Mahadev Prasad owns College Beverage, the fixture on Hillsborough Street that specializes in tobacco, wine and beer.
Now, ALE agents say the store was also known for synthetic marijuana, commonly called "spice" or "K-2."
According to court documents, an ALE agent saw Parsad sell a bag of the drug to someone earlier this month. The agent went back to the store a few days later and bought a bag for $40.
Agents returned with a search warrant and confiscated about an ounce of synthetic marijuana, a half ounce of dried mushrooms, and more than $6,500 in cash. Officials said in addition to the drugs he sold, Prasad also had more drugs in his possession.
Prasad is charged with felony selling and felony possession of synthetic cannabinoid. He faced a judge Wednesday after bonding out of jail.