Last week, we heard that Michael Douglas’ son Cameron, 30, was arrested in late July for selling methamphetamine at a NY hotel. Cameron was busted in a sting by the DEA after dealing about a pound and a half of meth, valued at $18,000. This wasn’t Cameron’s first arrest and he was last popped in 2007 for possession of liquid cocaine. It’s clear that the guy is a serious drug dealer despite coming from a life of wealth and privilege and allegedly having access to an $80 million trust fund.

More details are emerging of Cameron’s drug operation, and it sounds like he had a whole system worked out where he was dealing across the country and shipping drugs to people through FedEx for years. He called them “bath salts” and “pastry” and was apparently under surveillance by the DEA for some time before his arrest:

Michael Douglas’ son traveled coast to coast dealing large quantities of methamphetamine before his arrest last month, according to a criminal complaint made public Thursday.

The complaint in federal court in Manhattan alleges that Cameron Douglas was paid tens of thousands of dollars trafficking the drug – referred to in transactions by the code words “pastry” or “bath salts” – since 2006. Cash and drugs were routinely exchanged through shippers like FedEx, the court papers said.

The 30-year-old son of the Oscar-winning actor was arrested July 28 at the trendy Hotel Gansevoort in Manhattan. His attorney, Nicholas DeFeis, declined to comment Thursday.

Federal authorities have refused to discuss whether Cameron Douglas remains behind bars or any other aspect of the case.

The complaint drawn up by a Drug Enforcement Administration agent details allegations based on information provided by three unnamed crystal meth users and dealers. The users – including someone who once worked for Cameron Douglas – have pleaded guilty and agreed to cooperate with the investigation.

The complaint said that in one deal in 2006, a cooperator shipped cash under a fake name to Douglas at a California hotel. A few days later, it said, Douglas delivered a pound of methamphetamine to the cooperator at a Manhattan hotel.

In 2007, according to another cooperator, Douglas was paid $48,000 at a Manhattan apartment. The cooperator later received a pound of crystal meth through FedEx from Santa Barbara, Calif., the complaint said.

In June and July, negotiations for more drugs were secretly recorded on wiretaps of cell phones and a cooperator’s hotel room in Manhattan, the complaint said.

Cameron Douglas, in one recording at the hotel, “acknowledged his prior history selling crystal meth” and “indicated that he continued to sell crystal meth.”

In a seperate recorded phone conversation, investigators said he spoke of “sending out a pastry” to a cooperator, and also asked, “Did you get a chance to … smell any of the salts or anything like that?”

Cameron Douglas has acted in movies including 2003’s “It Runs in the Family,” starring his father and grandfather Kirk Douglas.

[From AP via Huffington Post]

TMZ reports that Cameron was just dropped from a movie he was set to film with Corey Feldman and Shannen Doherty called The Beautiful Outsiders. According to IMDB, Cameron would have starred opposite Doherty in a kind of “Bonnie and Clyde” type fugitive film. Instead, he’s been busted himself. Cameron faces “a mandatory minimum of 10 years in prison and a maximum period of life” for his crimes. Are we going to learn more about Cameron’s celebrity clientele when he goes to trial? I wonder which well-recognized names are scared of being exposed as customers.

Cameron Douglas is shown in the header with Producer Curtis Hanson on 6/11/09. Credit: Getty. He’s shown below with his dad Michael on 4/27/09. Credit: PRPhotos