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San Francisco store owner held liable over illegal gambling den

San Francisco store owner held liable over illegal gambling den

Rule Changes San Francisco, CA local

A Tenderloin market is shuttered and its owner ordered to pay $151,000, in the city's first civil nuisance trial against a corner store.

Yesterday: City announces civil judgment

Overview

Updated Yesterday

A San Francisco judge has ordered the owner of a shuttered Tenderloin corner store to pay $151,000 in civil penalties for running what the city described as an illegal gambling den and drug-paraphernalia market. The ruling against Mohsen Mused is the first of the city's eight Tenderloin market lawsuits to go to trial.

The case shows how San Francisco is using civil nuisance law, not just criminal charges, to close stores tied to street drug markets. The judgment also bans Mused from keeping gambling machines or drug paraphernalia at his two other stores, and the city says seven more market lawsuits are pending.

Why it matters

The ruling gives San Francisco a tested civil route to close stores tied to drug markets, with seven cases still pending.

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Key Indicators

$151,000
Civil penalties
Amount Judge Phoebe Maffei ordered Mohsen Mused to pay.
$250,000
Estimated legal fees and costs
Additional amount Mused will have to pay, according to the Chronicle.
7
Slot machines seized in 2024 raid
Police also seized a loaded firearm and $6,153 in cash.
7
Pending Tenderloin market lawsuits
City Attorney David Chiu's office says it has ongoing cases against seven other markets.
13
Tenderloin stores sued or shut down
City counts cases under the nighttime safety ordinance or other illegal activity.

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People Involved

MM
Mohsen Mused
Owner and operator of Tenderloin Market & Deli
Held liable; ordered to pay $151,000 and barred from possessing gambling machines or drug paraphernalia at his two other stores
 David Chiu
David Chiu
San Francisco City Attorney
Announced the civil judgment against Mused
PM
Phoebe Maffei
San Francisco Superior Court judge
Issued the ruling against Mused

Organizations Involved

San Francisco City Attorney's Office
San Francisco City Attorney's Office
Municipal legal office
Brought the civil nuisance lawsuit and announced the judgment

The city's legal department, which brought the civil nuisance lawsuit against Mused.
TM
Tenderloin Market & Deli
Corner store
Shuttered and evicted

The store at 200 Leavenworth St. that police raided and the city sued.
TC
Tenderloin Community Benefits District
Community benefit district
Purchased the former market building

The neighborhood group that bought the former Tenderloin Market & Deli building.

Timeline

2013 November 2026

8 events Latest: Yesterday
Tap a bar to jump to that date

  1. City announces civil judgment

    Latest Legal

    City Attorney David Chiu's office publicizes the $151,000 penalty and restrictions.

  2. Judge rules against Mused

    Legal

    Judge Phoebe Maffei orders $151,000 in penalties and bans gambling machines at his other stores.

  3. Store is evicted

    Legal

    Tenderloin Market & Deli is evicted from 200 Leavenworth St.

  4. Inspection finds more violations

    Investigation

    Tobacco inspection yields illegal products, paraphernalia and prescriptions; a gambler complains.

  5. City sues the owner

    Legal

    City Attorney files a public-nuisance suit citing gambling and drug-paraphernalia sales.

  6. Police raid the store

    Law Enforcement

    Officers seize seven slot machines, a loaded Glock, $6,153 cash and drug paraphernalia.

  7. Police calls pile up

    Investigation

    SFPD responds to dozens of calls for drugs, fights, robberies and weapons.

  8. Tenderloin Market & Deli opens

    Background

    The corner store begins operating at 200 Leavenworth St.

Scenarios

1

Mused appeals the civil judgment

Uncertain Resolves by May 9, 2027

Discussed by: San Francisco Chronicle reporting on the ruling

Mused did not appear at trial and had recently lost his attorney, so an appeal would require new counsel. If he files a notice of appeal, the penalty and ban could be delayed while the case is reviewed.

2

City collects the $151,000 penalty

Possible Resolves by Nov 9, 2027

Discussed by: San Francisco City Attorney's Office

The city can enforce the judgment through collection efforts if Mused does not pay. Payment could come voluntarily or through a lien or other court-ordered collection.

3

Another Tenderloin market owner loses at trial

Possible Resolves by End of 2027

Discussed by: San Francisco City Attorney's Office

Seven other Tenderloin market lawsuits are pending. The Mused ruling gives the city a tested trial record, and another case could reach a similar verdict.

Historical Context

One moment from history that rhymes with this story — and how it unfolded.

2020-2024

Pandemic-era Tenderloin market proliferation (2020-2024)

After the pandemic, convenience stores in the Tenderloin and South of Market multiplied. Some sold pipes for crack and meth, operated gambling machines or held cash for street dealers, according to the city's lawsuit and Chronicle reporting.

Then

San Francisco began suing store owners; the Mused case was the first to go to trial.

Now

The city says it has sued or shut down 13 stores and has seven pending cases.

Why this matters now

Explains why this ruling is one of a series, not a one-off.

Sources

(3)
SFist CBS San Francisco Yahoo News