Magistrate orders bond for Oklahoma man accused of distributing synthetic drugs

A federal magistrate Tuesday placed a $100,000 bond and other special conditions, including GPS monitoring, on an Oklahoma man charged in a conspiracy to distribute synthetic drugs in Eastern Iowa.

Prosecutors argued against release of Ahmad Saeed, 48, charged with conspiracy to distribute a controlled substance and controlled substance analogues and conspiracy to commit money laundering, claiming he has $500,000 in assets and two passports, one as a naturalized U.S. citizen and one as a Pakistan citizen, which could be used to leave the country.

If convicted on both charges, Saeed faces up to 30 years in federal prison.

U.S. Chief Magistrate Jon Scoles went back and forth on the custody issue as a prosecutor and a defense attorney made their arguments. But in the end, Scoles added the bond, requested by prosecutors, and GPS monitoring as special conditions to ensure Saeed wouldn't leave the country.

Saeed must surrender his passports but will be allowed to return home to Broken Arrow, Okla., under the special conditions.

Two others also were indicted with Saeed, Muhammad Anwar, also known as 'Mike,” and Muhammad Anwar Chaudhry. Anwar and Chaudhry are each charged with conspiracy to distribute a controlled substance and controlled substance analogues and conspiracy to commit money laundering.

Chaudhry also is charged with possession with intent to distribute a controlled substance, possession with intent to distribute a controlled substance analogue and maintaining a drug involved premises.

Anwar pleaded not guilty to his charges during an arraignment Tuesday, but a judge denied his release pending trial last week. Trials for Anwar and Saeed are set for June 8 in U.S. District Court. Chaudhry hasn't been arraigned.

Two special agents with the Department of Homeland Security and the Internal Revenue Service testified during Tuesday's hearing about the alleged conspiracy between Saeed, Chaudhry and Anwar, and their connection to a mother and son, Mary and Earl Ramos, who were convicted last year for distributing synthetic drugs through an iWireless store in Cedar Rapids and Five Star Snacks convenience store in Waterloo.

The agents testified Saeed had traveled to Pakistan about a dozen times since 2000, including one trip a few days after he was stopped by police in Buchanan County, Mo., with $44,000 in cash on him. At that time, authorities made Saeed aware he was being investigated for drug trafficking. He returned from Pakistan about two months later.

IRS Special Agent Michael Hare testified that another man, not indicted in this case, told investigators about the Missouri arrest and said Saeed was one of his synthetic drug suppliers. He also explained a 'check procedure” or scheme, in which Saeed allegedly obtained checks from those who purchased synthetic drugs from Saeed but Saeed's name never appeared on the checks.

The buyers told investigators Saeed had them sign the checks but leave everything else blank, Hare said. The checks for synthetic drugs paid to Saeed would only say 'loan” in the memo line.

Hare said Mary Ramos identified Saeed as supplying synthetics to the iWireless store, 1551 First Ave. SE in Cedar Rapids, which she managed and Chaudhry, who is her son-in-law, owned.

Earl Ramos said Saeed and Anwar supplied synthetics to the store he managed, Five Star Snacks in Waterloo, Hare said. He also described the same check procedure for buying drugs.

Hare said Saeed also was identified as buying synthetic drugs from another man indicted on a charge of distribution in Kansas City.