Request Denied for Release of Glass Dragon Owners’ Funds

TYLER — A federal magistrate has rejected a motion from Shanna Peek Tidwell and Jeremy Chad Tidwell to release about $63,000 seized by the government so they could pay state and federal taxes. KETK and the Longview News-Journal report the two are former owners of the Glass Dragon stores that allegedly sold synthetic cannabinoids in East Texas. The Tidwells, along with brother Brian Tidwell, are charged with multiple drug, fraud and money laundering violations. They were arrested last December in a raid that involved forces from numerous local law enforcement agencies and the federal Drug Enforcement Administration. U.S. Magistrate John Love of Tyler ruled that the Tidwells did not cite any authority “supporting the release of these funds at this stage of the proceedings.”

In an opinion on the issue, Love said,”Defendants must make some showing that the money or accounts seized were actually that which was collected and held in trust for the payment of sales and payroll taxes. Second, Defendants should make a showing that they did not undertake any acts which would have violated their trust obligations — i.e. that their actions are consistent with those of a person acting as a trustee for the state or federal government.” Love’s opinion went on to say that the Tidwells did not show that the funds seized by the government included any money they had set aside to pay state and federal taxes.