City Attorney wins trial against convenience store operating illegal drug and gambling den

San Francisco, CA (November 9, 2026) — San Francisco City Attorney David Chiu announced today that a San Francisco Superior Court Judge ruled that Tenderloin Market and Deli owner must pay the City $151,000 after the City prevailed at trial. The Court found that the convenience store owner violated state and local laws by housing a substantial illegal gambling operation and facilitating criminal and drug activity in the neighborhood. The City also secured a permanent injunction prohibiting the store owner from possessing gambling machines or drug paraphernalia at his other stores.

“This store was not a humble market and deli—it was a magnet for illegal activity,” said City Attorney Chiu. “Referring to the Tenderloin as a ‘human zoo’ and its residents as ‘animals’ shows the store owner’s callousness and willingness to profit off human suffering. The City is better off without the Tenderloin Market and Deli, and we look forward to seeing a new law-abiding business lease this space. This unlawful behavior will not be tolerated in our City, and we will continue our efforts against stores engaging in illegal gambling, selling contraband, and fueling neighborhood crime.”

Background
The Tenderloin Market and Deli was a convenience store located at 200 Leavenworth Street operating between 2013-2026. Since 2020, SFPD responded to dozens of calls reporting open drug use, fights, stabbings, assaults, robberies, dice games on the street, stolen vehicles, domestic violence, weapons and other criminal behavior in or around the store.

In 2024, San Francisco Police Department (SFPD) officers saw patrons playing slot machines at the Tenderloin Market and Deli. SFPD then executed a search warrant and seized seven slot machines, a loaded firearm, $6,153 in cash, and a money counting machine. The market also sold drug paraphernalia in plain view to minors, including straight glass pipes and Brillo pads, commonly used to smoke methamphetamine and crack cocaine.

In October 2024, the City Attorney’s Office filed a lawsuit alleging that the owners of Tenderloin Market and Deli created a public nuisance, engaged in unlawful and unfair business practices, and violated the California Gambling Control Act, Red Light Abatement Act, and multiple state and local laws.

Despite the City’s lawsuit, the store owner continued to violate the law. In June 2026, SFPD conducted a tobacco inspection and seized illegal tobacco products, drug paraphernalia, and prescription medications. That same day, an individual complained to the local police station about losing money on an app that he used to gamble at Tenderloin Market and Deli for the past year. SFPD executed a search warrant the following day and seized even more illegal tobacco products and prescription medications.

In October 2025, the City Attorney’s Office reached a $10,000 settlement agreement requiring the property owner to evict the store. The property owner evicted Tenderloin Market and Deli on August 26, 2026, and regained control of the property.
SFPD officers have reported dramatic improvements in street conditions on the 200 block of Leavenworth Street since the store closed.

On November 6, 2026, the City prevailed in its civil lawsuit against the store owner. The Court ordered the store owner to pay $151,000 in penalties and permanently barred the store owner, Mohsen Mused, from possessing gambling machines or drug paraphernalia at any of his businesses. Mused also owns two other retail stores located at 701 Geary Street and 456 Ellis Street.

The City Attorney’s Office has sued or shut down 13 stores in the Tenderloin that violated the nighttime safety ordinance or engaged in other illegal activity. The City Attorney has ongoing lawsuits against:

• SF Discount Market at 236 Leavenworth Street
• EZ Dollar Discount Store at 335 Jones Street
• Ed’s Market at 153 Turk Street
• Family Corner Discount at 401 Ellis Street
• US Smoke Shop at 415 Ellis Street
• Hyde Street Gift and Snacks at 112 Hyde Street
• Corner Store at 401 Eddy Street

In addition to the lawsuits filed, several convenience stores were evicted after the City Attorney’s Office contacted property owners about the illegal activity occurring at the businesses. These include IG Mini Mart at 512 Ellis Street, Fullmoon Gift & More Inc. at 258 Taylor Street, Sing Sing Café at 309 Hyde Street, SF Trend at 258 Taylor Street, and TL Tobacco and Market at 301 Turk Street.

The case against Tenderloin Market and Deli is City and County of San Francisco and the People of the State of California v. Debra Loi My La, et al., San Francisco Superior Court, CGC-24-619406. View a copy of the order.

Tips
The City Attorney’s Office encourages any consumers who may have relevant interactions with these convenience stores or other stores fueling illegal activity to contact the Office through its consumer complaint web portal or hotline at (415) 554-3977.