FusionPharm Fraud: Sears, Dittman Charged in SEC Scam

William Sears, 50, of Thornton, Colorado, and Scott Dittman, 47, now of Boyertown, Pennsylvania, and formerly of Elizabeth, Colorado, are facing federal charges in a brazen securities fraud scheme tied to FusionPharm, Inc. Both were charged by Information on September 16, 2016, with Conspiracy to Defraud the U.S., specifically targeting the U.S. Securities and Exchange Commission’s oversight mechanisms. The scam ran from at least March 25, 2011, through May 15, 2014, leaving investors and regulators in its wake.

FusionPharm’s front was simple: sell retrofitted steel shipping containers converted into hydroponic growing pods—marketed as “PharmPods”—for indoor cannabis cultivation. But behind the scenes, Sears and Dittman were cooking the books. Court documents reveal they fabricated sales transactions and reported false revenues to inflate the company’s value, deceiving investors and financial intermediaries alike. These lies were systemic, not isolated—part of a deliberate effort to manipulate the public market under ticker symbol FSPM.

The fraud deepened when Sears and Dittman lied to FusionPharm’s transfer agent and broker-dealers, falsely claiming that Sears and his affiliated companies were not control persons of the firm. This misrepresentation allowed unrestricted sale of millions in FusionPharm shares, flooding the market with stock that should have been locked down. The result? A manipulated stock price, vulnerable investors, and a shattered trust in shell-company oversight.

Acting U.S. Attorney Bob Troyer’s office has now launched a dedicated victim resource page: www.justice.gov/usao-co/fusionpharm-us-v-sears-and-dittman. The site serves as a clearinghouse for those impacted by the fraud, offering updates on court proceedings, evidence summaries, and channels for restitution claims. With fallout still unfolding, it’s a lifeline for those burned by the scam.

Sears has already pled guilty and is scheduled for sentencing on April 25, 2017. His cooperation may peel back more layers of the scheme. Dittman, meanwhile, has filed a notice of disposition, but his change of plea hearing—originally set for early November—has been delayed due to a switch in defense counsel. The court has not set a new date, leaving victims in legal limbo.

This case isn’t just about cooked books and fake sales. It’s about the exploitation of regulatory gaps in micro-cap stock schemes, where small companies become big scams. FusionPharm never grew plants—it grew lies. And now, the DOJ is digging through the roots to see who else may have been poisoned by its fraud.