Since 2004, when veteran musician Jimmy Tebeau brought the 350-acre rural property in central Missouri and turned it a camping and concert venue, Camp Zoe has been Deadhead central in the Show Me State. A member of the Grateful Dead tribute band The Schwag, Tebeau has hosted numerous Schwagstock and Spookstock festivals, as well as other concerts and events, drawing nationally known acts and thousands of fans for weekends of outdoor fun in the sun.

But the DEA and the Missouri Highway Patrol harshed Camp Zoe's mellow vibe last November, when they rolled into the venue early in the morning and searched the site. A week later, they announced that they were initiating federal civil asset forfeiture proceedings against the property because of alleged rampant drug use and Tebeau's failure to put a halt to it.

According to a complaint filed November 8 in the Eastern Missouri US District Court, the feds alleged that "over the past several years law enforcement agents have specifically observed the open sales of cocaine, marijuana, LSD (acid), ecstasy, psilocybin mushrooms, opium and marijuana-laced food products by individuals attending the music festival and made multiple undercover purchases of illegal drugs."

Tebeau and other Camp Zoe staff members "were in the immediate area" when drug deals were going down and "took no immediate action to prevent the activity," the complaint continued. It added that "undercover purchases have been made as recently as September 2010," when Schwagstock 45 was held, but noted that the investigation stretched back to 2006 and included evidence from "surveillance, undercover operations, source information, bank records, and interviews."

Most critically, the complaint alleges that Camp Zoe was "knowingly opened, rented, leased, used, or maintained for the purpose of manufacturing, distributing or using controlled substances." In other words, the feds are arguing that the purpose of Camp Zoe was not to be a concert venue, but a drug den, and it could thus be lawfully seized, along with nearly $200,000 in cash they seized from the site and various bank accounts.

The case pitting a local counterculture icon and his property against the power of the federal government has stirred considerable interest in Missouri, as well as among members of the peripatetic Deadhead set. (In fact, I had a conversation about the case with a dreadlocked young woman at a Northern California music festival last weekend.) It has also excited the attention of asset forfeiture reformers and critics of overweening governmental power.

But wait, it's even worse. The feds upped the ante further just a couple of weeks ago. After stalling the asset forfeiture proceedings for seven months -- leaving Camp Zoe silent and vacant and Tebeau without his primary source of income -- and seeing that Tebeau was not about to roll over for them, federal prosecutors last week sought and got a criminal indictment charging that Tebeau "knowingly and intentionally profited from and made available for use, with or without compensation, said place for the purpose of unlawfully storing, distributing, or using controlled substances."

"This is the sort of things Soviet thugs did and that continues to happen in Russia under Vladimir Putin," said Eapen Thampy, executive director of the Kansas City-based Americans for Forfeiture Reform. "They take a businessman, take his money, and take him to jail. I see this as an attempt by rich and powerful law enforcement agencies to acquire property or money they can turn into salaries or equipment."

"The Camp Zoe situation is really interesting," said Dave Roland, a St. Louis-based attorney who is director of litigation for the libertarian-leaning Missouri Freedom Center. "The federal government has recently come back and said they will charge him with maintaining the property for the purpose of facilitating drug transactions, but that seems like an after the fact justification for their attempt to seize the property. The more likely explanation is that the government was embarrassed by the fact people kept saying how can you take this property without alleging he's doing something illegal in the first place," he ventured.

"There was no one engaging in violence at Camp Zoe, there were no allegations of harm or injury," Roland continued. "That the government is concentrating on these sorts of victimless crimes demonstrates misplaced priorities. Especially in light of the financial crunch, we ought to be reallocating resources to deal with real threats to the health and safety of the community and not these drug witch hunts."

But there's the rub. Missouri law enforcement agencies profit handsomely from asset forfeiture, especially when they do an end run around state asset forfeiture law and partner with the feds. Under a 2004 asset forfeiture reform law, funds seized by state and local law enforcement agencies are supposed to go to the state education fund, but that's not what happened.

The state auditor's reports on asset forfeiture activity show a quick learning curve by state and local law enforcement. While, after the 1994 reforms, schools got 27% of seized funds in 1996 and 1997, in 1998, that figure fell by half to 14%. There was no audit done in 1999, but in 2000 and every year since, schools have gotten 2%, with that figure dropping to 1% in 2008 and 2009. Meanwhile the Justice Department and state and local cops have raked in millions of dollars, gobbling up the vast majority of funds that were supposed to go to Missouri's schools.

"Asset forfeiture abuse is rampant all over the country," said Roland. "Here in Missouri, the state made an effort to improve its statutes a decade ago, but the problem is that law enforcement agencies find alternative ways to accomplish the same end. Now, you see state and local law enforcement handing cases over to federal agencies because they get a kickback from the asset forfeitures. There is an actual financial incentive to assist federal agencies in the unconstitutional use of asset forfeiture laws."

"Missouri has laws that say how asset forfeiture should be conducted and where the money should go, but they aren't being followed," said Thampy. "When you put this into that context, these abuses are way more serious," he said, adding that he believed 90% of Missouri counties were not in compliance with the law.

Neither Roland nor Thampy were impressed with the criminal charges now being brought against Tebeau. Nor were they aware of other cases of "maintaining a drug premise" being brought against other concert venues. That law is widely known as the "crack house" law.

"The government has a pretty steep hill to climb to prove that Tebeau was operating this camp so that people could buy illegal drugs," said Roland. "I'm very skeptical that the government is going to be able to carry its burden of proof."

"That charge is complete bullshit," Thampy responded bluntly. "If they wanted to charge him with drug trafficking or drug possession, those would be appropriate charges if they could prove them. But charging him with running a drug premise says that he got this land for the sole purpose of conducting drug transactions. It would be putting it mildly to say this is an abuse of prosecutorial power."

"To the best of my understanding, this is not a commonly used statute," said Roland. "I don't recall ever seeing it used in the context of a concert venue owner. They're alleging that the property is being used for the purpose of facilitating drug transactions simply because Tebeau didn't take some unspecified affirmative action."

Now facing criminal charges as well as the seizure of Camp Zoe, Tebeau is still refusing to roll over and cut a deal. With his income-producing property shut down and his bank accounts seized, Tebeau is at a real disadvantage, but thanks to his fans and followers and continuing gigs as a musician, he has so far been able to raise the funds to defend himself.

"A just outcome would be dropping the charges and dropping the attempted asset forfeiture," said Roland. "If we're not going to legalize drugs, the government needs to at least focus on the people and activities they're really worried about. Jimmy hasn't been charged with actually being involved, and it's unjust to target him for a criminal action because someone else was doing something illegal. That's manifestly unjust."