Feds Bust Oregon Man Making THC and Magic Mushroom Candy That Looked Like Children’s Treats

A 45-year-old career criminal from Oregon found with 1,000 kilograms of marijuana was sentenced to 13 years in prison yesterday for possession and conspiracy to distribute and launder the proceeds.

Jered Hayward ran an unlicensed manufacturing and distribution operation in Salem, where he coated or infused cereal and candy with THC and psilocybin (the active compound in psychedelic mushrooms).

These drug-laced products were then distributed across the U.S. and to international markets.

Hayward’s organization packaged its edible products in a way that could attract children who may not recognize or understand the small print indicating the presence of THC. Despite this, there was no indication that he intentionally marketed the products to minors.

The entire enterprise operated outside the law, lacking the necessary licenses or permits for manufacturing and selling the goods.

To carry out and conceal their activities, the group relied on encrypted messaging platforms like Telegram to advertise, handle orders, and coordinate sales while also using front companies to disguise illicit financial transactions.

The U.S. Attorney’s Oregon office says Hayward has an extensive criminal record, including three prior state and federal convictions for marijuana and fentanyl trafficking, earning him the ‘status’ of a career criminal under federal law.

Ordered to Surrender Assets Exceeding $2 Million

Hayward, who had already entered a guilty plea, was ordered to surrender assets exceeding $2 million in total value.

Among the forfeited items were a production facility in Salem, over $1 million in cash, $640,000 in cryptocurrency and bank holdings, more than $400,000 in gold and silver, luxury jewelry including a Rolex watch, 12 vehicles, two utility terrain vehicles (UTVs), and several boats.

This was a multi-agency investigation involving Homeland Security Investigations working alongside the Portland Police Bureau, U.S. Postal Inspection Service, Oregon State Police, IRS Criminal Investigation Division, Salem Police Department, and the Washington County Sheriff’s Office.

The case was brought forward by Assistant U.S. Attorneys Kemp Strickland and Christopher Cardani from the District of Oregon.