Jonesborough Man Sentenced To Serve Three Years In Prison For Synthetic Drugs And Structuring

GREENEVILLE, Tenn. – Jason Glenn Catoe, 23, of Jonesborough, Tenn., was sentenced on Feb. 5, 2012, by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 36 months in federal prison.

Catoe pleaded guilty to an information in March 2013, charging him with possession with intent to distribute synthetic cannabinoids and structuring currency transactions to evade reporting requirements. In a statement of facts submitted in support of his guilty plea, Catoe admitted that beginning in March 2011 he opened a "head shop" called "Ultimate Smoke" in Kingsport, Tenn. The business sold synthetic drugs, "bath salts" and "incense," as well as drug paraphernalia for the ingestion of the drugs. Ultimate Smoke generated substantial cash income, with "Crystal Clean," a synthetic cathinone, being one of the business's best-selling products. Ultimate Smoke also sold large quantities of synthetic cannabinoids. Local law enforcement agencies made undercover purchases of the drugs beginning in August 2011.

A federal search warrant was executed at Catoe’s residence in Jonesborough, Tenn., in March 2012. Agents recovered $290,794.00 in cash from a safe at the residence. In addition to five firearms and two bullet-proof vests, agents recovered synthetic drugs labeled “Mary Joy,” “K2 Summit,” “Hammer Head,” “Wacked,” “Outer Limits,” “Zombie,” “Happy Hour Passion Fruit,” “Mad Hatter,” Mystery Machine,” and “Da Bomb.” Bank records reflected that Catoe, assisted by his half-brother, structured over $400,000 in cash deposits to a local financial institution.

The cash seized from Catoe’s residence, along with approximately $80,000 seized from bank accounts and a commercial building in Kingsport, were forfeited to the United States.

Agencies involved in this investigation included the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Sullivan County Sheriff’s Office, Kingsport Police Department, and Second Judicial District Drug Task Force. Assistant U.S. Attorney Neil Smith represented the United States.