Former Cedar Rapids business owners plead not guilty to federal synthetic drug charges

A couple who owned a Cedar Rapids tobacco outlet accused of selling synthetic drugs were indicted Wednesday in federal court and pleaded not guilty to the charges.

Mohammad, 36, and Melissa, 33, Al Sharairei, each pleaded not guilty to one count of maintaining a drug involved premises. According to the indictment, the Al Sharaireis maintained the Puff N Stuff II Tobacco Outlet, 1545 1st. Ave. SE, for the purposes of distributing a mixture or substance containing a controlled substance analogue or illegal substance intended for human consumption. The synthetic drugs which contain this substance is commonly smoked.

According to the indictment the couple was selling this synthetic substance from January 2012 until June 26, 2013, when the store was raided as part of a national synthetic drug enforcement.

According to an affidavit, substances seized from the store in June 2013 tested positive for the presence of a controlled substance analogue. The store grossed more than $1.3 million over 18 months in synthetic marijuana sales.

Melissa Al Sharairei was represented by Nathan Swanson, a St. Louis attorney, but Mohammad Al Sharairei asked for court appointed counsel.

U.S. Magistrate Jon Scoles said he was confused by the financial affidavit Mohammad Al Sharairei filled out in Colorado, where he and his wife were arrested on warrant. Scoles said the defendant listed his monthly income as $10,000.

Mohammad Al Sharairei said he hadn't worked since the beginning of January and he has no money. He said all his money and his houses, he lived in one and rented others, were seized by the government.

Scoles asked him under oath if he had any money and needed court appointed counsel.

Mohammad Al Sharairei consulted with Jill Johnston, assistant federal public defender, who was representing him Wednesday, who told the magistrate that it was unclear whether the government has seized all his property. She asked for the court to temporarily allow her to represent him until a financial affidavit is completely filled out.

Scoles said he would allow it but wanted the complete employment history, any cash on hand and income producing properties.

'It can't go unnoticed that his wife has hired an attorney,” Scoles said.

Assistant U.S. Attorney Mark Chatham wasn't asked about any seized assets or cash.

According to court documents, a civil forfeiture was filed a few months ago against the Al Sharairei's Cedar Rapids home and three others in Des Moines. The couple purchased 14 or 15 homes, including one in Cedar Rapids, with proceeds from synthetic drug sales, according to an affidavit.

Scoles set their trial for Aug. 4. The couple is both released under the conditions set in Colorado, where they were arrested. They are under supervised release and have restricted travel in Colorado, Iowa. Scoles also modified the travel for Melissa Al Sharairei who will be allowed to travel to St. Louis to see her attorney.

If convicted, Mohammad and Melissa Al Sharairei each face up to 20 years in prison.