SAN FRANCISCO — On Feb. 6, agents of the California Department of Alcoholic Beverage Control (ABC) posted a notice of suspension at Pagoda, a bar located at 1704 Post St. in San Francisco.

The 60-day suspension is the result of a three-month long investigation by department undercover agents. During the investigation, ABC agents discovered violations involving an illegal drink solicitation and commission scheme, a violation of Section 303 of the California Penal Code.

The scheme involved bar servers who placed a surcharge on alcoholic beverages in exchange for keeping male patrons company. Such practices can result in the over-service of alcoholic beverages to customers. As a result, ABC filed an accusation against the licensee.

Additionally, one employee was arrested for soliciting an act of prostitution and another employee was referred to the San Francisco County District Attorney’s Office for possible prosecution for pimping, a violation of section 266(h) of the California Penal Code.

Under the terms of the stipulated decision set forth by the department, the license has been suspended for 60 days, which means no alcohol can be sold or served during that period.

In addition, the bar is on probation for a period of three years. If similar violations occur during the next three years then ABC has the authority to revoke the license.

ABC is a department of the Business, Consumer Services and Housing Agency, which is under the direction of Secretary Anna M. Caballero, a member of the Governor’s Cabinet.

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