WARRANT: Illegal drug equipment found, millions of dollars seized in Copy Proz investigation

ROCKINGHAM — Copy Proz owner Mark Meland is believed to have operated a money-laundering drug operation out of his Rockingham business.

According to a warrant filed in United States District Court for the Middle District of North Carolina on Sept. 22, 2023, Meland, the former co-owner of Caddy’s Chill & Grill, is being investigated by a US Postal Inspector and the U.S. Food and Drug Administration, Office of Criminal Investigation.

Four separate bank accounts maintained by Meland, with funds totaling over $7 million, are subject to forfeiture to the United States as a result of the investigation.

“By comingling proceeds derived from the sale of controlled substances with other funds, under the guise of a facially legitimate online storefront, and utilizing the bank accounts of unrelated businesses involved in printing/copying and pilot car services, there is probable cause to believe that Meland has concealed the true nature and source of the illicit funds that are derived from the sale of controlled substances,” concludes the affidavit. “Thus the businesses are themselves a vehicle by which Meland is able to launder proceeds of specified unlawful activity.”

Meland is the registered business owner of Madison James Research, listed as “supplement research.” This company operated out of the Copy Proz office, formerly located at 607 East Broad Avenue. They are now located at 504-C East Broad Avenue.

Madison James Research was not registered with the FDA and could not legally engage in the manufacturing, preparation of propagation of drugs and controlled substances.

“Probable cause exists to believe that the [Madison James Research] website is also being used to support and conceal the purchase of controlled substances,” states the affidavit. Products on their website included Testosterone, a Sch. III controlled substance, and Modafinil, a Sch. IV controlled substance.

Products could be purchased from the website using a variety of payment methods. When credit card users make a transaction, the invoice was listed as “Hoover Pilot Car Service.” Nancy Hoover Terry is an associate of Meland, and the business was registered under her name in June 2022.

A James Madison Research checking account at Bank of America held by Meland between January 2018 and July 2023 totaled deposits of no less than $1,296,917. A Copy Proz account, between March 2019 and July 2023, totaled not less than $3,497,980. A personal checking account by Meland had total deposits between August 2020 and August 2023 of $2,098,371. A First Bank account held by Hoover had total deposits between July of 2022 and August 2023 of $394,680.

“Where an individual income cannot account for the level of wealth displayed, and where drug trafficking exists, there is probable cause that the item of wealth is either a direct product of illicit activity or is traceable thereto,” states the affidavit.

The search warrant also states that there is probable cause to believe that Meland has engaged in multiple transactions involving criminally deprived property of a value greater than $10,000.

Undercover purchases conducted

As part of the investigation, agents engaged in multiple undercover purchases of products from the Madison James Research website.

On July 15, 2022, agents purchased Modafinil, a Sch. IV controlled substance that reduces extreme sleepiness. Ten days later, agents in Florida received a package that had been shipped interstate via the United States Postal Service. The return address was the Copy Proz office. A forensic lab analysis revealed that the capsules labeled Modafinil contained Tamoxifen and Finasteride, neither of which are controlled substances.

On February 7, 2023, agents purchased Semaglutide, Tadalafil/Sildenafil capsules and Modanifil capsules, which all require a prescription but are not controlled substances. Madison James Research did not require a prescription to complete the purchase.

A week later, agents received the ordered products. None of the labeling included any directions for use. Forensic testing results stemming from this transaction are still outstanding, according to the warrant.

On May 10, a search warrant was issued to search Google accounts associated with Madison James Research and Copy Proz. Records showed a search history of queries related to drug manufacturing of steroids and testosterone. It also revealed attempts to hide the nature of the Madison James Research business, as well instructions for customers to use deceptive descriptions in their order history. “Please put for Groceries Donation No Order Numbers,” states a April 18 message. “Venmo shuts us down when they see stuff about orders. Just payment and email it to us! Any order info your payment will force us to refund and delete your order. Thanks!” Between March 2020 and December 2022, there were more than 1,750 separate Venmo transactions totaling more than $334,000 paid to the accounts of Hoover and Meland, with descriptions such as “Dance Lessons”, “Pizza”, and “School Supplies.”

