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OKLAHOMA (KOAM) — The alleged leader of a fraudulent medical marijuana scheme is back in jail after a judge denied his bond.
According to court documents, an Oklahoma judge denied bond for Hao Chen on Monday, after the state requested that it either be raised or denied completely.
The Oklahoma Attorney General issued the following statement following the decision.
“Today’s ruling reflects the serious nature of the charges facing Hao Chen. The court’s decision to deny bond entirely recognizes that an individual accused of running a billion-dollar criminal operation and facing 18 felony counts poses a significant risk to our community. We are committed to seeing this case through and will continue to work diligently to hold all those responsible for this illegal operation fully accountable under the law.” – Attorney General Gentner Drummond.
Chen’s next court date is scheduled for May 12, 2026, at 1:30 p.m.
Chen and his organization allegedly ran fraudulent medical marijuana licensing schemes in Oklahoma from 2021 to 2025. Chen is one of 20 people across multiple states arrested in the case. Authorities say he was the leader of the organization.
Attorney Drummond’s Office says his organization was responsible for around 1 million pounds of marijuana worth $1.5 billion in street value.
Prosecutors charged Chen with the following offenses:
The indictment says Chen ran a fake “straw owner” scheme to get Oklahoma marijuana business licenses. His organization paid Oklahoma residents to put their names on fake applications, then used those licenses to grow marijuana illegally and sell it on the black market.
During the investigation, the authorities found that Chen had bank accounts with large cash deposits and regular wire transfers from New York, which the Drummond’s Office says were used to pay straw owners and other associates of the conspiracy.
Attorney Drummond’s Office says individuals involved in the criminal activity were located in Oklahoma, New York, Texas, Nevada, California, Colorado, Illinois, and Washington.
Financial transactions connected to the operation flowed to and from Oklahoma from New York, Nevada, Texas, California, New Mexico, Missouri, Georgia, Illinois, Washington, Oregon, and China.
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OKLAHOMA (KOAM) — A man, originally arrested in New York, faces 18 felony counts in Oklahoma for his role in a fraudulent medical marijuana scheme.
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