Wholesaler CEO convicted of supplying meth-makers

Roy James Hudspeth, 42, vice president and CEO of Handi-Rak, was convicted by a federal jury in Springfield’s U.S. District Court for participating in a plan to sell pseudoephedrine to convenience stores with the knowledge that the chemical would be used to make methamphetamine. Handi-Rak is a distributor for convenience stores. The five-day trial began Aug. 28.

The company sold massive quantities of over-the-counter cold medication containing the ingredient, resulting in sales that far exceeded the amount a legitimate business would be able to make legally available to its customers, according to Bradley Schlozman, U.S. attorney for the Western District of Missouri.

The sales took place in Greene, Barry, Camden, Jackson, McDonald, Ozark, Taney and Texas counties between January 2001 and Nov. 13, 2003.

Co-defendants in the case included a Handi-Rak sales manager, four Handi-Rak sales agents, and owners and employees of several convenience stores.

Hudspeth also was found guilty of conspiracy to commit money laundering and two counts of money laundering.

The conviction is the latest in a slew of cases resulting from Operation Ice Palace, a long-term investigation into sales of cold medications to methamphetamine manufacturers in southwest Missouri.

The investigation, conducted by the IRS-Criminal Investigation Division and the Drug Enforcement Administration among others, has resulted in federal grand jury indictments against 53 defendants.

This story originally appeared in SBJ’s Sept. 5 free e-news Daily Update. Click here to register.[[In-content Ad]]