CINCINNATI – A Mexican citizen living in West Chester with an expired visa, who owned bars in Cincinnati and Middletown, pleaded guilty in federal court to conspiring to distribute drugs from the businesses. The defendant also participated in the buying and selling of stolen vehicles.
Sergio Velasco-Cortes, 42, also known as Piojo, Gordo, and Bruno, was a member of a drug trafficking organization that distributed kilogram shipments of cocaine throughout the Southern District of Ohio, including the Cincinnati area. He owned and operated Ibiza Restaurant and Lounge in Cincinnati and Bar Bunny in Middletown.
In fall 2024, Velasco-Cortes purchased Ibiza from another drug trafficking organization member for $250,000 in cash. Velasco-Cortes admitted to engaging in drug trafficking activity at both bar locations.
In December 2024 and January 2025, Velasco-Cortes drove to a mechanic shop in Indianapolis to buy bulk amounts of narcotics to bring back to southern Ohio. The defendant was also connected to a coconspirator obtaining shipments of cocaine from Puerto Rico. The coconspirator delivered drugs to Velasco-Cortes at Bar Bunny in February 2025.
When executing search warrants in March and April 2025, agents discovered seven stolen vehicles at Velasco-Cortes’s residence. Several of the vehicles had falsified VINs. Further investigation revealed Velasco-Cortes and others discussed buying, “cleaning,” and selling stolen cars.
Velasco-Cortes and five others were charged federally on April 1, 2025.
Velasco-Cortes faces a mandatory minimum of 10 years in prison. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future hearing.
Dominick S. Gerace II, United States Attorney for the Southern District of Ohio, and Joseph O. Dixon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the guilty plea entered on Aug. 4 before Senior U.S. District Judge Michael R. Barrett. Assistant United States Attorney David P. Dornette is representing the United States in this case.
This case part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Cincinnati comprises agents and officers from federal, state, and local law enforcement agencies.
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Source: U.S. Attorney’s Office — Southern District of Ohio — U.S. Department of Justice press release.