Prolific international designer drug distributor sentenced to 94 months in prison

PORTLAND, Ore. — An Oregon man who led a multimillion dollar conspiracy to manufacture and distribute designer synthetic drugs was sentenced Wednesday to 96 months in prison, following a probe by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Internal Revenue Service-Criminal Investigation.

Ryan Ahidjou “Bo” Scott, 34, of Lake Oswego, pleaded guilty in May to conspiracy to distribute controlled substances and conspiracy to commit money laundering. According court records, Scott and his conspirators mixed chemical compounds together with herb extracts, and marketed the “K2” products as incense, in an apparent attempt to exploit a legal loophole to sell their drugs.  Additionally, they used the Internet to market and distribute “K2” and purchased dozens of domain names, including “k2drugs.com” and “k2incense.org” to monopolize the market for K2.

“The loophole the defendant thought he was exploiting closed in on him and his co-conspirators, but not before they made millions marketing illegal ‘incense’ to young people and military members,” said Brad Bench, special agent in charge of HSI Seattle. “This was a despicable act considering the proof we now have of the harmful effects of the drug analogs associated with their illicit products. Fortunately, the investigative efforts of HSI and its partners dismantled this prolific manufacturer and distributor of designer drugs.”

HSI and IRS special agents with financial analysts from the Organized Crime and Drug Enforcement Task Force (OCDETF) had been investigating the Scott and three other co-conspirators since early 2011, after suspicious shipments from Peru addressed to Scott’s company KTW Enterprises were intercepted by U.S. Customs and Border Protection. HSI special agents, working with the Portland Police Bureau, executed a search warrant at defendant’s company in April 2011. There, they seized over 500 pounds of synthetic drug products packaged in 1 gram packets labeled as “K2” and “not for human consumption.” Over the next several months, forensic experts employed by the Drug Enforcement Administration confirmed the presence of more than a dozen types of chemical compounds in the seized drug products that were both scheduled drugs and analogues of the same.

“This long-term investigation took down one of the largest synthetic drug manufacturers on the West Coast,” said U. S. Attorney Amanda Marshall. “These synthetic designer drugs are dangerous and we are fortunate to have partner agencies – HSI, IRS and the DEA – who are committed to stopping the distribution of these poisons to our kids.”

Synthetic cathinones (also known as “bath salts”) act as central nervous system stimulants causing rapid heart rate (which may lead to heart attacks and strokes), chest pains, nosebleeds, sweating, nausea, and vomiting. People who abuse these substances have reported agitation, insomnia, irritability, dizziness, depression, paranoia, delusions, suicidal thoughts, seizures and panic attacks. Users have also reported effects including impaired perception of reality, reduced motor control, and decreased ability to think clearly.

This case was prosecuted by the U.S. Attorney’s Office for the District of Oregon.