Was Esparto, CA, Fireworks Facility a Deadly Powder Keg in Plain Sight?

Devastating Pyrotechnics built its brand on being scrappy. It was the “underdog” fireworks company that pitched longer shows for less money — and won.

From its base outside the small town of Esparto, the firm steadily grew a business contracting with Northern California governments and community groups, offering cheaper and flashier Fourth of July displays than its larger competitors. But on July 1, seven workers died in a series of explosions that tore through the compound, scattering debris across farmland and raising lingering questions about how the operation was allowed to grow as large — and as risky — as it did.

Investigators have yet to determine what caused the deadly blasts. But a growing body of public records and interviews shows how the company and its associates repeatedly presented themselves as fireworks manufacturers despite lacking proper state licenses. And they did so from a property without proper zoning or permits, where tens of thousands of explosives were stored — and where local officials had apparent ties.

The fallout has cast scrutiny on a close-knit network of people — including Devastating’s founder, Kenneth Chee, and public safety officials with the Esparto Fire Protection District and Yolo County Sheriff’s Office — whose overlapping roles, property ties and approvals intersect at the blast site. And now, as a civil lawsuit moves forward and the state reviews potential licensing loopholes, the 4-acre compound remains a focal point of state and federal investigations into one of the deadliest fireworks accidents in California history.

How could a powder keg, years in the making, hide in plain sight?

A review of current and expired state fireworks licenses granted to Chee and other Devastating Pyrotechnics associates shows they were not licensed to manufacture or process fireworks. Still, the company routinely marketed itself as a fireworks manufacturer in client proposals — including one signed by general manager Neil Li, who died in the explosion — and touted itself as a premier producer of pyrotechnics across the western U.S.

A person familiar with the property south of Esparto, who requested anonymity out of fear of retaliation, said imported fireworks were stored on-site and that firework shows were being assembled there.

State fire and county codes require that assembling such displays — and inserting e-matches — be done in processing facilities that meet specific size, construction and setback requirements. The work at the Esparto site did not comply with those standards or common practice, the source said.

The source said that the work included the suspected use of electric matches, or e-matches — sensitive ignition devices linked to past fireworks accidents.

While the cause of the Esparto blast remains under investigation — a process that could take months to a year to finalize — experts note that preparing fireworks shells and inserting e-matches before public displays is common around the Fourth of July and has been linked to numerous accidental blasts in recent decades.

“We know this because of other incidents when people have survived and told us what happened,” said Charley Weeth, a fireworks consultant not affiliated with Devastating. “In some cases like this, we don’t have survivors. The only thing we can go by is what they were likely doing this time of year, and they were preparing for shows.”

How we got here

Chee, a Bay Area optician who had prior felony convictions, was prohibited from holding federal explosives licenses but managed to obtain state permits — a gap in oversight that lawmakers have pledged to address. After The Sacramento Bee reported the discrepancy, the state fire marshal suspended licenses held by Chee and Craig Cutright, an Esparto volunteer firefighter and longtime associate of Devastating who later launched his own company, BlackStar Fireworks.

BlackStar operated from the same property and Cutright, whose only comment came the night of the explosion when he denied involvement in the blast to ABC10, has since been placed on administrative leave from the Esparto Fire Protection District.

Devastating’s attorney Douglas Horngrad, like Cutright, said the two companies are separate.

“The claim that Devastating Pyrotechnics and Blackstar ever worked together is false,” he told The Bee on Wednesday night.

In addition to marketing materials, presentations to public officials and license records, The Bee found that Devastating imported large quantities of chemicals commonly mixed to produce “flash powder” used in fireworks. Experts said those shipments were unusual for a display and wholesale company lacking a federal permit to process and manufacture pyrotechnics.

Soon after the blast, the Esparto fire district and Sheriff’s Office recused themselves from the investigation, led by the Office of the State Fire Marshal. But concern about potential conflicts of interest prompted Yolo County supervisors to ask for the California Department of Justice to step in, citing connections between local officials and the companies involved. Among those ties: Sheriff’s Lt. Sam Machado, who owns the property with his wife, and Fire Chief Curtis Lawrence, who signed off on permits for structures later destroyed in the blast.

Department of Justice officials said they had received and are reviewing Yolo County’s request.

Records obtained after the inferno show the fire district and Lawrence had worked with Devastating and BlackStar in recent years and accepted fireworks displays as donations for community events.

A 2023 show in Esparto followed a favorable permit decision for a warehouse on the site. Lawrence later told county officials that the donation had not come with formal accounting, but emails confirmed the donation came in the form of fireworks and labor supplied by Devastating.

Meanwhile, the first civil lawsuit against the fireworks companies and property owner was filed a week ago in Yolo County, seeking compensation for farmland and equipment damaged by the explosions and ensuing grass fires.

It also contained allegations of illegal fireworks storage and sales, and reckless operational management that increased the risk of danger.

‘Underdog’ had ‘a perfect safety record’

For years, Devastating Pyrotechnics consistently marketed itself as an underdog — minority-owned, local and aggressive on pricing. The firm won city contracts by offering more explosions for less, with a small full-time staff and seasonal help during busy months.

