If you had seen or read documentations of stings done on the criminal underworld of the Irish, Italian or the Jewish mafia, and by extension their "business partners", the Colombian traffickers, while I do agree, that an actual family can't be hurdled in harm's way, these criminals are still big on family.
Most undercover operatives come from the respective area they're supposed to bring down, so being at his age, and not having a family in a deeply religious setting is the red flag, unless they are supposed to play a womanizer/man-eater, or somebody at a low level.
The other thing is the historical setting and the insider knowledge, on the part of the traffickers. While any current US government vehemently denies being involved in the drug trade, now or previously in the past, the BCCI laundered the money for the cartels, and its dividends have financed the Mujaheddin so the UN needed not to be involved. Escobar and his confidants were convinced, as long as the CIA is on "their side" and they can use the equipment the agency used for South American operations, the DOJ can't really breathe down their necks.
They laundered and earned so much money, that many of the people tasked to arrest them were actually on their payroll. As for the plausibility for such a scene in the '80s...there were more euphemisms for doing coke, than arrests, including high traders, bankers, and politicians. If you've seen Charlie Wilson's war, depicting the other side of the BCCI and its involvement in the arms trade that circumvented Congress, and its motions to not support such groups, Wilson openly admits, Giuliani (that Giuliani) could only prove him doing coke outside US jurisdiction, that in itself is a testament of the times.
The scene also forms a testament to the character, or at least the filmmakers intention to portray the character who has enough morals in not wanting to convict people who are unrelated by the crimes, but still can't afford a misstep.
I live in the Gordius Apartment Complex, my interior designer was M.C. Escher.
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