A local restaurateur and club manager was indicted by an O'ahu grand jury yesterday on three counts of sexual assault after a man claimed Law lured him into his home, drugged him and raped him.

Jack Law, owner of Wave Waikiki and Hula's Bar & Lei Stand, is accused of three counts of second-degree sexual assault. If convicted, Law faces up to 10 years in prison for each count.

A warrant was issued for Law's arrest and bail was set at $150,000.

Law's attoney, Earle Partington, said Law denies the allegations. Partington said the accuser does not have full control of his mental faculties and that prosecutors have no evidence other than the accuser's account.

The city prosecutor's office, in its indictment, described the allegedly victim as having mental or physical disabilities.

On May 21, Law allegedly asked a man for a ride home, then invited the man inside, according to information discussed in court during the return of the indictment.

Law allegedly spiked a drink with a "date rape" drug and gave it to the man. The man became incapacitated, at which time Law allegedly assaulted him.

Law opened Hula's Bar & Lei Stand in 1974 with business partner Eaton "Bob" Magoon. Six years later they opened Wave Waikiki.

Reach Peter Boylan at pboylan@honoluluadvertiser.com.