Final Defendant Pleads Guilty to $6.6 Million K2 Conspiracy

JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a California man pleaded guilty in federal court today to his role in a conspiracy to distribute more than $6.6 million of synthetic cannabinoids, also known as K2, at Callaway County, Mo., businesses.

Raja Amer Nawaz, also known as “Rex,” 43, of Roseville, Calif., pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to conspiracy to commit mail fraud, which was related to the distribution of synthetic cannabinoids.

Nawaz and other conspirators in California sold synthetic cannabinoids to several Calloway County businesses. According to court documents, the conspiracy generated $6,656,843 in gross proceeds. By pleading guilty today, Nawaz agreed to forfeit to the government $2,919,407, which represents the proceeds of the conspiracy directly attributable to his criminal conduct.

Nawaz is the final defendant among 13 co-defendants who have pleaded guilty in this case. Jason Lee Houston, 37, Shawn Michael Browning, 27, Timothy Christopher Sandfort, 31, Joshua Adam Sheets, 31, and Brandon Derek Rader, 33, all of Fulton, Mo., and Michael James Butler, 40, of Sacramento, Calif., also pleaded guilty to participating in the mail fraud conspiracy as well as a money-laundering conspiracy. Curtis Whayne Gonzales, 57, and Aleksandr Polyanskiy, 35, both of the Sacramento area, pleaded guilty to participating in the mail fraud conspiracy. Nawaz’s wife, Sheila Marie Nawaz, 40, of Roseville, and Dara Leanne Shirley, 31, of Fulton, pleaded guilty to participating in the money-laundering conspiracy. Casey Dewayne Miller, 32, of Columbia, and Billie L. Bruce, 36, of Jefferson City, each pleaded guilty to distributing synthetic cannabinoids.

Houston, Sandfort, Rader, Shirley, Miller and others operated First Stop Last Stop Pawn & Aromatherapy, Inscentives Resale and Inscentives Auto. First Stop Last Stop Pawn & Aromatherapy represented itself as a “pawn shop” and “potpourri store.” Inscentives Resale was represented to be a “buy, sell, and trade business.” Inscentives Auto held a Missouri motor vehicle dealer’s license. Browning, Sheets, Bruce and others operated Esscentials Resale and S&J Tobacco.
 
These businesses purchased synthetic cannabinoids from Nawaz, Polyanskiy, Butler and Gonzolaz from Dec. 18, 2012, to July 16, 2015. At least 251 shipments of synthetic cannabinoids were made via FedEx and UPS. Inscentives Resale sold synthetic cannabinoids from locations in Auxvasse, Mo., and Fulton. Esscentials Resale and S&J Tobacco sold synthetic cannabinoids from locations in Holts Summit, Mo.

The packages of synthetic cannabinoids bore misbranded labels that misidentified the contents as “incense,” “aroma therapy” or “potpourri” that were “not for human consumption.” In fact, these products were drugs intended for human consumption as a drug. Conspirators mislabeled packages of synthetic cannabinoids for the purpose of avoiding government regulation over these drugs, and to protect the continued sale of these drugs.

Between Jan. 16, 2013, and April 18, 2015, Nawaz received at least $1,986,442 as payment for synthetic cannabinoids from Houston, Sandfort, and Rader, through First Stop Last Stop Pawn & Aromatherapy, Inscentives Resale and Inscentives Auto.

Between Jan. 16, 2013, and April 18, 2015, Nawaz received at least $932,965 as payment for synthetic cannabinoids from Browning and Sheets through Esscentials and S&J Tobacco.

Under the terms of today’s plea agreement, the government will recommend that Nawaz receive a sentence of eight years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
 
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the DEA Task Force – Jefferson City, DEA Sacramento, Calif., DEA Reno, Nev., IRS-Criminal Investigation, the Missouri State Highway Patrol, the MUSTANG Drug Task Force, the Callaway County, Mo., Sheriff’s Department, the Cole County, Mo., Sheriff’s Department, the Jefferson City, Mo., Police Department, the Fulton, Mo., Police Department and the Holts Summit, Mo., Police Department.