Undercover agents interviewed a cocaine dealer who boasted of selling two kilograms of product every weekend at Camp Zoe. (Court documents say the man, a convicted armed robber, was banned from the festival in 2010 for carrying a gun.) "It is common," the feds alleged, "for the officers to walk around the grounds and witness drug sellers weighing out powder cocaine in the open for a buyer."

Callahan, the federal prosecutor, points to a DEA estimate that $500,000 worth of drugs changed hands every weekend at Schwagstock.

"I'm not aware of any other festival venue other than perhaps Woodstock where that could happen," Callahan says with a laugh. "I wasn't there — although I wish I were — but Woodstock was a one-time phenomenon. These [Schwagstocks] were occurring four or five times a year. This was more of a business."

Photograph by Jennifer Silverberg

Location Info

Map

Zoe Campground & Amphitheater

Highway 19 at Sinking Creek
Salem, MO 65560

Category: Music Venues

Region: Outstate MO

Of course, nobody really has a handle on the volume of drugs that are bought and sold each year at music festivals. Callahan's unspoken message is that law enforcement can stomach thousands of pot-smoking, acid-eating freaks running wild for a weekend so long as they keep to themselves and buckle their seat belts on the way out of town. But if the same bearded hippie flouts the rules all summer long, beware the long arm of the law.


Tebeau's case is not the first time federal prosecutors have used the so-called Crack House Statute to target the owner of a music venue. The law, broadly drafted to criminalize properties maintained "for the purpose of unlawfully manufacturing, storing, distributing, or using a controlled substance," dates back to the mid-1980s, but it was amended in 2002 at the urging of then-U.S. Senator Joe Biden. Hysteria surrounding crack cocaine faded years before. Ecstasy and rave parties were the new battles in the drug war.

In 2001 federal prosecutors tried to use the Crack House Statute against a trio of New Orleans club owners who frequently hosted raves at their venue, claiming the men "knew that drugs were being used and distributed at their raves but did nothing to prevent it." The club owners agreed to a settlement, later blocked through appeal, which banned glow sticks and similar items at their events. That same year a jury in Florida refused to convict two nightclub owners accused of profiting from drug use and raves at their venue.

In response, Biden introduced the Reducing Americans' Vulnerability to Ecstasy (RAVE) Act, which was, he explained, intended to tweak the Crack House Statute so that it could be applied to "rogue promoters who were knowingly using property episodically or on a one-time basis for illegal drug purposes."

The Crack House Statute was already unpopular with civil libertarians because it allowed prosecutors to punish business owners for the offenses of others. When Biden sought to target a specific subset of music fans and venues, the outcry was swift and forceful.

"Put most simply, the federal government should return to the task of identifying and stopping illegal drug activity, whether it occurs at a rave or elsewhere," Graham Boyd, director of the American Civil Liberties Union's Drug Policy Litigation Project, testified before Congress. "The government must not allow for harassment or punishment of innocent business owners who are unable to guarantee absolutely that drug use will not occur on their property."

The RAVE Act was defeated, but nearly identical language was later inserted as an amendment to another bill. Police, prosecutors and the public gradually lost interest in raves, however, and the law was not successfully applied until the DEA set its sights on Schwagstock.

After pleading guilty, Tebeau took his case to the Eighth Circuit Court of Appeals to argue that the law didn't apply to a music festival. The lower court's ruling was upheld.

"I think there was a lot of pressure in this case, because I'm sure there were a lot of people who didn't like that festival in their neck of the woods," says Tebeau's lawyer, St. Louis-based defense attorney Scott Rosenblum. "I can't really say anything our government does surprises me anymore, but there's no question there was a substantial amount of resources put into this case. To some extent it's a scary type of case in terms, I guess, of how far they're going to go to apply [the Crack House Statute]."

Callahan says there were serious discussions among law-enforcement officials about whether Tebeau could or should be held accountable for people buying and selling drugs on his property.

"We had to wrestle with issues of whether it made him criminally responsible or not," the federal prosecutor says. "We wanted to be careful not to cross the line so that we were going after a music festival simply because of what a minority of patrons were doing.

"[This] doesn't serve as a warning to major music festival sites that are sincerely trying to operate within the law," Callahan emphasizes. "I'm sure you can go to a Willie Nelson concert and smell the aroma of marijuana, but I don't think his concert is promoting the sale of drugs."

