It’s not just would-be congressional candidates who invent lies about themselves to impress naïve voters and deceive their own party, it seems that such braggarts have infiltrated the cannabis industry as well. And they don’t just improve their CVs, they steal a lot of money.

Justin Costello, who posed as a billionaire investor, wounded Special Forces veteran of the Iraq War and legal cannabis investor, pleaded guilty to securities fraud in federal court in Seattle on Wednesday.

The Costello capers

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 US and Mexican currency and a fake ID. Costello was apparently heading south of the border after failing to surrender as agreed to face a 25 points indictment.

Back thenreported MJBiz, U.S. Attorney Nick Brown called the Costello caper “a complex scheme involving shell companies, penny stocks, and financial services for marijuana companies,” in which “Costello used Twitter, press releases, securities filings, and claims of great wealth to paint a.” Image of fabulous financial success.”

Although Costello’s guilty plea Wednesday related to a single count of securities fraud, it covered much of the criminal activity alleged in the indictment.

As part of the deal, prosecutors will recommend a 10-year prison sentence. Costello agreed to pay victims of his scams no less than $35 million in compensation, CNBC reported.

What else did he do?

In his plea agreement, Costello admitted to lying to investors and potential investors by falsely claiming that he had a degree from the University of Minnesota and an MBA from Harvard. He also said he’s managed money for wealthy individuals and has 14 years of Wall Street experience — neither true.

The agreement indicated that while Costello lied about his qualifications from July 2019 to May 2021, more than 7,500 investors bought and sold…