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Popular Austin business owner sues after report accuses her of running criminal enterprise

Gabriela Bucio filed the lawsuit after a private investigator was hired to look into concerns about illegal activity on Sixth Street.

AUSTIN, Texas — The owner of several popular Austin businesses has filed a new lawsuit after being accused of running a criminal enterprise.

A report released in June highlighted allegations of drugs, violence and illegal activity in Austin's Sixth Street Entertainment District.

Now, court documents show Gabriela Bucio is suing the Pecan Street Owners Association, the association's president, and a private investigator for defamation.

In 2023, the association hired a private investigator to look into concerns about illegal activity on Sixth Street. Marcus Stokke, a former supervisor with the Texas Alcoholic Beverage Commission, went undercover at several bars before publishing a report of his findings.

According to the report, Stokke and his team allegedly saw people bring drugs and their own alcohol into bars while also witnessing some bars illegally stay open after hours and continue to sell alcohol.

It's illegal for bars in Texas with a "late hours" permit to serve alcohol in public after 2 a.m., but Stokke said he observed several of these “after-hours" unlicensed clubs opened and continued to serve alcohol. Another major finding was alleged drug deals taking place on the street and a major drug presence inside the bars.

In the lawsuit, Bucio claims Stokke published false statements about her and her businesses, calling Bucio a criminal and her businesses criminal enterprises. Bucio also said that the report has led to a "heightened level of scrutiny from law enforcement and regulatory agencies," forcing them to "unnecessarily dedicate valuable time and resources to combat false allegations of criminal activity."

KVUE reached out to the association about the lawsuit, but have not heard back.

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