{"id":55934,"date":"2024-04-05T14:57:39","date_gmt":"2024-04-05T21:57:39","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=55934"},"modified":"2024-04-05T14:57:39","modified_gmt":"2024-04-05T21:57:39","slug":"beverly-hills-man-guilty-of-scamming-45-investors-of-18-4-million-via-cannabis-related-cons","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=55934","title":{"rendered":"Beverly Hills Man Guilty of Scamming 45 Investors of $18.4 Million via Cannabis-Related Cons"},"content":{"rendered":"

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0<\/strong><\/p>\n

\"brown
Photo by Wesley Tingey<\/a> on Unsplash<\/a><\/figcaption><\/figure>\n

A Beverly Hills man pleaded guilty Friday to federal criminal charges for causing investors more than $18 million in losses \u2013 while he was completing a sentence in a prior criminal case \u2013 by duping them with false claims about his companies that purportedly invested in hemp farms and cannabis-infused retail products as well as a sham bottling business.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Mark Roy Anderson, 69, pleaded guilty to two counts of wire fraud.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 According to his plea agreement, Anderson engaged in two separate schemes that swindled victims, which he committed shortly after his release from federal prison but while on home confinement and, later, while on supervised release for a previous fraud conviction.<\/p>\n

U.S. District Judge Fernando L. Aenlle-Rocha scheduled a sentencing hearing for August 23.\u00a0 Anderson faces up to 20 years in federal prison for each criminal count.<\/p>\n

\u00a0Anderson solicited more than $18.8 million from 45 victims for both schemes, causing victims to lose approximately $18.3 million.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Harvest Farm Group<\/u><\/i><\/b>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/i><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In the first scheme, from June 2020 to April 2021, Anderson tricked investors into providing funding for his company, called Harvest Farm Group, to harvest and process hemp grown on his farm into medical-grade cannabidiol (CBD) isolate \u2013 a chemical found in marijuana \u2013 to be sold for a substantial profit.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \"\"Anderson convinced investors to invest in Harvest Farm Group by falsely representing that, through the company, he owned and operated a hemp farm in Kern County. He also lied that had already completed successful and profitable harvests of hemp from the farm.<\/p>\n

He also falsely said he was using his own machinery and equipment to convert the hemp into CBD isolate and Delta 8, a psychoactive substance that, like CBD isolate, could be used in consumer products ranging from olive oil to body cream.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Anderson attempted to maintain a veneer of trustworthiness by taking steps to assure investors Harvest Farm Group was legitimate and he was not the \u201cMark Roy Anderson\u201d with multiple prior fraud convictions.<\/p>\n

\"white
Photo by Giorgio Trovato<\/a> on Unsplash<\/a><\/figcaption><\/figure>\n

Anderson concealed that he had been convicted of multiple federal and state felony crimes, including mail fraud, wire fraud, grand theft, forgery, preparing false evidence, and money laundering.<\/p>\n

He also concealed that he was still serving a criminal sentence and was on supervised release at the time he was soliciting investments.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To stall victim investors from making collection efforts and reporting him to law enforcement, Anderson falsely told them that sales of products derived from hemp grown at the farm had been delayed because of the COVID-19 pandemic, misleadingly promised that he would pay the victims money from purported sales he had made to Canadian companies, and falsely promised that he would otherwise return their money.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bio Pharma and Verta Bottling<\/u><\/i><\/b><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In the second scheme, which ran from April 2021 to May 2023, Anderson deceived investors by soliciting money for Bio Pharma and Verta Bottling, two of his sham companies, claiming that these businesses successfully manufactured, bottled, and packaged commercial products.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \"\"\u00a0 Specifically, BioPharma purportedly manufactured and sold products infused with CBD, including CBD-infused avocado oil, olive oil, pain cream, gummies, tequila, and chili oil. Anderson also claimed that Verta Bottling manufactured and sold beverages and various food products.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Anderson falsely stated that his bottling companies owned and possessed millions of dollars\u2019 worth of assets, including hemp biomass, CBD isolate, and CBD oil in Bio Pharma’s case, manufacturing equipment in Verta Bottling\u2019s case, and an assignable lease for a warehouse to manufacture and sell its products.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \"FBIAnderson\u2019s other lies to investors included false claims that his bottling companies had at least $10 million in purchase-order contracts from suppliers. He drafted fake legal and business documents, which included fabricated purchase order contracts purporting to show agreements with third party companies to purchase tens of millions of dollars\u2019 worth of products manufactured by the Anderson bottling companies. Anderson also provided victims samples of products purportedly manufactured by his purported bottling companies.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Instead of investing victim funds as he promised, Anderson instead used their money on personal expenses. He has agreed to forfeit his ill-gotten gains from these schemes, including 15 cars \u2013 one of them a Ferrari \u2013 and real estate in Ojai.<\/p>\n

\u00a0 \u00a0 \u00a0\u00a0\u00a0 \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The FBI is investigating this matter.<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant U.S. Attorney Kerry L. Quinn of the Major Frauds Section is prosecuting the case.<\/p>\n

\n","protected":false},"excerpt":{"rendered":"

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