A Biloxi councilman’s CBD stores were raided. Here’s why his drug trial was delayed
The criminal trial of Biloxi councilman and attorney Robert L. Deming III has been delayed after his attorney asked the judge to do so to give the lawyer time to meet with federal prosecutors about how to resolve the case and review evidence prosecutors provided in pre-trial action.
Attorney W. Fred “Dub” Hornsby filed the request with no objection from federal prosecutors.
Deming’s trial, previously set to begin next week in federal court in Gulfport, is now set to start on the criminal calendar beginning April 1 in federal court in Gulfport.
Such delays in a case are usually approved if the defense attorney needs more time to review the evidence to get ready for the trial or wants to work with prosecutors on any potential plea deal.
Deming has denied any criminal wrongdoing.
In January 2023, Drug Enforcement Administration Agents raided Deming’s home and nine CBD and kratom shops called The Candy Shop in in Mississippi and North Carolina, seizing over $1.8 million in cash from Deming’s home, truck and office, and $70,000 in cash from The Candy Shop stores.
In addition, DEA agents seized various logs, receipts and financial records from the business, along with alleged synthetic cannabinoids and other suspected additives.
DEA agents started a criminal investigation into The Candy Shop and its owners, identified as Deming and Damion Fletcher, and employees, suppliers and alleged co-conspirators in late 2021, DEA Agent Alexander Smith said. The stores in Mississippi, one each in Biloxi, Hattiesburg, and Ocean Springs, as well as those in North Carolina, remain open.
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Smith did a financial analysis of transactions in Deming’s accounts over three years and said he believes “the funds withdrawn from Deming’s ...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.”
A “cooperating witness” in the criminal investigation also told agents that Deming was concerned about his assets after the Jan. 26, 2023, raid.
Authorities waited until September 2023 to arrest Deming on federal charges of conspiracy to possess with the intent to distribute a controlled substance and destruction, alteration or falsification of records in a federal investigation.
A judge has since appointed independent receiver, identified as Poplarville attorney Colette A. Oldmixon, to oversee Deming’s attorney trust account to determine the identity and amount owed to any of his clients. Oldmixon was granted subpoena power to review account information and to obtain other information she may need before filing a recommendation for any payouts based on her findings.
A judge will ultimately sign off on any the recommended payments after a review of the reports by the judge, Deming and his attorney, and prosecutors.
Deming is out of jail under house arrest pending trial. He has a daily curfew and other restrictions but continues to serve as Ward 4 councilman in Biloxi.
The federal government has filed a forfeiture request to seize Deming’s home in Biloxi and his CBD and kratom stores, arguing the cash and other property are subject to forfeiture because they are derived from an alleged drug trafficking network involved in money laundering and racketeering through the businesses.
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