THORNTON — Daveco Liquors – already facing state allegations of misusing its liquor license – is now the target of a city investigation.
Thornton Police executed a search warrant at Daveco — declared the world’s largest liquor store by Guinness World Records in 2008 — on Wednesday as part of an ongoing theft and fraud investigation.
Daveco, in the Larkridge shopping mall at I-25 and Colorado 7, allegedly has not been paying its city taxes, according to Thornton Police. Earlier this month, Thornton’s sales tax division reported the allegations to police after a routine sales and use tax audit conducted by the city’s finance department.
A preliminary investigation discovered alleged inconsistencies in the documentation provided by Daveco, police said.
John Lonnquist, a Daveco attorney, said Thursday the liquor store and the city have been working together to understand the discrepancies.
“Both sides agreed something was wrong and both sides have been supplying documentation back and forth,” Lonnquist said. “So what happened this week at the store was not surprising.”
State investigators claim that the Sawaged family, which owns both Daveco and Davidson Liquors in Highlands Ranch, have been operating a “hidden ownership,” which is against state liquor law.
Family members acted as agents for each other in purchases and contracts, even though they were not licensed to do so, the state says.
The Sawaged family also failed to document clearly more than $2.6 million in cash payments to liquor wholesalers, according to the state.
The owners faces hearings in March over the state allegations.
Monte Whaley: 720-929-0907 or mwhaley@denverpost.com.
