Brothers plead guilty to multimillion dollar K2 conspiracy

Two brothers and business owners pleaded guilty Feb. 6 to their role in a $6.7 million K2 conspiracy that’s already netted three other guilty pleas in what is believed to be a six-person scheme across southwest Missouri.

Jeremy Elliott, 42, of Rogers, Ark., and his brother, Travis Elliott, 38, of Springfield, pleaded guilty in separate appearances before U.S. District Judge M. Douglas Harpool to conspiracy to commit mail fraud, according to a news release from Tammy Dickinson, United States Attorney for the Western District of Missouri.

Travis Elliott, owner of A Head of Our Times, LLC, which ran a retail store in Springfield, and Jeremy Elliott, owner of Mr. Nice Guy, which operated retail locations in Joplin and Webb City, were part of a distribution scheme of approximately 2,253 kilograms of synthetic marijuana, commonly referred to as K2. The brothers received shipments of Kryp2nite products from ThirdEye Inc., a Springfield business owned by co-defendants Douglas Franklin, 56, and his son, Brandon Franklin, 28, both of Springfield, who also have pleaded guilty to their roles.

Brandon Franklin was co-owner of the failed Hellbender Meadery in Rogersville, along with his sister, Caitlyn Franklin, 26, whose charges were dismissed following a pretrial diversion agreement.

According to the release, the Elliots admitted they engaged in a conspiracy between Oct. 29, 2009, and Nov. 6, 2012, to distribute via FedEx Kryp2nite products, which were falsely labeled as incense and not for human consumption, but in reality contained synthetic marijuana that was intended for human consumption as a drug. Conspirators manufactured and distributed K2 to retail outlets in Springfield, Joplin, Webb City and elsewhere through ThirdEye.

Springfield police officers made undercover purchases of K2 from A Head of Our Times and on June 12, 2012, police officers executed a search warrant seizing approximately two kilograms of Kryp2nite, as well as records documenting the purchase and delivery of synthetic marijuana. Officers observed signage in the store that read, “Incense, Sachets and Potpourri Blends are not for human consumption!” and “Talk of smoking it or otherwise using it illegally will result in the loss of the sale and you may be asked to leave. Thank you! @.” The products labeled as incense were located in proximity to smoking devices such as bongs and vaporizers. According to the release, officers also seized Kryp2nite products from Mr. Nice Guy in Joplin and Webb City on two occasions, including a seizure of 21.7 kilograms of K2.

Douglas and Brandon Franklin also pleaded guilty to participating in a money-laundering conspiracy related to conducting financial transactions involving the proceeds of unlawful activity, which were designed to conceal or disguise the nature, location, source, ownership and control of the proceeds. Co-defendant DeWayne Barnhart, 38, of Joplin, who managed the Webb City store, pleaded guilty to receiving and distributing misbranded drugs and was sentenced to probation, according to the release.

Under federal statutes, Travis and Jeremy Elliott are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000.