BEAUMONT, Texas — Eight people have been arrested on federal drug trafficking and money laundering charges following a raid on a Nederland fireworks retailer on Wednesday.
They are alleged to be the 'head of a Chemical Trafficking Organization ("CTO") cell operating on a national scale' and are facing a number of charges. Some of the charges include 'distribution of a date rape drug over the internet to an unauthorized purchaser; maintaining a drug-involved premises; possession with intent to distribute, and distribution of a controlled substance analogue.'
The arrests made include...
- Jake Ellis Daughtry, 34
- Joseph Ellis Daughtry, 64
- Kip William Daughtry, 46
- Sandra Miller Daughtry, 71
- Jordan Lee King, 31
- Tanner John Jorgensen, 28
- Austin Wayne Dial, 28
- Jesse Lee Hackett, 37
(EDITOR'S NOTE: Federal law enforcement agencies do not release mug shots of suspects in federal cases.)
Federal agents, along with Jefferson County Sheriff's Office deputies, raided Jake's Fireworks on Twin City Highway Wednesday morning. Investigators say the seasonal business was a front for 'Right Price Chemicals.'
The investigation into the trafficking organization started in 2018 when the DEA 'intercepted mail parcels of a chemical manufactured only for industrial or laboratory use as a floor stripper or vehicle wheel cleaner that is not intended for human consumption' according to a Department of Justice news release.
Federal agents traced the mailed parcels back to their 'origination point, Right Price Chemicals,' according to the release. Right Price Chemicals is owned by Jake Daughtry, Joe Daughtry and Sandra Daughtry and is also home to the seasonal fireworks business called 'Jake's Fireworks.'
The agents found that since 2016, the business has distributed about 7,000 gallons of BDO in thousands of orders that generated $4.5 million according to the release. It's believed Jake's Fireworks was just a front for the chemical business.
Investigators say more than $1 million in proceeds from the sales have been laundered through several bank and retirement accounts in Southeast Texas. Those accounts have been seized.
Agents could be seen Wednesday searching a storage container at the property and carrying boxes into the business.
The DEA is the lead agency in the investigation according to a spokesperson for the U.S. Attorney's office in Beaumont.
The Jefferson County Sheriff's Office told 12News several locations were being raided.
Those arrested are charged with conspiracy to possess with intent to distribute, and distribution of, a controlled substance analogue resulting in death; conspiracy to possess with intent to distribute, and distribution of, a date rape drug over the internet to an unauthorized purchaser; maintaining a drug-involved premises; possession with intent to distribute, and distribution of, a controlled substance analogue; and money laundering.
DEA agents raid Nederland fireworks retailer
The spokesperson told 12News that more information would be released later.
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This is a developing story. We will update with more if and when we receive more confirmed information.
From a Department of Justice news release:
U.S. Attorney Stephen J. Cox announced today that eight individuals have been arrested in the Eastern District of Texas pursuant to a federal indictment which alleges drug and money laundering violations.
A federal grand jury returned the 24-count indictment on June 3, 2020, charging the following individuals with drug trafficking and money laundering crimes:
Jake Ellis Daughtry, 34, of Nederland, Texas;
Joseph Ellis Daughtry, 64, of Nederland;
Kip William Daughtry, 46, of Vidor, Texas;
Sandra Miller Daughtry, 72, of Nederland;
Jordan Lee King, 31, of Nederland;
Tanner John Jorgensen, 28, of Nederland;
Austin Wayne Dial, 28, of Nederland; and
Jesse Lee Hackett, 37, of The Woodlands, Texas.
The defendants were arrested by a joint law enforcement task force today and will make initial appearances in federal court this afternoon, July 15, 2020, and tomorrow, July 16, 2020. A ninth defendant is already in custody.
According to court documents, the defendants are charged with conspiracy to possess with intent to distribute, and distribution of, a controlled substance analogue resulting in death; conspiracy to possess with intent to distribute, and distribution of, a date rape drug over the internet to an unauthorized purchaser; maintaining a drug-involved premises; possession with intent to distribute, and distribution of, a controlled substance analogue; and money laundering.
The defendants are alleged to be the head of a Chemical Trafficking Organization (“CTO”) cell operating on a national scale. Investigation of the organization began in 2018 when the Drug Enforcement Administration intercepted mail parcels of a chemical identified as 1,4 butanediol, commonly referred to as “BDO.” BDO is a chemical manufactured only for industrial or laboratory use as a floor stripper or vehicle wheel cleaner and is not intended for human consumption. Investigators determined that when BDO is ingested, it immediately metabolizes into GHB (a known date-rape drug) with the same effects, causing potential overdoses, addiction, and death.
DEA traced the seized parcels to their origination point, Right Price Chemicals, a business located on Twin City Highway in Nederland, Texas, and owned by Jake Daughtry, Joe Daughtry and Sandra Daughtry. Also located at Right Price Chemicals is a seasonal fireworks business called “Jake’s Fireworks.” Agents determined that since 2016, Right Price Chemicals has distributed approximately 7,000 gallons of BDO over thousands of orders, and that those sales generated $4.5 million.
Agents additionally determined that Jake’s Fireworks operated as a front for Right Price Chemicals, allowing individuals to purchase BDO on a walk-in basis. Customers could also obtain BDO from Jake’s Fireworks through internet orders, and have the chemical shipped to their home. Right Price Chemicals also distributed bulk quantities BDO to mid-level dealers, who, in turn, sold or distributed the chemical to users. Investigators determined that at least two deaths—one in Virginia and one in Florida—were directly caused by BDO sold by Right Price Chemicals. Right Price Chemicals distributed BDO in 48 states across the country.
Investigators have also determined that the proceeds from the distribution and sale of BDO, which total over $1 million, have been laundered through several bank and retirement accounts throughout Southeast Texas. Those accounts have now been seized.
If convicted of the criminal charges, the defendants face a minimum term of 20 years, and up to life, in federal prison.
In addition to pursuing criminal charges, on July 13, 2020, the Eastern District sought and obtained a temporary restraining order against Jake’s Fireworks and any other businesses housed within the Twin City Highway location in Nederland. This civil injunctive relief immediately shuts down operations of the business and any further distribution of BDO and other chemicals. Jake Daughtry, Joe Daughtry, Sandra Daughtry, and Kip Daughtry also face civil penalties under the Controlled Substance Act.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by the Drug Enforcement Administration West Palm Beach, Florida District Office, DEA Beaumont Resident Office; the United States Postal Service; the Internal Revenue Service-Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Jefferson County Sheriff's Office. Essential support and coordination was provided by numerous components of DEA headquarters and the Department of Justice’s multi-agency Special Operations Division (SOD), including assigned attorneys from the Narcotic and Dangerous Drug Section (NDDS). This case is being prosecuted by Assistant U.S. Attorneys Michelle S. Englade and Robert Wells.
