Oklahoma man convicted in federal court for distributing synthetic marijuana

CEDAR RAPIDS - An Oklahoma man was convicted Tuesday of distributing synthetic marijuana to convenience store owners in Oklahoma, Missouri and Iowa.

Ahmad Saeed, 48, of Broken Arrow, Okla., pleaded guilty to conspiracy to distribute controlled substances and controlled substances analogues, and conspiracy to commit money laundering. He admitted during the plea hearing to knowing he was selling synthetic marijuana, typically sold as potpourri or herbal incense, for human consumption on May 16, 2013.

U.S. Magistrate Jon Scoles said Saeed faces up to 20 years in federal prison on each charge and fines up to $1.5 million, possibly more.

Saeed, along with two other charged in this case, Muhammad Anwar and Muhammad Anwar Chaudhry, agreed to start selling synthetics in 2012 and continued until June 2013, the plea agreement shows. During the conspiracy, Saeed was a wholesaler who distributed the products in the three states. Saeed and Anwar had regional suppliers in various cities, including Kansas City. Saeed traveled to the various stores to deliver the orders of synthetic drug products.

The plea agreement shows that Saeed obtained lab reports from his suppliers and provided the reports to customers. The reports claimed the synthetic drugs didn't contain certain drugs listed as unlawful by federal drug laws. The lab reports didn't state what substance was allegedly tested. Saeed used the reports to make it appear he was complying with the laws.

Store owners, such as Chaudhry who owned iWireless and Five Star Snacks in Waterloo and iWireless on First Avenue in Cedar Rapids, often paid for the products by check and would try to conceal the payment by putting 'loan” in the memo line, the plea states.

An IRS agent testified in April during Saeed's detention hearing about the check scheme to show evidence of money laundering and how the three charged were also connected to a mother and son, Mary and Earl Ramos, who were convicted last year for distributing synthetic drugs through the iWireless on First Avenue in Cedar Rapids and Five Star Snacks in Waterloo.

In April or May 2012, Saeed started supplying products to Five Star Snacks and iWireless in Waterloo, the store Earl Ramos managed, and the iWireless on First Avenue in Cedar Rapids, which was managed by Chaudhry's mother-in-law Mary Ramos, the plea shows.

The plea states in June 2013, the Drug Enforcement Administration and other law enforcement searched the two stores and Chaudhry and Mary Ramos' residences and seized 1294 packets of suspected synthetic drugs that had been supplied to Chaudhry by Saeed and Anwar.

As part of the plea, Saeed will also forfeit $750,000 jointly with Anwar. Saeed admitted he and Anwar earned at least that amount in gross proceeds from sales of illegal substances during the conspiracy.

Ray Scheetz, Saeed's lawyer, asked the court to continue Saeed's bond pending sentencing but Scoles said mandatory custody is required now that's he has been convicted on the drug charge.

Anwar's trial is set for Oct. 26 in U.S. District Court. Chaudhry remains a fugitive, according to court documents. A warrant was issued for his arrest in August.

Saeed's sentencing hasn't yet been set.

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