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Local Attorney Pleads Guilty To Fraud In Medical Marijuana Scheme

HUNTINGTON WOODS (WWJ) -- A Huntington Woods attorney has pleaded guilty to fraud charges in what investigators say was a scheme involving a medical marijuana business.

The U.S. Attorney's office says 48-year-old Robert Gross told investors that the $2 million they would give him were going to be used for a medical marijuana business and equipment.  However, Gross used the money to gamble in Las Vegas. The investors involved in this incident included several clients of his law practice.

Gross also admitted to creating fraudulent documents as part of the scheme -- that included falsely-notarized documents and a false net worth statement that he understood would be used in an attempt to secure additional funds from investors.

"As with all financial scams, the victims in this case received promises of hefty profits, but they were the ones who ended up paying the price," Steve Francis, special agent in charge for Homeland Security Investigations Detroit, said in a statement. "As today's plea agreement clearly demonstrates, HSI special agents and our partners are committed to holding perpetrators of financial crime accountable and making every effort to ensure victims receive justice."

As part of the plea, Gross will have to pay back more than $3.5 million in restitution to the victims.

Victims or other persons with knowledge of this crime are encouraged to contact the HSI Tip line at 1-866-347-2423 or www.ice.gov/tips.

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