Latest news with #MatthewPiercey
Yahoo
20-05-2025
- Yahoo
He Ran a $35 Million Scam — Then Tried to Evade the FBI Using an Underwater Scooter
Matthew Piercey, 48, pleaded guilty to wire fraud, money laundering, and witness tampering after orchestrating a $35 million Ponzi scheme When the FBI attempted to arrest him in 2020, Piercey fled into a lake using an underwater scooter Following his arrest, Piercey attempted to obstruct justice by using coded language to instruct associates to remove items from a storage unitA California man who tried to evade authorities by riding a scooter underwater into a lake pleaded guilty in connection with a $35 million fraud scheme. Matthew Piercey, 48, pleaded guilty to wire fraud, concealment money laundering and witness tampering after prosecutors said he solicited investor funds and used the money for personal expenses, according to a news release from the U.S. Attorney's Office for the Eastern District of California. Between July 2015 and August 2020, Piercey used the money he stole for various business and personal expenses, including paying a criminal defense firm and the purchase of two residential properties, according to the U.S. Attorney's office. When FBI agents tried to arrest Piercey in November 2020, he evaded arrest and led agents on a vehicle chase through a residential neighborhood and onto the highway before abandoning the vehicle and entering a lake with a scooter, prosecutors said. The underwater device was later identified as a Yamaha 350LI underwater submersible device, according to ABC News. 'Piercey spent some time out of sight underwater where law enforcement could only see bubbles,' federal prosecutors wrote in court documents, per the outlet. The scooter, often used by divers, is a motorized device that pulls users underwater at about 4 mph, according to Water Sky Sports, a company that sells the device for around $530. After about 20 minutes, Piercey emerged from the water where he was then arrested by FBI agents, according to the statement. After his arrest, Piercey used coded language with two people who visited him in jail and told them to 'take actions' with contents in his U-Haul storage locker, according to the Justice Department statement. An FBI search of the locker turned up a wig and ₣31,000 in Swiss francs — about $37,000. 'Many invested their life savings with Matthew Piercey's companies, not knowing that the claim of guaranteed returns were the empty promises of a Ponzi scheme,' FBI Sacramento Special Agent Sid Patel said. 'The FBI agents, forensic accountants, and other specialized personnel work tirelessly to ensure those who exploit the trust of a hopeful public will face serious consequences.'Piercey paid back $8.8 million of the $35 million invested, according to the statement from the U.S. Attorney's Office. Piercey is scheduled to be sentenced on Sept. 4, 2025, per the statement from the U.S. Attorney's office. He faces a maximum penalty of 20 years in prison and a fine up to $250,000 or twice the gross gain or loss for each wire fraud and mail fraud. Read the original article on People
16-05-2025
Man who used underwater scooter in lake to try to evade arrest pleads guilty
SACRAMENTO, Calif. -- A California man who tried to evade arrest by jumping into a lake with an underwater scooter pleaded guilty Thursday to fraud, money laundering and witness tampering in connection with a $35 million investment fraud scheme, federal prosecutors announced. Prosecutors say that between 2015 and 2020, Matthew Piercey, 48, of Shasta County solicited investor funds and used the money for various personal and business expenses, including the purchase of two residential properties. He paid back to investors about $8.8. million of the $35 million invested, according to a statement released by the U.S. Attorney's Office for the Eastern District of California. When agents tried to arrest him in November 2020, Piercey led them on a car chase before dumping his vehicle and fleeing into frigid Lake Shasta with what was later identified as a Yamaha 350LI underwater submersible device. 'Piercey spent some time out of sight underwater where law enforcement could only see bubbles,' federal prosecutors wrote in court documents calling him a flight risk. He emerged from the lake after about 20 minutes and was arrested. The underwater device was a sea scooter, or a motorized device that pulls users underwater at speeds of about 4 mph (6.4 kph). Piercey tried to dissuade investors and witnesses from responding to grand jury subpoenas and after his arrest used coded communications from jail to direct two individuals to dispose of a U-Haul storage locker he had rented, according to the Justice Department statement. An FBI search of the locker turned up a wig and 31,000 Swiss francs, or roughly $37,000.
Yahoo
16-05-2025
- Yahoo
California man who used underwater scooter in lake to try to evade arrest pleads guilty to fraud
SACRAMENTO, Calif. (AP) — A California man who tried to evade arrest by jumping into a lake with an underwater scooter pleaded guilty Thursday to fraud, money laundering and witness tampering in connection with a $35 million investment fraud scheme, federal prosecutors announced. Prosecutors say that between 2015 and 2020, Matthew Piercey, 48, of Shasta County solicited investor funds and used the money for various personal and business expenses, including the purchase of two residential properties. He paid back to investors about $8.8. million of the $35 million invested, according to a statement released by the U.S. Attorney's Office for the Eastern District of California. When agents tried to arrest him in November 2020, Piercey led them on a car chase before dumping his vehicle and fleeing into frigid Lake Shasta with what was later identified as a Yamaha 350LI underwater submersible device. 'Piercey spent some time out of sight underwater where law enforcement could only see bubbles,' federal prosecutors wrote in court documents calling him a flight risk. He emerged from the lake after about 20 minutes and was arrested. The underwater device was a sea scooter, or a motorized device that pulls users underwater at speeds of about 4 mph (6.4 kph). Piercey tried to dissuade investors and witnesses from responding to grand jury subpoenas and after his arrest used coded communications from jail to direct two individuals to dispose of a U-Haul storage locker he had rented, according to the Justice Department statement. An FBI search of the locker turned up a wig and 31,000 Swiss francs, or roughly $37,000. Piercey faces a maximum penalty of 20 years in prison for each wire fraud, mail fraud, witness tampering and money laundering count. His sentencing is scheduled for Sept. 4.
