Well, you're only half right.
Louche can have two meanings in french.
Either suspicious/shady(Adjective) or a ladle(female noun).
And usually when someone's talking about "le louche". They mean the suspicious [person].
Also, since they say "le" louche and not "la/une" then there's no way that they're talking about a ladle since that word is female, not male. (Lol, le francais)>Get the facts straight.
No need. My facts are always Jojo fabulous.