Former MS Coast politician begins serving his sentence in drug case at federal prison

A former Mississippi Coast politician convicted of conspiracy to distribute a controlled substance for selling products that contained illegal synthetic cannabinoids at his CBD and kratom stores is now in federal custody.

Robert Leon Deming III, 47, reported to the minimum-security federal prison in Montgomery, Alabama, this week.

Deming is now serving a six-year sentence for distributing illegal additives in vape products and other items sold out of his Candy Shop stores in Mississippi and North Carolina.

His imprisonment comes just over two months after U.S. District Judge Taylor McNeel handed down the sentence in federal court in Gulfport.

One of the Candy Shop kratom stores owned by Biloxi Councilman Robert Deming III on Thursday, Jan. 26, 2023. The shop was raided by the DEA due to an ongoing investigation.
One of the Candy Shop kratom stores owned by Biloxi Councilman Robert Deming III on Thursday, Jan. 26, 2023. The shop was raided by the DEA due to an ongoing investigation.

Deming pleaded guilty to the offense in a plea agreement with federal prosecutors.

Deming’s attorney, W. Fred “Dub” Hornsby, said at the sentencing that his client made a mistake.

“Things just evolved to where these drugs were placed in consumer products,” Hornsby said. “He wasn’t trying to be a drug dealer.”

Judge McNeel pointed out at sentencing that the case against Deming was somewhat complicated for several reasons.

After opening his six Candy Shop stores, Deming approached Biloxi Police Chief John Miller to field test a product with additives to ensure their legality. The judge stated that the test did not detect any illegal substances, but Miller cautioned Deming that a lab test was necessary to confirm the absence of unlawful additives.

Robert L. Deming III, city council representative for Ward 4, appears at a Biloxi City Council meeting in Biloxi on Tuesday, Feb. 7, 2023. Deming’s home and several of his the Candy and Kratom Shop businesses were raided by the DEA on Jan. 26, 2023.
Robert L. Deming III, city council representative for Ward 4, appears at a Biloxi City Council meeting in Biloxi on Tuesday, Feb. 7, 2023. Deming’s home and several of his the Candy and Kratom Shop businesses were raided by the DEA on Jan. 26, 2023.

Deming’s attorney noted that the law does not clearly label what additives are illegal.

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During his explanation for sentencing, the judge said the illegal additive Deming bought and sold in some of his store products was a controlled substance analog that was not explicitly classified as a Schedule I controlled substance until 2023.

As a result, the judge said he saw some “gray area” regarding the legality of the additive.

Robert Deming III reacts as he prepares to resign from his Biloxi City Council seat during a press conference in front of Biloxi City Hall in Biloxi on Tuesday, May 7, 2024. Deming pleaded guilty to a federal drug conspiracy charge on May 1.
Robert Deming III reacts as he prepares to resign from his Biloxi City Council seat during a press conference in front of Biloxi City Hall in Biloxi on Tuesday, May 7, 2024. Deming pleaded guilty to a federal drug conspiracy charge on May 1.

Often referred to as “designer drugs,” analog or analog drugs are those additives that are similar in chemical structure to controlled substances. The additive in question produces the same or similar effects as illicit drugs such as marijuana or other drugs.

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Deming forfeited over $1.9 million and a Ford F-350 Monster truck as part of his plea.

Deming opened his six stores called the Candy Shop in 2019. At some point after that, federal prosecutors said one of Deming’s co-conspirators took $10,000 in cash with him to Houston, Texas, to buy the illegal additives that were added to the products. Other purchases occurred in Lafayette, Louisiana; and Medford, Oregon.

Drug Enforcement Administration agents and other law enforcement officers search two cars as a part of raids conducted on the home of Biloxi Councilman Robert Deming III on Thursday, Jan. 26, 2023. Agents would not say specifically what they were looking for or what they found, but agents also conducted raids on several locations of The Candy Shop & Kratom, a kratom store chain owned by Deming.

The judge said Deming bought the illegal additive through “a friend of a friend” and not a retailer.

The U.S. Drug Enforcement Administration and the Mississippi Bureau of Narcotics launched the criminal investigation after receiving reports of customers becoming ill from using some of the products, mostly vape pens, sold at the stores.

Undercover agents acquired of some of the products sold at the stores, and subsequent testing vape pens sold at the stores contained a Schedule I controlled substance known as 5F-AB-PINACA.

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The investigation culminated in a Jan. 26, 2023, raid at Deming’s stores and offices, resulting in the seizure of over $1.8 million in cash from Deming’s home and vehicles along with other cash from the stores. In addition, federal agents seized other drugs at Deming’s house, the prosecutors said.

As part of the investigation, federal authorities ran a financial records check on financial gains at Deming’s stores and found he was bringing in significantly larger profits from sales at his stores compared to businesses that sold the same products.

During the financial analysis, investigators noticed that Deming had made high-end purchases with cash, such as the $500,000 he paid in cash for a Biloxi home and other items, such as a Monster truck.

Deming resigned from public office shortly after pleading guilty in May.

After his release under house arrest in May, federal investigators also found that Deming had closed his personal bank accounts and his attorney trust account.

Robert Deming III, left, his attorney, W. Fred “Dub” Hornsby, right, and Deming’s family members leave Dan M. Russell Jr. Federal Courthouse in Gulfport on Wednesday, May 1, 2024, after Deming pleaded guilty to selling products containing synthetic cannabinoids at his Candy Shop kratom stores.
Robert Deming III, left, his attorney, W. Fred “Dub” Hornsby, right, and Deming’s family members leave Dan M. Russell Jr. Federal Courthouse in Gulfport on Wednesday, May 1, 2024, after Deming pleaded guilty to selling products containing synthetic cannabinoids at his Candy Shop kratom stores.

Five days later, he opened new accounts at different banks and moved the money around, causing some funds from his law practice to become mixed with proceeds from illicit drug sales.

As part of his plea deal, authorities cash seized at Deming’s home and other items listed below:

  • $73,328.24 in cash from the Candy Shop store in Ocean Springs.

  • $21,597 in cash from a Wells Fargo bank account in the name of Robert L. Deming.

  • $56,214 in cash from a Wells Fargo bank account in the name of Robert Deming Attorneys at Law.

  • $26,667 in cash from a Woodforest National bank account in the name of DK Marine LLC, a business for which Deming is listed as the registered agent and owner.

The DEA, MBN, and the officers with the U.S. Food and Drug Administration Office investigated the case.