Rogersville business owners indicted on $1M K2 conspiracy

The husband-and-wife owners of a Rogersville head shop have been indicted by a federal grand jury for selling $1 million worth of a synthetic marijuana substance known as K2.

Doy Case, 79, a former member of the Rogersville Board of Aldermen, and his wife, Tressie Case, 67, both of Rogersville, were charged July 22 in a nine-count indictment. The indictment was returned under seal on July 22 and made public yesterday upon the arrests and initial court appearances of the couple. They remain in federal custody until a detention hearing scheduled tomorrow, according to a news release from the office of Tammy Dickinson, U.S. attorney for the Western District of Missouri.

The Cases own Magic Dragon, 382 Redbud St. in Rogersville, through which the couple allegedly received and distributed a large order of K2 between Sept. 15, 2010, and Nov. 13, 2012. According to the indictment, the couple received 101,861 grams of synthetic cannabinoids and sold the substance at an average price of $10 per gram. They also allegedly deposited $672,349 into bank accounts they controlled during that time, the indictment said.

According to the release, federal agents told the Cases to voluntarily cease and desist in August 2012, but they chose not to.

As part of the scheme, the Cases allegedly advertised their products to children through ads in high school yearbooks or with student organizations on at least seven occasions.

The indictment alleges the Cases defrauded the U.S. Food and Drug Administration by falsely representing the products as herbal aromas, natural fragrances or incense and not for human consumption. According to the release, the substances sold contained compounds intended for human consumption as a drug.

During the period investigated, the Cases allegedly sent payments through the mail to purchase the substances from several sources. They also are charged with conspiring to distribute a controlled substance, three counts related to possession of a controlled substance with the intent to distribute and one count of maintaining a facility to store and distribute a controlled substance, the release said.

Contained in the indictment is a forfeiture allegation that would require the Cases to release all proceeds of the alleged offenses to the government, including $672,349 related to the mail fraud conspiracy and $639,662 related to the drug-trafficking charges.

The case is being prosecuted by Supervisory Assistant U.S. Attorney Michael Oliver and was investigated by the Rogersville Police Department, the Webster County Sheriff’s Department, the Missouri State Highway Patrol, the Drug Enforcement Administration and IRS-Criminal Investigation.[[In-content Ad]]