A Biloxi, Miss., city councilman was arrested Thursday on a warrant from the U.S. Drug Enforcement Agency after a federal grand jury indicted him on charges he was selling a controlled substance out of CBD stores he owns in Mississippi and North Carolina, the Sun Herald is reporting.

Deming, an attorney in his third term on the Biloxi City Council, was indicted on two counts of conspiracy to possess with intent to distribute a controlled substance and one count of destruction, alteration or falsification of records in a federal investigation.

Deming made his initial court appearance Friday. He was denied bond pending a hearing in federal court in Gulfport Monday.

In January, federal agents raided Deming’s home and businesses. Deming owns six Candy Shop stores in Mississippi and North Carolina, as well as his legal practice and D.K. Marine, LLC.

The items seized during the Mississippi raids and subject to forfeiture include, according to the newspaper:

• $575,746.00 in cash DEA agents seized at Deming’s home in the upscale Taylor Oaks subdivision in Biloxi
• $1,230,559.27 in cash also seized during a Jan. 26 search of Deming’s home
• $4,040.00 in cash DEA agents seized from a vehicle registered to Deming at his Biloxi home
• $73,328.24 in cash DEA agents seized from The Candy Shop LLC in Ocean Springs.
• Property at 946 Caroline Drive in Biloxi in the name of Robert L. Deming III
• All funds held in Legend Trading, Inc., a cryptocurrency account in the name of Robert Deming
• All funds in a Wells Fargo account in the name of Robert L. Deming
• All funds in a Wells Fargo account in the name of Robert L. Deming
• All funds in a Wells Fargo Account in the name of Robert Deming Attorneys at Law LLC.
• All funds in a Woodforest National Bank Account in the name of DK Marine LLC.

At the same time Deming’s home and Mississippi businesses were raided, federal agents searched his businesses in North Carlina, with agents seizing:

• 6,000 units of synthetic cannabis falsely labeled as CBD
• 500 doses of substances suspected to contain synthetic cannabis
• 1,000 units of homemade edibles suspected of having cannabis
• About $2 million in cash

Federal authorities are seeking forfeiture of the seized assets because they were obtained through an alleged drug trafficking network which included money laundering and racketeering, the Herald reported.

The investigation began after complaints from customers who became ill after consuming the synthetic cannabinoids, sold as oils or edibles.

If convicted, Deming faces up to 20 years and a $1 million fine for each of the three counts against him.