Authorities said 45-year-old Jered Hayward was sentenced to 13 years in prison after previously pleading guilty to conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and conspiracy to launder the proceeds. Hayward additionally agreed to forfeit assets worth more than $2 million, officials said.
According to court documents, Hayward led a large-scale THC and psilocybin production facility headquartered in Salem.
As part of the operation, Hayward and his employees infused or sprayed cereal and candy with potent THC oils.
The edibles were then placed in packages that looked similar to legitimate food products — marketing them as Cinnamon Toast Crunch Krispie Bars, Froot Loops Krispie Bars and Cocoa Puffs Krispie Bars among other popular cereal brands — and sold them in the United States and internationally.
Authorities said while there is no evidence that Hayward marketed the products toward minors, officials said the way the edibles were packaged posed a risk to children who are often unable to comprehend fine print warnings on THC products.
According to the U.S. Attorney’s Office for the District of Oregon, the organization used encrypted communications such as Telegram to market and sell orders while masking money laundering transactions.
Authorities say Hayward had no permits or licenses to produce or sell the products, noting the entire operation was illegal.
Hayward has an extensive criminal history, including three prior state and federal convictions for marijuana and fentanyl trafficking, officials said, adding that based on those convictions, he is considered a career criminal under federal law.
As part of his guilty plea, Hayward agreed to forfeit his Salem production facility, over $1 million in cash, $640,000 in cryptocurrency and bank account funds, more than $400,000 worth of gold and silver, jewelry, a Rolex watch, 12 vehicles, two UTV’s and boats.
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