Biloxi councilman indicted on drug conspiracy, records destruction charges after raids
Biloxi councilman Robert L. Deming III is in federal court Friday for an initial appearance following his three-count indictment on charges related to a raid at his home and CBD and kratom stores in Mississippi and North Carolina.
A federal grand jury indicted Deming on two counts of conspiracy to possess with intent to distribute a controlled substance and one count of destruction, alteration or falsification of records in a federal investigation.
Each of the two conspiracy charges carry a maximum sentence of up to 20 years in prison, up to a $1 million fine and up to three years of supervised release.
The third charge of destruction of records has a maximum sentence of up to 20 years in prison, up to $1 million fine and up three years of supervised release.
According to the indictment, Deming allegedly conspired with others to possess and distribute products sold at the CBD and kratom stores that contained synthetic cannibinoids, a Schedule 1 controlled substance.
In addition to the drug conspiracy charges, Deming is accused of altering, falsifying or destroying records after he knew he was the subject of a criminal investigation.
On Friday, Deming pleaded not guilty to the charge. Judge Robert Myers denied Deming bond pending a detention hearing that is set Monday in federal court in Gulfport.
Attorney W. Fred “Dub” Hornsby is representing Deming.
Harrison County Sheriff Troy Peterson said deputies arrested Deming in a Thursday traffic stop on Pass Road in Biloxi. He said deputies arrested him on a warrant for the Drug Enforcement Administration.
“DEA put a hold on him, and he should have court sometime this morning,” Peterson said. earlier in the day
In August, federal authorities filed paperwork to seize nearly $1.8 million in cash seized at Deming’s home during a Jan. 26 search of the attorney’s home.
In the forfeiture case, the federal government outlines how the cash and other items that DEA agents seized from Deming and his businesses are subject to forfeiture because they are derived from an alleged drug trafficking network involved in money laundering and racketeering through his businesses.
Deming owns six of the Candy Shop stores across Mississippi and North Carolina. In addition, he owns D.K. Marine, LLC, and his law firm.
Deming has declined to comment on the move to seize his property or about the raids themselves.
Allegations outlined in forfeiture case
Federal authorities outlined the alleged crimes in a move to seize items subject to forfeiture because of alleged violations of drug trafficking and racketeering.
Racketeering is a federal crime, typically categorized as a white-collar scheme involving an illegal enterprise set up to commit fraud, money laundering and other crimes, such as narcotics trafficking.
In addition to cash, federal authorities are looking to seize property and money in various bank accounts linked to Deming.
The items subject to forfeiture are listed here:
$575,746.00 in cash DEA agents seized at Deming’s home in the upscale Taylor Oaks subdivision in Biloxi
$1,230,559.27 in cash also seized during a Jan. 26 search of Deming’s home
$4,040.00 in cash DEA agents seized from a vehicle registered to Deming at his Biloxi home
$73,328.24 in cash DEA agents seized from The Candy Shop LLC in Ocean Springs.
Property at 946 Caroline Drive in Biloxi in the name of Robert L. Deming III
All funds held in Legend Trading, Inc., a cryptocurrency account in the name of Robert Deming
All funds in a Wells Fargo account in the name of Robert L. Deming
All funds in a Wells Fargo account in the name of Robert L. Deming
All funds in a Wells Fargo Account in the name of Robert Deming Attorneys at Law LLC.
All funds in a Woodforest National Bank Account in the name of DK Marine LLC.
Multi-state raids
Federal agents searched Deming’s CBD and kratom stores in North Carolina at the same time authorities in Mississippi searched his stores on the Coast and in Hattiesburg.
In the raid in Fayetteville, North Carolina, agents reported seizing the following items:
6,000 units of synthetic cannabis falsely labeled as CBD
500 doses of substances suspected to contain synthetic cannabis
1,000 units of homemade edibles suspected of having cannabis
About $2 million in cash
At the time of the January raids, Chris Bell, special agent in charge for the DEA in Gulfport, told the Sun Herald there had been complaints about people getting sick after consuming products from the Candy Shop stores.
The stores have remained open since then.
The raids centered around synthetic cannabinoids, sold as oils or edibles, which authorities said allegedly had “additional substances added to them, “that made some customers suffer from health issues.
Some complaints came from parents of children who got sick after using the products.
Deming is currently in his third term as Ward 4 councilman, after first being elected in 2013, then re-elected in 2017 and again in 2021. He is serving as vice president of the council this year.
In his law practice, Deming specializes in bankruptcy, breach of contract, estate, trusts, and probate, personal injury litigation and worker’s compensation law.
According to his LinkedIn profile, Deming owns the full-service consulting firm Denham Law Firm and DEMING Enterprises LLC.
Deming received his undergraduate degree from the University of Southern Mississippi and his juris doctorate from the University of Mississippi School of Law.
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