Daily, 44, of Newberg, was accused of rape, sodomy and other sex-related crimes, including posting Craigslist ads to solicit others to join in group sex with a 14-year-old girl, authorities said. There also were allegations of adults showing up to have sex with the teen, as well as police seizing drugs, sex toys and computer images of victims.
The news shocked Newberg, a small town in the hills of Oregon's pinot noir country, as authorities pressed sex crime charges against Daily and four other adults.
"It's disgusting. It's beyond sick," said Kim McCabe, who lives a few blocks from Daily's place.
Sherry Donaldson, who lives in rented quarters adjoining Daily's, said she's glad that after she smelled the odor of marijuana seeping into her kitchen she told her children to stay within the fenced yard in front, and not go to the back where he lived with two young daughters and a small dog named Buddy.
Daily remained in jail Wednesday on $1 million bail.
Three men and a woman have been accused of abusing the 14-year-old, who is too young under Oregon law to consent to sex with adults.
Three men were accused of responding to the Craigslist ad: Patricio Moreno, 43, of Forest Grove; Robert D. Thompson, 34, of Portland; and David Garcia, 41, of McMinnville. All are charged with sex abuse and rape.
Alisa Nice, 31, of McMinnville, was charged Wednesday with sexual abuse, sodomy and using a child in a display of sexually explicit conduct. Police said she knew Daily.
Lawyers for the suspects had little or no comment. "At this point innocent until proven guilty is all I have," said Thompson's attorney, Janmarie Dielschneider.
A police press release on Tuesday said that a 4-year-old girl whose image was in computer files seized at Daily's house had told of being abused and was in the care of a child abuse assessment center.
No charges relating to the child have been filed, said Lisl Miller, deputy district attorney for Yamhill County.
"I really can't talk about the factual background regarding the 4-year-old at this point," she said.
Police said a third victim, a 15-year-old girl, came forward in early September and told them that Daily had recently given her alcohol and marijuana before they had sex.
A week later, police said in affidavits, they arrested Daily. Searching his computer equipment, they said, they found images of the 14-year-old.
A few days later, the court documents said, the 14-year-old told police she'd had sex with Daily about every other weekend since February and described encounters involving bondage, multiple adults and a dog.
The 15-year-old told police she had met Daily at a swimming pool, and that Daily's daughter, who was with him, asked her to visit, according to court documents. When she visited she smoked marijuana with him and he provided alcohol, according to the documents. She said Daily "got too high," took her to a bedroom and they had sex.
Little information about Daily's background was available Wednesday.
He lived in a one-story addition to an older two-story house, and neighbors said they believed he had no job.
Ken Cudd said he'd lived across the street 22 years and seen rowdier tenants.
"He kept to himself and his friends," Cudd said.
He said Daily moved in early in the year and left only about twice a month after loading his black Jeep Cherokee with empty cans "I mean, tons and tons of cans" presumably to return for the deposits.
Donaldson said she moved into the two-story part of the rental unit in April along with her children, ages 13 and 9.
"He did have people over, but it wasn't crazy wild," she said. "It was odd."
Early on, she said, she warned Daily she would call the police if she smelled marijuana again. She said she gave the warning through the wall between her kitchen and Daily's unit: "I just said it extremely loud, so they could hear." She said she didn't smell the odor again.
Kimberly Zoutendijk, who organizes a neighborhood watch group, said she once tried to warn Daily about allowing his children to walk the dog along the streets alone, but he waved her off.
The allegations were a shock. "There was never any indication of anything like that," she said.
"If only I'd had some idea," she said. "I could have said something."