A Pearland couple is facing federal drug-related and money laundering charges for allegedly selling large quantities of synthetic marijuana in their southeast Houston grocery store and laundering more than a quarter-million dollars in profits.
According to court records, agents from the Drug Enforcement Administration (DEA) launched an undercover investigation into an alleged narcotics trafficking operation more than two years ago which eventually led to the arrest of the couple and two of their employees in November of 2013.
In the weeks leading up to the arrest, undercover DEA agents tracked the couple as they allegedly shuttled boxes of synthetic marijuana from their Pearland home to their store in southeast Houston.
On one occaision, agents reported a group of customers were waiting outside the store when the suspects arrived and followed them into the store. Soon after, a long line formed of customers waiting to buy packets of synthetic marijuana with exotics names such as “Dead Man Walking” and “Bizarro”. One plain-clothed agent, posing as a customer, bought two packages of “red” (a brand labeled as “Kush Strawberry”) which DEA labs later determined was a controlled substance, court records state.
Pearland Police assisted with undercover investigation
The undercover investigation lasted several weeks during which time DEA agents were assisted by Pearland Police officers and Houston Police officers. The couple’s home and store were reportedly under survelience during that time as evidence was gathered as to how the Pearland couple operated their alleged drug business.
From a distance, pictures were taken as the couple and two of their employees carried garbage bags, plain brown moving boxes and shopping bags back from their home to the store every day. Undercover agents visited the store several times and watched as customers line up to buy synthetic marijuana. The husband often acted as a security guard for the store, watching for robbers or police, while his wife waited on customers, DEA agents reported in court documents.
Four suspects arrested
On Nov. 7, 2013, DEA agents and police officers headed to the couple’s southeast Houston store with search warrants. Two undercover DEA agents were positioned inside the store when a marked Houston Police patrol car parked in front of the building. The agents reportedly heard the husband alert customers by yelling “police!”.
Despite the warning, five customers who were allegedly caught with packages of synthetic marijuana were detained following the raid.
Agents then searched the business and seized numerous types of synthetic marijuana packaged with brand names that included Kush, Green Giant, Alice in Wonderland, Klimax, Hello Kitty, Mr. High, Godfather, Bizarro, Angry Bird Space and Scooby Snax. Agents said the products were found lying on the floor behind the counter in brown moving boxes, large shopping bags and black trash bags.
Meanwhile, DEA agents and Pearland Police officers arrived at the couple’s home with a search warrant with reportedly uncovered a makeshift warehouse filled of boxes of packaged synthetic marijuana in the garage. A search of the master bedroom reportedly resulted in the seizure of over $63,000 found in a dresser drawer. And, in the center console of the couple’s minivan, officers reportedly discovered almost $9,000.
Suspect interview
The husband sat down with investigators in the dining room of his home following the search. At that point, the boxes in the garage had been counted and inventoried and investigators asked about the business’ profit structure. The man said his wholesale cost was $3.25 for each packet, which was then sold to customers for $20 to $25. Using that information, the suspect and DEA agents calculated the boxes would have created estimated profits of $1.3 million.
Later, investigators discovered bank records that allegedly showed the couple had made numerous cash deposits totaling almost $270,000 over the last six weeks.
The suspect told agents he and his wife started selling synthetic marijuana at the suggestion of one of his employees, with the claim an $80,000 investment could result in more than $1 million in profits. At the time, the man said the store generated profits of roughly $80,000 a year.
During the interview, the man told agents his synthetic marijuana operation wasn’t illegal as his store was located in Houston. Officers pointed out that his store was on Shaver Street which is the dividing line between Houston and Pasadena, where selling synthetic marijuana is illegal.
The agents countered the man’s arguement by asking the suspect if a Houston Police officer walked into the store and asked to purchase “Kush”, would he sell it to them? The man said no. The agents then told the man the reason he wouldn’t sell “Kush” to a police officer is because he knew it was illegal. Agents said the man nodded in agreement. Agents then asked the man if he sold his products to underage students from South Houston High School, which is near the store. The man reportedly said no.
Shortly after the interview, police arrested the Pearland couple and two of their store employees for the alleged distribution and possession of controlled substances and money laundering.
On Oct. 13, a criminal complaint was filed in federal court against all four suspects, who are currently free on bond. Federal prosecutors are reviewing the case and a preliminary hearing is expected in the coming weeks. Since the charges were filed, the two Pearland suspects hired Houston attorney Mike Deguerin to represent them. Calls to his office for comment were not immediately returned.
