TENAHA, Texas (CNN) — Roderick Daniels was traveling through East Texas in October 2007 when, he says, he was the victim of a highway robbery.

Police in the small East Texas town of Tenaha are accused of unjustly taking valuables from motorists.

1 of 2 The Tennessee man says he was ordered to pull his car over and surrender his jewelry and $8,500 in cash that he had with him to buy a new car.

But Daniels couldn’t go to the police to report the incident.

The men who stopped him were the police.

Daniels was stopped on U.S. Highway 59 outside Tenaha, near the Louisiana state line. Police said he was driving 37 mph in a 35 mph zone. They hauled him off to jail and threatened him with money-laundering charges — but offered to release him if he signed papers forfeiting his property.

“I actually thought this was a joke,” Daniels told CNN.

But he signed.

“To be honest, I was five, six hundred miles from home,” he said. “I was petrified.” Watch CNN’s Gary Tuchman try to question officials »

Now Daniels and other motorists who have been stopped by Tenaha police are part of a lawsuit seeking to end what plaintiff’s lawyer David Guillory calls a systematic fleecing of drivers passing through the town of about 1,000.

“I believe it is a shakedown. I believe it’s a piracy operation,” Guillory said.

George Bowers, Tenaha’s longtime mayor, says his police follow the law. And through her lawyers, Shelby County District Attorney Lynda Russell denied any impropriety.

Texas law allows police to confiscate drug money and other personal property they believe are used in the commission of a crime. If no charges are filed or the person is acquitted, the property has to be returned. But Guillory’s lawsuit states that Tenaha and surrounding Shelby County don’t bother to return much of what they confiscate.

Jennifer Boatright and Ron Henderson said they agreed to forfeit their property after Russell threatened to have their children taken away.

Like Daniels, the couple says they were carrying a large amount of cash — about $6,000 — to buy a car. When they were stopped in Tenaha in 2007, Boatright said, Russell came to the Tenaha police station to berate her and threaten to separate the family.

“I said, ‘If it’s the money you want, you can take it, if that’s what it takes to keep my children with me and not separate them from us. Take the money,’ ” she said.

The document Henderson signed, which bears Russell’s signature, states that in exchange for forfeiting the cash, “no criminal charges shall be filed … and our children shall not be turned over” to the state’s child protective services agency.

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