A city councilman in Mississippi has pleaded guilty to a drug conspiracy charge for using his chain of vape stores to sell products labeled as containing CBD, a non-psychoactive component of marijuana, though they in fact contained illegal synthetic cannabinoids, authorities said.
Knewz.com has learned that Robert Leon Deming III, 47, pleaded guilty to conspiracy to possess with intent to distribute a Schedule I controlled substance, according to the U.S. Attorney's Office for the Southern District of Mississippi. As part of the plea agreement, Deming, a former Biloxi city councilman, agreed to forfeit a yellow monster truck with oversized tires and a lift kit and over $1.9 million dollars.
According to court documents, Deming founded the Candy Shop LLC in 2019, and operated Candy Shop stores in Mississippi and North Carolina. The Candy Shop sold CBD and vape products.
In 2020, an investigation by the Mississippi Bureau of Narcotics and the U.S. Drug Enforcement Administration revealed that some of the vape products sold at the Candy Shop contained Schedule I controlled substances and controlled substance analogues. In 2022, the DEA received complaints that Candy Shop products were making some customers ill.
Search warrants were simultaneously executed at Candy Shop stores in Mississippi and North Carolina, and at Deming's residence on Jan. 26, 2023. Officers seized more than $1.8 million in cash from Deming’s residence along with cash and controlled substances from his stores.
Investigators learned that Deming was aware his vape additives did not contain CBD as advertised, and contained synthetic cannabinoids instead. Group chats showed Deming's employees had complained that the additives were too strong, and could harm customers, but Deming mislabeled the products anyway.
Investigators also learned that in May of 2022, Deming purchased 5F-AB-PINACA, a Schedule I controlled substance, for use in his vape additives, and knew it was a controlled substance when he purchased it.
“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,” U.S. Attorney Todd Gee said in a statement.
"The DEA is committed to holding all individuals accountable for drug trafficking, regardless of position,” said DEA Assistant Special Agent in Charge Anessa Daniels-McCaw.
“U.S. consumers are put at risk when labeling is false and misleading,” said Special Agent in Charge Justin Fielder, FDA Office of Criminal Investigations, Miami Field Office. “Labeling is designed to provide information that can help consumers make informed choices about what they purchase and consume. The FDA is committed to pursuing and bringing to justice those who unlawfully mask controlled substances as known consumer products to be sold to the American public.”
Deming is scheduled to be sentenced on Aug. 13.
—TMX contributed to this report.
