Office. Sheriff's Capt. Paul Martin said he believes
the information about activities inside the club, purchased by Owens
in April 2006, is credible. Sheriff's Deputies Owens, William Dodson
and Bradley King were fired for their alleged involvement in illegal
activities at the nightclub, Sheriff Worth Hill announced at a press
conference Monday. Owens was charged last week with trafficking
cocaine, conspiracy and maintaining a building for drug sales.

Four Hispanic male accomplices also were charged. The unidentified
source told sheriff's deputies that cars frequently parked outside
the establishment were "known to be involved in illegal activities"
including "drug trafficking, armed robberies, murder (for hire),
prostitution and human trafficking," according to the search warrant.
The source, according to the search warrant, informed the Sheriff's
Office that Owens "put up" $50,000 to buy the business.

While the source told Martin and the deputy how Owens financed
$20,000 towards the purchase through the former owner, he also stated
that Owens and a man identified in the warrant only as "Miguel" made
a deal in May 2006 to purchase counterfeit $100 bills from someone in
Atlanta, Ga.

On April 4, Owens and Rodney D.J. Long, 34, of 1601 Pebble Ridge
Drive, Raleigh, registered MORL Enterprises LLC with the state.

The corporation was used to buy the bar. That business registration
was dissolved Aug. 21, and Owens incorporated anew under MOR
Enterprises LLC the same day. The confidential informant said he
purchased liquor licenses for La Zona under his name, at Owens'
request, to keep Owens' name out of state records. Managing the club
was an individual identified in the warrant as "Floco." Martin said
members of the Sheriff's Office knew Floco "from several drug
interactions in which large quantities of cocaine and marijuana have
been seized." Floco, Martin said in the affidavit, is also known "to
be involved in the counterfeit money trade in this area as well as
with others throughout several states."

Security guards told deputies that after Owens took over the club,
they were instructed not to be "aggressive" in looking for drugs at
the establishment and that "under no circumstances" should they ever
check the bathrooms.

It was also during this time, the guards reported, that Owens stopped
wearing his uniform when entering the club. He parked his vehicle,
which was sometimes his county-issued patrol car, behind the
establishment, the affidavit states.

In late August, investigators began sending confidential informants
into La Zona to purchase different quantities of powdered cocaine.

In about a one-month period, confidential informants purchased
cocaine from individuals inside the club at least seven times,
according to the search warrant.

On one occasion, a sale took place 30 feet from the door of the club
where "two off-duty deputies" were working.

During that alleged buy, the seller told the confidential informant
he worked directly for Owens, who he referred to as "tha man."

The search warrant also makes references to prostitution within the
establishment. On Aug. 31, a woman identified as "Lizzie" told the
confidential informant $200 would buy a date with "the girls."
Although Martin would not elaborate on the allegations of a
prostitution ring within La Zona, he did confirm that investigators
believed such activity had been going on there.

Attempts to contact Sheriff Hill for further comments were
unsuccessful late Tuesday. Martin said he wanted to refrain from
giving detailed comments about the investigation for fear of
jeopardizing the integrity of the case. --- Search warrant highlights

Aug. 21, 2006 -- A confidential source tells sheriff's investigators
and a Raleigh police detective that then Sheriff's Deputy Mike Owens
and an accomplice bought $40,000 in counterfeit $100 bills for $10,000.

Aug. 31, 2006 -- A confidential source is sent into La Zona to
attempt to buy drugs.

He is told to return the next night.

A woman working at the club, identified as "Lizzie," tells it costs
"$200 for a 'date' with the girls."

Sept. 9, 2006 -- A second confidential source buys cocaine at the bar.

Sept. 16, 2006 -- The second confidential source again buys cocaine
in La Zona and orders an "eight ball" of cocaine from another seller
in La Zona.

Sept. 21, 2006 -- The second confidential source buys an "eight ball"
just outside the front door of La Zona. Another drug dealer asks the
source if he can buy the "eight ball." The source agrees and he and
the dealer enter La Zona looking for a place to cut and repackage the cocaine.

They approach Owens who tells them to use the restroom because the
back room was being used. A bartender, "Andrew," stands outside the
restroom door to prevent anyone from entering while the cocaine is
cut and repackaged.

Sept. 22, 2006 -- The second confidential source buys seven grams of
cocaine in La Zona.

Sept. 28, 2006 -- The second confidential source meets "Chillo,"
"Andrew," and "Eric" inside La Zona, asks them for a half an ounce of
cocaine but says he doesn't have money to pay for it. They give him a
quarter ounce of cocaine and tell him they will give him the rest
when he pays them the next day. They up the price from a total of
$220 to $250 as a "fronting" charge.

Sept. 29, 2006 -- The second confidential source, wearing a listening
device, returns to La Zona with the cash he's been given by police to
pay for the cocaine.

The seller tells him he doesn't have enough to make up the second
quarter ounce because a regular buyer needed some. The source seeks
the full amount and is taken downstairs and led in front of a door
from which "all the subjects came out yelling 'you can't be here,'
and shut the door." Owens was seen coming up the stairs several minutes later.

The source is eventually provided 10 grams of cocaine.

WHAT THEY WERE LOOKING FOR Authorities were looking for items
ranging from drugs to electronic devices when they obtained a search
warrant for La Zona nightclub at 2825 N. Roxboro Road on Oct. 13.

Property to be seized: -- Any quantity of illegal drugs or
paraphernalia used to make, sell, deliver or use drugs -- Papers,
documents, keys or other evidence to show ownership of the premises
- -- Computer systems -- Items including tapes, cassettes, cartridges,
computer disk drives, monitors, printers, modems, digital imaging
cameras, equipment used to make identification cards or counterfeit
bills People to be searched: -- Deputy Sheriff Michael Owens --
Hispanic males going by the names of Miguel, Chillo, Andrew, Eric,
Jose and Flaco -- Anyone in La Zona who is in daily operation of the
business or in apparent control of it Vehicles to be searched: -- Red
Chevrolet Z71 truck, N.C. registration -- Dark color Ford Expedition,
N.C. registration VYB 6739 -- Champagne color Cadillac Escalade, N.C.
registration VXP 8324 -- Dark blue Ford Explorer, N.C. temporary tag
- -- Black Cadillac Escalade, N.C. registration KATRACHA -- Dark green
Toyota Sequoia, N.C. registration VWR 4276 -- Silver Ford Mustang,
N.C. temporary tag TP 41974 -- White Ford Mustang with blue top