News Summary

Matthew Piercey, a 48-year-old from Shasta County, California, has pleaded guilty to fraud and other charges related to a $35 million investment fraud scheme. Between 2015 and 2020, he misappropriated investor funds for personal expenses, returning only $8.8 million. In a dramatic escape attempt during a federal arrest, he fled into Lake Shasta using an underwater scooter. Now facing possible 20-year prison sentences for each count, Piercey’s case highlights the significant risks associated with fraudulent investment schemes.

California Man Pleads Guilty to $35 Million Investment Fraud Scheme

Matthew Piercey, a 48-year-old resident of Shasta County, California, has pleaded guilty to multiple charges including fraud, money laundering, and witness tampering in connection with a significant investment fraud scheme totaling $35 million. The fraudulent activities took place between 2015 and 2020, during which Piercey solicited funds from investors and misappropriated the money for personal and business expenses, notably purchasing two residential properties.

As part of his fraudulent operations, Piercey raised $35 million but only managed to return around $8.8 million to investors. This significant disparity has raised concerns regarding the financial recovery for those who engaged with Piercey’s investment offers.

Federal Arrest Attempt

In November 2020, federal agents attempted to arrest Piercey but were met with resistance when he fled the scene, initiating a dramatic car chase. During the pursuit, Piercey abandoned his vehicle and entered Lake Shasta utilizing a Yamaha 350LI underwater scooter, a motorized device that permits users to navigate underwater at speeds of approximately 4 mph (6.4 kph). Federal prosecutors highlighted Piercey’s actions during this incident, describing him as a flight risk as he submerged himself underwater, leaving only bubbles on the surface.

After approximately 20 minutes underwater, Piercey finally surfaced and was arrested by federal authorities.

Attempted Witness Tampering

Following his arrest, further illegal activities came to light. Piercey attempted to influence witnesses by dissuading them from responding to grand jury subpoenas. While incarcerated, he used coded communications to instruct associates to dispose of a rented U-Haul storage locker that was linked to his fraudulent scheme. An FBI search of this storage locker revealed a wig and 31,000 Swiss francs, equivalent to around $37,000, raising further suspicions about his intention to evade legal responsibilities.

Legal Consequences

Piercey now faces serious consequences for his criminal actions. He could receive a maximum sentence of 20 years in prison for each count, which includes charges of wire fraud, mail fraud, witness tampering, and money laundering. Sentencing for Piercey is scheduled for September 4, where the court will determine the appropriate penalties for his extensive fraudulent activities.

Background on the Scheme

The fraudulent investment scheme orchestrated by Piercey marks a significant case of financial misconduct in which numerous investors were enticed into trusting him with their money. Promising lucrative returns, Piercey’s actions have not only led to severe financial losses for investors but also draw attention to the heightened risks involved in investment schemes that lack proper transparency and regulatory oversight.

As this case progresses, the repercussions will likely resonate through the community, shedding light on the importance of due diligence and caution when engaging in investment opportunities.

California Man Pleads Guilty to $35 Million Investment Fraud Scheme

News Summary