On June 6 and July 7, agents photographed and recovered trash from a dumpster outside of the Copy Proz office. Items recovered during the trash pull include empty bottles of Propylene Glycol (a commonly used drug solubilizer), an empty Everclear alcohol bottle with “Tad/Sild” markings and boxes of insulin syringes and empty glass vials.

Beginning on July 31, 2023, madisonjamesresearch@gmail.com offered to sell 10 bottles of “test” (testosterone) for $200. An order was placed days later by the agents.

On August 8, agents received 10 vials labeled testosterone enanthate that did not display an “RX Only” statement but did state that a doctor’s authorization was required. The package’s return address was the 504-C East Broad Avenue Copy Proz address. A testing lab analysis confirmed that the vials did not contain testosterone or other Active Pharmaceutical Ingredients.

The email communications showed regular communication with an individual identified as Noah Rasdon, owner of Magic Nutrition, a vitamin supplement shop in Arkansas. According to the affidavit, Rasdon would frequently order a variety of products on behalf of third-party customers. Eights transactions by Rasdon are listed in full in court documents; some of them are for transactions consisting entirely of controlled substances. A customer identified as Ray Koga accounted from 80%, roughly $340,000, of the orders placed by Rasdon.

The Bank of America records reveal that the Copy Proz account operated by Meland received over $768,000 in credits from Magic Nutrition between February 2022 and June 2023. Between August 2022 and April 2023, the same time of Rasdon’s purchases, Meland transferred $369,000 from the Copy Proz account to his personal account, as well as $112,000 from Copy Proz to Madison James Research.

A series of transactions reveal transfers of large sums of money from Copy Proz to Meland’s personal account and then to other entities. On Oct. 27, 2022, $100,000 was transferred from Copy Proz to Meland and then to Prestige Motor Imports.

On January 10, 2023, two transfers of $100,000 and $119,000 were made from Copy Proz to Meland. A wire of $449,496 was sent by Meland to the law firm of Williams, Deane & Herndon. On the same day, a deed was filed for Rosalyn Road by the law firm that identified Meland as the grantee.

On February 3, a transfer was made from Copy Proz to Madison James Research for $50,00. That same day, a check cleared that was written to Diffenbach Superstore, with a memo line of “Truck Down Payment.”

Between July 2022 and August 2023, $384,900 was deposited into the Hoover Pilot account at First Bank. “[The account] is used to make payments to companies associated with components in the manufacturing of drugs,” states the affidavit. Shortly after the third undercover purchase, payments were made to Med Lab Supply {$339) and Capsule Supplies ($862). Each month, cash was withdrawn from the Hoover account at a SECU ATM in Hamlet. In August of 2023, there were eight withdrawals over the course of the month, each for $602. Corresponding to these transactions was same-day withdrawals from Meland’s personal account of $602, barring an August 31 transaction.

Search warrant executed

On September 20, 2023, law enforcement executed a search warrant at Copy Proz. According to Chief Deputy Jay Childers with the Richmond County Sheriff’s Office, uniformed deputies were on standby during the raid. Evidence of manufacturing, packaging and shipping of controlled substances was found.

Preliminary evidence suggests that controlled substances were found inside lockers used for the illegal drug shipments. Dozens of bottles containing liquids were seized from the location, with labels matching those of Sch. III controlled substances, specifically testosterone and steroids.

Law enforcement also seized hundreds of small silver bags containing cuspules. 390 0f those bags were labeled Dianabol, an illegal substance in the United States.

“Meland made unprotected statements to law enforcement that he used grapeseed oil to manufacture testosterone and steroids,” states the affidavit. “He also admitted to making the liquid products, to include testosterone and steroids, at his house in Rockingham.” Meland also confirmed his financial relationship with Rasdon. $169,983 in cash was seized from Meland’s residence and business.

A phone call requesting for comment by Meland was not returned.