CBS News
16-05-2025
- Business
- CBS News
California man who tried to evade FBI with underwater scooter pleads guilty to $35 million Ponzi scheme
SACRAMENTO — A Northern California man who tried to evade FBI agents with an underwater scooter pleaded guilty to a $35 million Ponzi scheme, prosecutors announced Thursday. Matthew Piercey, of the Shasta County town of Palo Cedro, was convicted of 27 counts including wire fraud, money laundering and witness tampering, the U.S. Attorney's Office Eastern District of California said. Prosecutors said that between 2015 and 2020, Piercey operated an elaborate investment fraud scheme under the guise of his two companies, Family Wealth Legacy and Zolla. He solicited funds from investors using false claims about trading algorithms, liquidity, and the financial stability of his two companies. Piercey promised investors guaranteed returns using an "Upvesting Fund," which he marketed as an automated algorithmic trading fund. He privately admitted to an associate that this fund never existed, prosecutors said. Piercey only paid back around $8.8 million of the $35 million he collected from investors, prosecutors said. He used the rest for personal and business expenses, including legal fees and the purchase of two homes. "Many invested their life savings with Matthew Piercey's companies, not knowing that the claim of guaranteed returns were the empty promises of a Ponzi scheme," said FBI Sacramento Special Agent in Charge Sid Patel. Court documents show that, upon learning he was under investigation, Piercey attempted to "dissuade investors and witnesses from responding to grand jury subpoenas," the U.S. Attorney's Office said. At this same time, Piercey moved nearly $775,000 from victim investors into a personal bank account. The FBI had been investigating for more than a year when they moved in to arrest him on November 16, 2020. Piercey led law enforcement officials on a chase before abandoning his pickup truck near Shasta Lake, where he attempted to escape underwater using a Yamaha 350Li submersible device. Piercey was in the lake for around 20 minutes before returning to shore and being placed in handcuffs. In jail, Piercey was found to have used coded language to direct two visitors to take action with items stored in a U-Haul locker he had rented in Redding, prosecutors said. The locker, rented under a fake name with a forged ID, contained a wig and ₣31,000 in Swiss francs, among other items. Those two associates were identified as Ken Winton and Gary Klopfenstein, both of whom have since pleaded guilty to their part in the scheme. Both men are scheduled for status conferences regarding sentencing on August 21. Winton was originally recruited by Piercey to be an investor but eventually took on management responsibilities at Zolla. Piercey, 48, faces up to 20 years in prison for each count and substantial fines. He is scheduled to be sentenced on September 4. "Investment fraud schemes like the one led by this defendant can devastate lives, retirements, and undo decades of planning by hard-working people simply looking for a trusted place to invest their money," Acting U.S. Attorney Michele Beckwith said.
Winnipeg Free Press
16-05-2025
- Winnipeg Free Press
California man who used underwater scooter in lake to try to evade arrest pleads guilty to fraud
SACRAMENTO, Calif. (AP) — A California man who tried to evade arrest by jumping into a lake with an underwater scooter pleaded guilty Thursday to fraud, money laundering and witness tampering in connection with a $35 million investment fraud scheme, federal prosecutors announced. Prosecutors say that between 2015 and 2020, Matthew Piercey, 48, of Shasta County solicited investor funds and used the money for various personal and business expenses, including the purchase of two residential properties. He paid back to investors about $8.8. million of the $35 million invested, according to a statement released by the U.S. Attorney's Office for the Eastern District of California. When agents tried to arrest him in November 2020, Piercey led them on a car chase before dumping his vehicle and fleeing into frigid Lake Shasta with what was later identified as a Yamaha 350LI underwater submersible device. 'Piercey spent some time out of sight underwater where law enforcement could only see bubbles,' federal prosecutors wrote in court documents calling him a flight risk. He emerged from the lake after about 20 minutes and was arrested. The underwater device was a sea scooter, or a motorized device that pulls users underwater at speeds of about 4 mph (6.4 kph). Piercey tried to dissuade investors and witnesses from responding to grand jury subpoenas and after his arrest used coded communications from jail to direct two individuals to dispose of a U-Haul storage locker he had rented, according to the Justice Department statement. An FBI search of the locker turned up a wig and 31,000 Swiss francs, or roughly $37,000. Piercey faces a maximum penalty of 20 years in prison for each wire fraud, mail fraud, witness tampering and money laundering count. His sentencing is scheduled for Sept. 4.
