NEDERLAND, Texas — A seasonal fireworks store nestled between other small businesses along a busy stretch of Twin City Highway in Nederland was a front for an elaborate chemical trafficking organization, according to federal investigators.
Jake's Fireworks has been on the radar of federal investigators for years.
But when DEA agents raided the store on Wednesday, searching buildings and storage containers on the property, it caught many in Nederland by surprise.
THE INVESTIGATION
The U.S. Attorney's Office tells 12News their investigation into alleged wrongdoing at Jake's goes back to at least 2013.
But the investigation intensified in 2018 when DEA agents in West Palm Beach, Florida, intercepted mail parcels of a chemical identified as butanediol. Butanediol, commonly referred to as BDO, is manufactured as a floor stripper or paint thinner.
But when BDO is ingested, it immediately metabolizes into GHB, commonly known as the date-rape drug.
"This chemical, often used by sexual predators, can cause overdose, addiction and death,” DEA Special Agent in Charge Steven S. Whipple said.
Investigators say 7-thousand gallons of BDO was distributed to at least 48 states since 2016 generating $4.5 million in sales. The sales so lucrative one of the men charged called it "liquid gold".
DEA agents were able to trace the BDO from Florida back to Nederland, Texas.
So, how did the alleged operation work?
DEA agents say Jake's fireworks was operated as a front for Right Price Chemicals. People could walk in and purchase BDO, but it appears, according to investigators, that most of the sales came from online orders.
Right Price Chemicals also distributed bulk quantities of BDO to mid-level dealers, investigators say. They believe at least two deaths, one in Florida and one in Virigina, were directly caused by BDO sold by Right Price Chemicals.
While the bulk of the investigation took place at the Twin City Highway business, the Jefferson County Sheriff's Office told 12News that "several" other locations were also raided on July 15.
Investigators tell 12News that DEA agents called Joe Daughtry warning Jake's Fireworks to stop marketing and selling BDO. They say Daughtry and the other defendants disregarded this warning and "persisted with their criminal conduct".
DEA agents raid Nederland fireworks retailer
THE SUSPECTS
Eight people were charged in the drug and money laundering investigation.
- 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
- Jesse Lee Hackett, 37, of The Woodlands, Texas
[EDITOR'S NOTE: Federal law enforcement agencies do not release mug shots of suspects in federal cases.]
The eight were 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 suspects are set to appear in Federal Court in Beaumont on July 23.
If convicted of the criminal charges, the defendants face a minimum term of 20 years, and up to life, in federal prison.
There is also an ongoing civil case linked to this investigation. Jake Daughtry, Joe Daughtry, Sandra Daughtry and Kip Daughtry face civil penalties under the Controlled Substance Act. Details in that investigation have been sealed.
A civil injunction shut down operations and further distribution of BDO.
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