SEC Says Mississippi Marijuana Grower Spent $1.94 Million of Investors' Money on Jewelry, Travel and Cash Withdrawals

Published Oct. 7, 2026. Case statuses are current as of that date.

The pitch was a ground-floor stake in Mississippi's new medical marijuana market. Investors typically paid $300,000 for a 1% equity interest in a grow operation in Prentiss, Mississippi, and were promised quarterly profit distributions that would start as soon as 30 days after they invested. According to the U.S. Securities and Exchange Commission, no distributions were ever paid, and about 40% of the money went to the founder's personal spending [1][2].

On Sept. 30, 2026, the SEC sued Thomas J. Moore, III, 59, of D'Iberville, Mississippi, in U.S. District Court for the Southern District of Mississippi. The agency alleges he raised about $4.94 million from approximately 20 investors between at least December 2021 and August 2024 by selling equity interests in Mississippi Green Oil, LLC, and misappropriated about $1.94 million [1][2]. The case is SEC v. Thomas J. Moore, III, No. 1:26-cv-00286-LG-BWR [1].

Important: This is a civil lawsuit. The SEC's claims are allegations that have not been proven in court, and Moore is presumed not liable unless a court finds otherwise. The SEC's release does not mention any criminal charges. We found no public response from Moore or an attorney for him.

What the SEC alleges

The pitch

Moore founded Mississippi Green in December 2020 to grow, cultivate and sell medical marijuana. In promotional materials, the company described itself as "A Medical Marijuana Cultivator, Processor & B2B Service Provider." The SEC says Moore often presented the investment as a select opportunity for people he knew or met at the facility, and for friends, family and acquaintances [2].

Some investors received slide decks projecting first-year revenue as high as about $64 million; another deck projected $40 million to $60 million. Investors signed a "Letter of Agreement" and wired money to accounts the SEC says Moore exclusively controlled [2].

Where the money went

Investors were told their money would be used only to develop the business, including equipment and the grow facility. The complaint alleges Moore instead spent, among other things, about $189,000 on travel and lodging, $180,000 on grocery and department store purchases, $145,000 on fast food and restaurants, $100,500 on clothing and jewelry, $20,500 on private school payments, $698,000 in cash withdrawals and $180,000 in transfers to family members [2].

In one example, the SEC says that after receiving $100,000 of investor money on May 6, 2022, Moore spent more than $21,000 within a week on restaurants, hotels, a vacation package and other entertainment [2].

The distributions that never came

The SEC alleges Moore promised quarterly distributions that would begin anywhere from 30 days to nine months after an investment, and that some investors took out lines of credit on their homes to invest. Meanwhile, the company didn't receive its cultivation license until June 2023 and didn't plant until October 2023, producing what the complaint calls a substandard crop sold at a deep discount [2].

When one investor asked in January 2024 what was going on, Moore replied, according to the complaint, "we have everything paying quarterly starting first quarter march 31 June October December." No payment followed. The SEC says no distributions were made at any time [2].

The lawsuits investors weren't told about

The complaint says investors sued Moore and the company starting in January 2023, and that Moore brought in at least 12 more investors after that first suit without disclosing it. On June 2, 2024, asked by an investor whether he had been served with a lawsuit, Moore texted that he was "not served nothing," the SEC alleges [2].

By October 2024, Moore had given up his majority interest and stopped managing the company [2].

What the SEC wants

The SEC charges Moore with violating the antifraud provisions of the Securities Act and the Exchange Act. It seeks a permanent injunction, a conduct-based injunction barring him from securities offerings, disgorgement with prejudgment interest, and a civil penalty. It has demanded a jury trial [1][2].

Red flags

• A "select" opportunity offered personally to friends, family or visitors, with no independent paperwork beyond a short letter agreement.
• Huge revenue projections for a business that doesn't yet have a license or a crop.
• Promised quick payouts that keep slipping, with a new excuse each quarter.
• Wiring money to accounts controlled by one person, rather than a company account with oversight.
• Lawsuits by earlier investors. Search court records for the founder's and company's names before investing.

What to do if you're targeted

1. Check registration. Look up the person and the offering on the SEC's EDGAR system and on Investor.gov, and call your state securities regulator.
2. Ask for financial statements and a written explanation of how the money will be spent, and have an independent adviser or attorney review them.
3. Never borrow against your home to fund a private start-up investment.
4. Already invested? Keep your agreement, wire records and every message, and file a tip with the SEC at sec.gov/tcr.

Case status (as of Oct. 7, 2026)

Defendant	Court	Status as of Oct. 7, 2026	Source
Thomas J. Moore, III, 59, D'Iberville, MS	Federal, S.D. Miss. (1:26-cv-00286-LG-BWR)	Sued by the SEC (civil) Sept. 30, 2026; allegations unproven; no criminal charges mentioned in the SEC release	[1], [2]

Civil allegations are unproven unless and until a court rules. Statuses can change.

Sources

1. U.S. Securities and Exchange Commission, "SEC Charges Mississippi Man with Fraud in Alleged Marijuana Company Investment Scheme," Litigation Release No. 26663, Oct. 1, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26663
2. Complaint, SEC v. Thomas J. Moore, III, No. 1:26-cv-00286-LG-BWR (S.D. Miss., filed Sept. 30, 2026). https://www.sec.gov/files/litigation/complaints/2026/comp26663.pdf

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