Doy R. Case, 79, and his wife, Tressie L. Case, 67, both of Rogersville, were charged in a nine-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Tuesday, July 22, 2014.
That indictment was unsealed and made public yesterday upon the arrests and initial court appearances of Doy and Tressie Case. They remain in federal custody pending a detention hearing on Friday, July 25, 2014.
The Cases own a business called Magic Dragon, 382 Redbud Street, Rogersville. According to court documents, the Cases received delivery of approximately 101,861 grams of synthetic cannabinoids between Sept. 15, 2010, and Nov. 13, 2012. They allegedly charged an average price of $10 per gram of synthetic cannabinoids; therefore, it appears they grossed approximately $1 million during this time frame. They allegedly deposited approximately $672,349 into bank accounts that they controlled.
The Cases were contacted by federal agents in August 2012, according to court documents, and told that the sale of synthetic cannabinoids was illegal. Agents gave the Cases the opportunity to voluntarily cease and desist, but they did not.
Court documents also allege that the Cases advertised their products to minor children. On at least seven occasions, they allegedly placed advertisements in high school yearbooks or with student organizations.
The federal indictment alleges that Doy and Tressie Case participated in a conspiracy between Sept. 15, 2010, and Nov. 13, 2012, to defraud the Food and Drug Administration and to defraud the public by falsely representing that a number of synthetic cannabinoid products were â€śherbal aromas,â€ť â€śnatural fragrancesâ€ť or â€śincenseâ€ť and â€śnot for human consumption.â€ť In reality, the indictment alleges, these substances were synthetic cannabinoids that contained compounds that were intended for human consumption as a drug. The Cases allegedly sent payments through the mail to purchase the illegal substances from several sources, which shipped their orders through a commercial carrier.
In addition to the mail fraud conspiracy, Doy and Tressie Case are charged together with participating in a conspiracy to distribute a controlled substance, three counts related to possessing a controlled substance with the intent to distribute and one count of maintaining a place for the purpose of storing and distributing a controlled substance.
The federal indictment also alleges that Doy and Tressie Case participated in a money-laundering conspiracy. According to the indictment, the Cases conspired to conduct financial transactions which involved the proceeds of unlawful activity (the mail fraud and drug-trafficking conspiracies). In addition to the conspiracy, Doy and Tressie Case are charged together in two counts of money laundering.
The indictment also contains a forfeiture allegation, which would require the Cases to forfeit to the government any property derived from the proceeds of the alleged offenses, including a money judgment of $672,349 related to the mail fraud conspiracy and a money judgment of $639,662 related to the drug-trafficking conspiracy.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Rogersville, Mo., Police Department, the Webster County, Mo., Sheriffâ€™s Department, the Missouri State Highway Patrol, the Drug Enforcement Administration and IRS-Criminal Investigation.