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Police: 2 Men Running Hallucinogenic Mushroom Lab Out Of Concord, NH Apartment

CONCORD, N.H. (CBS) -- Police say two men have been arrested after they were found to be running a large-scale hallucinogenic mushroom lab operation out of their Concord, New Hampshire apartment.

Officers were called to a Thorndike Street home on Monday to investigate an anonymous tip they received through the Concord Regional Crimeline. The tipster also alleged that the men were involved with illegal drug activity in the presence of young children.

Police say a neighbor told them they smelled the odor of burnt marijuana coming from a first floor apartment, and also noted that there is a lot of traffic coming to and from the building. Officers also learned that the children, ages 4 and 8, were away for the week.

Investigators were able to get statements confirming that there is a high volume of traffic and that children live in the apartment where psilocybin mushrooms may be manufactured.

On Tuesday, Concord police executed a search warrant at the home. Detectives allegedly found a large pot of dark liquid on the stove, a large industrial-style barrel containing liquid on the kitchen table, bags of soil for growing mushrooms, a container of grain and large sifting screens in the kitchen.

Police say they found multiple boxes of laboratory equipment including glassware, growing lights and other laboratory equipment, as well as several containers with mushrooms and soil in the basement.

In a bedroom, police say they found a large rack with 24 trays of soil and what appeared to be mushrooms, several plastic containers that had been altered for growing mushrooms and large plastic containers holding dried mushrooms.

The basement was being used to cultivate mushrooms, police said, and the interior of the apartment appeared to be set up for the production of the hallucinogen mushrooms over a long period of time.

Police contacted the Drug Enforcement Agency's New England Regional Clandestine Laboratory Enforcement Team based on what they allegedly found in the apartment. The DEA determined that there was a significant mushroom lab at that location.

The building had to be evacuated until all the items were removed from the apartment.

Authorities continued their search on Wednesday. Once the search warrant was completed, the city's Department of Code Enforcement deemed the apartment to be in a livable condition.

Derek Milioto, 32, and Luke Robinson, 23, both of Concord, turned themselves in to police on Thursday and were arrested.

Milioto was charged with two counts of endangering the welfare of a child, a felony count of possession and manufacturing controlled drugs and a misdemeanor count of possession of controlled drugs.

Robinson was charged with a felony count of possession and manufacturing controlled drugs and a misdemeanor count of possession of controlled drugs.

Milioto was ordered held on $5,000 cash bail, while Robinson was held on $2,000 cash bail.

They will be arraigned in Concord District Court on Friday.

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