Licensing scam a buzzkill for Houston bars

At least 80 Houston bars are scrambling to get their state licenses in order after the owners of the licensing service they used disappeared with their money and paperwork, the AP reports today. Bar owners found out this week that Butera License Service hadn't kept their licenses current; at least one bar, McElroy's Irish Pub, had to close for a day after owner Max McElroy found out his liquor license had been expired for two months.

"We didn't know this, of course," said McElroy, who was on vacation in Ireland [when state officials told the staff the license had expired]. "I'm shocked. (Butera) put all of my businesses at risk without giving a damn about me."

McElroy said he had worked with Butera, which had been in business since 1966, for the past 10 years without any problems.

McElroy said Butera was supposed to handle paperwork for license renewals on the three bars he owns, plus an application for a license at a fourth bar. Though Butera cashed his checks, it didn't file the paperwork; he was able to work with the Texas Alcoholic Beverage Commission to get things worked out, but between the money Butera took and the new licensing fees, McElroy told the AP he's out about $15,000.

No one knows what happened to James and Mary Ann Podhorsky, who owned Butera; according to KHOU, their office is vacant and their voice mailbox is full. And here's the kicker: Though there are at least 100 agencies in Texas like Butera, none of them are regulated or required to be insured. The county tax assessor's office has opened an investigation, and the TABC is directing business owners affected by the scam to the Harris County DA and the Texas Attorney General's office. The TABC has also gotten a partial list of Butera's clients and is working with them to resolve any problems, officials said.