State threatens to close Colorado's largest liquor store

THORNTON, Colo. - Colorado's largest liquor store is under investigation by state liquor enforcement agents. They say DaveCo Liquors in Thornton violated state law because the same family owns another liquor store in Highlands Ranch.

But DaveCo says the charges are ridiculous.

After being named by the Guinness Book of World Records as the largest liquor store in the world, DaveCo in Thornton is being threatened with a shut down.

It's all over allegations of what the Colorado Department of Revenue calls "hidden ownership."

"You can't have an interest in more than one liquor store in this state," said Laura Harris, the director of liquor enforcement. "It becomes difficult when family members own more than one liquor store."

Brothers of Hani Sawaged started the business and Davidson's liquor in Highlands Ranch after emigrating from Jordan.

"They have misunderstood some of the facts that they have told us about," said John Lonnquist, DaveCo's lawyer, who says they're being unfairly targeted.

"It's a case of a bureaucracy trying to do its job," said Lonnquist, "But throwing the kitchen sink at somebody and saying you're violating rules that don't exist."

But the state says the family made questionable cash payments to suppliers and illegally shared purchases and contracts to save money. Investigators say it gave them an unfair advantage over other stores.

In fact, this case involving two of the state's largest liquor stores could ultimately be a test of the state's liquor laws which some for years have called too vague.

"At least based on what we've seen so far," said attorney Lonnquist, "They certainly don't have all the rules laid out so that people know what they are supposed to be doing."

But Harris, the state's liquor enforcement chief, disagrees.

"They're very sophisticated, very savvy business people and I just don't buy into the fact that they didn't know what they were doing," she said.

And the state says they'll have to sell or face losing their liquor license.

DaveCo says they'll fight it in court. Both sides will sit down and go over the allegations later this month. The next step would then be in front of a hearing officer or judge.

DaveCo believes they will be completely cleared of the charges.