A Bethlehem man faces criminal charges for selling drugs out of a Mahoning Township business last year.

Jason Cancel, 43, was arraigned by District Judge Beth Dodson last week on charges of possession with intent to deliver a controlled substance, seven counts; possession of drug paraphernalia, two counts and possession of a controlled substance.

He was released on $100,000 unsecured bail, and a preliminary hearing is set for Jan. 21.

According to court papers, state police learned from a confidential informant that Cancel was openly selling marijuana from Pappy’s Smoke Shop and also sold methamphetamine from the Blakeslee Boulevard location.

A state police trooper working undercover went to the store and purchased a plastic bag of marijuana and a marijuana cigarette from Cancel for $20 on Oct. 30, court papers said.

The trooper returned on Nov. 11 and purchased another bag of marijuana for $20 from Cancel, court papers said. The trooper also asked about buying methamphetamine.

On Nov. 17, the undercover trooper again returned to the store and bought marijuana and methamphetamine for $120, court papers said.

Cancel had weighed out and bagged the marijuana and retrieved the methamphetamine from a yellow coffee can inside of a locked ATM machine in the store, court paper said.

The undercover trooper told Cancel that he would be back to purchase an ounce of methamphetamine in the coming days.

The following day, state police obtained a search warrant for Pappy’s Smoke Shop and Cancel’s person.

On Nov. 19 at 10:15 a.m., the undercover officer purchased one ounce, or 28 grams, of methamphetamine from Cancel for $320.

At 10:24 a.m., state police served the search warrants and found Cancel in a small room at the back of the shop playing a video game.

He was handcuffed and detained without incident.

State police found the $320 that the undercover trooper used to purchase the drugs in his pocket.

Cancel was Mirandized and confessed to distributing marijuana and methamphetamine from his business, court papers said.

He told them that he had five regular customers for methamphetamine and 10 for marijuana, and he believed that the THC products in the store were legal in the state.

Cancel told troopers that gets the drugs from the Allentown area and calls a friend who places the order.

He usually gets a pound of methamphetamine in the mail for $3,000, court papers said, and gets four pounds of marijuana at a time for $800 each.

Approximately 11 ounces of methamphetamine and 4.5 pounds of marijuana were seized from the business along with other THC-related products, court papers said.

Also seized were scales, packaging material, a coffee container, a box of baggies, unused foil packaging and money that Cancel had in his possession.