As states moved towards legalizing the production and sale of cannabis, an influx of individuals sought to capitalize on the growing market for marijuana products, leading to a surge in interest among lawyers eager to establish cannabis law practices. The year 2020 marked a significant turning point, as the intersection of consumer demand and the complex legal landscape—where cannabis was legal in certain states but classified as a Schedule 1 drug federally—created lucrative opportunities for legal professionals. Notably, DLA Piper gained attention for launching their cannabis practice, signaling that even Biglaw firms recognized the potential in this burgeoning sector. However, the pursuit of profits in the cannabis industry wasn’t without risks, as illustrated by the story of one attorney whose attempt to profit from this cash crop ended with him serving decades in prison. Coverage by My News LA highlights this cautionary tale:
Mark Roy Anderson, 70, residing in Beverly Hills while on supervised release after a prior sentence of over 11 years in federal prison, pleaded guilty in April 2024 to two counts of federal wire fraud, according to the U.S. Attorney’s Office.
…
[He] Anderson was sentenced on Wednesday to 25 years in prison for deceiving investors out of approximately $18.4 million by falsely asserting that his companies were investing in highly profitable hemp farms, cannabis-infused retail products, and a fictitious bottling business.
The contemporary landscape for defrauding individuals out of millions often involves political campaigns or cryptocurrency ventures, yet Anderson’s fraudulent activities took place between 2020 and 2021. During this period, selling dubious products would have been quite evident, yet the explosive growth of the CBD and Delta 8 markets provided fertile ground for swindlers seeking to exploit investors eager for rapid financial returns. Ultimately, Anderson’s actions resulted in a staggering loss of around $18.4 million for 45 investors who placed their trust in him.
While it is completely valid to criticize Anderson for defrauding his investors and facing the consequences of his actions by spending time in prison, one must acknowledge that he certainly aimed high in his fraudulent schemes.
It’s crucial to understand the distinction between ethically representing clients and using a legal education to exploit individuals financially. Both attorneys and their clients should remain aware of the ethical boundaries in their professional interactions.
Disbarred Attorney Receives 25-Year Sentence for Hemp Farm Fraud Scheme [My News LA]
Chris Williams joined Above the Law as a social media manager and assistant editor in June 2021. Before this role, he was known for his humorous contributions as a minor Memelord in the Facebook group Law School Memes for Edgy T14s. He managed to graduate from the Washington University in St. Louis School of Law after enduring the challenges of living in Missouri. Chris, a former boatbuilder, is presently learning to swim, has published works on critical race theory, philosophy, and humor, and possesses a passion for cycling that occasionally tests the patience of his friends. You can connect with him via email at cwilliams@abovethelaw.com and follow him on Twitter at @WritesForRent.
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