Former Biloxi Councilman Robert Leon Deming III is headed to prison for six years for selling products containing synthetic cannabinoids at his CBD and kratom stores in Mississippi and North Carolina.
U.S. District Judge Taylor McNeel handed down the sentence Tuesday, also ordering Deming to serve three years of unsupervised release and to pay a $5,000 fine.
His attorney, W. Fred “Dub” Hornsby, acknowledged that Deming made a mistake. “Things just evolved to where these drugs were placed in consumer products,” Hornsby said. “He wasn’t trying to be a drug dealer.”
When explaining his determination in sentencing, the judge noted that the illegal additive Deming bought and sold in some of the products at his stores was a controlled substance analogue that was not specifically identified as an Schedule I controlled substance until 2023.
As a result, the judge said he saw somewhat of a “gray area” regarding the legality of the additive.
Often referred to as “designer drugs,” analogue or analog drugs are those additives which are similar in chemical structure to controlled substances. The addictive in question produces the same or similar effects as illicit drugs such as marijuana or other drugs.
McNeel said it became clear at a certain point in the criminal investigation that Deming knew he was buying and selling products infused with an illegal additive.
That was evident, investigators said, by group chats in which Deming’s employees complained about how the additives were too strong and could harm customers.
In May, Deming pleaded guilty to one count of conspiracy to distribute a controlled substance in a plea agreement with federal prosecutors. Specifically, he admitted selling the products at his Candy Shop stores on U.S. 90 in Ocean Springs.
The sale of the products culminated in over $2 million in sales at Deming’s nine stores.
Assistant U.S. Attorney Jonathan Buckner said investigators also found proof that Deming had personally sent a $2,200 check to an unindicted co-conspirator to buy a kilo of the illicit drugs added to his products..
In exchange for his plea, prosecutors dismissed two additional charges, one for drug conspiracy and another for the destruction, alteration or falsification of records in a federal investigation.
Deming arrived at the federal courthouse early for sentencing Tuesday along with his supporters who followed him into the courthouse for sentencing.
U.S. Attorney Todd Gee weighed in on the crimes after Deming pleaded guilty.
“A public official’s side job should not be running a business that distributes millions of dollars in illegal controlled substances and endangers the health and safety of its customers,” Gee said. “We appreciate the hard work of investigators with the DEA, FDA, and MBN to put a stop to the distribution of these dangerous vape additives.”
As part of the plea agreement in the criminal case, Deming agreed to forfeit a yellow Monster Truck, a lift kit, over $1.9 million dollars in cash and more..
The criminal investigation
The U.S. Drug Enforcement Administration and the Mississippi Bureau of Narcotics began a criminal investigation after reports of customers getting sick after using some of the products, mostly vape pens, that were sold at the stores.
During the undercover probe, authorities obtained some of the products from the stores and subsequent testing showed mostly vape pens sold at the stores contained a Schedule I controlled substance known as 5F-AB-PINACA.
The investigation culminated in a Jan. 26, 2023, raid at Deming’s stores and offices, resulting in the seizure of over $1.8 million in cash from Deming’s home and vehicles along with other cash from the stores. In addition, federal agents seized other drugs at Deming’s home, the prosecutors said.
As part of the investigation, federal authorities ran a financial records check on financial gains at Deming’s stores and found he was bringing in significantly larger profits from sales at his stores compared to businesses that sold the same products.
During the financial analysis, investigators noticed that Deming had made high-end purchases with cash, such as the $500,000 he paid in cash for a Biloxi home and other items, such as a Monster truck.
Deming resigned from public office a short time after he pleaded guilty in May.
After his release under house arrest in May, federal investigators also found that Deming had closed his personal bank accounts and his attorney trust account.
Five days later, he opened new accounts at other banks and shuffled the money around, resulting in some of the money from his attorney practice being co-mingled with proceeds from illicit drug sales.
As part of his plea deal, authorities cash seized at Deming’s home and other items listed below:
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$73,328.24 in cash from the Candy Shop store in Ocean Springs.
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$21,597 in cash from a Wells Fargo bank account in the name of Robert L. Deming.
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$56,214 in cash from a Wells Fargo bank account in the name of Robert Deming Attorneys at Law.
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$26,667 in cash from a Woodforest National bank account in the name of DK Marine LLC, a business for which Deming is listed as the registered agent and owner.
The DEA, MBN and the officers with U.S. Food and Drug Administration Office investigated the case.
Assistant U.S. attorneys Buckner and Lee Smith prosecuted the case.
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Source Agencies
