Sample Block

Bureau of Alcohol, Tobacco, Firearms and Explosives

For Immediate Release

March 15 2013

Contact: Helen Dunkel, Special Agent, PIO

Office: (925) 557-2815

(Cell: (925) 202-8135

Convicted Felons Arrested After Selling Guns And Drugs To An ATF Undercover Agent From A Lounge In Hayward

HAYWARD, Calif. — Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), San Francisco Field Division Special Agent in Charge Joseph M. Riehl and California Alcoholic Beverage Control (ABC) Deputy Division Chief Michael Korson announced David J. Velasquez and Levertis Woolfolk were arrested Thursday afternoon in Hayward, CA after selling a controlled substance and previously possessing and selling firearms unlawfully to an ATF undercover agent. Sunee M. Mederios was also arrested on state charges for possession and distribution of a controlled substance.

Velasquez 27, a resident of Castro Valley, and Woolfolk 48, a resident of San Mateo have each been charged with being a felon in possession of firearms and each with distribution of a controlled substance. Mederios 45, a resident of Hayward was also arrested for being in violation of the California Health and Safety Code for possession and distribution of a controlled substance for distribution.

According to a criminal complaint beginning in November 2012, to the present, ATF conducted a proactive firearms trafficking investigation and made undercover purchases of several firearms from Woolfolk and Valasquez, including two rifles and two hand guns, one of which had an obliterated serial number. Woolfolk also sold crystal methamphetamine and crack cocaine multiple times to an undercover agent. Velasquez conducted the sales of the firearms and ecstasy from the Campus Club by The Bay Lounge, Velasquez’ place of employment. According to a state criminal complaint, Mederios is the license holder for the Campus Club by The Bay and was operating the bar on a suspended license.

Velasquez and Woolfolk were arrested and taken into custody after each of them sold approximately1/2 ounce of crystal methamphetamine to an undercover ATF Agent from the Campus Club by The Bay Lounge. Incident to Woolfolk’s arrest, ATF located and seized approximately 1 ounce of suspected crystal methamphetamine, 1 ounce of suspected crack cocaine, 1 ounce of marijuana and one hundred suspected vicodine pills from his vehicle. The two appeared Friday in U.S. District Court in Oakland, CA. on a criminal complaint alleging the above mentioned violations. Velasquez and Woolfolk are prohibited by federal law from possessing firearms because of prior felony convictions./p>

“Criminals who traffic in drugs and illegally possess and sell firearms as part of an unlawful enterprise perpetuate crime and violence in our communities,” stated Joseph M. Riehl. “Targeting armed narcotics traffickers who commit violent crimes remains a top priority for ATF.”

“The California ABC wants to thank the ATF and Hayward Police Department for their cooperation on this case. ABC licensees are expected to be in compliance with the law, in addition to the arrest, the ABC licensee was operating the Campus Club by The Bay bar under a suspended license. This is a violation of the California Alcoholic Beverage Control Act. As a result, ABC will be pursing disciplinary actions against the licensee which could result in fines and/or suspension or revocation of the license,” stated Michael Korson.

A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. This investigation was conducted by the ATF, and agents with ABC. The case is being prosecuted by Assistant U.S. Attorney Rodney Villazor.

ATF is the federal agency with jurisdiction for investigating firearms violations. More information on ATF can be found at