Woodward, Okla. — Three people who operated or worked at novelty store in Woodward have been indicted by a federal grand jury in Oklahoma City.

The indictments were returned this week against Tracy Lynn Daniels, Adam Dale Daniels and Chelsea Amber Cook. According to information provided with the indictment, Tracy and Adam Daniels operate Sugar Lips, which is advertised as a gift shop, and Cook worked there.

The charges against Tracy Daniels include that she allegedly committed "conspiracy, knowingly engaged in monetary transactions affecting interstate commerce and knowingly structured and assisted in structuring for the purpose of evading reporting requirements."

Against Adam Daniels, charges include that he allegedly committed "conspiracy, knowingly and intentionally distributed a controlled substance analogue, knowingly and intentionally sold drug paraphernalia and knowingly engaged in monetary transactions affecting interstate commerce."

Cook's charges are that she allegedly "knowingly and intentionally distributed controlled substance analogues and knowingly and intentionally sold drug paraphernalia."

Documents released by the grand jury allege the primary business of Sugar Lips was the sale of "what is identified as herbal incense that is labeled with product names such as Wicked X, White Rabbit and Hayze Trainwreck." Packaging states they are not for human consumption.

According to the indictment, the herbal incense products are substances that have a "chemical structure substantially similar to the chemical structure of controlled substances, including marijuana, and which have similar effects on the central nervous system."

The substances are controlled substance analogues according to federal statutes.

The indictment alleges Sugar Lips sold the herbal incense to be smoked to get high.

On the conspiracy count, the indictment alleges Tracy and Adam Daniels conspired to distribute and possess with intent to distribute herbal incense for human consumption in violation of federal statutes. The charge covers the time frame from June 2010 to July 2012.

The indictment alleges they purchased the incense from suppliers in Louisiana, Arizona and North Carolina, tested it with friends and if it was "good," meaning it made them high, the product was sold at Sugar Lips.

Federal officials allege Sugar Lips also sold drug paraphernalia, including pipes, for smoking the herbal incense.

Cook is accused of knowingly and intentionally distributing packages of herbal incense defined as controlled substance analogues on or about May 16, 2012.

Adam Daniels and Cook are also accused of distributing the herbal incense labeled as No More Mister Nice Guy and Rack City, a controlled substance analogue, for human consumption as well as drug paraphernalia on or about May 16, 2012.

Mark Woodward, a spokesman for the Oklahoma Bureau of Narcotics, said these charges were the result of an undercover buy at the store on that date.

A number of the counts involve monetary transactions from on or about Nov. 22, 2010 to Feb. 7, 2012.

Tracy Daniels is accused of engaging in the transactions allegedly affecting interstate commerce in "criminally derived property of a value greater than $10,000, such property having been derived from a special unlawful activity, that is conspiracy to distribute and possess with intent to distribute controlled substance analogues." That involves 22 counts in the indictment.

Tracy and Adam Daniels are accused of allegedly using $56,000 obtained through the unlawful activity to purchase real estate at 806 Main in Woodward.

Adam Daniels is accused of using money allegedly derived from unlawful activity to purchase a boat and trailer for nearly $30,000.

And Tracy Daniels is accused of structuring financial transactions making cash deposits under $10,000 for the purpose of evading reporting requirements. Five counts are alleged.

A forfeiture count is also part of the indictment. If convicted, Tracy Daniels, Adam Daniels and Cook will have to forfeit any property obtained from the offenses, including:

• Approximately $37,237.29 in currency seized on July 13, 2012, property at 806 Main in Woodward, a boat, motor and tracker and 5 boxes of assorted drug paraphernalia.

The indictment and information were filed Dec. 19 in the United States District Court for the Western District Court of Oklahoma.

All 3 defendants appeared in federal court Friday afternoon and were released on $5,000 bond for each defendant, said Bob Troester, a spokesman with the department of justice. The trial has been set for Feb. 2013.

The case number is CR 12-296 F.

The OBN spokesman said the indictments were the result of lengthy investigations that "all started with following up on tips from the community."

Woodward said after receiving tips that a store may be selling illegal products such as controlled substance analogues, the OBN will conduct undercover buys and follow that up with search warrants as they did in this case.

Woodward said the investigation is still continuing and more indictments are possible.

"The indictments don't mean we're finished," he said.  "We're continuing to look to see who all is involved and that includes everybody from employees to owners to suppliers.  We want to investigate everybody who is responsible for these products being available at these stores."