The fact that prosecutors used asset forfeiture to confiscate Tebeau's property — the land upon which he lived with his wife and two young children — still rubs some people the wrong way. Mike Cullen, Tebeau's neighbor at Camp Zoe who helped out with groundskeeping, wonders why authorities chose to bust Tebeau rather than the actual drug dealers.

« Previous Page
 |
 
1
 
2
 
3
 
4
 
5
 
All
 
Next Page »
 
My Voice Nation Help
127 comments
tebeau_sucks
tebeau_sucks

I've known this moron for 15 years; my husband knew him long before that.  I'll tell you right now that he absolutely is at fault when it comes to buying, selling, and partaking illegal substances, etc., he's first in line.  Maybe he shouldn't be prosecuted for the actions of others, but his time spent in prison will be worthwhile because he smells like shit, screws every female that can get past the odor, and is terrible at pretending to be Garcia.  

kaylabear512
kaylabear512

sure theres drugs around at music festivals but theres drugs around EVERYWHERE in this world. no matter how hard the police try to stop it its like part of this life. but whats so wrong with people doing them in safe ways? where they can experience peacefulness among strangers who they can call there brothers and sisters. whats so wrong with that?!  no fights, no guns, no hate, no crime. just peace and love. I think the music festivals with all the electronic music and dubstep are what rots people's brains. its like a cheesegrater to the head, and what could make that feel a little more soothing?..drugs.  we go to music festivals like Shwagstock to jam to our favorite bands. the REAL music. we can have a good time without drugs there. music itsself can bring ppeople together just like  family dinner or a new born baby, or grandmas 79th birthday. Music festivals like this one, where a man who started it had nothing but the right intentions, should not be the ones to get shut down, or faught against. This is some of the last "good stuff " left. This is real music. and only people who really appreciate the good music can understand me. and i feel sorry for those who dont. This man was doing nothing but bringing peace and shame on who ever thought to look down on him for that.

notdeadjustgrateful4
notdeadjustgrateful4

I couldn't help but shed more than just a few tears when I heard the news of the bust on the 1st of November in 2010.  I knew it was only the beginning of another chapter in my life, but regretfully, the end of one that I will never forget.  My experiences at ZOE helped shaped me into the proud hippie I am today.  I doubt that there will ever be another place on Mother Earth that had the vibe that ZOE had during sunset on a Saturday night.  Jimmy, I had the privledge of seeing you perform at Byrdfest 4 in Arkansas in April of 2012.  Melvin was a wonderful addition to the team.  It was my last festival before going to prison and my now fianee's first festival.  For me, it has always been about the music.  Jimmy, you will be missed but never forgotten

funkyfreshfortuna
funkyfreshfortuna

I've went to zoe 3 more times since underground sound in 2010 just to camp and enjoy the beauty of the place without all the wasted idiots around. Every time me and my brother were walking around this guys land with inner tubes and cases of beer he'd stop us and ask if everything was going ok, offer us a ride and wish us happy tubing. he was one of those people who always had a very strong aura of peace about him. whatta tragedy. fucking pigs should burn

thinlizzie
thinlizzie

OK, HonkeyDonkey, let's do the math your way:

$2.16 Million cash per year, less $650K deposited equals $1.51 Million---which is where? Donated to?

Get a clue and reread some posts, my pissy little friend. No one said he made his millions selling drugs, he made his millions AS YOU point out, catering to a clientele at least in part (large part, from what I saw) drawn to what amounted to a large open-air drug market.


thinlizzie
thinlizzie

I have to agree with JenraeJoseph, Spot nailed it. I made the mistake of taking two teenage (17, 19) daughters to a "Shwagfest" and couldn't leave soon enough. And I did the math, too: the RFT accurately stated he deposited 4.6M over 7 years, that's about $650K a year. And I'm sure you believe him to be a totally honest and legal taxpayer, so NO cash ever made it's way directly into his pocket. The real tragedy: according to insiders he was warned, repeatedly.  Moral of the story: good, bad, or otherwise, thumb your nose at the feds, and watch where they put THEIR thumb. And DonkeyHotay:  why so angry and all the name-calling? Not that you would care, but it really detracts from any point you're trying to make. 

max_in_missouri
max_in_missouri

Glad Bush wasn't President while this seemingly silly prosecution happened.  You know the libtards would be jumping at the chance to blame him personally.  Yet as this all happens under Obama, no one blames him.... not saying they should, just saying this is a ridiculous double-standard.

