Bond granted for Biloxi councilman accused of drug trafficking after raids of CBD stores
A judge Monday granted Biloxi councilman Robert Deming III a $25,000 unsecured bond and set other conditions that will allow him to remain free pending trial on charges accusing him of a drug conspiracy and destruction, alteration or falsifying of records.
Federal prosecutors had requested that Deming remain in custody without bond at his first court appearance Friday, but then changed their minds Monday after a meeting between Assistant U.S. Attorney Erica Rose and Deming’s lawyer, W. F. Fred “Dub” Hornsby.
The defense and prosecutors met in chambers with the judge prior to the hearing.
“We are pleased with the agreed upon release of Mr. Deming, and the Court’s acceptance of the same,” Hornsby said. “We feel after lengthy discussion with the Assistant United States Attorney’s office that today’s result is just and fair. The case in in the very early stages so we have nothing further to say at this time and look forward to reviewing discovery upon production by the Government.”
A federal grand jury indicted the Biloxi councilman, attorney and business owner on two counts of conspiracy to distribute a controlled substance and one count of destroying, falsifying or alerting record.
Deming is accused of conspiring with others to possess and distribute products sold at his CBD and kratom stores that contained a form of synthetic cannibinoids, a Schedule 1 controlled substance..
In addition, he’s accused of destroying or falsifying records after learning he had become the subject of a criminal investigation following a raid at his home and business in January.
Conditions of Biloxi councilman’s jail release
When granting Deming bond Monday, Judge Robert Myers issued the following conditions:
GPS monitoring
$25,000 unsecured bond
No contact with any potential co-defendants or employees of his his kratom and candy shops, known as The Candy Shop, LLC.
No activity in his law firm’s trust account
Surrender his passport
No travel outside of the southern district Mississippi without the permission of probation and parole.
Deming has been in custody since sheriff’s deputies picked him up Thursday afternoon on a warrant for the U.S. Drug Enforcement Administration.
DEA investigates Deming’s CBD stores in MS & NC
The DEA said an investigation began nearly two years ago after authorities received complaints about people getting sick after consuming products from the Candy Shop stores. Some of the complaints came from children who got sick after using the products.
Feds want to seize Biloxi councilman’s home and millions found in DEA raids of his CBD stores
Deming’s attorney had requested a preliminary hearing Friday for Deming during his first appearance following his arrest, but federal prosecutors said they needed more time to prepare for the hearing.
Deming, dressed in a black and white jail jumpsuit Monday, smiled at a group of family members who came to court to support him.
Since the raids at Deming’s stores in Mississippi and North Carolina, 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 estimated $1.8 million in 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.
In addition, authorities want to seize Deming’s home and money from his various bank accounts and a cryptocurrency account.
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.
Who is Robert Deming?
Federal authorities simultaneously raided the CBD and kratom stores Deming owns in both Mississippi and North Carolina in January, seizing bulk cash and other items.
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.
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.
