Disgraced Calif. attorney sentenced to 25 years after CBD tequila scam. swindled 45 people out of $18 million

https://www.sfgate.com/cannabis/article/california-attorney-sentenced-in-cbd-scam-20253492.php

A California man was sentenced last week to 25 years in jail after swindling investors out of nearly $18 million in an elaborate CBD scam that involved a fake Kern County hemp farm and cannabis-infused tequila.

Mark Roy Anderson, 70, pleaded guilty in 2024 to two counts of wire fraud related to the investment scheme. During last week’s sentencing, Judge Fernando L. Aenlle-Rocha called Anderson an “incorrigible con man,” according to a Department of Justice press release.

“The magnitude of the fraud is breathtaking … the [victims’ statements reflect] the depth of the harm. Many have lost their life savings reflecting decades of hard work,” Aenlle-Rocha said.

Prosecutors said Anderson raised more than $18.8 million from 45 investors between June 2020 and May 2023. He told investors that he was running three companies — Harvest Farm Group, Bio Pharma and Verta Bottling — that grew industrial hemp and sold a variety of products, including CBD-infused olive oil, CBD-infused tequila, CBD isolate and Delta 8, a psychoactive substance used in hemp products.

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The former attorney has a long history of business problems, including being disbarred in Nevada in 1993 after being charged and sentenced to seven years in prison for mail fraud, as well as being sentenced to 11 years in jail for a fraud scheme in 2014, according to Law360.com.

https://www.sfgate.com/cannabis/article/california-attorney-sentenced-in-cbd-scam-20253492.php

Anderson falsely told victims he owned and operated the Kern County farm and that he had already completed profitable harvests. He claimed he was using his own machinery 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,” the DA’s office said.

To prevent investors from asking for collections or reporting him to law enforcement, Anderson falsely told them that product sales from the farm-grown hemp were delayed due to the COVID-19 pandemic.

He then falsely promised to pay the victims back and that some of the money stemmed from sales recently made to Canadian companies.

In the second scheme from April 2021 to May 2023, Anderson lied to investors that his company Bio Pharma manufactured and sold products infused with CBD including CBD-infused avocado oil, olive oil, pain cream, gummies, tequila, and chili oil. His other company, Verta Bottling, allegedly manufactured and sold beverages and a variety of food products.

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“The magnitude of the fraud is breathtaking,” said Judge Aenlle-Rocha at Wednesday’s hearing. “The [victims’ statements reflect] the depth of the harm. Many have lost their life savings reflecting decades of hard work.”

https://ktla.com/news/local-news/beverly-hills-man-sentenced-for-stealing-over-18-million-through-cannabis-scams/

Anderson used his ill-gotten gains to buy 15 luxury and vintage cars – including a Ferrari – and a house in Ojai, Cali., nestled amongst citrus groves, among other indulgences, per prosecutors.

https://people.com/calif-con-artist-bilked-18-million-victims-peddling-fake-cannabis-farm-8628598