Owner of 2 illegal Indiana bars with violent histories faces theft, tax charges

The owner of two illegal bars with violent histories is now facing theft and tax evasion charges after police say he failed to report about $710,000 in sales and neglected to pay more than $50,000 in state taxes.

Kamari Driver, 29, of Indianapolis, was charged Wednesday with one count of theft, three counts of failure to pay taxes and one count of tax evasion. The charges involve sales at two of Driver's businesses, the Red Lounge Bar & Grill and KD's Auto Sales & Repair, May 2020 to May 2022.

Driver told IndyStar on Thursday that he was working with his attorney "to get this cleaned up." He said both businesses have been closed for at least a year.

"So that's where that's coming from," he said, "because I haven't filed any taxes with the state and it’s showing like I've been making sales and I haven't."

Authorities, however, claim the unreported sales and unpaid taxes occurred well before the businesses closed.

Driver drew the attention of police after repeated problems — including shootings that left two people injured and another dead — at the Red Lounge and another bar he owned, JD's Pub. He has admitted in previous unrelated cases to operating both bars without alcohol licenses.

The violence was among more than 49 homicides and 150 shootings tied to a several dozen Indianapolis bars, clubs and event centers from 2016 to 2022. A recent IndyStar investigation found that bootleg operations like Driver's proliferated amid COVID-19 lockdowns and restrictions.

IndyStar's investigation, produced in partnership with Fox59, found that an Indiana law prohibiting cities from regulating bars and weak enforcement by state alcohol regulators has allowed violence to go virtually unchecked at some Indianapolis clubs.

The restriction on local authorities, however, doesn't apply when a bar is operating without a license. That means local officials can move much more swiftly to shut down unlicensed operations.

The city's effort to crack down on Driver's illegal bars highlights just how challenging that can be, even when local officials are free to take action.

49 killed, 154 shot or stabbed:How Indiana law and weak regulation protect bad bars

A history of problems

The Red Lounge, located at 1121 E. Troy Ave. on the city's south side, became a source of problems the day it opened, according to a charging documents filed in Marion Superior Court on Wednesday.

On June 20, 2021, IMPD officers broke up a large fight during which one man displayed a handgun. Driver told police it was the bar's soft opening, according to a police affidavit. He claimed he was using the prior tenant's liquor permit, but police later found that permit expired in 2015.

A few weeks later, police confronted Driver about social media videos showing adult entertainment at the Red Lounge. He denied the videos took place at the bar. Police warned him he could face criminal charges if he continued to operate the club without a liquor license, according the affidavit.

IMPD began building a case against the bar. On July 31, 2021, an undercover IMPD officer purchased a shot of liquor at the bar. The person checking IDs at the door offered to allow another undercover officer inside without an ID in exchange for an extra cover charge, the affidavit says.

But the problems at the bar escalated. On Aug. 8, 2021, two people were shot inside the bar. Police obtained a search warrant and located more than 100 bottles of alcohol, according to the affidavit.

The city quickly sued the bar for operating without a license. As part of a settlement agreement, Driver admitted to operating the bar illegally, paid a $2,000 fine and agreed to cease all operations at the location.

Police say he continued to operate the bar anyway, brazenly posting fliers on social media promoting upcoming events. The city sued again. Driver paid another fine and was again ordered to cease operations.

Driver opens second bootleg bar

Instead, Driver opened up another illegal bar called JD's Pub, located at 6920 Eagle Highlands Way on the city's west side. Again, violence followed.

On April 2, 2022, police say 27-year-old Deja Morse was shot at the pub and died in a car that crashed on Interstate 65 on the way to the hospital. Police arrested a 27-year-old man who faces a murder charge. That case is pending.

Police say they later found that the club was using an unlicensed security company that night. A video released by IMPD shows security outfitted with tactical vests and armed with handguns and semi-automatic rifles as they stood guard outside the pub's strip mall parking lot. The owner of the security company was later charged with operating without a license and one of the guards was charged with violating a protective order that prohibited him from possessing firearms. Both cases are pending.

For the third time, the city filed a lawsuit against Driver. As part of a settlement in September, he was fined $1,500, admitted to operating without a liquor license, and was ordered to cease operations.

Police investigate Driver's businesses

The continued violence and other problems prompted IMPD's commercial crimes branch to take a deeper look at Driver's businesses, including his west side auto sales company at 2445 N. Lafayette Road.

IMPD executed a search warrant on Driver's offices at the car lot in May and worked with Indiana Department of Revenue agents to compare sales to Driver's tax filings.

In an affidavit filed with charging documents on Wednesday, Lt. William Carter of IMPD's nuisance abatement unit said Driver failed to report sales of $105,546 at the Red Lounge and failed to pay $7,388 in sales tax and $2,110 in food and beverage tax from June 2021 to May 2022. Driver also underreported sales by $605,030 at KD's Auto Sales and failed to remit $42,352 in sales tax, the affidavit says.

Contact IndyStar reporter Tony Cook at 317-444-6081 or tony.cook@indystar.com. Follow him on Twitter: @IndyStarTony.

This article originally appeared on Indianapolis Star: Owner of 2 illegal bars in Indianapolis faces theft, tax charges