mushroomgravy666
mushroomgravy666

Everyone knew what was going on down there. I never went to schwag. Mostly because I'm too poor to even hang with hippies, but also because I knew it was crawling with feds. We all need to stop pretending that we all aren't pretending. What I think is messed up is the length of time they allowed it to go on while looking the other way, and then one day its wrong. Its very deceiving.

warrenmart
warrenmart

About as bad as when Tommy Chong got  set up for selling a bong through the mail--war on drugs my behind, a lot of hooey.

mr.tambourineman
mr.tambourineman

In 2007 i got to sit down and interview jimmy for a paper i wrote about schwag in my comp ii class. Though jimmy did make money hosting schwags he told me that no matter how much money he deposited durring his time hosring festivals he could never get out of debt. Jimmy really only cared about the music, and i i recall there were some performers that didnt get all the money rhey were

Mary Novack
Mary Novack

It's bs that he's been taken advantage of....cops need to go after murderers!!!!

Kevin Rudroff
Kevin Rudroff

"He's Gone" is a grateful dead song. Now that makes sense. Thanks Autumn Wiggins for the clarification. The arrest and ceasing of his assets still doesn't make sense. Any law enforcers out there wanna clarify this for us?

Autumn Wiggins
Autumn Wiggins

"He's Gone" is a Grateful Dead song. I don't think it's about a dude that died. It makes about as much sense as any other GD song.

Patty Lager
Patty Lager

and such is the state....no freedom as long as we continue to vote

Couch Pig
Couch Pig

woodstock must of been ok in the feds eyes

Kevin Rudroff
Kevin Rudroff

"He's gone"seems a little much. Like there's no returning or that its final. He's not dead. I'm not exactly sure why the undercover cops purchasing illegal substances didn't arrest the perpetrators but instead arrested the organizer and land owner. Doesn't really make much sense. Much like the title on the cover page.

John Null
John Null

Federal pound-in-the-ass prison for NOTHING.

tactrix
tactrix

Well since the feds views this as a music festival prosecution I feel it's only fair that I tell them that I view EVERY FED as low life dirtbag, who deserve to be made penniless and end up with no help from anyone as they starve to death since it seems their goal in life is to take regular people and make their life a living hell.

spot
spot

" ...from 2004 to 2010 Tebeau deposited more than $4.6 MILLION CASH in his local bank..." Sorry to tell ya, DeadHeads, but Row Jimmy Tebeau left the Merry Pranksters' bus a long time ago...his Happy Campers weren't travelling long distances to the middle of nowhere just to hear a bunch of B-grade bands and the SchwagWannabe and come home with sunburn and chigger bites...he made his millions because the venue was Dope Heaven, and he knew it...

DonkeyHotay
DonkeyHotay topcommenter

@thinlizzie ... so you admit that depositing a paltry $650k cash  / year when the gross LEGAL receipts for admission, rent, food and drinks were in excess of $2.1 MILLION is absolutely ZERO evidence of criminal drug activity on his part.

Noted.

tebeau_sucks
tebeau_sucks

Why in the hell would anyone in their right mind take teenage girls to a festival called SCHWAGSTOCK? Really? As in seriously? So you didn't know what Schwag is referring to? As in, low-grade (ditchweed) quality. hahaha

What a joke.  As for the name calling, anyone who personally knows Jimmy knows exactly what a lump of shit he is.  I was around when the schwag was starting out - only Jack was worth some credibility - the reast of them were dirt balls. Of course this moron ended up in jail. He deserves it, for more than 100 reasons.

DonkeyHotay
DonkeyHotay topcommenter

@thinlizzie = math FAIL!

" Beyond the $60 cost of admission, concert attendees paid to rent their camping spot from him and purchased food, drinks, firewood and other goods from his general store. He staged five to seven festivals each year with an average attendance of 6,000 per event"

So are admit that the 6000 attendees x $60 admission x 6 shows = $2,160,000.00 / YEAR in gross receipts -- WAY MORE than enough to justify the $650k deposited WITHOUT having to alleged drug dealing to explain it.

