HAYWARD -- Federal agents raided a bar and arrested an employee and another man, both felons suspected of selling guns and drugs at the establishment.

David J. Velasquez, 27, of Castro Valley, and Levertis Woolfolk, 48, of San Mateo, were arrested March 14 in the raid at Campus Club by the Bay Lounge, according to the Bureau of Alcohol, Tobacco, Firearms and Explosives. The bar, at 821 Sycamore Ave., is just off Mission Boulevard a few blocks south of the Jackson Street-Foothill Boulevard-Mission intersection.

The arrests came immediately after the two men each sold half an ounce of crystal methamphetamine to an undercover agent at the club, where Velasquez worked, according to the ATF. ¿The men also previously sold drugs and firearms illegally to the agent, according to complaints filed in federal court.

During the raid, the bar owner, Sunee M. Medeiros, 45, of Hayward, was arrested on narcotics charges, and has since posted bail, according to the state Department of Alcoholic Beverage Control.

The Campus Club's license had been suspended because it owed money to the state, according to the ABC. "The ABC has determined the bar was selling alcohol without a license, and we will be pursuing disciplinary action," said John Carr, ABC spokesman.

Beginning in November, a federal agent purchased several firearms from Woolfolk and Velasquez, including two rifles and two semi-automatic pistols, one of which had an obliterated serial number, according to the ATF. Both men have prior felony convictions and are prohibited by federal law from possessing firearms, according to an ATF news release.

Velasquez sold the firearms and Ecstasy at the Campus Club, the ATF said. Woolfolk also sold crystal meth and crack cocaine several times to an undercover agent, according to the ATF.

Contact Rebecca Parr at 510-293-2473 or follow her at Twitter.com/rdparr1.