SANTA CRUZ — Santa Cruz police shut down an illegal nightclub in a warehouse on Coral Street and arrested its owner and four employees Saturday night.

Police said they investigated the club at 360 Coral St. Suite C after they received complaints about one month ago. Employees at the unlicensed venue charged a cover and illegally served beer, wine, champagne and jello shots, said Santa Cruz police spokeswoman Joyce Blaschke. It’s unclear how long the nightclub has been operating.

When police raided the club in a warehouse in a business district in the city’s Harvey West Park area about 11:55 p.m. Saturday, they found about 40 people. Authorities seized a large amount of alcohol as well as cocaine, methamphetamine, marijuana and a .38-caliber revolver stolen from Shasta County, Blaschke said. The gun was in a bedroom in the suite, Blaschke said.

“During the course of the investigation, the Neighborhood Enforcement Team discovered the illegal club was visited by as many as 200 people a night,” Blaschke said. “Undercover Santa Cruz police officers visited the club and observed employees selling alcohol without a permit and allowing patrons to use and distribute controlled substances.”

The 4,800-square-foot club also had a DJ and at times a live band, according to Blaschke and public records.

Robert Cardiasmenos, 62, of Capitola, was arrested on suspicion of conspiracy to sell alcohol without a license, failure to obtain workers’ compensation insurance and possession of a stolen gun, Blaschke said.

Cardiasmenos did not have a business license and was leasing the space from the property owner, Blaschke said. The property’s owners are Paul Joseph Zabala, Luis Zabala Jr., Anna Maria Zabala, Honore Francis Zabala and Marceline Marie Spano, according to Santa Cruz County records.

Luis Zabala Jr. said in a phone interview Monday afternoon that he was not aware of the raid. He said he did not know what use Cardiasmenos leased the building for.

“I would have to look into that,” Zabala Jr. said.

The venue contained colored lights, sofas, tables, colorful art, an upstairs balcony and a giant “End Prohibition” banner hanging on the wall.

The nightclub is in commercial and industrial neighborhood not far from Harvey West Park. It is surrounded by other warehouses as well as a construction company office, an exercise studio and a tile and marble shop.

Four of Cardiasmenos’ employees also were arrested on suspicion of conspiracy to sell alcohol without a license: 40-year-old Stephanie Ross of Santa Cruz, 51-year-old Patrick Eze of Santa Cruz, 33-year-old Amber Hagle of Santa Cruz and 36-year-old Stacy Crisler of Santa Cruz, Blaschke said. All of the suspects posted $5,000 bail, according to jail records.

Members of the Santa Cruz County District Attorney’s Office conducted an investigation into the club’s compliance with workers’ compensation insurance requirements. Santa Cruz firefighters investigated potential safety related code violations.

Police have not said if safety code violations were found. —— (c)2016 the Santa Cruz Sentinel (Scotts Valley, Calif.) Visit the Santa Cruz Sentinel (Scotts Valley, Calif.) at www.santacruzsentinel.com Distributed by Tribune Content Agency, LLC. AMX-2016-07-12T05:21:00-04:00