California Man Pleads Guilty to Massive Investment Fraud Scheme

Categories: California Breaking NewsCalifornia News

Law enforcement officials conduct an investigation related to financial fraud near Lake Shasta.

News Summary

Matthew Piercey, a 48-year-old from Shasta County, has pleaded guilty to fraud, money laundering, and witness tampering in a $35 million investment scam. He misappropriated investor funds meant for business purposes and returned only a fraction to investors. After a dramatic attempt to evade arrest involving a car chase and underwater scooter, federal agents apprehended him. Authorities uncovered substantial evidence, including cash in a rented storage locker, leading to severe potential penalties. His sentencing is scheduled for September 2023, highlighting the risks involved in investment scams.

California – Matthew Piercey, a 48-year-old resident of Shasta County, pleaded guilty to multiple charges including fraud, money laundering, and witness tampering as part of a $35 million investment fraud scheme that occurred from 2015 to 2020. Federal authorities reported that Piercey misappropriated investor funds for personal and business expenses, significantly impacting numerous investors.

Piercey raised approximately $35 million through solicitations of investor funds, but he returned only around $8.8 million to his investors. The remaining funds were apparently used to purchase two residential properties and for various other undisclosed expenses. His actions ultimately led to his arrest following a dramatic chase involving a car and an underwater scooter.

The situation escalated in November 2020 when federal agents attempted to arrest Piercey. Instead of complying, he led law enforcement on a car chase before abandoning his vehicle and entering Lake Shasta. Utilizing a Yamaha 350LI underwater scooter—which allows users to travel underwater at speeds of about 4 mph—he submerged himself, prompting authorities to describe him as a “flight risk.” After approximately 20 minutes submerged, Piercey resurfaced and was taken into custody.

In addition to the fraud and money laundering charges, Piercey is also facing allegations of witness tampering. Following his arrest, he reportedly attempted to dissuade witnesses from complying with grand jury subpoenas. Authorities uncovered that he used coded communication from jail, instructing associates to dispose of a rented U-Haul storage locker which contained incriminating items.

A search of the U-Haul storage locker conducted by the FBI revealed a wig and a substantial amount of cash—31,000 Swiss francs, equating to approximately $37,000. This evidence further implicated Piercey in the fraudulent activities he was accused of orchestrating.

As a result of his guilty plea, the charges against Piercey carry severe penalties. He could face a maximum sentence of 20 years in prison for each count of wire fraud, mail fraud, witness tampering, and money laundering. Sentencing is scheduled for September 4, 2023, pending further legal proceedings.

The investment fraud scheme remains a significant example of the complexities and dangers associated with investment scams. These types of fraud can devastate the lives of investors, often resulting in substantial financial losses. The case against Piercey highlights the importance of vigilance and verification when it comes to investing, with authorities stressing the need for potential investors to conduct thorough due diligence before engaging in financial transactions.

In summary, Matthew Piercey’s case serves as a cautionary tale within the context of financial fraud, illustrating how deceit can manifest in the high-stakes world of investments. As the legal proceedings move forward, many will be watching the outcome to better understand the implications of such fraudulent schemes, as well as the enforcement actions authorities take to protect investors.