Cannabis conman Justin Costello pleads guilty to $35M fraud scheme

Justin Costello, who earned national publicity as one of the FBI's Ten Most Wanted Criminals for securities fraud, which included pretending to be an injured Special Forces Iraq veteran, has pleaded guilty to a single count of securities fraud three months after an FBI SWAT team arrested him in rural southern California.

Costello acted like a billionaire in the cannabis industry to lure innocent investors out of $35 million, and as part of the plea agreement he agreed to pay his fraud victims no less than the $35 million. Prosecutors are recommending a decade-long prison sentence.

When Costello was arrested he was carrying a backpack with gold bars, fake identification and $70,000 in Mexican and U.S. currency. He did not surrender in the case and the pursuit of Costello was a made-for-TV news story that garnered attention across the U.S.

Although Costello only pleaded guilty to one count of securities fraud, it covered most of his criminal activity. He was originally charged with three counts of securities fraud and nearly two dozen counts of wire fraud. The plea agreement also means that Costello's wife avoided charges from the Western District of Washington's U.S. Attorney's Office.

Costello's will be sentenced on April 21. He has been in custody without bail since being apprehended.