Devastating consistently won contracts with cities and other event organizers by offering bigger shows for a lower price.

“We are the underdog, and enjoy that position,” the company wrote in multiple bid proposals, “and, most importantly, have a perfect safety record.”

Officials at Cal Fire, which includes the state fire marshal’s office, declined to comment on whether the company had past violations, citing the ongoing investigation.

The company kept its overhead low by employing a full-time staff of three employees and brought in more help as needed, such as when performing fireworks displays.

Some of its safety measures focused on reviewing emergency action plans regularly, and ensuring its workers receive annual training and wear required safety equipment. It also required its workers to follow state and federal laws related to transporting hazardous materials and using display fireworks, the company told potential customers.

Workers and contractors had classroom and hands-on training that required them to meet “rigorous safety requirements, which exceed state and federal requirements,” according to its bid proposals.

The company said it kept costs low by importing and manufacturing locally, billing itself as a “licensed ATF and CalFire importer and manufacturer of display pyrotechnics.”

However, the state licenses it held involved all but the manufacturing of explosives.

Through Devastating, Chee held wholesale, display and import licenses, but was never licensed to make pyrotechnics in California. Neither were BlackStar or its owner, Cutright.

Jack Lee, identified as Devastating’s operations manager, held a basic commercial license, while general manager Li never held a fireworks license in California, according to records.

Records show that Gary Chan Jr., who held a federal fireworks and explosives import license for Devastating, also never held a fireworks license in California.

‘A really likable person’

Norvin Hostler managed the Lucky Bear Casino in Hoopa, northwest of Redding. Around 2015 he looked for a new vendor to perform fireworks for the Hoopa Valley Tribe’s annual Sovereign Days.

Devastating stood out, Hostler said, for one reason above all: “price.”

Chee worked with Hostler to provide a fireworks show for a lower price than competitors had offered. That led to a partnership for several years of shows before Hostler left the job.

“He’s a really likable person,” Hostler said of Chee. “He never said ‘no.’ It’s like, ‘Yeah, yeah, we can work something out.’”

The company had a number of Northern California shows lined up this year, consistently underbidding larger competitors and offering longer shows for between $5,000 and $15,000 less than others, an appealing discount for a mid-sized casino or a small city.

This year, Yuba- Sutter contracted with Devastating but the materials were destroyed in the blasts, officials said. The facility appeared to have held high-grade explosives intended for at least seven community Independence Day shows.

Devastating performed the Fourth of July celebration for the city of Madera. It won contracts from the city by offering greater value — and more fireworks — than other bidders.

“Their firm offers both more fire-power (larger fireworks) and more explosions” for the same price, according to city records.

Property held two fireworks firms

Irregularities stood out about the property at the center of the explosion beyond the side-by-side houses and a swimming pool.

At the corner of two rural roads and surrounded by farmland, the compound was zoned for agricultural use and lacked local permits — including proper zoning — required to store fireworks and explosives.

Records show the parcel is one of two adjoining plots of land owned by Machado and his wife, Tammy, who works in the Sheriff’s Office as a legal secretary. Next door are two more parcels owned by Reiko Matsumura, a Yolo County sheriff’s deputy who is Tammy’s sister. Matsumura’s property houses seven containers, known as magazines, federally approved to hold explosive material. Two more are on the Machados’ property.

Sam Machado, who was injured in the fire, and Tammy Machado have been on administrative leave from the Sheriff’s Office since July 10, authorities said. Matsumura has also not been at work since the explosions, according to the Sheriff’s Office, but it was not known if she was placed on administrative leave as of Thursday.

What’s also unknown is how the extended family was tied to each firm’s operations or storage containers on their land.

The operations at the compound appeared to grow in recent years, based on a rise in fireworks imports between 2021 and 2023 and satellite images showing new structures, which aligns with the building permits Lawrence approved.

In 2020, Devastating Pyrotechnics imported 120 drums of aluminum powder in one shipment followed by two shipments totaling 750 pallets of potassium perchlorate.

The chemicals, mixed together, make “flash powder” used in fireworks. However, they are not commonly acquired by companies without manufacturing licenses, and not in such large quantities, experts have said.

Why the chemicals were imported and what was done with them remains unclear.

Appearing to have held more than 500 pounds of hazardous materials on site, it would have also required a Hazardous Materials Business Plan filed with the county. It did not.

Yet building permits were approved in recent years, including for a warehouse believed to have housed fireworks before its destruction in the blast. That permit was approved by Lawrence, the fire chief who also helped coordinate community fireworks shows performed by Devastating and BlackStar. The correspondence about the permit and Facebook posts from the local volunteer firefighters association thanking the companies show Lawrence and the district knew about fireworks stored at the property.

The Esparto Fire Department never conducted safety inspections of the property, Lawrence said in a July 7 news conference. But they did conduct “site visits,” he said, “just to be aware of what was here.”

“A site visit entails just basically coming on site and understanding what the operation looks like,” Lawrence told reporters. “For pre-planning and understanding.”

