Former tobacco shop owner faces drug charges

IOWA CITY - The owner of an Iowa City tobacco store caught up in the May 2014 synthetic drug raids faces numerous drug-related charges.

According to criminal complaints, on May 7, 2014, officers executed a search warrant at Happy Daze, 361 E. College St. The warrant was part of a global crackdown on synthetic drugs orchestrated by the U.S. Drug Enforcement Administration. Two other Iowa City businesses, Zombies and Pipe Dreamz, were also hit in the raid.

The complaint states investigators seized roughly 9,800 grams of suspected synthetic drugs contained in 945 packages in Happy Daze. The packages were labeled XXX Platinum, Accuppolo Gold, Bizzaro and Lights Out. Police said analysis at the Iowa Division of Criminal Investigation confirmed the seized substances contained a synthetic cannabinoid.

At the time of the raid, Happy Daze was owned and operated by 47-year-old Dawn M. Schatz of North Liberty, police said.

A search warrant was also served at Schatz' home on May 7. Police said they seized marijuana, cocaine and methamphetamine, as well drug paraphernalia such as pipes, bongs and a vaporizer from Schatz's residence.

Schatz was arrested and booked at the Johnson County Jail on Tuesday. She faces charges of controlled substance violation, two counts of possession of a controlled substance, keeping a drug house and possession of drug paraphernalia.