A serial fraudster from California has been sentenced to 25 years in federal prison for orchestrating an elaborate scheme that defrauded investors of nearly $18.4 million through fictitious hemp and CBD businesses.
U.S. District Judge Fernando L. Aenlle-Rocha described Mark Roy Anderson, 70, as an “accomplished and incorrigible con man,” emphasizing the impact of his scam on victims, many of whom lost their life savings.
Between June 2020 and May 2023, Anderson operated under the guise of three companies: Harvest Farm Group, Bio Pharma Organic LLC, and Verta Bottling Co. Inc. He falsely claimed ownership of a profitable hemp farm in Kern County, California, and asserted that his companies were successfully manufacturing and selling CBD-infused products, including olive oil, pain cream, gummies, tequila, and chili oil.
Luxury & vintage cars
The government said Anderson diverted over $650,000 of investor funds to purchase 15 luxury and vintage vehicles, including a Ferrari. He also spent more than $1.3 million acquiring a residence and surrounding citrus groves in Ojai, California. Additionally, he spent over $142,000 on retail purchases and personal expenses. Anderson created fake legal and business documents to make his sham enterprises appear legitimate, prosecutors said.
Anderson’s fraudulent activities span several decades. A former attorney, he was disbarred in Nevada in 1993 following a mail fraud conviction that resulted in a seven-year prison sentence. In 2014, he received an 11-year sentence for a Ponzi scheme involving fake oil ventures.
Anderson carried out the CBD scam while still under supervised release from a prior conviction, having been released from federal prison in 2020.
‘Breathtaking fraud’
Anderson last year pleaded guilty to two counts of wire fraud in the CBD case. Judge Aenlle-Rocha highlighted the severity of Anderson’s crimes during sentencing last week, saying, “The magnitude of the fraud is breathtaking… Many (investors) have lost their life savings reflecting decades of hard work.” The judge underscored the necessity of protecting the public from Anderson, emphasizing his “recidivist tendencies.”
As part of his plea agreement, Anderson has agreed to pay approximately $18.3 million in restitution to the defrauded investors. This includes $8.78 million to those deceived by Harvest Farm Group and $9.6 million to investors in Bio Pharma Organic and Verta Bottling. He has also consented to forfeit assets, including the Ojai property and the collection of luxury vehicles.