It’s not just Congressional wannabes who invent lies about themselves to impress naïve voters and dupe their own party, it seems such posers have seeped into the cannabis industry as well. And, they’re not just enhancing their resumé, they’re stealing loads of money.
Justin Costello, who posed as a billionaire, a wounded Special Forces Iraq War veteran and a legal cannabis investor pleaded guilty to securities fraud in a Seattle federal court Wednesday.
The Costello Caper
The guilty plea came several months after an FBI SWAT team arrested Costello in a remote area of southern California where he was carrying a backpack containing gold bars, $70,000 in U.S. and Mexican currency and a fake ID. Costello was apparently heading south of the border after having failed to surrender as agreed to face a 25-count indictment.
At the time, reported MJBiz, U.S. Attorney Nick Brown called the Costello caper “a complex scheme involving shell companies, penny stocks, and financial services for marijuana businesses” in which “Costello used Twitter, press releases, securities filings, and claims of great wealth to paint a picture of fabulous financial success.”
Though Costello’s Wednesday guilty plea was to a single count of securities fraud, it covered much of the criminal conduct alleged in the indictment.
Under the agreement, prosecutors will recommend a 10-year prison sentence. Costello agreed to pay the victims of his frauds, reported CNBC, not less than $35 million…