Beginning in 2023, for three successive years, Lawrence accepted donations to fund a fireworks show for Esparto’s annual Fourth of July celebration sponsored by the district and the volunteer firefighters association.

The 2023 donation followed a favorable decision made in December 2022 by Lawrence approving a building permit submitted by property owner Machado for a warehouse that was destroyed in the July 1 explosion. Devastating Pyrotechnics is believed to have stored fireworks in the warehouse, among other structures on the southeast corner of the parcel, according to photographs posted to social media by at least one of the victims.

In seeking permission to use a county park for the fireworks event, emails show that Lawrence was vague with county officials about the “donation” he received, never explaining its origin.

However, the fire district acknowledged in an email that the donation in 2023 came from Chee’s operation.

“Devastating Pyrotechnics did not donate money as part of the event. Instead, the company put on the show themselves, thus supplying the fireworks and oversight as their donation,” said Monica Burns, administrative assistant for the fire district.

Burns added that, “there is no accounting of any donation in the district’s accounting or meeting minutes because the district was never in receipt of any donation nor was the entity that hosted the community event.”

Facebook posts by the Esparto Volunteer Firefighters Association thank Devastating in 2023 and BlackStar in 2024 for funding the show.

“We appreciate the support of Black Star Pyrotechnics and their crew, time and fireworks which allowed us to present a magnificent fireworks display for the community’s pleasure,” one post from the volunteer association read.

The donations raise a host of questions about the district’s connections to Chee and Cutright’s outfits.

“This certainly does not smell right,” said Mary Inman, a founding partner of the San Francisco law firm Whistleblower Partners. “A fire chief has a fiduciary and, most importantly, a public safety responsibility to make arms length decisions. The donations ... suggests a cozy relationship between company and official, and raises the question if favorable decisions were made that were not appropriate.”

BlackStar sponsored the 2025 show, which was slated to happen four days after the inferno. It was subsequently canceled.

What may have caused the explosions?

The seasonal nature of the fireworks industry peaks around the Fourth of July, with a spike in sales and demonstrations leading up to and on the holiday. Even the big companies only have so many trucks and workers, and so much time, to meet peak-season demand.

Devastating Pyrotechnics, billing itself as a more affordable alternative to larger display companies, had three full-time employees and brought on seasonal help — a common industry practice.

At least one of the victims who died, 18-year-old Jesús Ramos, was working his first day for the company when the explosions happened, his girlfriend Syanna Ruiz has said.

“There’s definitely an opportunity for small companies to help the industry take on and meet the high demand,” said Julie Heckman, American Pyrotechnics Association executive director. “I’m certainly not saying Devastating Pyrotechnics wasn’t good at producing shows ... I think the question here is what happened July 1 at that facility.”

The Esparto facility had magazines, which are federally approved storage containers. They were placed far from the intersecting roads and lining the fields along the 67 acres of property — split four ways among the descendants of Jerry Matsumura, the father of Tammy and Reiko, who died in 2015. The magazines were at least a third of a mile from the grouping of structures and homes that blew up.

The ATF could approve storage without approving processing and manufacturing. Some larger companies, for example, have multiple locations, with some designated for storage.

“Many facilities will have a process area that has been approved for ATF, where these products are in special bins and because ATF requires a very thorough and precise inventory, everything removed from the magazine has to be inventoried,” Heckman said. “The day it leaves the magazine and where it’s going.”

Manufacturing or processing fireworks comes with strict requirements. The buildings where manufacturing or processing occurs have certain size specifications, as does what’s stored and happens in buildings.

A federal manufacturing license is not required for some of the fireworks processing that takes place when assembling a show. But the same rules regulating explosive quantities and building distances are still required.

Devastating had federal approval to store fireworks in several storage containers, the San Francisco Chronicle reported. Satellite images show those magazines spread around the northwest edge of the property, far from the compound destroyed in the blast. Images taken during the inferno appear to show one warehouse’s walls exploding outward. Photos of the wreckage also showed container boxes that had exploded.

The regulations not only protect against the hazards on-site, but provide safety for the neighboring area. This facility was surrounded by farmland, but within a half-mile of structures in each direction.

Any building where fireworks are being prepared is limited to up to 500 pounds net explosive quantity, which would include the process of attaching e-matches, used to remotely ignite fireworks displays. Any finished or partially assembled fireworks must be stored in an approved magazine when the day’s work has ended, according to federal regulations.

A carton of display fireworks prepared for a show may have about 40 pounds of net explosive quantity, said Weeth, the fireworks consultant. That means about a dozen cartons would push a building’s allowed capacity.

“The explosions that we saw had far more than 12 cartons,” Weeth said. “There were piles.”

E-matches have been used for decades and may have safety benefits for technicians when launching a display. But assembling that display carries more risk, due to the sensitivity of the electric ignition, and has been the suspected cause of fireworks accidents, including outdoor accidents that happened at Fourth of July shows this year.

When inserting e-matches, there are pros and cons to doing so at a facility’s processing site or when at the outdoor venue, setting up the show.

“But the process of packing those materials for display, the product’s not going to go off on its own,” Heckman said.

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