Career Criminal Sentenced to Thirteen Years in Federal Prison for Manufacturing and Selling THC and Psilocybin Products Nationwide

Source: Office of United States Attorneys

PORTLAND, Ore.—Jered Hayward, 45, of Salem, Oregon, was sentenced today to 156 months in prison after previously pleading guilty to conspiracy to possess with intent to distribute over 1,000 kilograms of marijuana and conspiracy to launder the proceeds. He also agreed to forfeit assets worth more than $2 million dollars.

According to court documents, Hayward operated a large-scale THC and psilocybin production and distribution facility headquartered in Salem. As part of his operation, Hayward and his employees obtained cereal and candy products and infused or sprayed potent THC oils on them.  They then inserted the edibles into packages which mimicked the legitimate consumer food products, and sold them throughout the United States and internationally. While there was no evidence Hayward deliberately targeted minors, the manner in which his organization packaged the edibles posed a risk to children, who are often unable to comprehend the fine print warnings that the packages contained THC products.

Hayward’s organization utilized encrypted communications such as Telegram to market, sell and process orders, and straw businesses to mask money laundering transactions. Hayward had no permits or licenses to produce or sell these products; the entire operation was illegal.

Hayward has an extensive criminal record, including three prior state and federal convictions for marijuana and fentanyl trafficking. Because of these convictions, he is a career criminal under federal law.

Hayward agreed to forfeit substantial assets which he admitted were related to his drug and money laundering enterprise. As part of his guilty plea Hayward agreed to forfeit:

  • The Salem production facility;
  • More than $1 million in cash;
  • $640,000 worth of cryptocurrency and bank account funds;
  • More than $400,000 worth of gold and silver;
  • Jewelry and a Rolex watch; and
  • Twelve vehicles, two UTV’s, and boats.

This case was investigated by Homeland Security Investigations, Portland Police Bureau, United States Postal Inspection, Oregon State Police, Internal Revenue Service Criminal Investigation, Salem Police Department and the Washington County Sheriff’s Office. It was prosecuted by Kemp Strickland and Christopher Cardani, Assistant United States Attorneys for the District of Oregon.