Keep flailing, sucker.

aerosquid
aerosquid

@max_in_missouri Says who? I'm liberal and pissed as hell at Obama's stance on drugs. His campaign promises were LIES just Like Bush, Clinton and every fucking pol before and since. They all LIE. Unless we stand up and get rid of this no winner but the rich 2 party system the people will ALWAYS LOSE. Had enough yet America? I have.

tebeau_sucks
tebeau_sucks

Are you serious? hahaha.  Wow, I understand that you can't "get" a person by one interview, but from someone that traveled with the 'band' I can tell you that while he liked playing, he was far more interested in getting as f'd up as possible.  The only reason I and my friends were there was because of the party.  He's not a "great guy" - he's a sleazeball who cheated on his wife as fast as possible: if you were a chick, liked to get high, and had some extra to share, he would sidle up next to you in no time. Gross.

mr.tambourineman
mr.tambourineman

entitled to like keller williams. Jimmy was a great guy and didnt deserve any of this

JaMookus
JaMookus

@Kevin Rudroff 

"He's Gone" is the name of a Grateful Dead song. The use was intended to be some sort of snappy wordplay, not a statement regarding the finality of the situation.

tebeau_sucks
tebeau_sucks

Oh definitely for something! He's a piece of shit.

jenraejoseph
jenraejoseph

Yep. I attended many and your spot on spot. Everyone on here says Jimmy just loved playing music. Which may be true but its really easy to love playing music when your lining your pockets with Gold.

blubanjo
blubanjo

@spot do the math...5 festivals a year, average of 5-7,000 people per festival at around $60 per person, for 6 years!!  Figure on average $340-360,000 x 6 = $2.04 - 2.2 million, not counting camping fee's and food sales, rental fees from vendors.  Yes, it is very possible that Jimmy actually made that level of cash in a 6 year time span.  I'm sure that money is a TOTAL amount deposited BEFORE he paid taxes, insurances, artist fees, employee's, utility bills, payments on the land itself (300 acres in Shannon County next to the Current River Watershed is NOT cheap), and on and on.  Hey Spot, don't be a follower and just lap up anything you read.  Jimmy was never in it for the drug money.  

queen.ozzy
queen.ozzy

@spot You are absolutely wrong spot... many people did travel thousands of miles to go to one of jimmys schwags... shows what you know.  I have always been drug free and so are my people that i travel with.  We have logged thousands of miles traveling to different fests in different parts of the country.  The schwags are still and always will be our favorite... drugs were never the reason that we went there... and i know others that feel the same way.  If you want to classify us as drugged out happy campers then i guess that is your choice.. but just know that you are incorrect on so many levels.  I feel bad for you and your judgements.  I hope one day you can experience all the good things that we found at the schwag.  We will never get that back and we will forever be looking for the equivelent. 

How much money do you think bonnarroo deposits into the bank after one fest... a lot more than what jimmy made over the course of 6 years i can guarantee that... and he had to have at least 5 fests in a season to get that money... in no way shape or form is this even comparable. 

MarkoffChaney
MarkoffChaney

@DonkeyHotay You're operating on the premise that the use of the substances in question is wrong.

You are an enemy of freethinking people everywhere and you should be regarded as such.

MarkoffChaney
MarkoffChaney

@DonkeyHotay This is how you choose to spend your time. This. Right here. That is pathetic and I hope you experience some sort of awakening before you die that transforms you from insufferable buzzkill douche-nozzle to actual human being. Good luck.

ut_4_me
ut_4_me topcommenter

By all accounts in this article Jimmy's name was on the property and he was personally depositing the money.  I can guarantee you that the folks running Bonarroo are incorporated and lawyered up to the hilt.   Jimmy was running a true grassroots festival but was depositing big time money.   

thinlizzie
thinlizzie

@DonkeyHotay @spot jealous of a naive whiny Dead wannabe doing Fed time, or jealous of sunburned stoners? Gimme a choice here, DonkeyDude,,,

ut_4_me
ut_4_me topcommenter

@DonkeyHotay...I didn't make anything up.   I was just wondering out loud.  Many musicians, by their very nature, are not great businessmen.  What I read was that Jimmy tried to set something up that he thought would be cool and put property and bank accounts in his own name without realizing the end result. 

DonkeyHotay
DonkeyHotay topcommenter

@ut_4_me ... you just like to MAKE SHIT UP, don't you?

He has DEPOSITS and EXPENSES from his accounts, just like any other concert promotion business.

And at a gross of only $12 per head, he wasn't that "big time" in the music venue business.

ut_4_me
ut_4_me topcommenter

Yeah...because that is what "bad businessmen" do. 

 
Loading...