Fake Sales Figures Inflated $21 Million Investment in Defunct Spirits Company

About 180 investors lost most of their investments after Drake’s Organic Spirits Inc. raised approximately $21 million based on inflated revenue figures. The Securities and Exchange Commission sued Mark D. Anderson and two entities he controlled, alleging they created fake sales to the company's organic spirits company to mislead investors. Anderson orchestrated sham transactions between Drake’s Organic Spirits Inc. and his other entities to artificially boost the sales figures when seeking funding. The SEC complaint filed Tuesday in the US District Court for the District of Minnesota alleges these transactions were used to inflate revenue figures.