Fraudster Scams Cannabis Investors Out of $18 Million

69-year-old Mark Roy Anderson has pleaded guilty to two counts of fraud. Anderson was released from prison in 2020, where he had been serving time for—believe it or not—fraud. While under house arrest, he decided not to waste any time and returned to his favorite activity. This time, he targeted the rapidly growing cannabis sector.

How the Scam Worked

From June 2020 to April 2021, Anderson convinced investors to put money into his company, Harvest Farm Group, claiming it would harvest and process hemp from his farm in Kern County into medical-grade CBD. Of course, there was no such company or farm. When asked about his previous convictions, he simply claimed he wasn’t actually at fault. And when investors demanded their money back, he blamed pandemic-related sales delays.

From April 2021 to May 2023, Anderson found new investors for two more fake companies—Bio Pharma and Verta Bottling. These companies supposedly produced CBD oil.

Fake Documents and Products

Anderson expertly forged all the necessary legal documents and even created a fake product sample. In total, he managed to swindle $18.4 million from his victims. Ultimately, however, he is headed back to prison.