KNOXVILLE, Tenn. (WVLT) -- The Knoxville Police Department and Drug Enforcement Administration agents have busted a drug organization operating out of a South Knoxville club, court records show.

Brothers Jose Medina and Miguel Martinez own the Los Arcos Dance Club and Billiards on Chapman Highway, and an affidavit obtained by Volunteer TV says they were running a major marijuana and cocaine operation out of the business that moved more than 1000 Kilograms of pot, and more than 5 kilograms of cocaine between December 2007 and May 2008.

Court documents indicate that Medina is the leader of one of three distinct branches of the organization, and his brother would maintain the finances of the the illegal dealings. The drug money was then used to run the club, according to the affidavit.

The scheme apparently used at least one "stash house" to store the dope.

About 7,000 pounds of marijuana and more than 160 pounds of cocaine were seized by investigators, according to the Knoxville News-Sentinel.

The paper also reports that number of guns, including machine guns, were were found at a "stash house" on Asheville Highway.

Investigators taped phone conversations and used confidential informants in the investigation. Officers executed a search warrant at Los Arcos Dance Club and Billiards on May 11, 2008 where they found a shotgun in a Martinez's vehicle.

Medina, Martinez, and a number of other suspects face federal charges of drug trafficking, money laundering, and fire arms possession during a drug trafficking crime.

A copy of the sworn affidavit can be found HERE.

A copy of the indictment against Jose Medina and others, can be found HERE.

Jose Medina-Martinez




Miguel Medina-Martinez




Anthony Jay Thompson




Edwin Rene Morales




Gustavo Guzman Vasquez




Jorge Cardenas-Gonzalez




Jose de Jesus Medina-Martinez




Michael Allen Hill




Porfirio Rojas-Castro




Romelia Pineda




Saul Nunez Moreno