Yassine cousin testifies in trial

AUSTIN (KXAN) - The cousin of the Yassine brothers on trial on federal drug and money-laundering charges testified Wednesday that he had been a paid informer for the FBI starting five years ago, as agents built their case against the owners of several Downtown Austin nightclubs.

Mo Yassine told jurors in U.S. District Judge Sam Sparks' courtroom on Day 3 of the trial that federal agents tracked him down in Colorado in 2007 to persuade him to help gather evidence against brothers Hussein Ali "Mike" Yassine, Mohammad Ali "Steve" Yassine and Hadi Ali Yassine.

Speaking in a soft voice, Mo Yassine recounted his history with his cousins, saying he had worked for them on and off since the late 1990s and had been fired and rehired numerous times. He testified that he sometimes drank on the job, lifted money from the cash box and occasionally neglected to show up for work at all.

He also said that he had dealt in illegal drugs and had been convicted for writing hot checks.

When he returned from Austin to surreptitiously gather evidence against his cousins, Mo Yassine testified that the FBI gave him a cover story that he was a high-dollar drug dealer. He approached the Yassine brothers about selling cocaine and laundering the money through their businesses, he told jurors.

The federal government paid him $3,500 to $4,000 a month, Mo Yassine said.

He also said that he sometimes failed to follow the FBI's instructions and lied to agents about his whereabouts because he sometimes was using drugs.

Testimony was expected to continue later Wednesday and the trial is expected to last into next week.

Yassine Enterprises, which owns several Downtown Austin bars and nightclubs, shut down since a drug raid in March.

According to earlier testimony, the FBI knew Mo Yassine had minor drug charges against him and had some kind of falling out with Mike Yassine.

According to documents, Mo suggested that revenge against the Yassine brothers was motivation to help the FBI in its investigation. His move paid for by the government, he relocated to Austin in 2007.

Mo has been paid $233,000 for work with the FBI, in addition to the government spending $111,000 moving him and his family back to Austin.

During his time working with the FBI, Mo Yassine did cocaine during a drug transaction -- something he wasn't supposed to do.

Testimony Tuesday also revealed that the FBI implemented random drug-testing for him, of which he failed two tests. In addition, he also allegedly lied about the reason for missing another test.

The FBI had Mo Yassine buy drugs from dealers to build "street credibility."

Meanwhile, he reportedly has not been employed since moving to Austin despite the government urging him to find a job. Instead, he has been living off the government money paid to him.

An FBI report said Mo Yassine was "not reliable and could not be counted on."

And on four instances, the defense revealed that Mo Yassine laundered money at Yassine Enterprises -- a sum totaling around $214,000. He was able to get his foot back in the door with Yassine Enterprises through Steve Yassine, whom he was still friendly with.

Alleged drug transactions

• Mo Yassine was written a $6,000 check from Treasure Island after he brought in $6,500 in cash on Sept. 19, 2008.
• He was given an $8,000 check from Spill Nightclub after bringing in $8,000 in cash on Oct. 10, 2008.
• An FBI video recording was shown, recorded in April 2009 in which Mo Yassine is written three checks from Pure, Warehouse Entertainment, and Kiss & Fly for $90,000 after bringing $100,000 in a pink gift bag.

Ten members of the family were arrested and charged, which resulted in a number of popular Sixth Street bars being closed, leaving unsuspecting workers out of jobs.

Charges against them include:

Hussein Ali Yassine, also known as "Mike"

• conspiracy to launder monetary instruments
• three counts of money laundering

Mohammed Ali Yassine, also known as "Steve," "Steve Austin" and "Hammudih"

• money laundering
• two counts of conspiracy to distribute 500 grams or more of cocaine
• two counts of distribution of 500 grams or more of cocaine
• transferring a firearm knowing it is to be used in a drug trafficking crime

Hadi Ali Yassine

• conspiracy to launder monetary instruments
• two counts of money laundering