Smoke-shop owner in Cape accused making, dealing illegal drugs

Federal agents arrested a Cape Girardeau business owner Tuesday accused of making drugs and distributing them via the Dark Web, according to documents filed in the case.

Joshua J. Kelly, owner of Heady Warez smoke shop, faces charges of conspiracy to distribute controlled substances and conspiracy to commit money laundering in Miami-Dade County, Florida.

Kelly conspired to distribute the hallucinogen MDMA, heroin, oxycodone, the synthetic stimulant alpha-PVP and the powerful opioid fentanyl, according to a probable-cause statement filed in the case by Drug Enforcement Administration special agent Lilita Infante.

His arrest was the result of a DEA investigation beginning in October 2015, when agents used shipping records to identify Kelly as an online vendor operating under the online handle “USTOUS” after first buying drugs from him, Infante wrote.

A subpoena of Charter Communications helped agents trace an IP address associated with the online drug vendor “USTOUS” to Kelly’s business, Heady Warez, at 1802 Broadway in Cape Girardeau, which Kelly also listed as his residential and mailing address, according to the statement.

In August 2016, DEA agents recovered pieces of evidence from Heady Warez’s trash, including “26 pieces of paper with various handwritten acronyms, colors and numbers, such as ‘10 yellow Benz,’ ‘85 Xan,’ ‘10 OC 40 orange,’ ‘6 D&G,’” which closely resembled online drug listings posted by “USTOUS” for benzodiazepine and alprazolam, both psychoactive drugs, and oxycodone, Infante wrote.

Also in August 2016, a United States postal inspector alerted the DEA of a package from Shanghai sent to Kelly at a residence in the 2800 block of Lynwood Hills Drive in Cape Girardeau, according to the statement.

Agents began watching the residence and seizing evidence from its garbage similar to that seized from Heady Warez, Infante wrote.

Agents also found a shipping label created with the same shipping account used by “USTOUS” to mail drugs to DEA agents, a syringe containing liquid THC (the active ingredient in marijuana), packages from China and Canada, materials used to make pharmaceutical tablets and vacuum-sealed bags containing traces of marijuana and alpha-PVP, aka “Flakka,” Infante wrote.

Agents also gathered evidence that suggested someone was accessing criminal, darknet marketplaces from inside Heady Warez between January and late March, according to the affidavit.

In February, agents followed a moving truck from Kelly’s residence on Lynwood Hills Drive to an address in the 2000 block of Stevens Drive in Cape Girardeau, one day after the utilities at the house were registered in Kelly’s mother’s name, Infante wrote.

Homeland Security Investigations agents intercepted a package March 28 addressed to Kelly’s mother at the Stevens Drive address, containing die molds and components of a pill press used to manufacture oxycodone pills, according to the affidavit.

Records of Kelly’s personal eBay account show he previously purchased a tablet press, powder mixers and die molds for painkillers oxycodone and Norco, plus Xanax, Infante wrote.

Investigators found in 2015, a total of $42,161.62 in revenue from bitcoin exchanges was transferred into two of Kelly’s accounts at Wood & Huston Bank, Infante wrote. One of the accounts was Kelly’s personal checking account; the other was his business checking account under the name Ligons & Kelly Enterprise LLC, according to the affidavit.

Calls placed to Heady Warez on Wednesday went unanswered.

Kelly waived his right to a preliminary hearing in the U.S. District Court, Eastern District, and requested any preliminary or detention hearings be held in the Southern District of Florida, thereby consenting to appear in the charging district, according to court filings.

tgraef@semissourian.com

(573) 388-3627

Pertinent address:

1802 Broadway, Cape Girardeau, Mo.