Charles Sterling Austin, Jr., Money Laundering, Missouri 2013

Jefferson City, MO - In a shocking turn of events, Charles Sterling Austin, Jr., 63, a business owner from St. Charles, MO, pleaded guilty to participating in a money-laundering conspiracy related to the distribution of synthetic marijuana, commonly referred to as K2.

Austin, the owner of Puff N Snuff, LLC, with two locations in Camdenton and Eldon, MO, admitted to purchasing synthetic marijuana from several sources and selling it in his smoke shop. The packages of synthetic cannabinoids bore trade names such as 'Mayan,' 'Island Breeze,' '4bidden,' 'Remix,' 'Cheap Trip,' 'Dr. Feel Good,' and others.

Undercover law enforcement agents purchased synthetic cannabinoids from Puff N Snuff on multiple occasions during 2012 and 2013. According to today's plea agreement, Austin made at least 28 bulk purchases of synthetic cannabinoids from at least two sources totaling $707,412 between Aug. 3, 2012, through Feb. 19, 2013.

During the four-month period from Aug. 27 through Dec. 30, 2012, Austin deposited $1,687,180 into Puff N Snuff's bank account from the proceeds of the sale of synthetic cannabinoids, comingled with the proceeds from the sale of other products. On Sept. 10, 2013, law enforcement officers seized $423,327 from the business bank account.

Austin must forfeit those funds to the government, as well as the property of the Puff N Snuff building located at 1900 U.S. 54 Business in Eldon, MO. He must also forfeit to the government a money judgment of $707,412. Under federal statutes, Austin is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000.

Puff N Snuff is subject to a sentence of up to five years of probation and a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

According to today's plea agreement, Austin wrote seven checks from Puff N Snuff's bank account totaling $134,750 as payment for construction of the Puff N Snuff building. Austin admitted that the purchase of the land and the construction cost of the Puff N Snuff building was paid for with proceeds from the sales of synthetic cannabinoids.

Source: https://www.justice.gov/usao-wdmo/pr/business-owner-pleads-guilty-money-laundering-related-k2-distribution