Marijuana Mogul Caught! Spent $1.94M on Bling, Travel, Not Business!

SEC v. Thomas J. Moore, III — U.S. Securities and Exchange Commission Litigation Release No. 26663, dated October 1, 2026.

The SEC charged Thomas J. Moore, III with defrauding approximately 20 investors out of $4.94 million in a medical marijuana business scheme. Moore allegedly misappropriated about $1.94 million for personal expenses and failed to disclose lawsuits and pay promised distributions.

In Plain English

Imagine you invest in a friend's new business, like a cool plant shop. You give them money expecting them to use it to buy plants and supplies. Instead, your friend takes a big chunk of your money and buys fancy clothes and goes on vacation, not for the shop, but for themselves. They also promised you a share of the profits soon, but never paid you, and didn't tell you other people had already sued them for doing the same thing. That's what the SEC says happened here.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Founding the Business In December 2020, Thomas J. Moore, III founded Mississippi Green Oil, LLC, a medical marijuana company based in Prentiss, Mississippi. He established it with the goal of cultivating and selling medical marijuana plants.
2. Raising Capital Between December 2021 and August 2024, Moore solicited approximately 20 retail investors, raising at least $4.94 million. He offered them equity interests in Mississippi Green Oil, LLC.
3. Promising Use of Funds Moore assured investors that their money would be used solely for developing Mississippi Green Oil's business, including growing, cultivating, and selling medical marijuana plants.
4. Misappropriating Funds Instead of using all investor funds for the business, Moore allegedly diverted approximately $1.94 million, about 40% of the money raised, for his personal benefit. This included spending on jewelry, travel, clothing, private school tuition, and restaurant expenses.
5. Promising Distributions Moore also promised investors that they would receive short-term profit distributions, beginning as soon as thirty days and no later than nine months after their investment, on a quarterly schedule.
6. Failing to Pay Distributions Despite assurances, Mississippi Green Oil did not generate sufficient revenue due to licensing, equipment, and cultivation delays. Moore failed to pay investors any of the promised distributions.
7. Concealing Lawsuits Moore failed to disclose to investors that other Mississippi Green Oil investors had filed lawsuits against him. These lawsuits alleged failure to return principal and pay promised distributions, with at least one pending before he solicited some later investors.
8. Lying About Lawsuits When questioned by investors, Moore allegedly continued to deceive them. On at least one occasion, he falsely told an investor that he had not been served with any lawsuit, further compounding the deception.

The Enforcement Action

The SEC charged Thomas J. Moore, III with violating federal securities laws by misappropriating investor funds and making material misstatements and omissions in connection with a medical marijuana business investment scheme. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and a civil penalty.

Original SEC litigation release ↗ · Browse all cases