Federal investigation of illegal drug sales yields arrests, seizures

Federal authorities made two arrests and significant seizures after a yearlong investigation of illegal sales of "spice," a controlled substance, from smoke shops in northwest Arizona and New Mexico.

Ray Smith, 50, and Tamara Phillips, 47, were arrested in the Kingman area Thursday.

A news release and an indictment made public Tuesday describe Smith as president and Phillips as secretary of Smokin Body Jewelry, which operated smoke shops in downtown Kingman and in the New Mexico communities of Las Vegas and Raton. The businesses, 18 bank accounts, a safe deposit box, eight property parcels and several vehicles were seized as Drug Enforcement Administration agents executed six search warrants last Thursday.

The aggregate value of the assets seized Feb. 18 exceeded $2.3 million and included about $220,000 in cash, the DEA stated.

"The agents and officers also seized approximately 11 kilograms of precursor chemicals allegedly shipped from China in the primary residence of Smith and Phillips," the DEA said. "In addition, approximately 25 kilograms of suspected spice with a street value of $250,000 was seized from the stores and the residence of Smith and Phillips."

The suspects are charged with conspiring to sell illegal drugs and launder drug proceeds, the DEA said. They could face up to 20 years in prison if convicted.