New action follows second arrest in federal probe of Coast official’s CBD, kratom stores
Federal prosecutors in Mississippi have dismissed a criminal charge against an employee of a CBD and kratom store owned by Biloxi councilman Robert L. Deming in connection with the longtime attorney and Coast official’s pending drug case, according to records filed in the case.
Celeste “CJ” Little was arrested in April on a federal criminal complaint charging the employee with attempt and conspiracy to alter, destroy, and cover up a tangible object with the intent to impede, obstruct, or influence an investigation. Little had been free on a $25,000 unsecured bond since the arrest.
According to the charging document, Little was accused of committing the crime while working as an employee at one of Deming’s nine CBD and kratom stores called the Candy Shop, LLC, as Drug Enforcement Administration agents simultaneously raided the stores on Jan. 23, 2023. During the raid, agents seized $1.8 million in cash from Deming’s home and vehicles and other cash at his stores.
After the raids began, both Deming, Little and others started making calls to one another and other associates and business partners.
Little was accused of trying to obstruct or impede the investigation by calling a manager at one of the Candy Shop stores in Fayetteville, North Carolina, and telling a manager to throw out their synthetic cannabinoids additive, identified as the Schedule 1 controlled substance.
In the recorded call, Little said, “Go take the additive and throw them away,” the records say.
The addictive is identified in the records as as MDMB-4en-PINACA, or a synthetic cannabinoid classified by the DEA as a Schedule 1 controlled substance only in recent years.
On Thursday, Assistant U.S. Attorney Jonathan Buckner informed Judge Robert Myers of the decision to dismiss the federal charge against Little on behalf of U.S. Attorney Todd Gee. The charge was dismissed without prejudice, meaning prosecutors still reserve the right to file new charges against Little at another date if warranted.
There is no indication prosecutors plan to charge Little again.
Meanwhile, Deming remains under house arrest pending trial on federal charges of conspiracy to possess with intent to distribute a controlled substance and destruction, alteration or falsification of records in a federal investigation.
DEA agents started investigating Deming’s criminal wrongdoing at the stores as early as 2020 when agents started making undercover purchases at the stores.
During the undercover operation, federal agents said store employees made comments like, “You cannot smoke this by itself,” because “it will put you in the hospital, it is way, way, way too strong.” and more.
Deming owns nine of The Candy Shop, LLC, stores in both Mississippi and North Carolina.
Federal investigations became suspicious of Deming’s activity after he started making big cash purchases, the records say, that included him paying $500,000 in cash for his Biloxi house and other cash to purchase of several high-end cars.
In addition, federal authorities found that Deming’s financial records indicated that he was making a lot more money than other CBD and kratom stores in Mississippi and North Carolina.
About two weeks after the raid, DEA Agent Alexander Smith said, Deming closed his business and personal accounts at Cadence Bank, formally known as Bancorp South, withdrawing over $280,000.
Five days later, the agent said, Deming opened new accounts at Wells Fargo and deposited around the same amount of cash into those accounts and an existing account at WoodForest National Bank.
DEA Agent Smith did a financial analysis of transactions in Deming’s accounts over three years and said he believes “the funds withdrawn from Deming’s ... multiple accounts are co-mingled with proceeds derived from the sale of illicit substances.”
In other words, Smith said, the financial review showed Deming “consistently and repeatedly co-mingled funds between accounts for The Candy Shop and his personal law and law firm accounts.”
The Sun Herald has spoken to Deming, who has declined to comment pending consultation with his attorney, W. Fred “Dub” Hornsby. Deming has continued to serve as Ward 4 councilman in Biloxi. He is currently in his third term in office.
Deming’s trial on federal charges has been delayed a couple of times and is now set to go forward on the criminal court calendar beginning on June 6 barring any decision to enter a plea in the case.
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