No, it was all due to drugs, heres a quote from the New Herald. Was posted back in July of 01

"Club La Vela was raided in early 2000, and police turned up a variety of drugs -- although they found no evidence that the owners themselves were selling illegal substances. On May 5, 2001, Club La Vela owners Patrick and Thorston Pfeffer were slapped with an indictment for allowing drug trafficking at their club. Like the New Orleans case, a federal grand jury indicted the nightclub owners under the crack-house statute; unlike the New Orleans case, the government also seized the assets of Club La Vela and forbade the owners from leaving the state. (Club La Vela's owners, in turn, are suing the local law enforcement agencies for defamation and depriving them of their right to public assembly.) The case is set to go to trial in July."