The Environmental Protection Agency is fining the former owners of the restaurant $42,000 for failing to close its large capacity cesspools.
The director of the EPA's water division for the region says over three years have passed since regulations required large cesspools be closed.
Cesspools discharge raw sewage into the ground, polluting groundwater, streams and the ocean.
Large capacity cesspools are those in apartment buildings or in public places serving more than 20 people per day.
Crouching Lion's new owners plan to reopen the restaurant on June 28.
