Jason Lee Houston, K2 Distribution Scheme, MO 2017

JEFFERSON CITY, Mo. – A Fulton, Missouri man has confessed to orchestrating a massive $6.6 million scheme to distribute synthetic cannabinoids – commonly known as K2 – through a network of seemingly legitimate businesses. Jason Lee Houston, 37, pleaded guilty Tuesday, June 6, 2017, to federal charges of conspiracy to commit mail fraud and conspiracy to commit money laundering, admitting his central role in the multi-state operation.

Houston operated First Stop Last Stop Pawn and Aromatherapy in Fulton, a front used to funnel the dangerous and illegal substance. Court documents reveal he was responsible for generating approximately $4,544,700 of the $6,656,843 in gross proceeds from the conspiracy between December 18, 2012, and July 16, 2015. This isn’t a lone wolf operation; Houston is one of ten co-defendants already admitting guilt. Shawn Michael Browning, 26, Timothy Christopher Sandfort, 31, Joshua Adam Sheets, 31, Brandon Derek Rader, 33, all of Fulton, and Michael James Butler, 40, of Sacramento, Calif., have also confessed to the mail fraud and money laundering charges. Sheila Marie Nawaz, 40, of Roseville, Calif., and Dara Leanne Shirley, 31, of Fulton, pleaded guilty to the money laundering conspiracy alone. Casey Dewayne Miller, 32, of Columbia, and Billie L. Bruce, 36, of Jefferson City, admitted to distributing the synthetic cannabinoids themselves.

The operation wasn’t limited to a single storefront. Houston, Sandfort, Rader, Shirley, Miller, and others also ran Inscentives Resale and Inscentives Auto. First Stop Last Stop was deceptively advertised as a “pawn shop” and “potpourri store,” while Inscentives Resale claimed to be a simple “buy, sell, and trade business.” Inscentives Auto held a valid Missouri motor vehicle dealer’s license, adding another layer of legitimacy to the criminal enterprise. Browning, Sheets, Bruce, and others operated Esscentials Resale and S&J Tobacco, further expanding the distribution network.

Investigators discovered the group sourced the K2 from suppliers in California and Nevada, receiving at least 251 shipments via FedEx and UPS. Inscentives Resale pushed the drugs from locations in Auxvasse and Fulton, while Esscentials Resale and S&J Tobacco sold the substance in Holts Summit. Crucially, the packages were deliberately mislabeled as “incense,” “aroma therapy,” or “potpourri” with disclaimers stating “not for human consumption” – a transparent attempt to evade law enforcement and continue profiting from the dangerous product. These were drugs, plain and simple, intended for human consumption, and the conspirators knew it.

The government intends to seize Houston’s assets as a result of the guilty plea. He faces forfeiture of his residence, which was purchased with the proceeds of the conspiracy, and a money judgment for the full $4,544,700 he generated. Under federal law, Houston could face up to 40 years in federal prison without the possibility of parole. However, the final sentence will be determined by the court, considering advisory sentencing guidelines and other statutory factors. A presentence investigation will be conducted by the United States Probation Office before a sentencing hearing is scheduled.

The case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver and investigated by a multi-agency task force including the DEA (Jefferson City, Sacramento, and Reno), IRS-Criminal Investigation, Missouri State Highway Patrol, MUSTANG Drug Task Force, and the Callaway County Sheriff’s Department. This case serves as a stark reminder that even seemingly legitimate businesses can be used to facilitate large-scale criminal activity, and those involved will face the full weight of federal prosecution.