While employees up front sold cones, sundaes and shakes, police say Kilduff was cooking crack cocaine in the back of the store.
Indeed, parents and customers were shocked to learn of Kilduff's arrest.
The 36-year-old had bought the popular business across the street from St. Augustine Church and School a few years ago.
Sources say Kilduff himself is a user and dealt cocaine to a handful of friends.
Officials say the seasonal establishment shouldn't have been open in the first place because it hadn't been inspected and issued a permit for this year.
After the raid, police called the Health Department alerting them to unsanitary conditions.
The Health Department says inspectors found uncovered and exposed toppings, gnats flying around, mold along the walls of walk-in coolers, and cleaning solution and other items on work tables.
Those are the types of violations that trigger immediate closure.
There was no comment Wednesday from Jason Wasserman who was charged with driving away from the parlour under the influence of drugs.
Police have not charged him in connection with the alleged activity in the back of Wally's, but with eviction proceedings underway there's no indication if and when the front will reopen.