News Summary
Matthew Piercey, a Shasta County resident, has admitted to orchestrating a $35 million investment fraud scheme, leading to charges of fraud, money laundering, and witness tampering. Despite raising substantial funds from investors, he repaid only a fraction. His attempts to evade federal arrest included an underwater chase, and further witness tampering was revealed following his capture. Piercey now faces severe legal consequences with a maximum potential sentence of 20 years. The case highlights the importance of due diligence in investing.
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. These charges stem from a significant $35 million investment fraud scheme that occurred between 2015 and 2020. In the course of his fraudulent activities, Piercey solicited investor funds that he misappropriated for personal gain, including the purchase of two residential properties.
Details of the Fraud
Piercey was able to raise an estimated $35 million from investors. However, he only returned approximately $8.8 million back to them, leaving a significant gap for investors who had trusted him with their money. His misuse of funds encompassed various personal and business-related expenses, significantly undermining the investment endeavors he had promoted.
Underwater Chase and Arrest
The dramatic sequence of events unfolded in November 2020 when federal agents sought to arrest Piercey. Upon spotting law enforcement, he attempted to evade capture by leading agents on a car chase. Once he abandoned his vehicle, Piercey jumped into Lake Shasta, equipped with a Yamaha 350LI underwater scooter. This motorized device allows users to navigate underwater at speeds of up to 4 mph (6.4 kph).
Federal prosecutors later described Piercey as a “flight risk,” citing his decision to submerge himself underwater, where he could only be seen by bubbles rising to the surface. After approximately 20 minutes underwater, he eventually resurfaced and was apprehended by federal agents.
Witness Tampering Attempts
After his arrest, Piercey did not cease his illegal activities. He made attempts to dissuade witnesses from cooperating with authorities regarding their testimonies against him. These attempts included using coded communications while in jail, instructing others on how to dispose of a rented U-Haul storage locker. An FBI search of the locker led to the discovery of a wig and a substantial sum of money in the form of 31,000 Swiss francs, valued at approximately $37,000.
Potential Sentence and Legal Consequences
Matthew Piercey now faces severe legal repercussions. Each of the counts against him—wire fraud, mail fraud, witness tampering, and money laundering—carries a maximum sentence of 20 years in prison. Sentencing for these charges is scheduled for September 4, and the outcome will determine the extent of punishment he will face for orchestrating this large-scale investment fraud.
Context of the Fraud Scheme
Investment fraud schemes have become increasingly prevalent, with scammers exploiting trust and financial insecurity to defraud unsuspecting investors. Individuals like Piercey often entice victims with promises of high returns, only to siphon off funds for personal expenditures. The case serves as a cautionary tale about the importance of thorough due diligence before investing money and the potential consequences of attempting to deceive others in financial matters.
Deeper Dive: News & Info About This Topic
- Fortune: California Man Pleads Guilty to $35 Million Investment Fraud Scheme
- Reuters: US Justice Dept Charges California Woman with Litigation Funding Fraud
- Bleeping Computer: California Man Steals $50 Million Using Fake Investment Sites
- CCN: California Crypto Scam Tracker Explained
- Mercury News: San Diego Judge Issues Rare Acquittal in Securities Fraud Case
- Wikipedia: Fraud
- Google Search: Investment Fraud
- Google Scholar: Investment Fraud
- Encyclopedia Britannica: Fraud
- Google News: California Investment Fraud
Author: Anaheim Staff Writer
Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
