Fireworks store owner guilty in drug trafficking conspiracy

Two Southeast Texas men, including the owner of the Jake’s Fireworks business, have pleaded guilty to federal drug trafficking violations committed from the Mid County property, according to an announcement from Eastern District of Texas U.S.Attorney Brit Featherston on Jan. 18.

Jake Ellis Daughtry, 35, of Nederland, pleaded guilty to conspiracy to possess with intent to distribute a date rape drug over the internet to an unauthorized purchaser. Kip William Daughtry, 48, of Vidor, pleaded guilty to possession with intent to distribute a controlled substance analogue.

Of the 10 defendants named in the federal case against the Jake’s Fireworks staff and family, most have been dismissed, pleaded guilty or are facing reduced charges. Austin Wayne Dial signed a sealed plea agreement on Jan. 12. Jesse Lee Hackett and Tanner John Jorgensen entered a guilty plea on Jan. 12. Jordan Lee King had indicted counts dropped on Jan. 12. Sandra Daughtry had the charges against her dismissed. Gary Wayne Landry’s charges were reduced to misdemeanor counts.

Money laundering, maintaining drug-involved premises at the Nederland shop, conspiracy to possess and distribute a date rape drug over the internet were just a sampling of the dozens of charges initially lauded against the crew.

According to information from the prosecutor’s office presented in court, Jake Daughtry and Kip Daughtry “are the leaders of a Chemical Trafficking Organization (CTO) cell operating on a national scale.”

Investigation of the organization began in 2018 when DEA West Palm Beach, Florida, intercepted mail parcels of a chemical identified as 1,4 butanediol, commonly referred to as “BDO,” a chemical manufactured for industrial or laboratory use as a floor stripper or vehicle wheel cleaner. BDO 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, owned by Jake Daughtry. A seasonal fireworks business called “Jake’s Fireworks” was also operated at that location.

“Customers from all over the United States were able to order quantities of BDO from the Right Price Chemicals website in small amounts to use for personal consumption,” the U.S. Attorney’s Office related in a written summary of the case. “The Daughtrys continued to sell BDO even after becoming aware that some customers were ingesting the substance for its narcotic effect, rather than using it for its intended commercial purpose.”

Agents asserted 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.

The defendants were indicted by a federal grand jury on June 3, 2020, and face up to 20 years in federal prison. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

According to information from the IRS, federal agents determined that Jake’s Fireworks operated as a front for Right Price Chemicals, allowing individuals to purchase BDO on a walk-in basis, as well as through internet orders. Right Price Chemicals also distributed bulk quantities of 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.

Investigators also asserted 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 were seized as part of the investigation. Jake Daughtry, Joseph Ellis Daughtry, Sandra Daughtry, and Kip Daughtry agreed to the entry of a permanent injunction that prohibits them, or Right Price Chemicals, to ever sell or distribute BDO to anyone, anywhere, at any point in the future.

“After being notified by Florida law enforcement that this dangerous and lethal chemical was being sold to users for a nefarious purpose, East Texas law enforcement agencies took action to protect the public and prevent others from falling prey to the sale and use of this dangerous substance,” Featherston said. “This was a complicated investigation involving numerous investigative agencies and both the criminal and civil divisions of the U.S. Attorney’s Office.

“Their collaborative efforts have made our community and country a safer place to live.”