Couple accused of selling synthetic drugs face new charges in federal court

CEDAR RAPIDS - A couple who is set to plead guilty to selling synthetic marijuana Monday, will now face two new federal charges that involve paying for property with drug proceeds and operating an illegal gambling business.

Mohammad, 36, and Melissa Al Sharairei, 33, owners of Puff N Stuff II Tobacco Outlet in Cedar Rapids, are charged Friday with one count of engaging in monetary transactions in property derived from specified unlawful activity and one count of conducting an illegal gambling business.

The couple is accused of submitting a cashier's check for $96,186 to Midland Escrow, property derived from a specified unlawful activity - distribution of controlled substance analogues or synthetic drugs on May 30, 2013, according to the information filed Friday in U.S. District Court.

In the other count, the couple is accused of conducting, financing, managing and owning all or part of an illegal gambling business from Feb. 5 through September 2013, which involved video slot-type machines that are a violation of state law, according to the information. The business involved five or more people who conducted, financed, managed, supervised, directed and owned all or part of the gambling operation.

There is also a forfeiture allegation for any property derived from and any proceeds obtained from operating the Puff N Stuff, according to the information. The property to be forfeited includes a money judgment of $425,000 and any proceeds or property from the couple's business.

The Al Sharaireis previously lost four properties, one house in Cedar Rapids and three houses in Des Moines, two months ago in a default civil judgment. The civil forfeiture claimed the purchase of the real properties represent property traceable to the sale of controlled substance analogues, represent the proceeds of the sale of controlled substance analogues, facilitate the sale of controlled substance analogues and represents property involved in money laundering.

Melissa Al Sharairei will be arraigned on the new charges and plead guilty to the initial charge 10 a.m. Monday and Mohammad Al Sharairei will be arraigned and plead at 10:30 a.m. Monday.