A Beverly Hills man pleaded guilty to federal criminal charges on April 5 for perpetrating a cannabis investment fraud scheme that resulted in more than $18 million in losses to investors. The defendant, Mark Roy Anderson, 69, committed the fraud while he was completing a sentence in a prior criminal case, authorities said.

Anderson pleaded guilty to two counts of wire fraud. In a plea agreement, he admitted to engaging in two separate schemes that swindled victims, and that he committed the fraud shortly after his release from federal prison and while on home confinement and supervised release for a previous fraud conviction.

Prosecutors said Anderson tricked investors with false claims about his companies’ purported investments in hemp farms and cannabis-infused retail products, as well as a fake bottling business. In a scheme from June 2020 to April 2021, Anderson convinced investors to provide funds for Harvest Farm Group to harvest and process hemp grown on a farm he purportedly owned in Kern County into a medical-grade cannabis product to be sold for a substantial profit. Anderson falsely claimed that he owned and operated the hemp farm and lied about successful and profitable harvests, prosecutors said. 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 can be used in consumer products such as olive oil and body cream.

Anderson took steps to assure investors Harvest Farm Group was legitimate and that he was not the same Mark Roy Anderson with multiple prior fraud convictions. 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. He also admitted concealing that he was still serving a criminal sentence and was on supervised release at the time he was soliciting investments.

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 fake companies, prosecutors said. The defendant falsely claimed the businesses manufactured, bottled and packaged commercial products. Bio Pharma purportedly manufactured and sold products infused with CBD, including products such as CBD-infused avocado oil, olive oil, pain cream, gummies, tequila and chili oil. Anderson also claimed that Verta Bottling manufactured and sold beverages and food products. Prosecutors said Anderson falsely stated his bottling companies owned and possessed millions of dollars of assets.

Instead of investing the victims’ funds, Anderson used their money on personal expenses which included a Ferrari and 14 other cars, as well as real estate in Ojai. Investor losses attributed to Anderson totaled $18.3 million, prosecutors said. A sentencing hearing will be held on Aug. 23. Anderson faces 20 years in federal prison for each count.