Wire Fraud Conviction: Beverly Hills Man Misleads Investors Out of $18 Million in Fake CBD Business

Mark Roy Anderson, a 69-year-old Beverly Hills resident, has entered a guilty plea to two counts of wire fraud, acknowledging his role in orchestrating schemes that led to substantial financial losses for investors, totaling over $18 million. This fraudulent activity occurred as Anderson was concluding a sentence for a prior criminal case, showcasing a pattern of deceitful behavior even during his home confinement and subsequent supervised release.

Anderson’s guilty plea to wire fraud charges stems from his involvement in two distinct but equally deceptive operations. Wire fraud, under 18 U.S.C. § 1343, is a serious federal offense that involves the use of telecommunications or the internet to carry out schemes to defraud or obtain money under false pretenses. Each count of wire fraud carries a potential maximum penalty of 20 years in federal prison. Anderson’s actions clearly fall within this definition, as he utilized electronic communications to mislead and defraud investors.

Scheme One: Harvest Farm Group

From June 2020 to April 2021, Anderson misled investors into financing Harvest Farm Group under the guise of converting hemp into medical-grade CBD isolate and Delta 8 for substantial profits. He falsely claimed ownership and successful operation of a hemp farm in Kern County, promising high returns from nonexistent sales. Anderson sought to establish trust by distancing himself from his criminal history and by providing reassurances that masked the absence of actual business operations. His lies extended to promises of repaying investors with profits from sales delayed by the COVID-19 pandemic.

Scheme Two: Bio Pharma and Verta Bottling

Between April 2021 and May 2023, Anderson executed his second fraudulent scheme by actively soliciting investments for Bio Pharma and Verta Bottling. He falsely claimed these entities were manufacturing and selling CBD-infused products and beverages. Anderson distorted the financial health and operational capabilities of these companies, inventing assets and sales contracts to attract investors. In stark contrast to his claims, he used investor funds for personal expenses, such as buying luxury cars and real estate.

Consequences and Sentencing

Anderson’s orchestrated fraudulent activities unlawfully netted him more than $18.8 million from 45 victims, causing them a total financial loss of approximately $18,376,150. His plea agreement mandates the forfeiture of assets gained through these illicit schemes. With the sentencing scheduled for August 23, Anderson faces up to 20 years in federal prison for each count of wire fraud, highlighting the severity of his actions and the possible consequences.

Potential Legal Defense Perspectives

In defending Anderson, a crucial focus would be on mitigating the sentencing phase’s potential consequences. Legal defense strategies could include:

• Character and Rehabilitation Evidence: Presenting evidence of Anderson’s character, including testimonials from community members or family, can significantly demonstrate his potential for rehabilitation. Additionally, emphasizing Anderson’s proactive engagement in therapy or community service since his arrest further strengthens the argument for his capacity for change.
• Cooperation and Plea Agreement: Emphasizing Anderson’s decision to plead guilty and his cooperation with authorities could serve as a basis for seeking leniency. The defense might argue that this cooperation demonstrates remorse and a willingness to make amends, factors that could justify a reduced sentence.
• Financial Restitution and Forfeiture: The defense could highlight Anderson’s agreement to forfeit assets gained from the schemes as a significant step towards restitution. Arguing that Anderson is committed to compensating the victims could support a plea for a sentence that focuses more on restitution and less on incarceration.

Navigating the Investigation and Prosecution Process

In relation to the investigation and prosecution stages, the defense might consider several tactics:

• Challenging the Evidence: Questioning the validity, reliability, or sufficiency of the evidence presented by the FBI could form a part of the defense strategy. This could involve scrutinizing the methods used to gather evidence or the interpretation of electronic communications that underpin the wire fraud charges.
• Legal and Procedural Arguments: The defense might explore any potential legal or procedural errors that could affect the case. This could include challenging the application of wire fraud statutes to Anderson’s actions or identifying any issues with the way the investigation was conducted that might infringe on Anderson’s legal rights.
• Negotiating the Plea: Engaging in negotiations with the prosecution, led by Assistant United States Attorney Kerry L. Quinn, to secure the most favorable plea deal possible. This could involve bargaining over aspects of the sentencing recommendations or the specifics of the forfeiture agreement to ensure they are as advantageous to Anderson as possible.

The Federal Bureau of Investigation (FBI) has been pivotal in uncovering the depth of Anderson’s fraudulent activities. The case is being prosecuted by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.