California Man Pleads Guilty to Investment Fraud Scheme

News Summary

Matthew Piercey, a California resident, has pled guilty to fraud, money laundering, and witness tampering in a scheme that defrauded investors of $35 million. He misused funds intended for legitimate investments, instead channeling them into personal expenses. His dramatic attempt to evade arrest involved leading authorities on a chase and using underwater gear. As he awaits sentencing, this case highlights risks within investment systems and the lengths individuals may go to for personal gain.

California

Matthew Piercey, a 48-year-old man from Shasta County, California, has pleaded guilty to charges of fraud, money laundering, and witness tampering in connection with a fraudulent investment scheme that amassed $35 million between 2015 and 2020. The scheme, which misappropriated funds solicited from investors for personal and business expenses, has led to significant legal repercussions for Piercey, who faces up to 20 years in prison for each count.

Piercey solicited investor funds under false pretenses, claiming the money would be used for legitimate business investments. Instead, he diverted much of the money for personal gain, using it to purchase two residential properties. Although he managed to return about $8.8 million to some investors, the bulk of the funds went unaccounted for, leading to widespread financial losses.

His legal troubles intensified in November 2020 when federal agents moved to arrest him. During a high-profile attempt to evade arrest, Piercey led authorities on a car chase before abandoning his vehicle and jumping into Lake Shasta. In a bizarre twist, he utilized a Yamaha 350LI underwater scooter, a device capable of speeds around 4 mph (6.4 kph) underwater, to escape. Federal prosecutors characterized him as a “flight risk,” noting that he spent approximately 20 minutes submerged in the lake, surfacing only after the coast was clear to carry out his escape.

Following his dramatic underwater evasion, Piercey was apprehended by law enforcement. Further complications arose when investigations revealed that he attempted to intimidate potential witnesses. While incarcerated, he reportedly used coded communications to encourage others to dispose of evidence related to his case, specifically instructing them to clear out a rented U-Haul storage locker. A subsequent FBI search of this locker yielded significant items, including a wig and 31,000 Swiss francs, valued at about $37,000, potentially indicating further attempts to conceal his identity or assets.

Piercey’s guilty plea brings his lengthy legal challenges to a pivotal moment, but it is far from the end of his struggles with the justice system. The charges he has faced include multiple counts of wire fraud, mail fraud, witness tampering, and money laundering, each carrying severe penalties. With a sentencing date set for September 4, he now awaits the court’s decision on the extent of his punishment, which could lead to a lengthy prison term.

This case serves as a stark reminder of the vulnerabilities within investment systems and the lengths to which individuals may go to seek personal gains at the expense of others. Piercey’s high-profile chase and guilty plea is a cautionary tale in the realm of investment fraud, highlighting both the criminal tactics employed by fraudsters and the government’s commitment to pursuing justice against such acts.

As the legal process progresses, both investors affected by Piercey’s scheme and the broader community will observe closely, hoping for a resolution that addresses the financial and emotional distress caused by his actions. The outcome of this case may also influence future approaches to investment fraud prevention and enforcement in California and beyond.